Answer:
The main advantage of the discounted payback period method is that it can give some clue about liquidity and uncertainly risk. Other things being equal, the shorter the payback period, the greater the liquidity of the project. Also, the longer the project, the greater the uncertainty risk of future cash flows.
Answer:
The correct answer is option d.
Explanation:
In a perfectly competitive market, it is assumed that the buyers and sellers have perfect information and take their economic decisions accordingly. But in reality, buyers and sellers do not have perfect information.
Information comes at a cost, which can sometimes be high. The rational decisions of the consumers without full information can lead to irrational outcomes.
If the cost of gathering information is less than or equal to the benefit earned from the information, the consumers will gather information and make fully informed decisions.
But if the cost is higher than the benefits, the consumers will not gather information and make a less informed decision.
Answer:
economic profit = $11225
Explanation:
given data
sells = 975 units
cost = $30 per unit
cost of producing goods = $15
implicit costs = $3,400
solution
total revenue = 975 × 30 = $29250
and total cost = 975 × 15 = $14625
so here Total profit will be as
Total profit = $29250 - $14625 = $14625
so here economic profit will be
economic profit = Total profit - implicit costs
economic profit = $14625 - $3,400
economic profit = $11225
Carolyn should contact them and offer her services on the job, furthermore she should set a meeting to discuss the specifics of the project.
