Answer:
a) $34 billion.
Explanation:
Total Expenditure=Y=C+I+G+NX
= 20+2+7+5
= 34
Answer: "The rise in the price of a pair of running shoes will increase the supply of running shoes".
This statement is <u><em> false</em></u> because <em><u>a decrease in demand for running shoes does not increase the price of a pair of running shoes and an increase in the price of a pair of running shoes does not increase the supply of running shoes. </u></em>
This occurs as the price of a pair of running shoes increases,therefore decreasing the demand and thus the supply will not increase.
Answer:
The correct answer is: B. Bountiful and expected to continue to grow.
The tourism and hospitality industry is a fast growing and developing industry, so in the future, it is expected to grow, and become more bountiful.
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Answer:
d. Choose Option B because it has a higher NPV
Explanation:
The computation is shown below:
For Option A:
Investment = $10 million
Present Value of cash flows = Cash flow ÷ Discounting rate
= $2 ÷ 10%
= $20 million
Now
NPV = $20 - $10
= $10 million
We know that
IRR is the rate at which the NPV will be zero
So, 2 ÷ r - 10 = 0
r = 20%
For Option B:
Investment = $50 million
Present Value of cash flows = $6.5 ÷ 10% = $65 million
NPV = $65 - $50 = $15 million
we know that
IRR is the rate at which the NPV will be zero
So, 6.5÷ r -50 = 0
r = 13%
Based on NPV, Option B should be selected as it contains higher NPV as compared to option A.
However, Based on IRR, Option A should be chosen as it contains higher IRR and a higher IRR represent a higher profit percentage
Answer:
Explanation:
What is a service business? Give an example of one
Examples of service businesses include companies engaged in transport, food service, distribution, retail, and other industries that sell services rather than products. These intangibles provide the primary revenue source for service businesses.
