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question 19

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Use the following to answer questions :
-Bantu

Identify the roles of households and businesses within the market system.
Comprehend the process and importance of income distribution and resource allocation in a market economy.
Recognize the factors that lead to the efficiency of the market system, including specialization and division of labor.
Explain the concept of laissez-faire capitalism and its significance within a market economy.

Definitions:

Cash Flows

The aggregate sum of money entering and exiting a business, notably affecting its cash flow.

WACC

Weighted Average Cost of Capital is an evaluation method for determining the cost of a company's capital, with each source of capital weighted based on its relative proportion.

Present Value

Present value is the current worth of a future sum of money or stream of cash flows, given a specified rate of return.

Regular IRR

The Internal Rate of Return (IRR) is a financial metric used to estimate the profitability of potential investments.

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