A fee simple estate represents the most complete form of ownership of real estate.
In fee simple ownership, all rights to the land are unrestricted and unconditional. Absolute estate is a sort of infinite estate. When a deed transfers land unconditionally to a recipient—typically "to John Doe" or "to John Doe and his heirs"—a fee simple is normally generated.
If 123 ABC Street is transferred via a warranty deed, for instance, the land would revert to the grantor if 123 ABC Street is no longer being utilized as a school. A fee simple determinable estate would be this one.
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Does receiving $10 increase the Owner's Equity?
When we recieve $10 in the course of doing business, it will increase the Owner's Equity.
How does owner's equity increase?Owner's equity will increase when the owners of the business invest more money into it.
Equity will also increase when revenue increases. As the $10 which was received will be treated as revenue, the owner's equity will increase.
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Consider a family who borrows $250,000 to purchase a new home at a fixed interest rate of 8.5%. If inflation increases from 4% to 5.5%, how will this impact the real interest rate the family will be paying?
The home loan must be repaid at a real interest rate of 3%; (8.5%-5.5%=3%).
Real interest rateA real interest rate is adjusted to remove the effects of inflation and gives the real rate of a bond or loan. A nominal interest rate refers to the interest rate before taking inflation into account.
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________ are the most important monetary policy tool because they are the primary determinant of changes in the ________, the main source of fluctuati
The open market operation base is the most important monetary policy tool because they are the primary determinant of changes in the monetary base and the main source of fluctuations in the money supply.
What is an Open market operation base?The Federal Reserve's practice of purchasing and selling U.S. Treasury securities, as well as other securities, on the open market in order to control the amount of money held in reserve by U.S. banks is known as open market operations (OMO). To raise the amount of money in circulation and to lower long-term interest rates, the Fed buys Treasury securities and sells them.OMOs aim to influence short-term interest rates and other interest rates by adjusting the level of reserve balances. By purchasing or offering to sell government bonds to or from commercial banks, the Federal Reserve conducts open market operations to reach the desired target federal funds rate.To learn more about the Open market operation base refer to:
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LG Electronics sells several different product lines around the world through home appliance and electronics stores. LG appliances and electronics have been historically made in Korea, where the company is headquartered. Recently, LG has been investigating the possibility of buying land and building a production plant in Texas, in the United States. LG is now operating as a(an) ______; however, if the plant is built in Texas, it will be operating as a(an) ______.
LG currently operates as an exporter; but, if the plant is established in Texas, it will operate as a multinational enterprise.
What do you mean by exporter?one who specifically exports: a wholesaler who sells to retailers or industrial customers abroad.
Who is regarded as the exporter?The exporter is the individual or business that has been given permission by customs and government officials to send goods into another nation. The exporter may or may not be the company working on behalf of the actual seller of the products.
What constitutes a multinational company?Any company with operations in two or more nations is referred to as a multinational corporation (MNC). These businesses frequently have their native nation as their central management location and maintain offices there as well. A corporation does not automatically become a multinational only by exporting products to be sold abroad.
What is an illustration of a multinational company?Multinational companies like Apple, Amazon, Microsoft, McDonald's, and Volkswagen are examples. In order to grow their businesses and reach more clients, these corporations have their headquarters in one country but have divisions operating in numerous other nations.
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Suppose that the economy is in a long-run equilibrium at a price level of 100 and full-employment real GDP of $500 billion. An expansion occurs resulting from a $100 billion increase in aggregate demand. In order to restore the economy to full employment given a MPC of 0.80, government purchases would need to: Multiple choice question.
Government purchases would need to: decrease by $20 billion.
What is Marginal Propensity to Consume ?Marginal Propensity to Consume (MPC) measures the proportionate rise in the consumption with increase in income or we can say it measures the proportion of extra pay that is spent on consumption of goods and services rather than saving it.
Marginal Propensity to Consume or MPC is dependent on the income level. It may vary with the income levels and it can be seen that the MPC is lower at higher income levels. MPC can be calculated by determining the change in consumption divided by the change in income.
MPC is represented by the consumption line, which is a sloped line that is formed when change in consumption is plotted on the vertical y-axis with change in income on the horizontal x-axis.
This can be illustrated from the following formula.
k = 1/ 1- MPC
Where k = Multiplier effect
MPC = Marginal Propensity to Consume
Types of MPC
MPC can be classified into three types, which are
1. MPC more/greater than 1.
2. MPC equal to 1.
3. MPC less than 1.
Thus , we conclude that the amount of government purchases would have to be decreased by $20 billion.
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If you were to own a stock that offers voting rights and may pay dividends, you would most likely own ________ stock. Question 51 options: preferred common mutual fund bond-value None of these
If you were to own a stock that offers voting rights and may pay dividends, you would most likely own common stock.
The answer is option B.
Common stock is the most common sort of stock that is issued via companies. It entitles shareholders to share the employer's income through dividends and/or capital appreciation. Common stockholders are typically given vote casting rights, with the number of votes without delay associated with the number of shares owned.
Preferred stock is normally considered much less risky than common stock however commonly has much less capability for profit. Favored stockholders commonly do now not have voting rights, as commonplace stockholders do, but they have an extra claim to the company's belongings.
