Answer:
b. social benefits will be greater than private benefits
Explanation:
Positive externalities can be defined as those that produce positive effects for society in relation to the consumption of a good or service.
This is because the social benefit is the sum of the private benefit plus the sum of the external benefit.
An example of positive externality pertinent to the present is the fact that vaccinating people generates greater positive effects on society, because when vaccinating an individual there is less chance of having more people infected with some disease.
So it is correct to say that the social benefits will be greater than the private ones. Letter b.
Answer:
The value of the project today is $75,866
Explanation:
Net present value is the Net value all cash inflows and outflows in present value term. All the cash flows are discounted using a required rate of return.
Years 1 2 3
Cash Flows $32200 $41800 $22,900
Discount Factor 14% 0.8772 0.7695 0.6750
Present Values $28,245.61 $32,163.74 $15,456.85
Net present value = $75,866.20
Answer:
Social responsibility
Explanation:
Social responsibility is the way a company's managers and employees view their duty or obligation to make decisions that protect, enhance, and promote the welfare and well-being of stakeholders and society as a whole.
Answer:
Land $434,696
Land improvements $108,609
Building $1,720,600
To Cash $2,263,905
(Being the amount paid in cash is recorded)
Explanation:
The journal entry is shown below:
Land $434,696
Land improvements $108,609
Building $1,720,600
To Cash $2,263,905
(Being the amount paid in cash is recorded)
The land, land improvements and the building increases the assets so it is debited while the cash is credited as the cash is paid
The computation of the land is shown below:
= Purchase price of the land + purchase price for the old building + paid amount for tear down the old building + cost to fill and level the lot
= $224,000 + $119,000 + $37,000 + $54,696
= $434,696
Answer: Return on a risky security minus the risk-free rate.
Explanation:
The excess return is known to be the amount of return on a risky asset that exceeds the return that one would have received had they invested in a risk-less asset such as Treasury Bills.
If the return you received on shares was 5% and the return on riskfree assets is 2%, your excess return is 3%.
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