A horizontal demand curve represents perfectly elastic demand.
The demand for a commodity refers to the quantity of the commodity that consumers are willing and able to buy at a particular price and time.
A demand curve is a graphical representation of the relationship between the price of a good or service and the quantity demanded by consumers.
There are three types of demand elasticity: Elastic, inelastic, and unitary. The price elasticity of demand (PED) determines how much the quantity demanded changes as a result of a change in price.
Horizontal demand curve: This type of demand curve represents a situation where there is perfect elasticity of demand for a commodity. That is, a small change in price will cause a large change in the quantity demanded of the commodity. Thus, horizontal demand curves are also called perfectly elastic demand curves. The demand for a commodity is perfectly elastic when consumers are willing to buy any quantity of the commodity at a particular price, but none of it at a higher price.
Therefore, the answer is b. Perfectly elastic demand.
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if saving exceeds investment demand, and consumption is not a function of the interest rate:
If saving exceeds investment demand and consumption is not a function of the interest rate, it suggests that there is an excess supply of loanable funds in the economy.
In other words, individuals and businesses are saving more than they are willing to invest. This can happen for various reasons, such as low consumer confidence, a pessimistic business outlook, or limited investment opportunities. In this situation, the interest rate tends to decrease as lenders compete to attract borrowers. Lower interest rates can incentivize borrowing and investment, helping to bring the saving and investment levels back into balance. However, since consumption is not influenced by the interest rate, it is unlikely to have a direct impact on stimulating demand. It is worth noting that in the real world, consumption is often influenced by factors such as income, wealth, and consumer expectations, which can be influenced by the interest rate indirectly. Therefore, the assumption that consumption is not a function of the interest rate is an oversimplification.
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Kaman Company purchased a building and land with a fair market value of $575,000 (building. $400,000 and land, $175,000) on January 1, 2024. Kaman signed a 25-year, 15% mortgage payable Kaman will make monthly payments of $7.364.78. Round to two decimal places. Explanations are not required for journal entries. Read the requirements m Requirement 1. Journalize the mortgage payable issuance on January 1, 2024. (Record debits first, then credits Exclude explanations from any journal entries) Date Accounts Debit Credit 2024 Jan 1 Graded ag Sun Question 5, EF14-19 (similar to) Part 1 of 4 Requirements ext pages 1. Journalize the mortgage payable issuance on January 1, 2024. 2. Prepare an amortization schedule for the first two payments. 3. Journalize the first payment on January 31, 2024 4. Journalize the second payment on February 28, 2024. Get more help. Print Done کے Pearson HW Score: 37%, O Points: 0 of - X la m Clear a
Journalize the mortgage payable issuance on January 1, 2024: Mortgage Payable $575,000, Buildings $400,000, Land $175,000.
Journalize the mortgage payable issuance on January 1, 2024?Here is the explanation for journalizing the mortgage payable issuance on January 1, 2024:
When a company issues a mortgage payable, it records the transaction in its accounting records to reflect the liability and the corresponding increase in the asset value. In this case, Kaman Company purchased a building and land with a fair market value of $575,000 on January 1, 2024, and obtained a 25-year, 15% mortgage payable.
To journalize this transaction, the following entry is recorded:
Date: January 1, 2024
Accounts Debit Credit
Building $400,000
Land $175,000
Mortgage Payable $575,000
The debit to the Building account represents the increase in the asset value of the building acquired.
The debit to the Land account represents the increase in the asset value of the land acquired.
The credit to the Mortgage Payable account represents the liability incurred by Kaman Company for the mortgage.
By recording this journal entry, the company recognizes the acquisition of the building and land and the corresponding mortgage payable obligation on its balance sheet.
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Small cap stocks have a market capitalization of less than $2
billion
Group of answer choices
True OR False
True Small cap stocks have a market capitalization of less than $2 billion. Small-cap companies are often called "micro-cap" stocks, and they are businesses with a total market capitalization of less than $2 billion.
These companies are frequently in their early phases and are considered riskier than larger businesses. The majority of these companies are often young and in the development phase, with much less revenue and higher volatility. They may often have less analyst coverage, making them more difficult to evaluate.
But in certain situations, they may provide the chance for a greater return on investment because they have the potential to grow rapidly as they grow in size.Small-cap businesses frequently operate in niche markets and may be focused on a specific sector or market. Although small-cap stocks have a greater risk of failure than large-cap companies, they also have the potential for larger gains. The greater the risk, the greater the potential rewards. These firms have the potential to grow into larger, more profitable companies with larger market caps with continued success and growth.
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EPS in 2018 of Mobile Ltd is 2.4, and the forecasted EPS in 2019 is 2.1. It is known that Mobile Ltd has zero interest-bearing net debt. Below is the information for comparable companies of Mobile Ltd:
Company P/E-ratio based on EPS (2018) P/E-ratio based on EPS (2019)
Yup Ltd. 18,3 17,3
Okay Corp. 21,2 13,6
Nice Ltd. 22,1 17,6
Required: Calculate price for Mobile Ltd. when using the median forward P/E-ratio.
The price for Mobile Ltd. using the median forward P/E ratio is $36.33.
What is the price for Mobile Ltd. using the median forward P/E ratio?The median forward P/E ratio is calculated by taking the median value of the P/E ratios based on EPS for the comparable companies in both 2018 and 2019. In this case, the median forward P/E ratio is determined by taking the median of the P/E ratios for Yup Ltd., Okay Corp., and Nice Ltd. in 2019.
To calculate the price for Mobile Ltd., we use the formula: Price = EPS * P/E ratio. Given that the forecasted EPS for Mobile Ltd. in 2019 is 2.1, we can substitute this value into the formula along with the median forward P/E ratio of 17.3.
Price = 2.1 * 17.3 = $36.33
Therefore, the estimated price for Mobile Ltd. using the median forward P/E ratio is $36.33. This indicates the expected valuation of the company based on its forecasted earnings and the market's valuation of similar companies.
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One criticism of the interest coverage ratios (income basis) as measures of long-term solvency risk is that they use A interest expense rather than earnings in the numerator B. earnings rather than cash flows in the numerator Oc. cash flows rather than earnings in the numerator OD. interest expense rather than cash flows in the numerator
The correct answer is C. cash flows rather than earnings in the numerator.
The interest coverage ratio is a financial metric used to assess a company's ability to meet its interest obligations on its outstanding debt. It is typically calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expense. The resulting ratio indicates the number of times the company's earnings can cover its interest payments.
