Answer:
$153,000
Explanation:
The computation of the net present value is shown below:
= Present value of all cash inflows including salvage value after considering the discount factor - initial investment
where,
Present value is
= Four year cash inflows × PVIFA factor for 11.5% for 4 years + (one year cash inflow + salvage value) × discount rate for 11.50% at five year
= $300,000 × 3.0696 + ($300,000 + $100,000) × 0.5803
= $920,880 + $232,120
= $1,153,000
And, the initial investment is $1,000,000
So, the net present value is
= $1,153,000 - $1,000,000
= $153,000
The city bus system charges lower fares to senior citizens than to other passengers. Assuming that this pricing strategy increases the profits of the bus system, we can conclude that senior citizens must have a(n) <u>More elastic Demand </u>for bus service than other passengers.
Explanation:
Elasticity of demand defines relationship between the change in price and the purchases made by the consumer .
In case with the increase or decrease of the price the purchasing habit of the consumer remains the same then we say that the good has inelastic demand .
In case the consumer changes its purchasing habits with the change in price of the product or service then we say that the good /service has elastic demand.
In the question we can see that the bus service provider have changed the price of the tickets(reduce the price of the ticket) for senior citizens ,so we can say that the with the change in the price of the tickets the demand for the tickets by senior citizen must have increased .<u>Hence it is a example of Elastic demand.</u>
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Answer:
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Explanation:
Themes were money and how it effected the teens
When an individual buy shares of a company's stock, They Gain partial ownerships in the corporation (option A)
If the individual buy 10 % of the total stocks, it means that individual own 10% of the company. If his ownerships goes above 50 % , he became a majority owner and basically can make all the decision in the company
