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3 years ago

9

If a decrease in price from $2 to $1 causes an increase in quantity demanded from 100 to 120, using the midpoint method, price e

lasticity of demand equals:

1 answer:

uysha [10]3 years ago

3 0

Answer:

b. 0.27

Explanation:

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In your own words, discuss the payback period, NPV (net present value), and IRR (internal rate of return) methods for capital bu

lisabon 2012 [21]

Answer:

The net present value (NPV) is the most important and useful method of capital budgeting analysis. It is basically calculated by determining the present value of all the future cash flows generated by a project and then subtract the original investment cost. If the answer is positive (positive NPV) then the project should be profitable and the company should go ahead with it. The limitation of NPV results from the discount rate used to calculate the present value, since it is extremely important to use the proper discount rate and not one that is too low or too high.

The second most useful tool is the internal rate of return (IRR) which is very related to the NPV. The IRR shows us basically at what discount rate the NPV would equal 0. Generally if the IRR is higher than the discount rate the NPV should be positive.

The payback period shows us how much time it takes a project to recover the original amount of money invested in it. The payback period is only useful for some industries where early obsolescence might be a problem. E.g. technological firms only approve projects with very short payback periods because their products might be obsolete in just one or two years.

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4 years ago

You plan to retire 33 years from now. You expect that you will live 29 years after retiring. You want to have enough money upon

timurjin [86]

Answer:

He must deposit $8,939.48 every year.

Explanation:

The explanation is attached below

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3 years ago

Professional Properties is considering remodeling the office building it leases to Heartland Insurance. The remodeling costs are

Virty [35]

Answer:

- $651,234.54

Explanation:

Data provided in the question:

Cost of remodeling = $3.4 million = $3,400,000

Rent paid each year = $820,000

Duration, n = 5 years

Discount rate, r = 15% = 0.15

Now,

Present value of the amount rent paid each year = A × $\left[ \frac{1-(1+r)^{-n}}{r} \right]$

Here,

A = Rent paid each year

Thus,

Present value of the amount rent paid each year

= $820,000 × $\left[ \frac{1-(1+0.15)^{-5}}{0.15} \right]$

= $820,000 × 3.352153

= $2,748,765.46

Therefore,

Benefit = Present value of the amount rent paid - Cost of remodeling

= $2,748,765.46 - $3,400,000

= - $651,234.54

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4 years ago

High-performance teams are characterized by: members with only individual accountability. members with specialty skills rather t

Soloha48 [4]

Answer:

extensive communication mechanisms.

Explanation:

High-performance teams is a term often used in organizational settings to describes teams that often performed better than other teams and beyond expectation. They are associated with various characteristics amongst others which are:

1. Presence of extensive communication mechanisms

2. Constant collaboration among team members

3. Define objectives and goals

4. Ability to tackle and resolve conflict amicably with speed.

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3 years ago

Jewelry Company has a sales budget for next month of $450,000. Cost of goods sold is expected to be 45 percent of sales. All goo

lukranit [14]

Answer:

The cost of goods sold for next month is expected to be $202,500

Explanation:

Given that,

Sales budget = $450,000

Cost of Good sold = 45% of sales

Opening inventory = $20,000

Ending inventory = $24,000

Beginning accounts payable = $206,500

Since, in the given question, it is mentioned that the cost of good sold is 45% of sales.

So,

Cost of Goods Sold (COGS) = 0.45 × $450,000

= $202,500

Hence, the cost of goods sold for next month is expected to be $202,500

Note: we don't considered other things which is mentioned in the question.

7 0

3 years ago