The correct concerning the payback rule is rule is flawed because it ignores all cash flows after some arbitrary point in time.
Payback period in capital budgeting refers to the time required to recover funds spent on an investment or to reach breakeven. Example: If at the beginning of year 1 he invests $1,000 and at the end of year 1 and his second year he earns $500, it pays for itself within 2 years.
The number of years it will take to recover the money invested. For example, if it takes 5 years to recover the cost of an investment, the payback period is he 5 years.
Payback period is defined as the number of years required to recover the original cash investment. In other words, the period during which a machine, plant, or other investment has generated sufficient net income to cover its investment costs.
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Answer:
a. less ice cream, less coffee
Explanation:
The percentage change in CPI is given by:
The percentage change in the prices of coffee and ice cream, respectively, are:
Both coffee and ice cream had an increase in price above the CPI increase, which means that both goods are being sold above the equilibrium price and thus their demand is likely to fall.
People likely will buy less ice cream, less coffee
Answer:
d. All of the above are correct.
Explanation:
a. This tax causes the demand curve for fountain drinks to shift downward by $0.50 at each quantity.
b. The price paid by buyers is $0.30 per drink more than it was before the tax.
This is true as the difference between $0.50 and $0.20 is $0.30. The price paid by buyers is indeed $0.30 per drink more than it was before the tax.
c. Forty percent of the burden of the tax falls on the sellers.
This is true as $0.20 of $0.50 is 40% and this tax burden falls on the sellers.
The managers of Kono Corp., which is an American company trying to open a branch in Europe or Asia are operating under a condition of <u>D. uncertainty</u>.
<h3>What is uncertainty?</h3>
Uncertainty refers to situations where the information is imperfect or unknown. When operating under uncertainty, some evaluations need to be undertaken to close the information gap.
<h3>Answer Options:</h3>
A. goal displacement.
B. illusion of control.
C. social reality.
D. uncertainty.
Thus, the managers of Kono Corp. are not operating under goal displacement, the illusion of control, or social reality, but it is operating under conditions of uncertainty.
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Answer:
<em>Monetary policy</em> consists of management of money supply and interest rates, aimed at achieving macroeconomic objectives such as controlling inflation, consumption, growth, and liquidity.
