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3 years ago

Why do we use trade barriers? What is the purpose?

1 answer:

vladimir1956 [14]3 years ago

4 0

Reasons For Using Trade Barriers. As for protecting domestic producers, some countries use trade barriers is to protect immature domestic producers and industries that cannot effectively compete with foreign products. Trade barriers makes imported goods and products less attractive than locally produced goods.

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Rydell Inc. is evaluating a proposed capital budgeting project that will require an initial investment of $168,000. The project

Inessa [10]

Answer:

-$15,315.21

Reject the project

Explanation:

The net present value is the present value of after tax cash flows from an investment less the amount invested.

The NPV can be found using a financial calculator.

Cash flow in year zero = -168,000

Cash flow in year 1 = $44,800

Cash flow in Year 2 = $51,700

Cash flow in Year 3 = $48,600

Cash flow in Year 4 = $47,900

Interest rate = 10%

NPV = $-15,315.21

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

The decision rule with NPV is to accept the project if the npv is positive. Since the NPV calculated above is negative, the project should be rejected.

I hope my answer helps you

6 0

3 years ago

If an investor buys enough stocks, he or she can, through diversification, eliminate all of the market risk inherent in owning s

dimulka [17.4K]

Answer:

The given statement is True.

If an investor buys enough stocks, he or she can, through diversification, eliminate all of the market risk inherent in owning stocks, but as a general rule it will not be possible to eliminate all market risk.

5 0

2 years ago

Investors expect the market rate of return this year to be 10%. The expected rate of return on a stock with a beta of 1.2 is cur

Artemon [7]

Answer: 9.6%

Explanation:

Expected rate of return on the stock will change by beta times the unanticipated

change in the market return:

1.2 ( .08 - .10) = -2.4%

• Therefore, the expected rate of return on the stock should be revised to:

.12 - .024 = 9.6%

3 0

3 years ago

Refer to Scenario 15-2. Which of the following statements is most likely to be true? (i) New entrants to the market know they wi

prohojiy [21]

Answer: (i), (iii) and (iv)

Explanation:

PPCo is able to provide the entire needs of the county and and has been in operations for a few years gaining loyal customers and controlling the market. Any company that will want to come in will have to fight them for market dominance and as such will have a smaller market share than PPCo.

As PPCo is meet the demands of everyone in the county, they are most likely experiencing Economies of Scale. This means that they are making more revenue thereby driving total cost down as the fixed costs remain the same but Revenue climbs. This classifies them as a Natural Monopoly because Natural Monopolies experience Economies of Scale and declining average total costs.

3 0

3 years ago

The cost object(s) of the activity-based costing method is(are): Multiple Choice The time period. The production departments of

MArishka [77]

Answer:

The production activities of the company.

Explanation:

The activity-based costing will look for different activities in the production process rather than dividing into department or jobs to determinate the overehad cost per unit

Once these activities are identified it will calcualte the cost pool of the activity and look for the appropiae cost driver to distribute among the products.

6 0

3 years ago