Tutor profile: Naina N.
Subject: Corporate Finance
What is the payback period for a $500 investment made at the beginning of year 1 which returned $200 at the end of year 1, $200 at the end of Year 2 and $100 at the end of year 3?
Payback period is the time required to recover the investment. In this case, it is 3 years as the total investment of $500 is recovered over a span of 3 years in installments of $200, $200 and $100 dollars.
What is the effect on the quantity demand of a commodity when the price of its substitute good decreases?
When the price of a substitute good decrease the quantity demanded of the original commodity decreases as the consumer now prefers lower priced substitute good.
What are the basic rules of accounting in the double entry book keeping system?
The basic rules for accounting to follow are: Capital account, you credit to increase it and debit to decrease it Asset account, you debit to increase it and credit to decrease it Liability account, you credit to increase it and debit to decrease it Expense account, you debit to increase it, and credit to decrease it Income account, you credit to increase it and debit to decrease it
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