Economics conditions, political stability and balance of payments 3
Answer:
Present Value= $18,181.82
Explanation:
Giving the following information:
Savings= $2,000
The machine will then begin to wear out so that the savings decline at a rate of 4 % per year forever.
Interest rate= 7%
To determine the present value of the savings, we need to use the perpetual annuity formula with the decline rate.
PV= Cf/ (i + g)
Cf= cash flow
PV= 2,000/ (0.07 + 0.04)
PV= $18,181.82
Answer: centralized
Explanation:
Based on the information given in the question, we can infer that McCoy operates a centralized department.
This is a centralized department because McCoy takes the decisions in the organization. In a centralized department, the organizational structure is such that the power regarding the decision is confined to top management, while the followers just follow the instructions
Answer:
Creative destruction.
Explanation:
In 1942, the term creative destruction was first to be used by the notable Austrian economist known as Schumpeter Joseph.
Creative destruction is the economic process of withdrawing investments from low profit sectors and investing in new activities.
This ultimately implies that, creative destruction is a concerted effort towards the deliberate destruction or dismantling of long standing products, processes, practices, procedures or services in order to give room for innovative ideas and an improved technique for the production (manufacturing) of goods and services. Thus, the old technology or methods of production are dismantled so as to pave way for new technologies, procedures, goods and services.
I think it’s C, please forgive me if I’m wrong
