Answer:
The correct answer is C.
Explanation:
Giving the following information:
The initial purchase of the land and the associated costs of opening up mining operations will cost $100 million today. The mine is expected to generate $16 million worth of ore per year for the next 12 years. At the end of the 12th year Rearden will need to spend $20 million to restore the land to its original pristine nature appearance.
We need to sum each cash flow until the total initial investment is paid:
Number of years= 100,000,000/16,000,000= 6.25 years
To be exact:
0.25*365= 95 days
It will take 6 years and 95 days to recover the initial investment.
Stephanie's marginal tax rate is 15%.
<u>Explanation:</u>
The Average tax rate is 8%
she pays $3.75 as the tax on $25 which makes tax rate at this point =3.75/25
= 15%
The Marginal tax rate is the percentage of income that has to be paid as tax as a result of a change in the income bracket.
For instance, if tax rate until $1-$1000 is 10%
and for $1000 and above is 20%.
So for every $ earned over and above $1000.The marginal tax rate for that sum is 20%.
Answer:
The current yield is defined as the annual interest on a bond divided by the: market price
<h3><u>
Explanation:</u></h3>
When investors acquire bonds, they do so essentially to produce income. The demanded annual rate of return is summoned as the current yield, and it is a gathering of the prevailing price and the amount of interest the bond meets.
current yield is a crucial measure because it determines the rate of return on your expense for as longspun as you hold the bond. The current yield is equivalent to the annual interest gained divided by the current price of the bond.
Answer:
Dependency theory
Explanation:
Kara believes that by pushing poor countries to produce exports instead of food and goods for their own people, they are forced to rely on rich nations for much of what they need. She suggests that markets should be replaced with government-directed economic policies. Kara is arguing in a way that reflects <u>Dependency theory.</u>
Dependency theory: It is a theory to understand the inequality of growth of all nation. As per theory, the underdeveloped countries offer cheaper labor and raw material to the developed nation, who sell the costlier finished goods to the underdeveloped nation, which again supress the economy of under developed nation, so it continue to have vicious cycle and gap get widen between rich and poor countries.
In the given case; Kara have introduced Dependency theory as she poor countries to produce exports instead of food and goods for their own people, they are forced to rely on rich nations.
