The commodity is an inferior good.
An inferior good is one for which the quantity demanded decreases when the income of the consumer increases, or one for which the quantity demanded increases when the income of the consumer decreases. In contrast, a normal good is one for which the demand increases when the consumer's income increases.
Answer:
The correct answer is (A)
Explanation:
Construction business is one of the difficult and risky businesses to do. There are many costs involved while constructing a building. Insurance cost during construction is important to take care of third party injuries, and it also provides financial coverage regarding property damage. In a construction business, a company is only allowed to start construction after they cover their insurance cost.
Explanation:
The journal entries are as follows
a. Cash $540
To Account payable $540
(Being the error is recorded)
It is computed below:
= Corrected amount - incorrect amount
= $710 - $170
= $540
b. Bank service charges $20
To Cash $20
(Being the bank services charges are paid in cash is recorded)
All other information is ignored
Answer:
e. The NPV method assumes that cash flows will be reinvested at the cost of capital, while the IRR method assumes reinvestment at the IRR. Explanation:
Under the NPV method that is the Net Present Value method, discount rate used is cost of capital of a company, that is Weighted Average Cost of Capital. This is to ensure that the company is able to meet its current financing cost.
Under the IRR method the rate is calculated at which the return of investment and cost of such project or investment is equal, if it is more than cost of capital the project is acceptable.
Therefore, statement e stating that the NPV method uses the cost of capital and IRR uses the IRR rate is correct.
Answer:
A
Explanation:
They are a way better team
