Equity shareholders are called the dividend
Answer:
payback period = 4.275 years
Explanation:
year cash flow balance
0 -150,000 -150,000
1 10,000 -140,000
2 25,000 -115,000
3 50,000 -65,000
4 37,500 -27,500
5 100,000 72,500
payback period is between the fourth and fifth year:
27,500 / 100,000 = 0.275
payback period = 4.275 years
Answer:
future price uncertainty
Explanation:
Inflation is a persistent rise in the general price levels
Types of inflation
demand pull inflation – this occurs when demand exceeds supply. When demand exceeds supply, prices rise
cost push inflation – this occurs when the cost of production increases. This leads to a reduction in supply. Higher prices are the resultant effect
Shoe leather cost is when people try to spend money immediately so they would not be holding money for a long time. This is because money loses its value in an inflation.
Menu costs are the costs of changing price constantly as a result of inflation, When there is inflation, prices increases regularly. As a result prices needs to be updated regularly.
Assuming the interest rate is 5% per year, after 5 years the value would be $250.
Answer:
GDP stands for "Gross Domestic Product" and represents the total monetary value of all final goods and services produced (and sold on the market) within a country during a period of time (typically 1 year). GDP is the most commonly used measure of economic activity.
Explanation:
