Answer:
4. reject both Project A and Project B.
their NPV are negative so are not profitable.
Explanation:
We have to calculate the present value of the projects at their return rate
<u>Project A</u>
Present value of the cash flow - investment = net present value
-75,000 + PV 21,000 + PV 49,000 + PV 12,000
-75,000 + 18,750 + 39062.5 + 8,541.36 = -8646.14
<u>Project B</u>
Present value of the cash flow - investment = net present value
-70,000 + PV 15,000 + PV 18,000 + PV 41,000
-70,000 + 13215.86 + 13972.71 + 28041.18 = -14770.25
Answer:
In a macroeconomic perspective, the balance of trade (BOT) simply refers to the difference between the value of the imports and exports of a country. In measuring the relative strength of a country's economy, economists make use of the balance of trade. Also, in considering the balance of payments, the balance of trade is the largest component considered.
In balance of trade, TRADE DEFICIT and TRADE SURPLUS are usually considered in relation to their import and export activities
The Trade Deficit results when a country imports more good and services than it exports. While the Trade Surplus results when a country exports more goods and services than it imports.
Since 1976, the United States had a trade deficit. This was as a result of their dependency on oil imports and consumer products. While since 1995, China which produces and exports many of the world's consumable goods has recorded a trade surplus.
When trade deficit occurs, countries affected borrow money to pay for their goods and services but when trade surplus occurs in a country, such country lends money to deficit countries.
Formula for BOT = Total Value Of Imports minus (➖) Total value of exports.
Answer: To determine comparative advantage you have to calculate per unit opportunity cost using the formula give up/gain (the amount of good you are giving up divided by the amount of good you are gaining). Once you have calculated per unit opportunity cost, the country with the lowest one has a comparative advantage
Answer: $52,431.50
Explanation:
The liability reported will be the present value of the six payments of $11,000.
Since this is a constant amount, it will be an annuity:
= 11,000 * Present value interest factor of an annuity, 6 years, 7%
= 11,000 * 4.7665
= $52,431.50
<em>Any difference between this and any options given is down to rounding errors. Pick the closest figure. </em>
Answer: d. Cross train the employees in the meat department, so beef cutters can learn how to cut pork and vice versa.
Explanation:
Since the quality of Tommy’s work has not suffered, but the store managers can tell that he is getting bored, the thing that could be done to keep him better engaged is to cross train the employees in the meat department, so beef cutters can learn how to cut pork and vice versa. Cross training helps the workers in the company appreciate the workers of others in other department and shows workers flexibility.