One criticism of using earnings in the numerator is that earnings can be influenced by various accounting choices and non-cash items, such as depreciation and amortization, which may not accurately reflect a company's ability to generate sufficient cash flows to cover its interest expenses. This is especially relevant when assessing long-term solvency risk, as the ability to generate sustainable cash flows is crucial for meeting long-term obligations.
By using cash flows rather than earnings in the numerator, the interest coverage ratio focuses on the actual cash generated by a company's operations. Cash flows provide a more accurate measure of a company's ability to generate the necessary funds to cover interest expenses, as cash flows directly represent the inflows and outflows of cash within a given period.
Using cash flows in the numerator helps to mitigate the impact of non-cash items and accounting choices on the interest coverage ratio, providing a more reliable measure of a company's long-term solvency risk. By focusing on cash flows, investors and creditors can better assess the company's ability to generate sufficient cash to service its debt obligations, which is a key consideration for evaluating long-term financial stability.
In summary, using cash flows rather than earnings in the numerator of the interest coverage ratio addresses the criticism of relying solely on earnings, as cash flows provide a more accurate representation of a company's ability to meet its long-term debt obligations. This approach allows for a more comprehensive assessment of a company's long-term solvency risk.
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Draw a labour market diagram that represents the supply and
demand of labour and explain why one of the curves is upward
sloping and one downward sloping. On this graph, represent a labour
shortage an
The labor market diagram consists of an upward sloping supply curve and a downward sloping demand curve. A labor shortage occurs when demand exceeds supply, leading to higher wages as employers compete for workers.
In a labor market diagram, the vertical axis represents the wage rate, while the horizontal axis represents the quantity of labor. The supply curve of labor is upward sloping, indicating that as the wage rate increases, more individuals are willing to supply their labor due to the higher incentive to work. This is because a higher wage rate increases the opportunity cost of leisure, encouraging individuals to participate in the labor market.
On the other hand, the demand curve for labor is downward sloping, indicating that as the wage rate increases, employers demand fewer workers due to the increased cost of labor. Higher wage rates can lead to employers seeking cost-saving measures, such as reducing the number of employees or adopting labor-saving technologies.
A labor shortage occurs when the quantity of labor supplied is lower than the quantity demanded at a given wage rate. This is represented on the graph as a point where the demand curve intersects above the supply curve, indicating that there is excess demand for labor. A labor shortage often leads to upward pressure on wages as employers compete to attract workers and fill the vacant positions.
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--The given question is incomplete, the complete question is given below " Draw a labour market diagram that represents the supply and
demand of labour and explain why one of the curves is upward
sloping and one downward sloping. On this graph, represent a labour
shortage "--
Accounting for oil & gas
Question 9 (13 points) Bahrain Oil Corporation had the following information and account balances for the years shown relating to Lease (A), 12/31/2020: Net capitalized cost or book value of wells and
The Bahrain Oil Corporation had the following information and account balances for the years shown related to Lease A on 12/31/2020: Net capitalized cost or book value of wells. The Net capitalized cost of the well is calculated by subtracting the accumulated depletion and accumulated depreciation from the gross cost of the well. It is the value that the company can recover from the sale of oil and gas from the well.
There are two methods of accounting for the Oil and Gas industry, full-cost and successful-efforts. Full-cost accounting is the more traditional method. In this method, the company treats all costs associated with acquiring, exploring, and developing oil and gas reserves as capitalized costs. Successful efforts accounting is another approach, in which only the costs incurred in successful exploration and development are capitalized and recorded as assets. In Lease A, the Bahrain Oil Corporation should calculate the net capitalized cost of wells to account for the oil and gas. The formula to calculate the net capitalized cost of the well is: Gross cost of the well - Accumulated depletion - Accumulated depreciation = Net capitalized cost of well. Therefore, to calculate the net capitalized cost of the well, we require the following information:- Gross cost of the well- Accumulated depletion- Accumulated depreciation- Net capitalized cost of well. The Gross cost of the well is the total cost of acquisition, exploration, and development of a particular well. It includes all direct and indirect costs related to the well. The Accumulated depletion is the cumulative cost of depletion of oil and gas from the well. The Accumulated depreciation is the total depreciation cost of the well. It is calculated based on the useful life of the well. The Net capitalized cost of the well is calculated by subtracting the accumulated depletion and accumulated depreciation from the gross cost of the well. It is the value that the company can recover from the sale of oil and gas from the well. The Bahrain Oil Corporation should maintain all the necessary records and documentation to support its accounting practices. It should also ensure compliance with the accounting standards set by the regulatory authorities.For more such questions on Bahrain Oil Corporation, click on:
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The probable question may be:
Bahrain Oil Corporation had the following information and account balances for the years shown relating to Lease (A). 12/31/2020:
Net capitalized cost or book value of wells and equipment, DC-L&WE.... $135,000
Estimated proved reserves, 12/31/2020
Oil........12,500 bbl
oil gas 150,000 Mcf
Estimated proved undeveloped reserves, 12/31/2020
Oil... 3,000 bbl
Gas..... 30,000 Mcf
Production during 2020
Oil..... 1,750 bbl
Gas.......17,500 Mcf
Required:
1-a Compute DD&A for the year ended 12/31/2020 using a common unit of measure based on equivalent Mcf
1-b. Gas as the dominant mineral
2-Prepare the journal entry to record the DD&A in either 1-a or 1-b
Answer: Req. 1-a (8 points)
Compute DD&A using a common unit of measure based on equivalent Mcf: (rounded up to the nearest amount)
Broussard Skateboard's sales are expected to increase by 25% from $8.2 million in 2019 to $10.25 million in 2020. Its assets totaled $4 million at the end of 2019.
Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2019, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 5%, and the forecasted payout ratio is 70%. Use the AFN equation to forecast Broussard's additional funds needed for the coming year. Enter your answer in dollars. For example, an answer of $1.2 million should be entered as $1,200,000. Do not round intermediate calculations. Round your answer to the nearest dollar.
The Additional Funds Needed (AFN) equation is used to determine the amount of money required to finance an increase in assets that exceeds an increase in spontaneous liabilities and retained earnings. According to the question, Broussard Skateboard's sales are expected to increase by 25% from $8.2 million in 2019 to $10.25 million in 2020.
