Answer:
PV= $2,749,494
Explanation:
Giving the following information:
Cash flow= $200,000
Number of periods= 25
Interest rate= 5.25%
<u>First, we need to calculate the future value using the following formula:</u>
FV= {A*[(1+i)^n-1]}/i
A= annual cash flow
FV= {200,000* [(1.0525^25) - 1]} / 0.0525
FV= $9,881,102.14
<u>Now, the present value:</u>
PV= FV/(1+i)^n
PV= 9,881,102.14 / (1.0525^25)
PV= $2,749,494
Answer:
fails to achieve the minimum average total costs attainable at each level of output.
Explanation:
X Inefficiency do take place in a firm when there is little or no incentive in controlling costs. As a result of this average cost of production will go up than necessary. And as a result of lack of incentives, technically, the firm will be far from efficient. It should be noted that X-inefficiency could be described as a situation in which a firm fails to achieve the minimum average total costs attainable at each level of output.
The correct answer is A. Say's Law
Explanation:
Say's Law proposed by the economist Jean-Baptiste Say establishes the supply (availability of a product) or the production itself is the factor that creates demand (customers willing to buy the product). For example, the production of a new model of cellphone or computer makes people want to buy the new model. This idea is expressed by the quote "If you build (produce] it they will come [purchase]" because in the quote it is explained the production of something make people go to buy that product.
