Answer:
<em>The economy with the lowest opportunity cost of producing a particular good is said to </em><em>have </em><em><u>a comparative </u></em><em><u>advantage</u></em>
<em>What </em><em>is </em><em>comparative</em><em> </em><em>advantage</em><em>?</em><em> </em>
<em>comparative advantage </em><em>refers to the ability to produce goods and services at a lower opportunity COST, not necessarily at a greater volume.</em>
<em>The </em><em>concept</em><em> </em><em>of </em><em>comparative</em><em> </em><em>advantage</em><em> </em><em>is </em><em>based</em><em> </em><em>up</em><em>o</em><em>n:</em><em> </em><em>relatively</em><em> </em><em>opportunity</em><em> cost</em>
Answer:
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<span>to ban slavery and other forms of servitude in the lands won from Mexico</span>
Answer:
(1) $64,000
$59,338.60
3. $63,925.22
He would choose the first option because it has the highest present value
Explanation:
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Option 2
Cash flow in year 0 = $64,000
Cash flow each year from year 1 to 6 = $20,000
I = 6%
pv = $59,338.60
Option 3
Cash flow each year from year 1 to 6 = $13,000
I = 6%
pv = $63,925.22
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute