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Neporo4naja [7]
3 years ago
10

If a country has a trade surplus, we can conclude that it also has:

Business
1 answer:
ANTONII [103]3 years ago
3 0
<span>If a country has a trade surplus, we can conclude that it also has a net capital outflow.

</span><span>A trade surplus is an economic measure of a positive balance of trade, where a country's exports exceed its imports.</span>
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The correct answer is option B.

Explanation:

As people are using more tablets and fewer television sets, the demand for television sets will decline. This will cause the demand curve to shift to the left. As a result, the price level will decline.  

Now, with new production technique the cost of production declines. As a result, there will be an increase in the supply as the firm will be able to produce more at the same cost. This will cause the supply curve to shift to the right. This rightward shift in the supply curve may lead to an increase or decrease in the quantity of output. It depends on the extent of change in supply.

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McCann Co. has identified an investment project with the following cash flows.
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Answer:

McCann Co.

Present value

a. At 9$ =      $2,017.38

b. At 16% =   $3,379.42

c. At 25% =   $2,798.71

Explanation:

a) Data and Calculations:

Year Cash Flow         Discount         Present

                               Factor at 9%       Value

1         $840                0.917               $770.28

2         1,170               0.842                   143.14

3        1,430               0.772                1,103.96

4        1,575               0.708                 1,115.10

Total Present value =                     $2,017.38

Year Cash Flow         Discount         Present

                               Factor at 16%       Value

1         $840               0.862               $724.08

2         1,170               0.743                  869.31

3        1,430               0.641                  916.63

4        1,575              0.552                 869.40

Total Present value =                    $3,379.42

Year Cash Flow         Discount         Present

                               Factor at 25%      Value

1         $840               0.800               $672.00

2         1,170               0.640                 748.80

3        1,430               0.512                  732.16

4        1,575               0.410                 645.75

Total Present value =                    $2,798.71

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