Automatic stabilizers have a similar impact as discretionary fiscal policy but occur automatically, without action by the government. Automatic stabilizers increase aggregate demand during recessions and reduce aggregate demand during expansions.
Answer:
see below
Explanation:
Equity financing involves selling shares to investors. The entrepreneurs surrender part ownership to third parties. It means profits have to be shared, and there have to consultations in every major decision.
Debt financing involves borrowing from lenders. It has a big advantage in that the entrepreneur maintains full control of the business. They do not have to share profits with other people or risk being kicked out of the business. However, debts have to be paid. The monthly repayment for several years can have hamper progress. It reduces profits, making a business seem less valuable.
A business should balance between equity and debt financing. As much as possible, equity financing should have a bigger proposition of capital to be profitable and increase in worth.
The answer to this question is "product invention". Kho Khao's coffee house is currently involved in product invention when it is the first coffee house that introduced a flavored coffee locally and in the global market. It also sells coffee in several and different flavors such as blueberry, cinnamon, and cranberry. It was based on the flavors preferred in the target country.
Managerial Accounting is different from Financial Accounting in that <em>c. Managerial accounting includes many projections and estimates whereas financial accounting has a minimum of predictions.</em>
The differences between Managerial Accounting and Financial Accounting do not arise because of Managerial accounting:
- Focuses on the organization while financial accounting focuses on projects, etc.
- Never includes non-monetary information; it includes non-monetary information than financial accounting
- Used by investors, while financial accounting is used by creditors
- Structured and controlled by GAAP.
Thus, the difference between the two is that Financial accounting is structured and controlled by GAAP and used by <em>investors and creditors</em>. Managerial accounting is not structured by GAAP and is used by <em>management</em> in decision-making.
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Answer:
The net present value is $3,624
Explanation:
Net present value is the sum of all cash inflows and outflows in present value terms. It is calculated by discounting each cash flow with given interest rate and for specified period of time.
Net present value of this project is $3,623.84
All the workings and calculations are made in an MS Excel File which is attached with this answer.
