Answer:
B) Children’s clothing only
Explanation:
cost of the expansion $148,000
three mutually exclusive projects:
- NPV $221,000 for children’s clothing ≥ $148,000 (initial investment)
- NPV $178,000 for exclusive gifts ≥ $148,000 initial investment
- NPV $145,000 for decorator items ≤ $148,000 initial investment
The projects whose NPV is positive should be considered (this eliminates decorator items)
Since the projects are mutually exclusive, only one can be chosen. So the project with the highest NPV is the best project for the store ⇒ children's clothing
Answer:
Option (C) is correct.
Explanation:
Consumer income is one of the main determinant of demand. Consumer income is related with the demand of normal and inferior good.
If there is an increase in the income of a consumer then as a result the demand for a normal good increases and shifts the demand curve rightwards.
If there is a fall in the income of the consumer then as a result the demand for a normal good also decreases and shifts the demand curve leftwards.
Alternatively, the consumer income is inversely related with the demand for inferior goods.
Paying a graphic designer to create a logo.
50,000×5=250,000
250,000÷4=625,000
250,000-625.000=375.00
Sum=375.00
