Okay, Daily Question!

Woodruff Inc. offers you a project that will pay you $17,000/year. If the cost of this project is $100,000, and the discount rat

otez555 [7]

Answer:

The length of time = 12 years

Explanation:

<em>The number of years the case would be determines the length time it takes the present value of annuity of 17,000 to equate the initial cost </em>

Initial cost = A× (1- (1+r)^(-n)/r =

A- 17,000, r- 13%, n - ?

So we will need to work out the value of " n"

100,000 = 17,000 × 1- 1.13^(-n)/0.133

100,000/17,000 =1- 1.13^(-n)/0.13

5.88235 ×0.13 = 1- 1.13^(-n)

n = 12

The number of years is approximately 12 years

The length of time = 12 years

3 0

3 years ago

Identify the statement below that is incorrect. A) The normal balance of accounts receivable is a debit. B) The normal balance o

a_sh-v [17]

Answer:

D) The normal balance of an expense account is a credit.

Explanation:

We know that

The debit sections report assets and expenses side while sales, stockholder equity, and the liability side are reported in the credit section.

So as per the given options, the incorrect answer is D as expense account has a debit balance but the question it is given that the expense account has a credit balance that is totally wrong.

3 0

3 years ago

Read 2 more answers

The Bohio was the Cacique's House true or false<br>

OleMash [197]

Answer:

true

Explanation:

try mo sa Google para me idea kpa

8 0

3 years ago

Which is a true statement?

Softa [21]

Answer:

O A real interest rate that is higher than current inflation is desirable,

Explanation:

The real rate is the nominal rate of interest after considering the inflation rate. The nominal rate is the interest rate quoted by financial institutions. It shows the percentage of return expected on a deposit or loan. The inflation rate communicates the rate at which prices are increasing in the economy.

The real rate is equivalent to the nominal minus the inflation rate. An ideal situation is when the real rate is higher than the inflation rate. In such a situation, the rate of money growth is higher than the price increases. It means the invested amount will increase in value. At the end of a period, the invested amounts will buy more goods and services than

3 0

2 years ago

In the lesson you learned that a market economy is where the prices of services and goods are determined through a free system.

givi [52]

Answer:

ADVANTAGES OF MARKET ECONOMY

1, Consumer sovereignty

2. Innovation

DISDVANTAGES OF MARKET ECONOMY

1. Unhealthy rivalry

2. Market failure

Explanation:

Market economy also called free market economy or capitalist economy is a type of economic system that encourages free ownership of productive resources. in this type of economy, the ownership of productive resources is in the hands of the individuals, and the price system allocates resources

ADVANTAGES OF MARKET ECONOMY

1, Consumer sovereignty - In a market economy, the concept of consumer sovereignty is recognized, the consumer dictates the market offerings through the price system, what the consumers want will have high demand and that would be an incentive to the producer to supply more and vice versa.

2. Innovation - The drive to get a larger share in a keenly competed market, with competition within and without, will make businesses to spend on research and take innovative steps if they want to remain in relevant in the business landscape.

DISDVANTAGES OF MARKET ECONOMY

1. Unhealthy rivalry - The cut-throat competition in the market economy will lead to unhealthy rivalry among competitors, businesses would be out to take unfair advantage over the other with its attendant consequences. This may lead to supply of substandard products.

2. Market failure - The market forces as efficient as they are, sometimes failed to allocate resources optimally. The market failure was one of the courses of the greet depression.

7 0

3 years ago