Answer:
-$8,705
Explanation:
The computation of the Net present value is shown below
= Present value of all yearly cash inflows after applying discount factor + salvage value - initial investment
where,
The Initial investment is $110,000
All yearly cash flows would be
= Annual cost savings × PVIFA for 4 years at 12%
= $30,000 × 3.0373
= $91,119
Refer to the PVIFA table
And, the salvage value would be
= Salvage value × pvif for 4 years at 12%
= $16,000 × 0.636
= $10,176
The discount factor should be computed by
= 1 ÷ (1 + rate) ^ years
Now put these values to the above formula
So, the value would equal to
= $91,119 + $10,176 - $110,000
= -$8,705
Answer and Explanation:
The computation is shown below;
1. The willing amount to pay for the promise should be less than $20 that represents the time value of money
2. Now the present value is
= Received amount × discounting factor at 6% for 3 years
= $1,000 × 0.839
= $839
3. Now the interest rate is
As we know that
Future value = Present value × (1 + rate of interest)^number of years
$1,000 = $863.84 × (1 + rate of interest)^3
rate of interest =5% approx
The correct answer is B. Monopolistic competition
Explanation:
Monopolistic competition occurs when the producers of a product determine the price of it. Also, the products sold have differences, which means consumers do not consider one product can be substituted by another because the qualities, brand, appearance, etc. are different. This is the opposite of perfect competition, in which products are substitutes and price is determined by price and demand rather than producers.
Monopolistic competition occurs in the case presented because the chocolates sold by Jack are different from those sold by Mia, who uses attractive boxes. Also, due to this difference, Mia can set higher prices and still get more demand from consumers.
Answer: In a majority vote, this proposal will most likely be accepted.
Explanation:
The cost of the proposed public goods is $1000, which will be shared equally among the 5 people. So, per person share on the provision of public good will be,
Since, Abby, Ben and Clara value the good more than the cost they will vote in favor of the provision. But Joe and Matt value it less than the cost so they will vote against the provision.
Value to Abby is $220 which is greater than $200.
Value to Ben is $210 which is greater than $200.
Value to Clara is $210 which is greater than $200.
Value to Joe is $180 which is less than $200.
]Value to Matt is $120 which is less than $200.
So since 3 people out of 5 vote in favor of the proposal, the public good will be provided.
Answer:
in terms of which is worse, "monopoly" is bad for both the consumers and the industry, while a competitive market is good for consumers and the industry alike, however, it is not "perfect". there has to be regulations and a sort of a control.
anyhow, a monopoly is bad then a single corporation has the total power from the supply side and this can lead to unnecessary price increases, lower quality products, industrial malpractices, national level frauds, etc, etc...
because of this, we always say a monopoly is bad, even if it is a government sector monopoly. many nations have laws and rules to ensure no monopolies will arise.
in USA, we call such rules, Anti-trust laws.
Explanation:
