It could be slavery or a Volunteer, it depends if it is willingly. I am pretty sure it is volunteer.
The answer would be a. a decrease in demand
When the price of the good is fixed at a level below the current (equilibrium) price, there will be a shortage of the good and the good will have to be effectively rationed. As in the question above, the consumer is worse off because she is not able to attain her utility maximizing point.
Answer:
-$8,705
Explanation:
The computation of the Net present value is shown below
= Present value of all yearly cash inflows after applying discount factor + salvage value - initial investment
where,
The Initial investment is $110,000
All yearly cash flows would be
= Annual cost savings × PVIFA for 4 years at 12%
= $30,000 × 3.0373
= $91,119
Refer to the PVIFA table
And, the salvage value would be
= Salvage value × pvif for 4 years at 12%
= $16,000 × 0.636
= $10,176
The discount factor should be computed by
= 1 ÷ (1 + rate) ^ years
Now put these values to the above formula
So, the value would equal to
= $91,119 + $10,176 - $110,000
= -$8,705
Answer:
Depositing in bank is a better option.
Explanation:
For this solution, we can either determine the interest rate given to George by his one of the friend or the future worth method,
Future worth method is used here,
Given that,
PV = $6,900
R = 9%
N = 10 Years
FV = 6,900 × 2.3673
FV = $16,334.81
Since, the future worth of investing in bank is more than the money to be offered by the George's friend (16,334.81 > 12,900) and hence, depositing in bank is a better option.
