Higher interest rates frequently draw foreign investment, which raises both demand for and the value of the currency of the host nation. Conversely, lower interest rates typically make a currency less valuable relative to other currencies and are less appealing to foreign investment.
What are the effects of an increase in interest rates?A rise in interest rates has an impact on aggregate demand through a leftward shift in the aggregate demand curve, a decline in real GDP, and a decrease in price level. Consumption, investment, and net exports all decline as the interest rate rises, which lowers aggregate demand.
A decrease in interest rates can boost business activity because it will make it possible for them to borrow more money for investments.
Because borrowing money will become more expensive with an increase in interest rates, company activity would decline.
Existing bond prices automatically fall on the market when the Fed raises interest rates. This is due to the upcoming release of new bonds that will pay investors greater interest rates.
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Evaluating manager's performance on financial measures only has
limitations. Therefore, companies should consider measures nonfinancial to
help evaluate manager performance.
Desktop Computer Company would like to calculate their cash conversion
cycle. What factors are included in computing this metric?
days' sales in accounts payable (aka days payables outstanding)
days' sales in accounts receivable
days' sales in inventory
Transfer prices: (Check all that apply.)
have a direct impact on division profits.
are transfers within the same company.
It is to be noted that when evaluating a manager's performance on financial measures there are some limitations. Hence, companies should consider measures nonfinancial to help evaluate manager performance.
Since Desktop Computer Company would like to calculate their cash conversion cycle, the factors included in computing this metric are:
days' sales in accounts receivabledays' sales in accounts payable (aka days payables outstanding)days' sales in inventory.What is Performance evaluation?A performance assessment, also known as a performance review, performance evaluation, development talk, or employee appraisal, is a periodic and systematic procedure that documents and evaluates an employee's work performance.
The significance of successful performance evaluations is that they enable managers to provide fair and actionable feedback to their direct subordinates. This may boost employee engagement by providing significant praise and encouragement, as well as creating clear avenues for employee progress that are based on responsibility.
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the savvy entrepreneurial firm feature in chapter 15 focuses on wahoo's fish taco, a franchise organization that offers mexican food mixed with brazilian and asian flavors. according to the feature, one of the things the founders of wahoo's did that has contributed to its success is elect to make wahoo's . a relatively slow growth system, focusing on branding and service quality rather than rapid growth a nationwide system, operating in all 50 states an extremely affordable system to buy into, with a $9,000 original franchise fee and an ongoing royalty of only 2 1/2 percent a niche franchise that is only available in theme parks and food courts of malls a fast growth system to establish a clear first-mover advantage in its nich
According to the feature, one of things the founders of Wahoo did that has contributed to its success is elect to make Wahoo's option a) a relatively slow growth system, focusing on branding and service quality rather than rapid growth.
What is a slow growth economy?An economy that has little or no macroeconomic growth is said to be in a state that is known as sluggish state. The phrase is a loosely defined zoological comparison to the common slug. Falling GDP growth or rising unemployment are said to be the two indicators of sluggish economies.
Therefore, one can say that this was the approach that the savvy entrepreneurial firm took and it is one where they were building a repeatable, profitable growth framework, one should adopt the mindset of "slow growth," which is centered on the core measures that will determine a company's success rather than those that just reflect it.
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See options correctly written below
a) a relatively slow growth system, focusing on branding and service quality rather than rapid growth, b) a niche franchise that is only available in theme parks and food courts of malls, c) a fast growth system to establish a clear first-mover advantage in its niche, d) a nationwide system, operating in all 50 states, e) an extremely affordable system to buy into, with a $9,000 original franchise fee and an ongoing royalty of only 2 1/2 percent
based upon your textbook reading, how did western european states rebuild with some success in the decade or so after world war ii and what role did the common market play in their political and economic recovery?
Following the destruction, Western Europe received aid from the United States through a program known as the Marshall Plan, commonly referred to as the European Recovery Program.
