Answer:
C) a reduction in the saving rate will have an ambiguous effect on (C/N)*
Explanation:
The steady state consumption refers to the difference between how capital wears out or depreciates vs total output. In order to keep a steady state consumption, the savings rate (which equals investment) must be enough to replace any worn out or completely depreciated capital.
Since the consumption rate is already higher than the steady state consumption, the effect of a decrease in the savings rate is ambiguous. Every dollar earned by a household is either spent or saved, and in order for savings to decrease, spending must increase.
But in this case, the spending level is already too high. A decrease in savings should increase consumption but the effects of the increase in the capital labor ratio and the per capita consumption are not certain.
The work breakdown structure must be the basis for a project cost estimate if you plan to create a cost baseline and use earned value management as part of monitoring and controlling costs.
Work can be made more manageable and approachable by using a common productivity strategy called task breaking. The Work Breakdown Structure (WBS), one of the most significant projects management papers, is the tool that applies this technique to projects. It does it on its own, integrating scope, cost, and schedule baselines to guarantee project plans are in sync.
The Work Breakdown Structure is a "deliverable-oriented hierarchical decomposition of the work to be completed by the project team," according to the PMI Project Management Book of Knowledge (PMBOK). WBS can be divided into two categories: deliverable-based and phase-based. The deliverable-based strategy is the most popular and preferred method. The Elements listed in the first Level of the WBS are the primary distinction between the two methodologies.
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Answer:
6.1 y
Explanation:
Diamond Company
New equipment÷(Annual net income +Depreciation expense)
New equipment$1,400,000
Annual net income $90,000
Depreciation expense $140,000
$1,400,000 ÷ ($90,000 + $140,000)
=$1,400,000÷$230,000
= 6.1 y
Therefore the cash payback period will be 6.1 years
Answer:
Annual interest rate = 8.23%
Explanation:
The annual interest rate i must have earn over the last 8 years to accomplish this goal is:
= ((25650/(9000*(1+6.1%)^7))^(1/8))-1
= ((25650/(9000*1.513588))^(1/8)) - 1
= ((25650/13622.29)^(1/8) - 1
= 1.882943323038931^(1/8) - 1
= 1.08231743862 - 1
= 0.08231743862
= 8.231743862%
= 8.23%