Its assets totaled $4 million at the end of 2019, and Broussard is already at full capacity, so its assets must grow at the same rate as projected sales.Below is the given information,Current assets = $4,000,000Sales forecasted for the year 2020 = $10,250,000After-tax profit margin = 5%Payout ratio = 70%Current liabilities = $1,400,000This implies that the Total Assets for the year 2020 will be:
Total assets = (1 + increase in sales) x Current assets Total assets = (1 + 0.25) × $4,000,000Total assets = $5,000,000The spontaneous liabilities, in this case, will be: Spontaneous liabilities = Accounts payable + Notes payable + AccrualsSpontaneous liabilities = $450,000 + $500,000 + $450,000Spontaneous liabilities = $1,400,000
So, the amount of Additional Funds Needed (AFN) required to finance this growth is given by the AFN equation:AFN = (A*/S0)ΔS - (L*/S0)ΔS - MS1 (RR)AFN = ($5,000,000/$8,200,000)($10,250,000 - $8,200,000) - ($1,400,000/$8,200,000)($10,250,000 - $8,200,000) - (0.05)($10,250,000)(0.7)AFN = $2,087,805.4 - $340,243.9 - $358,750AFN = $1,388,811.5
Thus, the Additional Funds Needed (AFN) required to finance this growth is $1,388,811.5, which is to be rounded to the nearest dollar, giving us a final answer of $1,388,812.
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1. Suppose you're building portfolio consisting of the above securities, what is the portfolio's expected return?
2. Suppose you're building a portfolio consisting of the above securities, what is the portfolio expected beta?
The portfolio's expected return is 11.15% and The portfolio's expected beta is 1.36.
To calculate the portfolio's expected return, we need to weigh the individual securities' expected returns by their respective portfolio weights. Given the following information:
Security A: Expected Return = 10%, Portfolio Weight = 40%
Security B: Expected Return = 12%, Portfolio Weight = 30%
Security C: Expected Return = 14%, Portfolio Weight = 30%
We can calculate the portfolio's expected return using the weighted average formula:
Portfolio's Expected Return = (Expected Return A * Portfolio Weight A) + (Expected Return B * Portfolio Weight B) + (Expected Return C * Portfolio Weight C)
= (0.10 * 0.40) + (0.12 * 0.30) + (0.14 * 0.30)
= 0.04 + 0.036 + 0.042
= 0.116
= 11.6%
Therefore, the portfolio's expected return is 11.15%.
To calculate the portfolio's expected beta, we need to weigh the individual securities' betas by their respective portfolio weights. Given the following information:
Security A: Beta = 1.2, Portfolio Weight = 40%
Security B: Beta = 1.5, Portfolio Weight = 30%
Security C: Beta = 1.1, Portfolio Weight = 30%
We can calculate the portfolio's expected beta using the weighted average formula:
Portfolio's Expected Beta = (Beta A * Portfolio Weight A) + (Beta B * Portfolio Weight B) + (Beta C * Portfolio Weight C)
= (1.2 * 0.40) + (1.5 * 0.30) + (1.1 * 0.30)
= 0.48 + 0.45 + 0.33
= 1.36
Therefore, the portfolio's expected beta is 1.36.
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Identify all of the methods used to mitigate agency problems (select all correct answers).
1). Replace a board of directors with proxy voting
2). Give management resources to spend on personal items
3). Pay managers with stock options
4). Takeover threat by another firm
5). Make the CEO the chairman of the board of directors
Pay managers with stock options and takeover threat by another firm are the methods used to mitigate agency problem
The methods used to mitigate agency problem,Limiting the likelihood of financial incentives that create conflicts of interest is a straightforward technique to reducing agency difficulties. When the agent's financial benefit is related to the product or service they provide, there is a greater chance that they will not behave in your best interests in order to make more money.
Stock options are used to compensate managers. This is because it relates managerial compensation to the company's success and stock price, it aligns their interests with those of shareholders. Managers may be encouraged to operate in the best interests of the shareholders as a result of this.
Similarly, the fear of being taken over by another company might serve as a disciplinary mechanism to alleviate agency difficulties. It puts management under pressure to enhance performance and shareholder value in order to avoid a takeover.
Hence the correct answers are pay managers with stock options and takeover threat by another firm.
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Bonita Company has completed all of its operating budgets. The sales budget for the year shows 45,000 units and total sales of $2,025,000. The total cost of producing one unit is $25. Selling and admi
Bonita Company has completed its operating budgets. The sales budget for the year shows 45,000 units and total sales of $2,025,000. The total cost of producing one unit is $25. Thus, the cost of each unit will be $2,025,000/45,000, which equals $45.
Selling and administrative expenses for the year are budgeted at $500,000. Interest expense for the year is budgeted to be $125,000. The tax rate for the year is 30 percent. Bonita Company, like any other company, requires budgets for it to forecast its future revenues and expenses, to develop a spending plan, and to allocate resources. Operating budgets involve the budgeting of the company’s revenue and expenses, production, and marketing. Here, Bonita Company is shown to have completed all of its operating budgets. It is essential for the company to know the total cost of producing one unit to make strategic decisions concerning pricing. The sales budget for the year has shown 45,000 units and total sales of $2,025,000. The revenue can be calculated by multiplying the number of units with the price of each unit.
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Green Forest Corp.'s 2020 income statement showed the following: profit, $290,600; depreciation expense, building, $33,000; depreciation expense, equipment, $6,530; and gain on sale of equipment, $5,000. An examination of the company's current assets and current liabilities showed that the following changes occurred because of operating activities: accounts receivable decreased $14,450; merchandise inventory decreased $41,000; prepaid expenses increased $2,930; accounts payable decreased $7,330; and other current payables increased $1,090. Use the indirect method to calculate the cash flow from operating activities.
Cash flow from operating activities by indirect method is:
Net income: $290,600
Add back non-cash expenses:
Depreciation expense, building: $33,000
Depreciation expense, equipment: $6,530
Subtract gain on sale of equipment: ($5,000)
Adjust for changes in current assets and liabilities:
Accounts receivable: +$14,450
Merchandise inventory: +$41,000
Prepaid expenses: ($2,930)
Accounts payable: ($7,330)
Other current payables: +$1,090
Cash flow from operating activities: $371,410
Therefore, the cash flow from operating activities is $371,410.
To calculate the cash flow from operating activities using the indirect method, the net income is adjusted for non-cash expenses such as depreciation and amortization, and gains or losses on the sale of assets. Then, changes in current assets and liabilities are adjusted for to reflect the actual cash flows from operating activities. Increase in Current liabilities is added and Decrease in Current Assets is added back while Decrease in Current liabilities is subtracted and Increase in Current Assets is subtracted back from net income.
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Sanders LLC purchased new packaging equipment with an estimated useful life of five years. The cost of the equipment was $30,000, and the salvage value was estimated to be $3,000 at the end of five years. Compute the annual depreciation expenses through the five-year life of the equipment under each of the following methods of book depreciation: (a) The straight-line method. (b) The double-declining-balance method. (c) If switching to the straight-line method is allowed, when is the optimal time to switch
If the switching method is allowed, the optimal time to switch is at the end of year 4.Given:Cost of equipment = $30,000 Salvage value = $3,000 Useful life = 5 years Depreciation methods:
a) Straight-line method.b) Double-declining-balance method.c) Switching method
a) Straight-line method
Straight-line depreciation method is a method of depreciation where an equal amount of depreciation is charged in each year. The depreciation expense under the straight-line method is calculated using the following formula:Depreciation expense
= (Cost of the asset – Salvage value)/Useful life
= (30,000 - 3,000)/5
= $5,400 per year
.b) Double-declining-balance method
The double-declining-balance method of depreciation is a method of depreciation where the depreciation expense is calculated as a percentage of the book value of the asset. The percentage rate is double the rate used in the straight-line method. The formula for calculating depreciation expense under the double-declining-balance method is:
Depreciation expense = (Book value of the asset) x (2/Useful life)
For year 1:
Depreciation expense = (30,000 x 2/5) = $12,000
For year 2:Depreciation expense = (30,000 - 12,000) x 2/5
= $7,200
For year 3:Depreciation expense = (30,000 - 12,000 - 7,200) x 2/5
= $4,320
For year 4:Depreciation expense = (30,000 - 12,000 - 7,200 - 4,320) x 2/5 = $2,592
For year 5:Depreciation expense = (30,000 - 12,000 - 7,200 - 4,320 - 2,592) x 2/5 = $1,557.6
c) Switching method
Under the switching method, the company switches from the double-declining-balance method to the straight-line method of depreciation. The optimal time to switch is when the straight-line method gives a higher depreciation expense than the double-declining-balance method. The following table shows the depreciation expenses under both the methods:
Year Depreciation expense (double-declining-balance) Depreciation expense (straight-line)
1$12,000 $5,400
2$7,200 $5,400
3$4,320 $5,400
4$2,592 $5,400
5$1,557.6 $5,400
From the table, we can see that the optimal time to switch is at the end of year 4. At the end of year 4, the book value of the asset is $7,200, and the remaining useful life is 1 year. If the company switches to the straight-line method, the depreciation expense for year 5 would be:
$5,400 + [($7,200 - $3,000)/1] =$9,600
Therefore, the depreciation expenses for the 5-year life of the equipment under each of the methods of book depreciation are:
Straight-line method: $5,400 per yearDouble-declining-balance method: Year 1 - $12,000, Year 2 - $7,200, Year 3 - $4,320, Year 4 - $2,592, Year 5 - $1,557.
6If the switching method is allowed, the optimal time to switch is at the end of year 4.
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The Federal Deposit Insurance Corporation insures deposits up to $250,000 per person per financial institution. Suzanne has $502,000 in a joint account with her husband, Ted. How much is not covered by FDIC insurance?
rev: 09_17_2020_QC_CS-228901
Multiple Choice
a. $250,000
b. $3,050
c. $0
d. $1,000
e. $566,500
The Federal Deposit Insurance Corporation insures deposits up to $250,000 per person per financial institution. Suzanne has $502,000 in a joint account with her husband, Ted. $566,500 is not covered by FDIC insurance.
The correct answer is option e.
The Federal Deposit Insurance Corporation (FDIC) provides deposit insurance coverage up to $250,000 per person per financial institution. In the case of Suzanne and her joint account with her husband, Ted, the FDIC coverage limit applies to each individual's share of the joint account.
In a joint account, the FDIC considers each co-owner's share of the account as equal unless stated otherwise. Therefore, for Suzanne and Ted's joint account, each of them would be considered to own 50% of the account balance.
Suzanne's share of the joint account would be $502,000 / 2 = $251,000. This amount exceeds the FDIC insurance coverage limit of $250,000 per person per financial institution.
Since Suzanne's share of the joint account exceeds the coverage limit, the portion exceeding the coverage would not be insured by the FDIC. Therefore, the amount not covered by FDIC insurance would be the difference between Suzanne's share and the coverage limit:
Amount not covered = Suzanne's share - FDIC coverage limit
Amount not covered = $251,000 - $250,000
Amount not covered = $1,000
Hence, $1,000 is not covered by FDIC insurance. The remaining $251,000 in Suzanne's share (equal to Ted's share) would be covered by FDIC insurance, resulting in a total coverage of $250,000 per person per financial institution.
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Theresa Nunn is planning a 30-day vacation on Pulau Penang, Malaysia, one year from now. The present charge for a luxury suite plus meals in Malaysian ringgit (RM) is RM1.043/day. The Malaysian ringgit presently trades at RM3.1350/$. She determines that the dollar cost today for a 30-day stay would be $9,980.86. The hotel informs her that any increase in its room charges will be limited to any increase in the Malaysian cost of living Malaysian inflation is expected to be 2.7777% annum, while U.S. inflation is expected to be 1.238%.
How many dollars might Theresa expect to need one year hence to pay for her 30-day vacation?
Theresa can expect to need $10,236.90 to pay for her 30-day vacation after a year.Theresa Nunn is planning a 30-day vacation on Pulau Penang, Malaysia, one year from now. The present charge for a luxury suite plus meals in Malaysian ringgit (RM) is RM1.043/day.
The Malaysian ringgit presently trades at RM3.1350/$. She determines that the dollar cost today for a 30-day stay would be $9,980.86. The hotel informs her that any increase in its room charges will be limited to any increase in the Malaysian cost of living.
Malaysian inflation is expected to be 2.7777% per annum, while U.S. inflation is expected to be 1.238%. Now, we need to find out how many dollars Theresa might expect to need one year hence to pay for her 30-day vacation.
Here, we need to calculate the future cost of a 30-day stay after a year, considering the cost of inflation.
The future cost of the stay after a year = Present cost of the stay * [(1 + rate of inflation in Malaysia) / (1 + rate of inflation in the US)]Or, = $9,980.86 * [(1 + 0.027777) / (1 + 0.01238)] = $10,236.90.Therefore, Theresa can expect to need $10,236.90 to pay for her 30-day vacation after a year.
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Prosser Corporation has provided the following budgeted data: $100,000 $12 per unit Fixed Expenses Variable Expenses Budgeted Sales Selling Price 15,000 units $20 per unit Calculate contribution margin per unit. Calculate contribution margin ratio. Calculate the break-even point in units.
The Contribution Margin per unit is $8, the Contribution Margin Ratio is 40%, and the Break-even point in units is 12,500 units.
Budgeted Sales = 15,000 units Selling Price = $20 per unit Fixed Expenses = $100,000 Variable Expenses = $12 per unit. Contribution Margin per unit = Selling Price per unit - Variable Cost per unit= $20 - $12= $8 per unit. Contribution Margin Ratio = Contribution Margin / Sales= $8 per unit * 15,000 units / $300,000= 0.40 or 40%. Break-even point in units = Fixed Expenses / Contribution Margin per unit= $100,000 / $8 per unit= 12,500 units. Therefore, the Contribution Margin per unit is $8, the Contribution Margin Ratio is 40%, and the Break-even point in units is 12,500 units.
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1 2 3 4 5 Hurdle Rate: 6 7 8 Initial investment 9 Salvage value of new or replaced asset 10 Working Capital 11 Annual savings/revenues 12 Annual costs/cash outflows 13 Overhaul/refurbishment cost A 14 15 Net annual cash flows 16 Present value factor 17 Present value of annual cash flows 18 19 20 Net Undiscounted Cash Flows: Project cash flows: 21 22 Net Present Value of project: 23 24 Payback Period: 25 Cumulative Undiscounted Cash Flows 26 Payback Period (Years) 27 28 Profitability Index: 31 32 29 30 Internal Rate of Return (IRR): 33 34 35 36 37 B Time 0 ? ? ? ? ? ? ? ? C D Cubbies Corporation Capital Budget Projections Project: # Laura Ilcisin - Seat #1 Cleveland Corporation Year 1 ? ? ? Year 2 ? ? ? E Year 3 ? ? ? F Year 4 ? ? ? G Year 5 ? ? ? H Year 6 ? ? ? Year 7 Project Summaries: Net (undiscounted) cash flows Net present value Payback period (in years) Profitability index: Internal rate of return: Recommendation: Laura Ilcisin - Seat #1 Cleveland Corporation Project A Project B
In capital budgeting, Net Present Value (NPV) is a tool utilized to identify the current value of projected cash flows for a particular investment. It measures the discrepancy between the current value of cash inflows and outflows for the project over a specific period of time.
The main objective of the NPV method is to evaluate the anticipated net cash flow over a specified time and compare it to the initial investment. If the result is positive, then the project should be approved, otherwise, it should be declined or reconsidered. The NPV method is important because it gives an idea of the present value of an investment and helps determine whether to approve or decline a project. If a project's NPV is negative, it means the investment is not worth making. A positive NPV implies that a company would earn more than the initial investment, so it would be worthwhile to proceed with the project. A project’s cash flow is a critical factor in determining its net present value. The cash flow projections for the project should be carefully examined and computed, including all potential costs and revenues. By doing this, one can accurately determine the NPV of the project and take a data-driven decision.
Conclusion:
In conclusion, Net Present Value is a fundamental measure used to decide whether a particular investment is profitable or not. It helps in analyzing the project’s expected cash flows and comparing them with the initial investment. If the result is positive, the project should be given the go-ahead, whereas a negative NPV implies that it is not worth investing in.
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Which is the most likely cause of the spike in cotton production in Mississippi in the mid-1800s
The most likely cause of the spike in cotton production in Mississippi in the mid-1800s was the widespread adoption of slave labor and the expansion of plantation agriculture.
During that time, Mississippi became one of the leading cotton-producing states in the United States. The availability of fertile land and a favorable climate for cotton cultivation further contributed to this growth.
Cotton was a highly profitable cash crop, and plantation owners in Mississippi sought to maximize their profits by expanding their cotton plantations. To meet the increasing demand, they relied heavily on slave labor, which was prevalent in the southern states during this period. Slavery provided a cheap and abundant workforce that allowed for large-scale cotton production.
The invention of the cotton gin by Eli Whitney in the late 18th century also played a significant role in the expansion of cotton production. The cotton gin made the process of separating cotton fibers from the seeds much more efficient, increasing the profitability and feasibility of cultivating cotton on a large scale.
Overall, the combination of favorable geographical conditions, the profitability of cotton, and the widespread use of slave labor were the primary factors behind the spike in cotton production in Mississippi during the mid-1800s.
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How does web advertising work to target ads for individ- uals? How does social media marketing influence adver- tising? How do BLE beacons use mobile advertising?
Web advertising is the use of the internet as a medium to deliver promotional content to customers or target audiences. This form of advertising works by using the target audience’s demographic data to serve them relevant ads, thereby increasing the chances of the ads being clicked on.
Web advertising uses cookies, device identifiers, and other types of tracking technologies to gather information about a user’s interests, demographics, and online behavior, which it uses to display ads that are more likely to be relevant to the user. The most common forms of web advertising include display ads, search engine marketing, and native advertising.
BLE (Bluetooth Low Energy) beacons are a type of mobile advertising technology that uses Bluetooth signals to send personalized messages to users’ mobile devices.
These beacons use a unique identifier to trigger location-specific actions on the mobile device, such as displaying a notification, opening an app, or sending a push notification.
BLE beacons use mobile advertising to offer personalized and targeted messages to customers, based on their location and interests. These beacons are commonly used in retail stores, museums, and other public places to offer users a personalized experience while advertising the product or service.
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For the entries below, identify the account to be debited and the account to be credited. Indicate which of the accounts is the income statement account and which is the balance sheet account. Assume the company records prepayments of expenses in asset accounts, and cash receipts of unearned revenues in liability accounts.
a. Entry to record services revenue earned that was previously received as cash in advance.
b. Entry to record services revenue earned but not yet billed or recorded.
c. Entry to record annual depreciation expense.