What was the Marshall Plan?In 1948, the United States launched the Marshall Plan, a program designed to give Western Europe foreign assistance. It was implemented on April 3, 1948, and ran for four years before being replaced with an earlier Morgenthau Plan proposal. The Marshall Plan called for the lowering of interstate obstacles, the economic unification of Europe, and the promotion of productivity growth and the adoption of contemporary corporate practices. A rough per capita allocation of the Marshall Plan's financial assistance was made to each participating nation. Since it was widely believed that the restoration of these major industrial powers was crucial to the revival of all of Europe, they received a higher sum. United Kingdom was the country that received the most Marshall Plan funding.
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discuss how the managerial succession process and the composition of the top management team interact to affect strategy.
Internal labor markets represent the opportunities for employees to take managerial positions (including the position of CEO) within a firm. The external labor market is the collection of career opportunities for managers in firms outside of the one for which they currently work.
The CEO of a corporation or agency usually reports to the board of administrators and is charged with maximizing the cost of the commercial enterprise, which might also consist of maximizing the proportion fee, marketplace percentage, revenues, or any other detail. inside the non-income and government region, CEOs generally goal at achieving outcomes associated with the business enterprise's undertaking, normally furnished by way of rules. CEOs also are regularly assigned the position of fundamental manager of the corporation and the very best-rating officer in the C-suite.
A primary executive officer (CEO), additionally known as a central government officer (CEO), chief administrative officer (CAO), or just chief government (CE), is one in every of a number of corporate executives charged with the control of an organization – mainly an independent criminal entity including an employer or non-profit institution.
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The um of all of your cutomer Account Receivable i lited a part of _______________________ on your balance heet
Since accounts receivable typically convert to cash in less than a year, it is recorded on the balance sheet as a current asset.
When a consumer makes an account payment, which accounts are impacted and in what ways?Your bookkeeper records the amount of a customer's payment on an account as a journal entry, and the transaction is referred to as "paid on account." Simply put, this indicates that the customer has paid the entire amount due and that payment has been recorded in the accounts receivable ledger.
Receivables are recorded in what way on the balance sheet?Accounts receivable are represented on the balance sheet as a current asset since they normally convert into cash in less than a year. If the sum due only becomes cash after some more than a year, it is instead shown on the balance sheet as a long-term asset (possibly as a note receivable).
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you're creating a video ad with the aim of growing consideration for a product. how should you approach making this video ad?
The three main factors that determine an advertisement's video quality are the anticipated clickthrough rate, landing page experience, and ad relevancy.
What is the video's quality?
It is measured using the 16:9 aspect ratio, which is the most common aspect ratio for televisions and computer monitors. Lower resolution videos have fewer pixels, whereas higher quality videos have more pixels
It is measured using the 16:9 aspect ratio, which is the most common aspect ratio for televisions and computer monitors. Lower resolution videos have fewer pixels, whereas higher resolution videos have more.
Numerous techniques are used to determine how effective advertising is. These include awareness, concentration, comprehension, changing attitudes, and behaviour or action.
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Milk has an inelastic demand, and beef has an elastic demand. Suppose that a mysterious increase in bovine infertility decreases both the population of dairy cows and the population of beef cattle by 50 percent.
The equilibrium price will
increase in both the milk and beef markets.
decrease in both the milk and beef markets.
Increase in both the milk and beef markets will be the equilibrium price.
A market-clearing price often referred to as an equilibrium price, is the consumer cost associated with a good or service when supply and demand are equal or nearly equal. The manufacturer or vendor is free to transfer as many units as they like, and the consumer is free to access as many units as they like. Dynamic pricing adjusts prices instantly in reaction to changes in supply and demand in order to find equilibrium prices as the market changes. Various strategies are used in other pricing models, such as value-based pricing, to control demand or make use of intangible attributes in order to increase profit margins beyond what can be estimated by cost-based pricing.
