Answer:
NPV = $24,910.26
The investment is economically justified because it increases the wealth pg Jacobson Recovery by $24,910.26
Explanation:
To determine whether the investment is justifiable we will compute the the Net present Value of the project
The Net present value (NPV) is the difference between the Present value (PV) of cash inflows and the PV of cash outflows. A positive NPV implies a good and profitable investment project and a negative figure implies the opposite.
NPV = PV of cash inflows - PV of cash outflows
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<em>PV of cash average revenue = A × (1-(1+r)^(-n))/r</em>
A- average revenue, r- discount ate- 12% , n- number of years- 10
PV of reveue = 52,000 × (1-(1.12)^(-10)/0.12= $293,811.60
<em>PV of salvage value = F × (1+r</em><em>)</em><em>^(-n)</em>
= 50,000 × 1.12^(-10)
= 16,098.66183
NPV = $293,811.60 + 16,098.66183 - $285,000
= $24,910.26
Answer:
The correct answer is b. will go primarily to consumers.
Explanation:
Inelastic demand is that demand that is not very sensitive to a change in price. In this way, before a variation in the price the quantity demanded reacts in a less than proportional way. For example, if the price increases by 10% and in response the quantity demanded is reduced by less than 10%, then the demand is said to be inelastic.
While the elasticity of the offer presents the degree of response of the quantities offered to variations in the price of the good considered, the price of other goods, the costs of productive factors or business expectations.
Answer:
Which of the following statements is correct?
Explanation:
Stock which has appreciated in value must be sold before it is considered part of gross income.
Answer:
450 billion
Explanation:
Marginal Propensity to consume (MPC) is a ratio that measure much the investment in the economy is consumed.
Marginal Propensity to save (MPS) is a ratio that measure much the investment in the economy is saved
Marginal Consumption = $500 billion - 450 billion = 50 billion
Spending ratio = 50 / 500 = 0.1
Marginal Propensity to consume (MPC) = 0.1
Marginal Propensity to save (MPS) = 1 - 0.1 = 0.9
Spending Multiplier = 1 / MPS = 1 / 0.9 = 1.11
First Round of Multiplier
Spending 500 billion increase income 500 billion
after consuming 50 billion
In second round Spending 450 billion will increase the income by 450 billion
<span>If your new neighbor drilled a well and shortly thereafter your well went dry, the least that your neighbor might have to do to restore your water supply is to dig the well deeper. The more the well is deep, the greater is the chance of both of you to have lesser amounts of water because you have exceeded the water table where it is located. </span>