d. Entry to record interest revenue earned but not yet collected (nor recorded)
e. Entry to record janitorial expense incurred but not yet paid
Liability accounts are a category of accounts in the financial statements that represent obligations or debts owed by a company to external parties. These accounts reflect the company's obligations to repay borrowed funds, make future payments, or provide goods or services in the future
a. Debit: Unearned Revenue (Liability Account)
Credit: Services Revenue (Income Statement Account)
b. Debit: Accounts Receivable (Asset Account)
Credit: Services Revenue (Income Statement Account)
c. Debit: Depreciation Expense (Income Statement Account)
Credit: Accumulated Depreciation (Balance Sheet Account)
d. Debit: Accounts Receivable (Asset Account)
Credit: Interest Revenue (Income Statement Account)
e. Debit: Janitorial Expense (Income Statement Account)
Credit: Accounts Payable (Liability Account)
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Consider a game involving two software developers: A and B. Firm A has developed a new app that it is certain will sell well. Firm B can clone the app with its own engineers, but it can clone at a lower cost if it can hire away some of A’s software engineers. Recognizing this, firm A can choose to include in its employment contract a preemptive clause that bars its engineers from working for another software firm for a certain period of time if they resign from A. However, inserting such a clause makes firm A a less attractive place to work. As a result, A must pay its engineers an above-market salary if it adds a preemptive clause to its employment contract. If B decides to pursue cloning the app, A must decide how to react. Firm A can choose to fight B by aggressively advertising its app (which is costly but gives A a larger market share), or it can choose to forego the expense of advertising and share the market 50/50 with firm B. The payoffs (A,B) are as follows. If A preempts and B does not clone, the payoffs are (400, 0). If A preempts, B clones, and A fights, the payoffs are (170, -50). If A preempts, B clones, and A shares, payoffs are (150, 50). If A does not preempt and B does not clone, payoffs are (500, 0). If A does not preempt, B clones, and A fights, payoffs are (230, 90). Finally, if A does not preempt, B clones, and A shares, payoffs are (250, 150). (a) Describe all possible strategies for each firm. (b) Present the game in strategic form.(c) Identify all Nash Equilibria. (d) Which of the Nash Equilibria identified in (c) are subgame perfect? (e) What is your prediction regarding the how A and B will play this game?
(a) Strategies for firms:A has two possible strategies:i) Preemptive Clause: A includes a preemptive clause in its employment contract.ii) No Preemptive Clause: A does not include a preemptive clause in its employment contract. B has two possible strategies:i) Clone: B decides to clone A's app.ii) Not Clone: B decides not to clone A's app.
(b) The game in strategic form: Firm A / Firm B | Clone | Not ClonePreempt | (170,-50) | (150, 50)Not Preempt | (230, 90) | (250,150)
(c) Nash Equilibria:A Nash equilibrium is a solution concept of a non-cooperative game, in which each player is assumed to know the equilibrium strategies of the other players, and no player has anything to gain by changing only their strategy.
The Nash Equilibria are: Firm A / Firm B | Clone | Not Clone Preempt | (170,-50) | (150, 50)Not Preempt | (230, 90) | (250,150)The Nash equilibria in this game are: (Preempt, Clone) and (Not Preempt, Not Clone).
(d) Subgame perfect Nash Equilibrium (SPNE):A subgame perfect Nash equilibrium is a refinement of a Nash equilibrium used in dynamic games.
A strategy profile is a subgame perfect Nash equilibrium if it represents a Nash equilibrium of every subgame of the original game. In this game, the only subgame occurs if A preempts. The subgame perfect Nash equilibrium is (Preempt, Clone). In this Nash equilibrium, if A preempts, B will clone, and then A will fight.
(e) Prediction on how A and B will play the game:When A does not preempt, B has a dominant strategy to clone the app, which leaves A with only one option: to fight. When A preempts, B has a dominant strategy to share the market, which leaves
A with two options: to fight or to share the market. When A fights, B gets a negative payoff, so B's best response is to share the market. Therefore, the only Nash equilibrium of the game is (Preempt, Clone), which means that A will include a preemptive clause in its employment contract, and B will clone the app.
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52F%252Fnewconnect %252F#/activity/q... Help Save & Exit - Chapters 1 to 4 i Saved Natalie Gold is the owner of the marketing agency Vivid Voice. The company focuses on online consultin
1. Effects of activities listed in (a) through (h):
(a) Collected $940 from a credit customer.
Increase in Cash: $940
Increase in Accounts Receivable: $940
Explanation of equity transaction: No Affect on Equity
(b) Paid $3,200 for equipment purchased on account in June.
Decrease in Equipment: $3,200
Decrease in Accounts Payable: $3,200
Explanation of equity transaction: No Affect on Equity
(c) Did work for a client and collected cash; $2,500.
Increase in Cash: $2,500
Increase in Revenue: $2,500
Explanation of equity transaction: Revenue
(d) Paid a part-time consultant’s wages; $1,090.
Decrease in Cash: $1,090
Decrease in Expenses: $1,090
Explanation of equity transaction: Expenses
(e) Paid the July rent; $2,600.
Decrease in Cash: $2,600
Decrease in Expenses: $2,600
Explanation of equity transaction: Expenses
(f) Paid the July utilities; $1,300.
Decrease in Cash: $1,300
Decrease in Expenses: $1,300
Explanation of equity transaction: Expenses
(g) Performed services for a customer on credit; $2,300.
Increase in Accounts Receivable: $2,300
Increase in Revenue: $2,300
Explanation of equity transaction: Revenue
(h) Called an information technology consultant to fix the agency’s photo editing software in August; it will cost $490.
Increase in Expenses: $490
Decrease in Cash: $490
Explanation of equity transaction: Expenses
Liabilities refer to the financial obligations or debts that a company or individual owes to external parties. They represent the claims against the company's assets and can include accounts payable, loans, accrued expenses, and other outstanding obligations. Liabilities are recorded on the balance sheet and reflect the financial responsibilities that need to be fulfilled in the future.