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A grid that combines an employee's performance rating with his or her position within a pay range so as to determine the size and frequency of pay increases is known as the ______ grid.
merit increase
A grid that combines an employee's performance rating with his or her position within a pay range so as to determine the size and frequency of pay increases is known as the merit increase grid. The merit system is one of the human resource management systems.
Merit systems are often found in the private sector. However, the birthplace of the merit system is the public sector. Specifically, in the United States. Initially, in the public sector, the spoil system or patronage system applies. This is the opposite of the merit system. In that system, jobs are obtained through the support of political parties. This is written by the American Historical Association. In this system, there is a demand to support a party. If that party wins, you will be given a public sector job.
The importance of the Merit System for Workers is
The selection and promotion process are only assessed through abilityPosition vacancy information and promotions are notified to everyoneThere is an option to appeal to HRD if there are problems in the selection and promotionYou can learn more about merit system here brainly.com/question/1330858
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what type of property insurance is available for rental and income properties, businesses, and commercial enterprises?
Commercial General Liability Insurance (CGL)
Commercial General Liability Insurance (CGL) is a type of insurance policy that provides coverage for property damage caused by the business's operations, personal injury, and property damage, it also covers business liabilities that arise due to misconduct of business.
cobe company has manufactured 215 partially finished cabinets at a cost of $53,750. these can be sold as is for $64,500. instead, the cabinets can be stained and fitted with hardware to make finished cabinets. further processing costs would be $12,900, and the finished cabinets could be sold for $86,000. (a) prepare a sell as is or process further analysis of income effects. (b) should the cabinets be sold as is or processed further and then sold?
Additional $ 8600 in incremental income (loss) must be processed.
How would you ascertain steady pay misfortune?Your new sales less your baseline sales are the same as your incremental revenue (IR = NS – BS). Therefore, subtract your baseline sales of $75,000 from your new sales of $95,000. Your steady income rises to $20,000.
What exactly is a small loss?INCREMENTAL LOSSES are losses that would not have occurred if the parties had agreed to the Two Buyer Structure instead of the One Buyer Structure. These losses are caused by the Structure Change or by it.
What does incremental income mean?The profit a company makes from an increase in sales is known as incremental revenue. When the number of sales grows, it can be used to figure out how much more money a certain product, investment, or direct sale from a marketing campaign brings in.
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mobile and exxon, the nation s' two largest oil companies have recently reduced their wholesale prices for gasoline. mobile claims that their gas stations now sell, on the average, one gallon of regular gas at a lower price than exxon brand. in a recent study the price of one gallon of regular gas for 8 randomly selected mobile gas stations has a mean of $2.20 and a standard deviation of $0.11; and the price of one gallon of regular gas in 12 randomly selected exxon gas stations have a mean of $2.29 and a standard deviation of $0.07. assuming that the two population standard deviations are equal, a 99% confidence interval for the true difference in average price per one gallon of regular gas of mobile brand and exxon brand of gas is given by:
Average price per one gallon of regular gas of mobile brand and exxon brand of gas is given by (2.20-2.29)+-2.878 ((.11)^2 /8 + (.07)^2 /12)^.5.
Standard deviation is vital due to the fact it could assist users investigate hazard. keep in mind an funding option with an average annual go back of 10% in keeping with year. But, this common was derived from the beyond 3 yr returns of fifty%, -15%, and -five%. by means of calculating the same old deviation and knowledge your low likelihood of truly averaging 10% in any single given year, you are higher armed to make informed choices and spotting underlying chance.
Calculation:-
alpha = 1 - 0.99 = 0.01
alpha/2 = 0.005
df = 12+8-2 = 18
t = 2.878
(2.20-2.29)+-2.878 ((.11)^2 /8 + (.07)^2 /12)^.5
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Disclaimer:- your question is incomplete, please see below for the comlete question.
