Answer:
A.
Explanation:
Capital Rationing can be defined as restrictions imposed by a company on the new investments and projects. The purpose of imposing capital rationing is to fortify the flow of cash of a company. It is done so that the compnay may not run out of the cash. Capital Rationing is imposed by making the cost of capital higher on new investments.
The function that is NOT performed by Capital rationing is verifying the best financing option available.
So, the correct answer is option A.
Answer:
Total revenue rises immedately after the fare increase, since demand over the immediate period is price Inelastic.
Explanation:
Elasticity in the price demand measures the porcentage in the change of the quantity demanded as a response to a change in the price. If the elasticity is more than 0 but less than 1 it means that the price demand is inelastic. So when the price is rised the quantity demand will decrease in a minor porcentage than the rise in the price so it will represent a bigger revenue.
Answer:
Option (D) is correct.
Explanation:
The payback period is the amount of time required to get your investment back.
Shorter the payback period, the better it is for the investor.
Given that,
Useful life = 6 years
Copier cost = $7,740
Generate annual cash inflows = $2,150
Therefore,
Payback period = Initial investment ÷ Annual cash inflow
payback period = $7,740 ÷ $2,150
= 3.60 years