Answer:
A. 3.8 YEARS
B YES
C $325.91
Explanation:
Payback period is the amount of time it takes to recover the amount invested in a project from its cumulative cash flows.
payback period = amount invested / cash flows
$1,900 / $500 = 3.8 years
the project should be accepted because the payback period is less than the maximum acceptable year
Net present value is the present value of after tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
cash flow in year 0 = $-1900
cash flow each year from year 1 to 5 = $500
I = 4%
NPV = $325.91
To find the NPV 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
Answer:
It implies there are diseconomies of scale.
Explanation:
It implies there are diseconomies of scale in the industry
Because as the quantity of units output increase, the cost also increase. While in economies of scale, the slope for the LRAC will be negative, as each increase in output lowers the cost.
When this occurs, there is a lower change of monopoly in the industry, as the larger firm also faces the larger cost, so the supply tend to be more diverse.
While a, indifined negative slope will generate monopolies as their cost become lower at gerater the output.
Answer:
Explanation:
Often scarcity is caused by a combination of demand and supply induced effects. A rise in demand, e.g. due to rising population causes overcrowding and population migration to other fragile ecological areas
Answer is true.
Managers who are classified in terms of their level in the organization are known by titles such as store manager, assistant manager or co-manager.
Managers who are classified by their area of specialization have titles such as the marketing manager, the accounting manager or the sales manager.