Mobile and exxon, the nation s' two largest oil companies have recently reduced their wholesale prices for gasoline. mobile claims that their gas stations now sell, on the average, one gallon of regular gas at a lower price than exxon brand. in a recent study the price of one gallon of regular gas for 8 randomly selected mobile gas stations has a mean of $2.20 and a standard deviation of $0.11; and the price of one gallon of regular gas in 12 randomly selected exxon gas stations have a mean of $2.29 and a standard deviation of $0.07. assuming that the two population standard deviations are equal, a 99% confidence interval for the true difference in average price per one gallon of regular gas of mobile brand and exxon brand of gas is given by:
a.(2.20-2.29)+-2.878 {[[7(.11)^2 + 11(.07)^2] /18][(1/8) + (1/12)]}^.5
b.(2.20-2.29)+-2.528 {[(.11)^2 / 8] + [(.07)^2 / 12]}^.5
c.(2.20-2.29)+-2.552 {[[7(.11) + 11(.07)] /18][(1/8) + (1/12)]}^.5
d.(2.20-2.29)+-2.878 ((.11)^2 /8 + (.07)^2 /12)^.5
if improved consumer confidence leads to households saving a smaller portion of their income, what will happen in the market for loanable funds?
An essential economic indicator for investors, the consumer confidence index gauges how confident consumers are about the economy.
What will happen in the loanable money market?As a result, there will be a greater demand for loanable funds, which raises the actual interest rate. In other words, when the economy is performing well, we would anticipate seeing an increase in real interest rates and the volume of loans provided.
What causes changes in the loanable funds market?Lenders who are willing to lend their money to borrowers in exchange for a fee are the source of loanable cash. The demand curve for loanable money can alter due to a variety of factors, such as changes in how prospects for business are perceived, government borrowings, etc.
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during an alternating possession procedure throw-in, team a commits a throw-in violation. the official awards team b the ball and instructs the scorer to turn the arrow toward team b’s basket. is the official correct?
Yes, during an alternating possession procedure throw-in, team a commits a throw-in violation. the official awards team b the ball and instructs the scorer to turn the arrow toward team b’s basket.
When a team with the ball has used all of their timeouts and still requests a timeout, what happens?Make sure you inform the coach that there are no more timeouts available after a team uses its final timeout of the contest. If a team asks for a timeout but has used up all of their timeouts, they still get it, but it comes at the cost of a technical foul!
Alternating possession throw is what?The teams shall alternate taking the ball out of bounds for a throw-in during all jump-ball situations, with the exception of the beginning of the game and each extra session. The alternating-possession system is set up by the team that successfully controls the jump ball, and the arrow is pointed in the direction of the opponent's hoop.
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st. louis - a st. louis circuit court jury has ruled that laclede gas co. owes a $4.5 million judgment to the parents of a man who died of burns he suffered in a natural gas explosion at his home. the jury awarded tommy and rita coggins $4.38 million for the death of their son, thomas coggins, 20, and an additional $120,000 for their wrecked home in the city's lindenwood park neighborhood. on april 7, 1991, an explosion leveled the house at 7016 winona avenue. thomas c
st. louis - a st. louis circuit court jury has ruled that laclede gas co. owes a $4.5 million judgment to the parents of a man who died of burns he suffered in a natural gas explosion at his home.19 aircraft in St. Louis
20 aircraft in Dallas.
In the beginning, we had 16 planes in Dallas, 24 planes in St. Louis, and 20 planes in Los Angeles.
Los Angeles has 20% of its aircraft flying to St. Louis, or 0.20 * 20 = 4.There are 4 flights from Los Angeles to St. Louis and 10% to Dallas, for a total of 2 flights: 0.10 * 20.25% of the aircraft in St. Louis have flights to Los Angeles.There are 6 flights each day from St. Louis to Los Angeles, or 0.25 * 24.and 50% of them fly to Dallas, for a total of 12 flights from St. Louis to Dallas. 18 aircraft depart St. Louis. 12.5% of Dallas-based aircraft have flights to Los Angeles.2 flights fly from Dallas to Los Angeles and 50% fly to St. Louis (0.125 * 16 = 2); 0.5 * 16 = 8.Dallas to St. Louis is served by 8 aircraft.10 aircraft depart from Dallas.
