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3 years ago

What two conditions must hold for a competitive market to produce efficient outcomes?

1 answer:

4 0

Those are supply curves and demand curves. Supply curves have to meet the production requirements, while demand curves have to meet the consumer's willingness to pay.

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Savanna Company is considering two capital investment proposals. Relevant data on each project are as follows: Project Red Proje

liberstina [14]

Answer:

(a) Cash payback period:

Project Red = 5.5 years

Project blue = 4.6 years

(b) Net present value for project Red = $19,760

Net present value for project Blue =$164,580

(c) Annual rate of return:

Project Red =11.36%

Project Blue =18.75%

(d) Project Blue

Explanation:

Given Data;

Project Blue Capital investment = $640,000

Project Red Capital investment = $440,000

Project Red Annual Net income = $ 25,000.

Project Blue Annual Net income = $ 60,000

Annual depreciation Project Red = (440000/8)

= 55,000

Annual depreciation Project Blue = (640000/8)

= 80,000

Annual cash inflow project A = $ 80,000

Annual cash inflow project B = $140,000

(a)

Cash payback period = Initial investment/cash flow per period

Project Red = 440000 /80000

= 5.5 years

Project blue = 640000/ 140000

= 4.6 years

(b)

Project Red Present value of cash inflows = 80000 ×5.747

= $459,760

Project Blue Present value of cash inflows =140000×5.747

= 804580

Net present value for project Red = $459,760 - $440,000

= $19,760

Net present value for project Blue = 804580 - $640,000

=$164,580

Project Red = $25,000 / ($440000)/2

=11.36%

Project Blue = $60000/(640000/2)

=18.75%

(d) Savanna should select Project Blue because it has a higher positive NPV and a higher annual rate of return. AND Project Blue has early cash back period also

6 0

3 years ago

Real GDP is the value of final goods and services produced in a year expressed in the prices of that same year. during a recessi

laila [671]

Answer:

The correct answer is: expressed in the prices of a base year.

Explanation:

Real GDP is an inflation-adjusted measure to calculate changes in economic output. It calculates the value of final goods and services produced in an economy in a year expressed in the prices of a base year.

Real GDP does not include changes in the price of products as it is calculated at constant prices.

Nominal GDP, on the other hand, is calculated on the basis of current prices. It includes changes in prices and is not inflation-adjusted. That is why real GDP is preferred over nominal GDP.

6 0

2 years ago

Which of the following statements concerning internal controls is true? Multiple Choice Strong internal controls cannot be circu

GrogVix [38]

The True statement about internal controls is <em>B. A system of internal controls is designed to prevent or detect errors and fraud.</em>

Internal Controls are the techniques that an entity institutes to ensure the integrity of financial and accounting information, promote accountability of its employees, and prevent fraudulent activities.

Strong internal controls can still be circumvented. Internal controls are not limited to company policies and procedures against fraud. The employment of a husband and wife or close relations in the same company is not prohibited by control procedures or separation of duties.

Thus, the true statement about internal controls is B.

3 0

2 years ago

Taussig Corp.'s bonds currently sell for $1,150. They have a 6.35% annual coupon rate and a 20-year maturity, but they can be ca

mojhsa [17]

Answer:

4.20%

Explanation:

In this question, we use the Rate formula which is shown in the spreadsheet.

The NPER represents the time period.

Given that,

Present value = $1,150

Future value = $1,067.50

Assuming Par value = $1,000

PMT = 1,000 × 6.35% = $63.50

NPER = 5 years

The formula is shown below:

= Rate(NPER;PMT;-PV;FV;type)

The present value come in negative

So, after solving this, the rate of return is 4.20%

7 0

2 years ago

What is the best way to overcome imagined risk

erastova [34]

-forget abt it, its unlikely that problem would confront you in real life
-talk abt it with someone, and explain why u r paranoid of what u feel, perhaps they can give u advice how to deal with it
-see a general practioner/psychologist/counseller-they will know exactly what ur coping with and give u the best solutions.

- i hope these are good solutions to ur problems. u can search for more ways to overcome these concerns in the internet. but, believe me, its just the natural brain stuff, that makes us think these crazy stuff once in a while and being paranoid of the future.

7 0

3 years ago