You are negotiating to make a 7-year loan of $37,500 to breck inc. to repay you, breck will pay $2,500 at the end of year 1, $5,000 at the end of year 2, and $7,500 at the end of year 3, plus a fixed but currently unspecified cash flow, x, at the end of each year from year 4 through year 7. breck is essentially riskless, so you are confident the payments will be made. you regard 8% as an appropriate rate of return on a low risk but illiquid 7-year loan. what cash flow must the investment provide at the end of each of the final 4 years, that is, what is x?

answer; ( prices are sticky);

the u.s. census bureau produces data on the population and economy nationwide. it can you to analyze the kind of people living in your neighborhood. it does not show you the market of people willing to buy your product or an existing market for your product. that will require more market research. the census bureau only gives you an insight to the demographics in your area.

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.

income statement is prepared in order to show the profits and loss of a business. in order to prepare the income statement she should collect all the income and expenses of the product with the cost of production.