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the phillips curve illustrates which relationship? as unemployment decreases, real wages decrease. as unemployment decreases, inflation increases. as unemployment increases, real wages increase. as unemployment increases, inflation increases. as unemployment decreases, inflation decreases.
The Phillips Curve shows how inflation falls as unemployment rises.
What is inflation?The broad word for an increase with in cost of products and services throughout an economy in the study of economics is inflation. As the overall price level rises, each unit of currency may buy fewer goods and services, hence inflation is related to a reduction as in purchasing power of money. Inflation is the amount that prices rise over a given period of time. The general increase in prices or the increase in a country's cost of living are two examples of broad measures used to describe inflation.
What happens if inflation is high?The basic cost of inflation is the erosion of real income when prices increase unevenly and some customers' purchasing power decreases. Inflation may eventually have an impact on the ability of people who pay and receive fixed interest rates to make purchases. Inflation is the term used to describe when prices in an economy rise or when the purchasing power of money falls. According to economists, a number of factors, such as a rise in the money supply, higher wages, and increased aggregate demand, may contribute to inflation.
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you have a portfolio that is equally invested in stock f with a beta of 1.10, stock g with a beta of 1.47, and the risk-free asset. what is the beta of your portfolio? group of answer choices
Beta of the portfolio is 0.85666.
Given,
Beta of stock F = 1.10
Beta of stock g = 1.47
Weight of each asset = 100% / 3 = 33.33%
Beta of the portfolio=∑Weight of the stock× Beta of the stock
Beta of the portfolio = 1/3 x 1.10 + 1/3 x 1.47 + 1/3 x 0
= 0.366666 + 0.49
= 0.856666
Therefore, Beta of the portfolio is 0.85666.
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skilling incorporated has the following information on one of its investment center departments. sales: $9,800,000; income: $766,500; and investment center assets: $3,650,000. management has set a target income of 11.5% of investment center assets. what is the department's residual income?
If the management has set a target income of 11.5% of investment center assets. The department's residual income is: $346,750
How to find the residual income?Using this formula to find the residual income
Residual income =Income-(average assets × percentage of target income)
Let plug in the formula
Residual income = $766,500-($3,650,000×0.115)
Residual income = $766,500- $419,750
Residual income = $346,750
Therefore we can conclude that the residual income is the amount of $346,750.
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The cost of capital is an appropriate name since a project must earn enough to pay those who ______ the capital.
The cost of capital is an appropriate name since a project must earn enough to pay those who supply the capital.
A project is any project, achieved personally or collaboratively and likely involving research or layout, this is carefully deliberate to obtain a selected intention. An opportunity view sees a venture managerially as a series of events: a "set of interrelated responsibilities to be executed over a fixed period and within the sure price and different barriers".
A challenge may be a brief (in preference to a permanent) social machine (painting device), probably staffed via groups (within or across corporations) to perform precise duties below time constraints. An assignment may additionally shape part of wider program management or characteristic as an ad hoc machine.
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3. if a company deposits $100,000 into an account that earns a market interest rate of 10% per year at a time when the deflation rate is 1% per year, what will be the purchasing power of the accumulated amount (with respect to today's dollars) at the end of 15 years?
Accumulated value, additionally referred to as accumulated amount or cash value, is calculated as the sum or complete of the preliminary investment, plus interest earned to date.
It's the total quantity an investment currently holds, consisting of the capital invested and the activity it has earned to date.
Is gathered price the same as future value?Present value is the equivalent value today of some amount to be obtained or paid in future and future fee is the gathered price in future of an amount acquired or paid today. The equivalency arises due to the fact a money float that manifest at time 0 can accumulate interest.
