Answer:
c. 2.50 years
Explanation:
In the payback, we analyze in how many years the invested amount is recovered. The computation is shown below:
In year 0 = $500
In year 1 = $150
In year 2 = $200
In year 3 = $300
If we sum the first 2 year cash inflows than it would be $350
Now we deduct the $350 from the $500 , so the amount would be $150 as if we added the fourth year cash inflow so the total amount exceed to the initial investment. So, we deduct it
And, the next year cash inflow is $300
So, the payback period equal to
= 2 years + ($150 ÷ $300)
= 2.50 years
In 2.50 yeas, the invested amount is recovered.
Answer:
Invest
invest
Explanation:
Game theory looks at the interactions between participants in a competitive game and calculates the best choice for the player.
Dominant strategy is the best option for a player regardless of what the other player is playing
firm a can either earn20 or 70 if it advertises or 5 or 50 if it does not advertise. this is the same for firm B.
Thus the option that would yield the highest payoff is for both firms to advertise.
this is an example of prisoners dilemma
Answer:
The elasticity is about 1.43, and an increase in the price will cause hotels' total revenue to decrease
Explanation:
The formula of the midpoint for the variation of the quantity is 
and for the price is 
. With the variation of the price and the quantity the elasticity formula is ΔQ/ΔP. Replacing the elasticity is -1.43
The price elasticity of the demand is bigger than 1, that means that the demand is elastic, every increase of the price will cause a bigger decrease of the quantity, the revenue will drop because the increase of the price do not compansete the decrease of the quantity.
Answer:
The correct answer is A
Explanation:
The Cash payments for the month of may is computed as:
Cash payment = Cash balance on May 1 + Cash received during the month - Cash balance increased
where
Cash balance on May 1 is $30,000
Cash received during the month is $47,000
Cash balance increased is $33,000
Putting the values above:
Cash payments = $30,000 + $47,000 - $33,000
= $77,000 - $33,000
= $44,000
