The manufacture of a popular mouthwash liquid brand is losing sales to a competitor who has been able touse bulk purchasing of i
1 answer:
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Answer:
NPV of the microwave: 162.04
Explanation:
we will calcualte the present value of the microwave cost savings of 76 dollars per year using the annuity formula:
C 76 dollars
time 5 years
rate 0.05
PV $329.0402
The net present value will be the present value less investment
329.04 - 167 = 162.04
Answer:
C. Inside its PPC
Explanation:
The Production possibility Curve also known as Production Possibility Frontier PPF is the curve that depict the relationship in the production of 2 given goods in an economy (See Image).
The curve basically shows 5 situations:
1. Point A: where all the production is devoted to Wheat
2. Point B: where all the production is devoted to Cotton
3. Points C: Any given point along the curve different to point A and B represent the trade off in the production of the 2 goods
4. Point D: Is an impossible point to achieve as it is outside the capabilities of the curve
5. Point E: Is an inefficient point of production as it is below the possibilities of production.
In the case of the expantion of the production capacity while the total spending fails to rise as fast. Then, the economy ends up in point E were inefficiency must be solve in order to produce in a maximum capacity.
