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-Dominant- [34]
3 years ago
15

A project that costs $25,000 today will generate cash flows of $8,600 per year for seven years. What is the project's payback pe

riod?
Business
1 answer:
Nimfa-mama [501]3 years ago
5 0

Answer: 2.90 years.

Explanation:

Payback period is the amount of time that it will take a project to pay back or recuperate the initial investment in the project.

This project is making $8,600 a year and had an initial investment of $25,000.

The Payback period is;

= Investment / Annual Cashflow

= 25,000 / 8,600

= 2.90 years.

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The Law of Demand is a rule stating that more will be demanded at lower prices and less at higher prices; inverse relationship b
MariettaO [177]

Answer:

True

Explanation:

The law of demand is an economics principle which states that the demand for goods or services will go up if prices reduce. This law argues that there an inverse relationship between the price and quantity demanded.  The lower the price, the higher the demand. For example, if the price of bread goes up, then its demand will go down.

4 0
3 years ago
Read 2 more answers
Which organization sets monetary policy for the United States? Board of Governors Congress Federal Open Market Committee Federal
Mandarinka [93]
The Federal Reserve Banks is the organization that sets the monetary policy for the United States.

They decide on the interest rates of commercial banks, as well as, the quantity of legal tender that must be in circulation.


4 0
3 years ago
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You work for a Europe-based company that is interested in doing business internationally. As a top manager of the firm, you want
vesna_86 [32]

Answer: (A) ISO 9001

Explanation:

 The ISO 9001 stand for the international organization for standardization. The main aim of the ISO 9001 is that it provide the quality management for monitoring purpose and also improving the quality of the business.

The QMS (Quality management system) mainly help to focusing on the essential or important business area and it also increase the efficiency of the business. ISO 9001 is standardize the organization product and the services quality.

Therefore, Option (A) is correct.

6 0
3 years ago
The bid-ask spread exists because of _______________. A. market inefficiencies B. discontinuities in the markets C. the need for
SashulF [63]

Answer:

C. the need for dealers to cover expenses and make a profit

Explanation:

In the market for securities there are two pricing of securities.

The ask price is the price at which the buyer is willing to purchase a security.

The ask price or the offer price is price at which the seller of a security is willing to sell it. Ask price can be firm or negotiable.

Bid ask spread is the difference between the highest amount a buyer is willing to buy a security and the lowest price at which a seller is willing to sell it.

This spread exists because dealers need to cover expenses and make a profit

8 0
3 years ago
Preferred stock is a hybrid security because it has some characteristics typical of debt and others typical of equity. The follo
jonny [76]

Answer:

Dividends are fixed. ⇒ Consistent with Debt

Fixed dividends makes preferred shares consistent with debt because debt repayments are made in equal payments as well.

Usually has no specified maturity date ⇒ Consistent with Equity.

Equity has no set maturity date unlike debt and preferred stock has no maturity date either so is much like equity in this regard.

Cost of preferred stock.

Preferred stock is like a perpetuity. The cost of preferred stock is therefore:

= Constant dividend / Price of stock

= 13 / 130.45

= 9.97%

= 10%

8 0
2 years ago
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