I need more details to answer this
Answer:
C) 4.2 years
Explanation:
The computation of the payback period is as follows;
As we know that
Payback Period = Initial cost ÷ Annual net cash flow
Here
Initial cost = $278000
Annual net cash flow = Incremental after tax + Depreciation per year
where,
Depreciation per year = (Original cost - Salvage value) ÷ Estimated Life
= ($278,000 - $30,000) ÷ 8 years
= $31,000
Annual net cash flow is
= $35000 + $31000
= $66000
So,
Payback Period is
= $278000 ÷ $66000
= 4.2 Years
Answer:
1. Negative externality: Jeff declined to buy his favorite chocolate bar because the price has increased.
2. Dollar vote: increased neighborhood crime is caused by a pawn shop.
3. Public goods: a freeway is available for all to use.
4. Positive externality: public education in the United States results in benefits for others around the world.
Explanation:
1. Negative externality: Jeff declined to buy his favorite chocolate bar because the price has increased. A negative externality arises when the production or consumption of a finished product or service has negative impact (cost) on a third party.
2. Dollar vote: increased neighborhood crime is caused by a pawn shop. A dollar vote describes how the consumer's purchasing power influences the type (quantity) of goods to be produced and supplied to the market.
3. Public goods: a freeway is available for all to use. It refers to any goods that is accessible and available to the general public at all times without an additional fee, charges or cost.
4. Positive externality: public education in the United States results in benefits for others around the world. A positive externality arises when the production or consumption of a finished product or service has a significant impact or benefits to a third party that isn't directly involved in the transaction.
Answer: I will expect the spread between the yields to WIDEN
Explanation: The spread between the yield on Treasury bills and commercial paper will widen if the economy were to enter a steep economy.
A downward slope in the economy increases credit risk. It leads to a situation whereby Investors demand a greater premium on debt securities which are subject to default risk.
Answer:
B.
Explanation:
The production possibilities curve shows the trade off, where the more of them of one item toy choose to produce means a corresponding decrease in the other item.
The curve represents the maximum productivity of two different items.
The curve also shows that the trade off may not be a 1 to 1 ratio. At each end, it only takes a small diversion of resources to produce a large quantity of the other item.
All points in the curve are possible and equally efficient in production. The points outside of the curve are impossible with own production. The points inside the curve are inefficient.
