Which statement BEST explains the economic concept of quantity demanded?

What is the IRR for a project that costs $100,000 and provides annual cash inflows of $30,000 for 6 years starting one year from

ahrayia [7]

Answer:

A) 19.91%

Explanation:

Net present value of cash flow at 19.91% can be calculated as follows

- 100000 + 30000/1.1991 + 30000/ (1.1991)² + 30000/(1.1991)³ + 30000/ (1.1991)⁴ +30000/(1.1991)⁵ + 30000/ (1.1991)⁶

= -100000 + 25018 +20864 +17400 +14511 +12101 +10092

= 0 ( approx )

So the IRR for the project is 19.91 % .

8 0

4 years ago

List the four factors of production

yawa3891 [41]

Answer:

The four factors of production are land, labor, Capita and entrepreneurship.

3 0

3 years ago

Read 2 more answers

Athena Company provides employee health insurance that costs $14,200 per month. In addition, the company contributes an amount e

Leto [7]

Answer:

Debit to Employee Benefits Expense $21,300

Explanation:

Based on the information given the Journal entry to record the accrued benefits for the month would include a Debit to Employee Benefits Expense for the amount of $21,300 calculated as:

5% × $142,000 gross salary

=$7,100

Hence employee health insurance costs $14,200 per month +$7,100

=$21,300

Therefore The entry to record the accrued benefits for the month would include a:

Debit to Employee Benefits Expense $21,300

8 0

3 years ago

Algebra of the income-expenditure model Consider a small economy that is closed to trade, so that its net exports are zero. Supp

ioda

Answer:

a. The equilibrium income level is $100 billion.

b. The new equilibrium level of income will be equal to $500 billion.

c. This economy's multiplier is equal to 4.

Explanation:

a. Calculation of the equilibrium income level

Since;

Y= C + IP + G ........................... (1)

Where;

C = $20 billion + 0.75 × (Y – T)

G = $35 billion

IP=$60 billion

T = $20 billion.

Remove the billion now for simplicity purpose to include later, substitute the values into equation (1) and solve for Y, we have:

Y = $20 + 0.75 * (Y – $120) + $60 + $35

Y = $20 + 0.75Y - (0.75 * $120) + $95

Y - 0.75Y = $20 + $95 - $90

0.25Y = $25

Y = $25 / 0.25

Y = $100

Therefore, the equilibrium income level is $100 billion.

b. Suppose that government purchases are increased by $100 billion. The new equilibrium level of income will be equal to ______ billion.

With this, we now have:

G = $35 billion + $100 billion = $135 billion

Replace this with G in part a and substitute other values as already given in part a into equation (1) and solve for Y, we have:

Y = $20 + 0.75 * (Y – $120) + $60 + $135

Y = $20 + 0.75Y - (0.75 * $120) + $195

Y - 0.75Y = $20 + $195 - $90

0.25Y = $125

Y = $125 / 0.25

Y = $500

Therefore, the new equilibrium level of income will be equal to $500 billion.

c. Based on the effect of the change in government purchases on equilibrium income, you can tell that this economy's multiplier is equal to _______.

Since the change in government purchases makes equilibrium income level to increase from $100 billion to $500 billion, we can calculate the rate of change in the equilibrium income level as follows:

Rate of change in equilibrium income = (New income – Previous income) / Previous income = ($500 - $100) / $100 = 4

With the rate of change of 4, we can tell that this economy's multiplier is equal to 4.

This can be confirmed using the multiplier formula as follows:

Multiplier = 1 / (1 – MPC) ……………………….. (2)

Where;

MPC = 0.75 from the consumption equation given C = $20 billion + 0.75 × (Y – T).

Substitute for MPC in equation (2), we have:

Multiplier = 1 / (1 – 0.75)

Multiplier = 1 / 0.25

Multiplier = 4

Which is the same as already obtained above.

Therefore, this economy's multiplier is equal to 4.

4 0

3 years ago

What is a poem with no definite structure?

podryga [215]

Hello there.

Question: What is a poem with no definite structure?

Answer: It is a sonnet as they have no definitive structure.

Hope This Helps You!
Good Luck Studying ^-^

8 0

3 years ago