Answer:
Liquidity
Explanation:
Liquidity ratios are those ratios that meet the current debt obligations and converted into cash within one year. It includes current ratio, quick ratios, dales sales outstanding, etc
Current ratio = Total Current assets ÷ total current liabilities
where,
The current assets include cash, stock, account receivable, etc
And, the current liabilities include accounts payable, salaries payable, et
Quick ratio = Quick assets ÷ total current liabilities
where,
Quick assets = Cash and cash equivalents + short-term investments + Accounts receivable (net)
Day sale outstanding = (Beginning Accounts receivable + ending Accounts receivable) ÷ Net sales × number of days in a year
Answer:
b. The proposal is desirable and the rate of return expected from the proposal is less than the minimum rate used for the analysis.
Explanation:
Under the Net Present Value method we compute the present value of all cash flows, inflow or outflow
And these values are discounted at the minimum rate of return required if the resulting value is positive that means that the rate of return expected is less than minimum rate of return used to discount the value. In that case we are sure that the result of this project will be positive and favorable.
As the discount rate used is in, fact is higher than the actual rate of expected return, therefore this assures to return a profit.
Final Answer
b. The proposal is desirable and the rate of return expected from the proposal is less than the minimum rate used for the analysis.
<span>Several multinational companies close their factories in the nation because of its changing economic climate.
Shifts left. The maximum production of the economy is lower because their are fewer factories.
A mass e-learning initiative makes education cheaper and accessible across the nation.
Shifts right. This makes education less expensive, freeing up public and private money for investment and other uses which can further increase output.
Government money is illegally taken by increasingly corrupt bureaucrats and politicians.
Shifts left. this money is taken out of the economy where it could otherwise be invested in factors of production.
New economic policies facilitate the signing of new international trade agreements.
Shifts right. Increased trade opens up markets to foreign imports/exports and investment, increasing the maximum capacity of the economy. </span>
But nearly all supply curves share a basic similarity: they slope up from left to right. A supply curve is a graphic representation of the relationship the cost of a good or service and the quantity that is supplied of it has. A common graphical representation has price on the left vertical axis and the quantity supplied on the horizontal axis. Different changes in the production or cost of a good or service can have an affect on the supply curve.
