Answer:
NPV = -$78,318
Explanation:
cash flow 0 = -$310,000 - $190,000 = -$500,000
cash flow 1 = $125,000
cash flow 2 = $125,000
cash flow 3 = $125,000 - $58,000 = $67,000
cash flow 4 = $125,000 + $83,000 + $190,000 = $398,000
NPV = -$500,000 + $125,000/1.2 + $125,000/1.2² + $67,000/1.2³ + $398,000/1.2⁴ = -$78,318
If the investment turnover is 1.20 for one of its investment centers, the return on investment must be: 39.72%.
Using this formula
Return on investment = Profit margin ×Investment turnover
Where:
Profit margin=33.1% or 0.331
Investment turnover=1.20
Let plug in the formula
Return on investment = 0.331×1.20
Return on investment = 0.3972×100
Return on investment = 39.72%
Inconclusion If the investment turnover is 1.20 for one of its investment centers, the return on investment must be: 39.72%
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Answer:
false
Explanation:
Sunk cost is cost that has already been incurred and cannot be recovered. it should not be considered when making future decisions
Answer:
D. A large number of people are unemployed and have decreased spending power.
Answer:
The correct answer is: No, this situation is impossible.
Explanation:
To begin with, in the reality the situation with the demand curve is all the opposite. The <em>law of demand</em> establishes that there is an indirect relationship between the price of a product and its quantity demanded in the market, therefore that when the price of a good increases then its quantity demanded decreases. And it is by logic as well, because no one will buy more of something if the products is more expensive than it was before. Therefore that the situation in the text is impossible and it could only be opposite.