An investment project provides cash inflows of $745 per year for eight years. What is the project payback period if the initial cost is $1,700? What if the initial cost is $3,300? What if it is $6,100? Ross, Stephen, Ross, Stephen. Fundamentals of Corporate Finance (Kindle Locations 14578-14580). McGraw-Hill Higher Education. Kindle Edition.

2.28 years

4.43 years

8.19 years

Explanation:

Payback period is the time period in which initial investment of a project is recovered.

Initial cost = $1,700

Pay back period = Initial Investment / Yearly cash inflow

Pay back period = $1,700 / $745 = 2.28 years

Initial cost = $3,300

Pay back period = Initial Investment / Yearly cash inflow

Pay back period = $3,300 / $745 = 4.43 years

Initial cost = $6,100

Pay back period = Initial Investment / Yearly cash inflow

Pay back period = $6,100 / $745 = 8.19 years

answer; by looking at total product,marginal product,and changes in both after changes in inputs

answer: in the short-run firms will respond by raising the price of turkey.

explanation: initially the long-run equilibrium is at a price of $5 per pound of turkey and a quantity of 50 million pounds per year. now, when webmd claims that a protein found in turkey will increase your expected lifespan by 4 years. the consumers demand for turkey will increase at every price shifting the demand curve to the right from d1 to d2. while, there will be no change in the supply curve in the short-run as it is not possible for producers to adjust supply so quickly. as a result the new equilibrium will occur at a higher price and a higher quantity of turkey.

thus, in the short run firms will respond by increasing the price of turkey, selling more quantity at a higher price and earning economic profits.