Using the internal rate of return method, a conventional investment project should be accepted if the internal rate of return is equal to or greater than the discount rate.
investment is dedicating an asset to achieve an increase in value over a period of time. Making an investment requires sacrificing your current assets such as time, money, and effort. In finance, the purpose of investment is to generate profit from the assets invested.
The definition an investment is an asset that is purchased or invested to build wealth and save money from hard-earned income or capital appreciation. The importance of investment is primarily to gain an additional source of income or to make a profit from the investment over a period of time.
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Answer:
Suppose the economy is experiencing an output gap of –3%
a. Monetary policy or fiscal policy can be used to raise actual output toward potential output when:
The government can increase its spending or reduce taxes, which will shift the IS curve to the right and increase GDP.
The Fed can reduce the interest rate, which will shift the MP curve down and increase GDP.
b. The policies identified in part a,
can be used together to raise actual output toward potential output.
Explanation:
Investment-Savings (IS) curve shows all the levels of interest rates and output (GDP) at which an economy's total desired investment (I) equals its total desired saving (S). This equilibrium can be achieved at a level of interest rate that maximizes output. The IS curve slopes downward, and to the right because at a lower interest rate, investment is higher, which produces more total output (GDP) for the economy.
Economies of Large Scale 2. Facilitate Distribution of Goods 3. Warehousing and Marketing 4. Financial Assistance 5. Risk Bearer 6. Forecasting of Demand 7. Regulate Production 8. Stabilisation of Prices
9. Connecting Link 10. Transportation 11. Provides Market Information 12. Price Stability 13. Risk Bearing 14. Marketing Functions 15. Promotion of Goods 16. Demand Analysis and Forecasting 17. Help in Sales Organization
Answer:
B. through negotiations between the parties involved.
Explanation:
- correct answer is through negotiations between the parties involved because According to Coase theory, priority rights are best defined by negotiation between the parties involved and there is no transaction cost in negotiations.
- The Coase theory states that when transaction costs are low, both parties can negotiate and reach an effective outcome in the presence of an outsider.
Answer:
Garrett Co. cash flows from operating activities is $61,000.
Explanation:
Garrett Co.
Statement of cash flows (extract)
Net income $56,000
Add Loss on disposal of equipment 5,000
Cash flows from operating activities $61,000
Loss on disposal of the equipment was calculated as Proceeds - net book value, that is $15,000 - $20,000.
Note that purchase of equipment belongs to investing part of the cash flows while proceed from stock issuance and dividend payment belong to financing part of the cash flows
