In the given problem the company is considering opening a plant in China which shall provide the anticipated gross profit of $4,500,000. The costs of the project include
$3,500,000 to set up the plant and $800,000 to train employees, and an additional $160,000 to build relationships with the local suppliers.
So the total cost of project is 3,500,000+800,000+160,000 = $4,140,000
Now the net benefit from the project shall be 4500,000 – 4140,000 = $360,000
Hence we can say that the benefits outweigh the costs by $360,000.
Answer:
Venture capitalists typically control all of the seats on a start-up's board of directors, and often represents the single largest voting block on the board.
Explanation:
A venture capital is a type of capital arrangement by venture capital , provided to start up companies with the prospect of potential growth. Companies that provides financies for start up have a stake in the business they are financing. It is usually a high risk business.
Examples of venture capitalist are
Investment banks, pension funds, insurance companies etc.
Before finances can be made by venture capitalist, the initial capital required to start required to start the business is usually provided by the entrepreneur and his family.
Answer:
2 year yield 4 years from now = 11.0%
Explanation:
2 year yield 4 years from now = [ ( 1 + 0.0795)^6 / ( 1 + 0.058)4]1/2 - 1
2 year yield 4 years from now = [ 1.50073 / 1.286466]1/2 - 1
2 year yield 4 years from now = 1.011 - 1
2 year yield 4 years from now = 11.0%
Answer:
Absolute scarcity: First, it may be that there are simply insufficient quantities of a resource to meet human needs or wants. ... Relative scarcity: Second, there may be physical quantities of a resource present but scarcity exists because of problems about supply or distribution.Jan 19, 2012
Explanation:
If a good that generates positive externalities were produced and priced to take into account these spillover benefits, then its: price and output would increase.
Definition of Positive Externality: this happens when the consumption or production of a decent causes a benefit to a 3rd party. For example: once you consume education you get a non-public benefit. But there also are benefits to the remainder of society.
When a positive externality is present, the market produces the socially optimal quantity of the great or service, since there's a benefit to society that's not captured by the individual.
When products that make positive externalities are produced, at the market equilibrium output, the social benefit Positive Externality generated by consuming the merchandise exceeds the private benefit. A. people that sleep in one country have the benefit of the assembly of an honest or service that happens in another country.
This occurs when the assembly of an honest person causes a 3rd party benefit. As a result there's a Positive Externality nonstop benefit where the assembly of an honest or service positively impacts a 3rd party. The benefit to the individual or firm is a smaller amount than the benefit to society.
learn more about Positive Externality: brainly.com/question/10743687
#SPJ4