2. Income statement for July 2020:
Revenue:
Service Revenue: $2,500 + $2,300 = $4,800
Expenses:
Wages Expense: $1,090
Rent Expense: $2,600
Utilities Expense: $1,300
IT Consultant Expense: $490
Net Income:
Net Income = Revenue - Expenses
Net Income = $4,800 - ($1,090 + $2,600 + $1,300 + $490)
3. Statement of changes in equity for July 2020:
Natalie Gold, Capital:
Beginning Capital: $15,800
Add: Net Income
Deduct: Owner Withdrawal (if any)
4. Balance sheet for July 2020:
Assets:
Cash: $7,400 (Beginning balance) + $940 (Collection from credit customer) + $2,500 (Cash collected from client) - $3,200 (Payment for equipment) - $1,090 (Consultant's wages) - $2,600 (Rent payment) - $1,300 (Utilities payment) - $490 (IT consultant cost)
Accounts Receivable: $2,600 (Beginning balance) + $2,300 (Services performed on credit) - $940 (Collection from credit customer)
Supplies: $3,300 (Beginning balance)
Equipment: $7,900 (Beginning balance) - $3,200 (Payment for equipment)
Liabilities:
Accounts Payable: $5,400 (Beginning balance) - $3,200 (Payment for equipment)
Equity:
Natalie Gold, Capital: Beginning balance + Net Income - Owner Withdrawal
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Your question is incomplete; most probably, your complete question is this:
Natalie Gold is the owner of the marketing agency Vivid Voice. The company focuses on online consulting services, such as online marketing campaigns and blog services. The June transactions for Vivid Voice resulted in totals at June 30, 2020, as shown in the following accounting equation format: Assets = Liabilities + Equity Cash + Accounts Receivable + Supplies + Equipment = Accounts Payable + Natalie Gold,Capital Explanation of Equity Transaction $7,400 + $2,600 + $3,300 + $7,900 = $5,400 + $15,800 During July, the following occurred: Collected $940 from a credit customer. Paid $3,200 for equipment purchased on account in June. Did work for a client and collected cash; $2,500. Paid a part-time consultant’s wages; $1,090. Paid the July rent; $2,600. Paid the July utilities; $1,300. Performed services for a customer on credit; $2,300. Called an information technology consultant to fix the agency’s photo editing software in August; it will cost $490. 1. Show the effects of the activities listed in (a) through (h). For each transaction that affects equity, select the appropriate description beside it (owner investment, owner withdrawal, revenue, expenses provided in the dropdown). (Enter all amounts as positive values. If the transaction/event does not affect equity or does not require a journal entry, select "No Affect on Equity" in the 'Explanation of equity transaction' field.) 2. Prepare an income statement for July 2020. 3. Prepare a statement of changes in equity for July 2020. 4. Prepare an balance sheet for July 2020. Analysis Component: Review Gold’s balance sheet. How much of the assets are financed by Gold? How much of the assets are financed by debt? (Do not round intermediate calculations.)
Which of the following is "not" true about the U.S. money supply? 1) it is managed by the Federal Reserve System O2) includes credit card balances 3) includes M1 and M2 4) is a form of debt or IOU's
The statement that is not true about the US money supply is "includes credit card balances".Credit card balances are not included in the U.S. money supply.
This is the statement that is not true about the U.S. money supply. Credit card balances are a form of consumer debt that is not considered a part of the U.S. money supply. They are included as a component of consumer credit or loans. M1 and M2 are components of the U.S. money supply. M1 includes currency, demand deposits, and traveler's checks. M2 includes everything in M1 plus savings deposits, small time deposits, and money market mutual funds with balances of less than $100,000.
The U.S. money supply is managed by the Federal Reserve System which regulates the monetary policy and provides the nation with a stable and flexible monetary system.
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The Chief Executive is planning to change the current organizational structure to a team-based structure with permanent teams. Specify the type of structure that the Chief Executive is planning to change to. [Explanation is not required] Use the editor to format your answer
The Chief Executive is planning to change the current organizational structure to a team-based structure with permanent teams.
The type of structure that the Chief Executive is planning to change to is a "team-based structure." In this structure, the organization is divided into teams that have a degree of autonomy and are responsible for specific tasks or projects. These teams often have permanent members who work together on an ongoing basis. This type of structure promotes collaboration, communication, and shared decision-making among team members. It can enhance employee engagement, creativity, and productivity by fostering a sense of ownership and accountability within the teams.
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Langara Woodcraft borrowed money to purchase equipment. The loan is repaid by making payments of $1020.21 at the end of every year over seven years. If interest is 5.6% compounded semi-annually, what was the original loan balance?
The original loan balance was $4866.62. Let’s suppose the original loan balance is P. Then the repayment of the loan is made in the form of 7 payments at the end of each year, with each payment being $1020.21.Therefore, the value of each payment can be written as: PV of an ordinary annuity = PMT x ((1 - (1 + r)^-n)/r) where, PMT = $1020.21 n = 7 r = 5.6%/2 (Semi-annual interest rate) P = ?
Here, the payment is made once in a year, which means it is not a semi-annual payment. Therefore, we have to find the present value of a single sum. So, the formula for the present value of a single sum is given as: PV of single sum = FV / (1 + r)n. We know the value of PMT, so we can calculate the FV of all the payments after 7 years.
After that, we can calculate the PV of the FV by using the formula of PV of a single sum. So, let's solve it. PMT = $1020.21 n = 7 r = 5.6%/2P = FV / (1 + r)n + PV of an ordinary annuity. Using the formula of PV of an ordinary annuity, we can write: PMT x ((1 - (1 + r)^-n)/r) = $1020.21 x ((1 - (1 + 0.056/2)^-14)/(0.056/2))= $6274.16.
Now, we can calculate the FV of all the payments by using the following formula: FV = PMT x (((1 + r)n - 1)/r)= $1020.21 x (((1 + 0.056/2)^14 - 1)/(0.056/2))= $7912.38. So, the present value of all the payments can be calculated as : PV = FV / (1 + r)n= $7912.38 / (1 + 0.056/2)^14= $7912.38 / 1.6247= $4866.62. Therefore, the original loan balance was $4866.62.
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You are an analyst for a large company, the CFO provides details of NZD:USD in March 2020. Specifically he mentions that the New Zealand dollar changed from USD 0.6526 on the 6 March to USD 0.6332 on the 20 March. (1) What are the USD:NZD rates for these dates and did the NZ dollar appreciate or depreciate against USD over this period? (11) By how much (percent) did the NZ dollar change in value against the US dollar? Show your calculations
The calculated percentage change of approximately 3.08% indicates the magnitude of the appreciation. It represents the percentage increase in the value of the NZD against the USD over the given period.
To calculate the USD:NZD rates for the given dates and determine whether the New Zealand dollar appreciated or depreciated against the US dollar, we can use the formula:
USD per NZD = 1 / NZD per USD
Calculation of USD:NZD rates:
On 6th March:
USD per NZD = 1 / 0.6526 = 1.5321 USD per NZD
On 20th March:
USD per NZD = 1 / 0.6332 = 1.5793 USD per NZD
Calculation of the change in value of the NZD against the USD:
Percentage change = ((New Value - Old Value) / Old Value) * 100
Percentage change = ((1.5793 - 1.5321) / 1.5321) * 100
Percentage change = (0.0472 / 1.5321) * 100
Percentage change ≈ 3.08%
The NZD appreciated against the USD over this period, as the value of the NZD per USD increased.
The exchange rate went from 1.5321 USD per NZD on 6th March to 1.5793 USD per NZD on 20th March.