What is amassed quantity in annuity?The Accumulation Value or Account Value is the modern price of your annuity. Annuity accumulation is equal to the amounts in the declared hobby account and index participation accounts, which are decreased via any rider fees, and withdrawals taken from your annuity. Basically, this is what your annuity is worth.
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https://brainly.com/question/1287985#SPJ4Beryl enters into a contract with Clay for a guided tour of Deep Canyon. Clay represents that he is an experienced, knowledgeable guide, when in reality he has never been in the canyon. Most likely, Beryl
a. could exert duress to obtain a new guide.
b. can rescind the deal based on fraudulent misrepresentation.
c. might recover damages for the mistake.
d. must comply with the contract because the representation is an opinion.
The ideal response is (b). Most certainly, Beryla's claim of fraudulent misrepresentation entitles her to withdraw the agreement.
Can a dishonest deception render a contract void?Misrepresentations are false statements of fact that influence another party's decision on a contract. Such misleading statements may render a contract null and void, and in some cases, the other party may be entitled to damages.
The Agreement shall be enforced only to the extent that all Parties have "contractual ability." Having the basic minimum of mental capacity necessary to enter into an agreement is referred to as having "contractual capacity." To put it another way, those who are deemed incompetent and have the power to "void," or set aside, a contract are those who lack the mental capacity to enter into one.
Children, persons who suffer from mental diseases, and those who are intoxicated are three groups of people who the law regards as not being able to enter into a contract. Any individual who signs a contract and belongs to one of these categories may view it as "voidable." This guards against forcing a party lacking the required capacity into an agreement that takes advantage of their inexperience in the business world.
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if there were no costs or loss of time in changing from one product to another, what would the impact be? check all that apply.
If there were no costs or loss of time in changing from one product to another, the impact would be that :
many small lots would be produced
- reduced inventory levels
- costs would be lower
What is the change in product?Product Changes can be described as any changes, as well as improvements, alterations, that can be made on any part substitutions as well as new applications, and additional specifications with respect to the Products.
It should be noted that theProducts' labeling may hve impact the marketability, as well as the effectiveness of a Product and hence If there were no costs or loss of time in changing from one product to another, many small lots would be produced.
Therefore the first three options are correct.
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missing options;
many small lots would be produced
- reduced inventory levels
- costs would be lower
cost do not matters
Bond Prices Are Sensitive To Changes In Yield When The Bond Is Selling At A Initial Yield To Maturity, A. More; Lower B. More; Higher C. Aggregate supply; Left D. Aggregate supply: Right
The higher a bond or bond fund's duration, the more sensitive the bond or bond fund to changes in interest rates.
Bond mutual funds are similar to stock mutual funds in that you pool your money with other investors' money, and a professional makes investments from that pool of money based on what they believe to be the best opportunities.
Bond funds often hold a variety of distinct bonds with varying maturities, so if an issuer defaults on interest or principal payments, the effect on the performance of any one bond is mitigated. Broad market bond funds, for example, provide exposure to corporate, U.S. government, government agency, and mortgage-backed bonds while also diversifying across different bond sectors.
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your estimate of the market risk premium is 6%. the risk-free rate of return is 4% and general motors has a beta of 1.4. what is general motors' cost of equity capital?
general motors' cost of equity capital is 14.5% CAPM.
The return a business needs to determine if an investment satisfies capital return criteria is known as the cost of equity. It is frequently used by businesses as a cap for the required rate of return. The price the market is willing to pay to own an asset and assume ownership risk is known as a company's cost of equity. The capital asset pricing model (CAPM) and dividend capitalization model are two common formulas for calculating the cost of equity. The cost of capital is typically calculated using the weighted average cost of capital, which takes into account both the cost of equity and the cost of debt.
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a project has estimated annual net cash flows of $69,000 and is estimated to cost $448,500. what is the payback period?
