Define Benefit Cost Ratio or Profitability Index
Briefly describe the term Benefit Cost Ratio (or B/C Ratio) or Profitability Index (or PI)?
Expert
Profitability index (or PI) is also named as profit investment ratio (or PIR) and as well named as value investment ratio (or VIR) that tells that a proposed project will have the ratio of induce to investment. It is like a tool that is employed for ranking projects and it permits quantifying the amount of value formed per unit of investment. If the value of profitability index is less than 1 then admit the project and if it is greater than one then refuse the project. Another way to compute the profitability index is prospect cash flows divided by the initial investment.
Explain the foundation of economics where society’s material wants are scarce resources?
How will the system accommodate change?
Elucidate reallocation of resources?
Briefly describe High operating leverage?
Explain how government might manipulate its expenditures and tax revenues to reduce unemployment?
Janet has loaned a start-up coffee house $50,000 and predicts to earn interest from her financial investment. In circular flow model this transaction is an illustration of: (1) An exchange of her saving for interest, via a resource market for the economic capital. (2)
What will be produced in all economic systems?
“Prices are the automatic regulator that tends to keep production and consumption in line with each other.” Explain.
When a world famous concert pianist is as well the world's fastest short order cook, he would most likely gain the most financially through devoting: (i) Full time to frying burgers (ii) Full time to piano practice and concerts. (iii) Half-time cooking and half-time p
Speculation is unlike arbitrage since: (1) speculative buyers always break even. (2) speculation causes increased costs. (3) speculators bear no risk. (4) positive returns for speculators are not sure. (5) competitive speculation equa
18,76,764
1950393 Asked
3,689
Active Tutors
1412526
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!