Question

11. ABC limited has two investment opportunity, the following details are given below.
_______________________
Year| Par. | A | B |
0 |cap.cost|100000|150000|
1 | inflows. |30000 |50000 |
2 | inflows. |30000 |70000 |
3 | inflows. |40000 |80000 |
4 | inflows. |50000 |50000 |
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a) Give your suggestion for the selection of project based on
Payhack perind method
b) Give your suggestion for the selection of project based on
ARR method.​

Answer 1

Answer:

Also find the equilibrium level of income.

C = 40 + 0.6Yd

I = 80

G = 40

T = 40

where

C = Consumption Yd = Disposable Income

I = Investment G = Government Expenditure

T = Tax

Explanation:

Also find the equilibrium level of income.

C = 40 + 0.6Yd

I = 80

G = 40

T = 40

where

C = Consumption Yd = Disposable Income

I = Investment G = Government Expenditure

T = Tax