The initial investment will be recovered exactly six times is the payback period.
What benefits does the payback period offer?Payback time is a useful indicator of investment risk. The risk is lower for the project with the shorter payback time than for the project with the longer payback period. When choosing a project, the repayment period is frequently used as a key criterion along with liquidity.
Briefing:Giving the following information:
Cash flow= $69,000
Initial investment= $448,500
The amount of time needed for the cash flow to recover the initial investment is known as the payback period:
Year 1= 69,000 - 448,500= -379,500
Year 2= 69,000 - 379,500= -310,500
Year 3= 69,000 - 310,500= -241,500
Year 4= 69,000 - 241,500= -172,500
Year 5= 69,000 - 172,500= -103,500
Year 6= 69,000 - 103,500= 34,500
The initial investment will be recovered exactly six times.
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according to okun's law, when the natural employment rate is 6 percent and potential gdp is $10 trillion, then when actual employment is 5 percent, real gdp is group of answer choices
When actual employment is 5 percent, Real GDP is $10.2 trillion.
What is GDP?The market worth of all the final goods and services produced and sold (not resold) by nations within a given time period is measured in dollars by the gross domestic product (GDP). This measurement has undergone revisions before it can be trusted as indicator because of how complicated and arbitrary it is. However, GDP (nominal) per capita does not account for variations in the cost of living and the rate of inflation of the various nations; as a result, using a basis of GDP per capita at purchasing power parity (PPP) may be more useful when comparing living standards between countries, whereas nominal GDP is more useful when comparing national economies on the global market. The contribution of each industry or sector of the economy to the total GDP can also be determined.
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on august 3, cinco construction purchased special-purpose equipment at a cost of $7,500,000. the useful life of the equipment was estimated to be eight years, with an estimated residual value of $60,000. a. compute the depreciation expense to be recognized each calendar year for financial reporting purposes under the straight-line depreciation method (half-year convention). b. compute the depreciation expense to be recognized each calendar year for financial reporting purposes under the 200 percent declining-balance method (half-year convention) with a switch to straight-line when it will maximize depreciation expense. c. which of these two depreciation methods (straight-line or double-declining-balance) results in the highest net income for financial reporting purposes during the first two years of the equipment’s use?
Here Calculation percentage is 20% (Under the DDB method double the straight-line percentage) option C.
Year 1 Depreciation = Cost x 20% /12 x 5 (For five months, asset purchased on August) = 714200
Year 2 Depreciation will be = Net book Value x 20% (Net Book value = Cost - Depreciation year 1)
For reference check the table attached above.
Under the DDB method, we will calculate depreciation on Net Book Value
From Year 4 we use depreciation and switched to straighten method. We can switch the depreciation method when the Straight line yearly depreciation amount is greater than the DDB method depreciation amount.
If we use the DDB method for year 4 = 1005594 (Net opening value of the asset on year 4 x 20% is 5027968 x 20%) (Under straight-line depreciation is 1059505, Here we switched method)
And one more thing to consider is that our maximum depreciation base is 8476940
Due to this year, 8 depreciation amount is adjusted with salvage value. Check the table for reference.
There is no need to enter depreciation for year 9 . Because we already write off the total depreciation amount.
Under the straight-line method, the net income for the 2 years is the highest. When Comparing the depreciation values under DDB and Straight line, DDB has the highest depreciation expense and straight line has the lowest method. So net income will higher under the straight-line method.
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which of the following best expresses the central idea of countercyclical fiscal policy? group of answer choices planned deficits are experienced during economic booms and planned surpluses during economic recessions. the balanced-budget approach is the proper criterion for determining annual budget policy. actual deficits should equal actual surpluses during a period of deflation. deficits are planned during economic recessions, and surpluses are utilized to restrain inflationary booms.
The central idea of countercyclical fiscal policy is that deficits are planned during economic recessions and surpluses are used to restrain inflationary booms.
