Answer:
$ 508304.93
Explanation:
Using the formula for calculating the net present value
NPV = Cash flow / ( 1 + i)^n - initial investment
where NPV = net present value which represent the change in the value of the company
i = the discounted rate and n is the number of years
NPV = 580000 / (1 + 0.075)¹ + 580000 / (1 + 0.075)² + 580000 / (1 + 0.075)³ - 1 000 000 = 539534.88 + 501892.92 + 466877.13 - 1000000 = $ 508304.93 is the change in the value of the company.
The Employees of the firm's production department lack clarity in decisions regarding quality standards for manufacturing. :)
Answer:
expansionary fiscal policy.
Explanation:
Fiscal policy in economics refers to the use of government expenditures (spending) and revenues (taxation) in order to influence macroeconomic conditions such as Aggregate Demand (AD), inflation, and employment within a country. Fiscal policy is in relation to the Keynesian macroeconomic theory by John Maynard Keynes.
A fiscal policy affects combined demand through changes in government policies, spending and taxation which eventually impacts employment and standard of living plus consumer spending and investment.
Basically, an expansionary fiscal policy will cause the total increase in aggregate demand to be greater than the initial increase in aggregate demand due to the multiplier process.
Hence, if during a severe recession, Congress passes legislation to cut taxes, this would be an example of an expansionary fiscal policy.
According to the Keynesian theory, government spending or expenditures should be increased and taxes should be lowered when faced with a recession, in order to create employment and boost the buying power of consumers.