Josh purchased a baseball team for 100 million dollars and financed the entire purchase price at a nominal rate of interest paya
ble 12 times per year at 6% per annum. Josh planned to repay the loan with 10 annual payments of equal amount beginning one year after the loan began. Right after Josh made his fourth annual payment, he refinanced the loan at an effective annual interest rate of 5% for 15 more years. Josh repaid this new 15 year loan with equal payments at the end of each year. How much were these new payments for the refinanced loan?
In simple words, cash flow statement refers to the financial statement in which an organisation depicts its sources and uses of cash for a specified period of time such as month or an year.
In this statement the inflows and outflows are categorized into three categories. Any cash flow from core business activities is grouped into operating activities section. Whereas cash flows from sale and purchase of machinery is categorized as cash flow from investing activities while transactions related to shareholders is recorded in financing activities section.
<h2>The law of diminishing marginal utility and law of demand explain the decline in water usage by the residents or occupants,in this case.</h2>
Explanation:
In Microeconomic Theory,the law of diminishing marginal utility basically states that as a rational consumer or buyer consumes additional or one more unit of any product or service,the incremental or additional utility or satisfaction obtained from that per unit consumption or purchase decreases progressively.
Now,law of diminishing marginal utility has a conceptual connection with law of demand,which denotes the inverse or negative relationship between price of any normal good or service and its consumer demand.It implies that as price of any normal good or service increase,its consumer demand decreases and vise versa.
Now,observe that according to law of diminishing marginal utility,the additional or incremental consumer utility or satisfaction declines for per unit consumption,which essentially implies that the additional or marginal value of any normal product or service that the consumer is willing to pay decreases as he or she increases the consumption level.
Therefore,the willingness to pay for any consumer decreases progressively as he or she increases consumption level.This also explains that to increase the consumption level of any buyer or consumer,the product or service price has to decrease and vise versa.
In this case,as the residents use more units of water,the marginal utility or satisfaction obtained by the residents declines increasingly and so does the value they are willing to pay for more water usage.Now,installation of water meters compels the residents to pay for every unit of water they use and since the marginal utility of water drops with each unit of water usage,the price that the residents are willing to pay also drop for each additional unit of water that they use. In other words,the residents don't want to pay more and thus,they restricted their water usage.Therefore,the water usage also declined following the installation of water meter.
The input is the raw material, labor, the efforts that is used in making the product while the output is the product or the result arising from the input
The profit arises when output and the input varies from each other
i.e
Profit = Output - input
In the case where there is neither an input nor output fixed, so we have to maximize the profit i.e (output - input) but the condition is that they are different from each other
$102100 is the foreign earned income exclusion limit for 2017 , therefore Helen who is a U.S. citizen can exclude $102100 from gross income in the U.S.