Fiscal policy is the process by which the government uses spending and taxation to affect the economy. Fiscal policy is typically used by governments to promote strong and sustainable growth and to reduce poverty.
The primary goal of fiscal policy is to maintain economic stability, full employment, and a stable growth rate. Monetary policy, which includes the banking system, the supply of money in circulation, and interest rate management, is frequently optimized.
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an example of open-end credit is: multiple choice the use of a bank credit card to make a purchase. a mortgage loan from a savings and loan institution. an automobile loan from a credit union. an installment loan from a furniture store. an installment loan for purchasing a major appliance.
Use of a bank credit card to make a purchase and a mortgage loan from a savings and loan institution are an example of open-end credit.
What is open-end credit?Open-end credit is a pre approved loan between a financial institution and borrower that can be repaid in advance of the due date and may be used repeatedly up to a set limit.
How open end credit works?In the case of open-end credit, you are given a credit line with a set limit that you can use as needed while only being charged interest on the amount you actually borrow. Credit cards and lines of credit are typical examples of open-end credit. You can continually draw from the credit line as long as you pay back the money you've already borrowed. You could be able to access the money using a cheque, a card, or an electronic transfer, depending on the product you choose. There is no expiration date for several types of open-end credit. For instance, if you have a credit card, you can pay off your balance and re-borrow provided the card issuer permits you to do so. In essence, your open-end credit could be spent indefinitely if the card issuer is in operation and the account continues in good standing. Although some credit lines, such as personal credit lines, frequently have fixed draw and repayment periods, you normally have years to borrow and repay again.
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Julio has started his very own floral business. he sells centerpieces for $19.50 each. his fixed costs are $500 per month, and each centerpiece cost $8 to produce. let n represent the number of centerpieces you sell. write an equation to determine the cost, c. write another equation to determine the revenue, r.
a. c = 500 19.50 n. r = 8 n
b. c = 500 8 n. r = 19.50 n
c. c = 19.50 n 8 n. r = 500
d. c = 19.50 n. r = 500 8 n
Option B is correct. Another equation to determine the revenue is c = 500 8 n. r = 19.50 n
The cost C = 500 + 8n
The revenue R = 19.50n
In accounting, revenue is the full amount of income generated by using the sale of goods and services related to the primary operations of the enterprise. industrial sales can also be called sales or turnover. some organizations acquire sales from interest, royalties, or other charges. "Revenue" can refer to profits in the general public or to the sum, expressed in financial units, earned at a certain point in time, as in "closure yr, corporation X had revenue of $42 million". profits or net profits normally imply overall sales minus general charges in a given duration. In accounting, within the balance assertion, sales is a subsection of the equity section, and revenue increases fairness, it's miles often referred to as the "top line" due to its position at the income declaration at the very pinnacle. this is to be contrasted with the "bottom line" which denotes net income (gross sales minus total prices).
In preferred utilization, revenue is the whole amount of profits via the sale of goods or services related to the company's operations. income sales is income obtained from selling items or offerings over a time period. Tax revenue is profits that a central authority gets from taxpayers. Fundraising revenue is income obtained by a charity from donors and so forth. to in addition to its social purposes.
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a speculator purchased a put option with an exercise price of $56 for a premium of $10. the option was exercised a few days later when the stock price was $44. what was the return to the speculator?
A speculator purchased a put option with an exercise price of $56 for a premium of $10 and the option was exercised a few days later when the stock price was $44 so the return to the speculator was 20 percent.
Premium is associate quantity paid sporadically to the underwriter by the insured for covering his risk. In associate insurance contract, the chance is transferred from the insured to the underwriter. For taking this risk, the underwriter charges associate quantity referred to as the premium.
The stock price solely tells you a company's current price or its market price. So, the value represents what quantity the stock trades at—or the value set by a emptor and a vendor. If there are additional patrons than sellers, the stock's worth can climb. If there are additional sellers than patrons, the value can drop.
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