Answer:
$714,980.95
Explanation:
The most it would be willing to pay is the present value of the cash flows
present value is the sum of discounted cash flows from a project
present value can be determined with a financial calculator
Cash flow each year from year 1 to 6 = $150,000
I = 7%
Present value = $714,980.95
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Answer:
D.
an income tax rate cut
Explanation:
Fiscal stimulus programs are government policies aimed at accelerating growth in times of recessions. The government adjusts its spending or tax rates to influence the economy's direction. A stimulus is meant to increase output and increase income.
An income tax rate cut increases the amount of disposable income of consumers. An increase in disposable incomes boosts consumer spending, which results in increased demand. Firms in the service and manufacturing industries will respond to the rise in demand by increasing production. A rise in output creates employment opportunities.
Answer:
i think d is the correct answer
the answer is b im not too sure tho
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