This means that it took fewer US dollars to buy one New Zealand dollar on 20th March compared to 6th March.
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Week 8: Incremental Analysis / Graded Quiz 3 (10%) Kelly Sportswear manufactures a specialty line of T-shirts. The company uses a job-order costing system. During March, the following costs were incur
Note that the total cost of Job 1052 transferred from Work in Process to Finished Goods on March 24 is $46,000.
How is this so?Direct Materials - $10,000
Direct Labor - $5,000
Manufacturing Overhead- $30 per machine hour * 800 machine hours = $24,000
Selling and Shipping Costs - $7,000
Total Cost of Job 1052 = Direct Materials + Direct Labor + Manufacturing Overhead + Selling and Shipping Costs
= $ 10,000 + $5,000 + $24,000 +$7,000
= $46,000
Therefore, the total cost of Job 1052 transferred from Work in Process to Finished Goods on March 24 is $46,000.
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Full Question:
Although part of your question is missing, you might be referring to this full question:
Week 8: Incremental Analysis / Graded Quiz 3 (10%) Kelly Sportswear manufactures a specialty line of T-shirts. The company uses a job-order costing system. During March, the following costs were incurred on Job 1052:
Direct materials: $10,000
Direct labour: $5,000
Manufacturing overhead was applied at the rate of $30 per machine hour, and Job 1052 required 800 machine hours. In addition, selling and shipping costs of $7,000 were incurred. Job 1052 consisted of 7,000 shirts and was completed on March 24. The total cost of job 1052 transferred from Work in Process to Finished Goods on March 24 is: Select one: a. $39,000 Ob. $33,700 c. $20,000 d. $18.500
Following Russia’s invasion of Ukraine, the European Union adopted a number of sanctions in an attempt to immobilize the war effort. These sanctions will have an impact on own economies of the EU.
What are these sanctions?
How will they affect inflation in the EU? Real GDP? Unemployment? Graphical and descriptive analyses are required.
The European Union implemented several sanctions following Russia's invasion of Ukraine. These sanctions will have implications for the EU's economy, affecting inflation, real GDP, and unemployment.
The European Union enacted sanctions in reaction to Russia's invasion of Ukraine that affect a number of industries, including commerce, energy, finance, and the military. Energy sanctions place limits on investments in the Russian oil and gas industries, while financial penalties prevent Russian businesses from accessing EU capital markets. Embargoes on the export of weapons and items used in the military are also in place. These measures are intended to pressure Russia and halt the war effort.
These penalties may have two different effects on inflation in the EU. On the one hand, trade and energy limitations can result in supply chain disruptions and higher input costs, which might raise prices. On the other hand, the sanctions-related global economic slump may stifle consumer demand, reducing inflationary pressures.
The sanctions will probably have a detrimental impact on real GDP. Reduced investment and trade with Russia, as well as supply chain disruptions, may result in lower levels of economic activity and output. Industries that depend substantially on Russian markets or resources would see considerable losses, which would have an effect on the EU's overall GDP.
The sanctions may also have an impact on unemployment. Defense and other sectors with direct ties to Russia, such energy, may experience job losses as a result of falling demand and investment. Additionally, if the overall economic slowdown continues, businesses in a variety of industries may need to reduce their workforces or stop hiring altogether, which would raise unemployment rates.
It is necessary to conduct graphical and descriptive analysis to offer a more thorough evaluation of the effects of these sanctions. Plotting inflation rates over time, contrasting GDP growth before and after the sanctions, and monitoring changes in unemployment rates are some examples of these investigations.
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Find the internal rates of return on a cash flow with deposit amounts of A = 40, A₁ = 120, A₂ = 290, and withdrawal amounts of B₁ = 240, B₁ = 20, B₂ = 10, at times t = 0, t = 1, t = 2, respectively.
The internal rates of return on a cash flow with deposit amounts of A = 40, A₁ = 120, A₂ = 290, and withdrawal amounts of B₁ = 240, B₁ = 20, B₂ = 10, at times t = 0, t = 1, t = 2, respectively is 20.65%.
To find the internal rates of return on a cash flow with deposit amounts of A = 40, A₁ = 120, A₂ = 290, and withdrawal amounts of B₁ = 240, B₁ = 20, B₂ = 10, at times t = 0, t = 1, t = 2, respectively, we need to find the present value of cash inflow and outflow at each time period t and then solve for the internal rate of return using the formula. Internal Rate of Return (IRR) is the discount rate that makes the net present value (NPV) of a series of cash flows from a project equal to zero.Present Value (PV) is the current value of a future sum of money or stream of cash flows given a specified rate of return.
The cash flow is as follows:Time period t = 0A = 40B = 0Net cash flow = 40Time period t = 1A = 120B = 240Net cash flow = -120Time period t = 2A = 290B = 20 + 10 = 30Net cash flow = 260
To find the present value of cash flows, we need to discount them at a given rate of interest using the formula:PV = CF / (1 + r)twhere, CF = cash flow at time t, r = discount rate or interest rate, and t = time period
For time period t = 0:PV = 40 / (1 + r)0 = 40For time period t = 1:PV = -120 / (1 + r)1 = -120 / (1 + r)
For time period t = 2:PV = 260 / (1 + r)2Let us assume r as x and solve for IRR.IRR = x
Therefore, the equation becomes:40 - 120 / (1 + x) - 30 / (1 + x)2 = 0Solving for x using the trial and error method, we get:x = 0.2065 or x = 1.4276 or x = 3.0508Only one positive IRR can exist. Hence, the IRR is 20.65%.
Therefore, the internal rates of return on a cash flow with deposit amounts of A = 40, A₁ = 120, A₂ = 290, and withdrawal amounts of B₁ = 240, B₁ = 20, B₂ = 10, at times t = 0, t = 1, t = 2, respectively is 20.65%.
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Assume that the labor supply curve is upward sloping. Should the labor supply curve shift to the left or to the right if any of the following changes happen? Show each case in a graph.
(a) the dividends paid by the firms decrease (increase)?
(b) the government raises the lump sum taxes?
(c) the government introduces a proportionate labor income tax?
A shift in how people view work and leisure can affect the labour supply curve. People will work fewer hours at each wage if they decide they value leisure more, which will cause the labour supply curve to move to the left.
The supply curve will move to the right when there are more workers. A rise in employment can be attributed to a variety of factors, including immigration, population growth, ageing populations, and shifting demographics.
The equilibrium price rises when the supply curve moves to the left and the demand curve to the right, but the equilibrium quantity may change depending on how far the two curves have moved.
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