The company's return on investment ROI would be 12.5%
What does a favourable return on investment mean?
The profit from an investment is divided by the investment's cost to determine the return on investment (ROI). When represented as a percentage, an investment with a profit of $100 and a cost of $100 would have a ROI of 1, or 100%. Generally speaking, a yearly ROI of around 7% or higher is regarded as a decent ROI for an investment in stocks. This also refers to the S&P 500's average annual return when inflation is taken into account of the company to increase the profit margin.
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Answer:
The right answer is "Infant industry".
Explanation:
- An economic phrase that is used to characterize the organization through its early phases of developmental stage, is determined as the Infant industry argument.
- This means that a freshly created industry seems to be a newborn industrial sector, requires authorities to either support and/or safeguard certain businesses through regulations.
Answer:
Shut down as P < AVC.
Explanation:
Given that,
Selling price = $24
Average variable cost = $25
Average total cost (ATC) = $30
Marginal cost = $24
He should shut down because the price received by him for the product is less than average variable cost. He should shut down its operations because he won't be able cover the average variable cost associated with the production of the product.
Price = $24 which is less than average variable cost of $25.
If he will be able to cover its variable cost then he will continue operating in this market condition.
The government has total control in a command economy, all production, investment, prices and incomes are determined by the government. A command economy is also known as a communist society because business owners do not have any control over their businesses. In a command economy, there are risks/disadvantages of running operations this way because there is a lack of competition and efficiency. When the government controls everything, there is less competition because pricing is set by the government. There is also less efficiency due to them waiting on the government to make their decisions.
Answer:
The answer is $4,221.77
Explanation:
Present value = Cash flow/(1+r)^n
where n is the number of years
Cash flow 1:
$1,150/1.11^1
=$1,036
Cash flow 2:
$1,030/1.11^2
=$835.97
Cash flow 3:
$1,520/1.11^3
=$1,111.41
Cash flow 4::
$1,880/1.11^4
=$1,238.39
Present Value of all the cash flows is
$1,036 + $835.97 + $1,111.41 + $1,238.39
=$4,221.77