The principle difference between preferred and common inventory is that desired stock offers no voting rights to shareholders even as not unusual inventory does. preferred shareholders have precedence over an employer's profits, which means they're paid dividends before commonplace shareholders.
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An experienced accountant can balance the books twice as fast as a new accountant. Working together it takes the accountants 10 hours. How long would it take the experienced accountant working alone
15 hr time for an experienced accountant to do the job and 30 hr time for the new accountant to do the job.
Exp accountant DATA:
Time = x hr/job ; Rate = 1/x job/hr
New accountant DATA:
Time = 2x hr/job ; Rate = 1/2x job/hr.
Together DATA:
time = 10 hr/job ; Rate = 1/10 job/hr.
EQUATION:
rate + rate = rate together
1/x + 1/2x = 1/10
3x/2x^2 = 1/10
30x=2x^2
x=15 hr (time for an experienced accountant to do the job)
2x=30 hr (time for the new accountant to do the job)
15 hr time for an experienced accountant to do the job and 30 hr time for the new accountant to do the job.
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An organization is considering the adoption of flexible budgeting. What advantage will this type of budgeting provide to the organization
The advantage that will be provided to the organization is flexible budgeting allows for adjustments throughout the year based on volume. Flexible budgets do not necessarily involve longer budget cycles or more participation by staff. Flexible budgeting has no effect on reimbursement policies.
A flexible budget is a budget that adapts to the activity and quantity of a company. Unlike static budgets, which do not change from the amount set when the budget was created, flexible budgets continue to be "flexible" as a company's costs fluctuate.
No matter what happens to the business environment, the numbers do not change throughout the year. Flexible budgets, on the other hand, are a set of budgets created for different levels of activity, income, and expenses.
A flexible budget is adjusted based on changes in actual income and other activities. The result is a budget that is fairly closely matched to the actual result. This approach differs from the more general static budget, which includes only fixed spending that does not change with actual income.
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You are launching a new line of camping tents and are running ads across mobile web and in-app inventory. If your objective is to see purchases across both platforms, which report should you run?
The cross conversion report is run to see purchases across both platforms.
Cross-environment conversion statistics show how the advertising campaign performed across all platforms, including tablet, smartphone, and desktop; app, and internet, regardless of device or environment in which a person converted.
Cross-environment reporting identifies a person across many contexts by using cookies, resettable device IDs, and aggregated sign in data. This enables search engine to follow the user's journey from first seeing an ad until conversion. There is no trace of the single user.
As a result, run the Cross-device conversions report.
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_____ means that each department involved with new products has excellent linkage with relevant sectors in the external environment.
Boundary spanning means that each department involved with new products has excellent linkage with relevant sectors in the external environment.
What is Boundary Spanning?Boundary spanning is a phrase used in organizational psychology and social science research to describe people who play a role in connecting an organization's internal networks with outside information sources.Boundary spanning is a process for achieving company goals by establishing external interactions across boundaries. It describes a circumstance in which a person or an organization transgresses a social group's boundaries.Boundary spanners change unequal power relations that impede learning and knowledge-sharing in organizations while using power bases to spur creativity and empower others to maintain cross-cultural collaboration.Planning informal conversations and written communication meets with other departments constitute boundary-spanning engagement.To learn more about Boundary Spanning refer to:
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Which country's low scores on the cultural dimensions of future orientation and performance orientation indicate that it may struggle to transition from a centrally planned economy to free-market capitalism
The country is Russia.
Cultures with a low future orientation (or present-oriented cultures) value spontaneity and living in the moment. They are less concerned about the future and frequently ignore the required planning and sacrifices to achieve future goals. They frequently utilize strong, rigid language.
The degree to which innovation, high standards, and outstanding performance are fostered and rewarded is referred to as performance orientation. Countries with a strong performance orientation priorities materialism and competition, and they plan to spend in training to boost performance. Performance orientations are high in the United States and Europe, whereas they are low in Argentina, Russia, and Greece.
Therefore, the answer is Russia.
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Naomi manages the selling organization for Navitol, a national distributor for industrial building supplies and roofing materials. Naomi instructs her sales representatives that their goal is to generate at least a 45 percent margin on all of the industrial building supplies and roofing materials they sell in order for her to achieve a 20% return on controllable investment (primarily inventory). Naomi is using a ________ pricing strategy.
Naomi is to generate at least 45% margin on all of the industrial building supplies and roofing materials they sell in order for her to achieve a 20% return on controllable investment (primarily inventory). Naomi is using a "target return pricing" strategy.
What is target return pricing?A pricing technique that involves using a formula to determine the price that must be set for a product in order to provide the desired profit or rate of return on investment, presuming that a specific quantity of the product is sold.
The advantages of target return pricing are-
It is a dynamic form of pricing that considers and reacts to supply and demand elements in the market when calculating the selling price. By lowering expenses due to the predetermined selling price, it increases corporate profitability.Calculate the target cost of a new product using following methods-
Examine the market environment.Establish the desired pricing for the product.Decide on your desired profit margin.Determine the desired price.To know more about return on investment (ROI),
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Where trade was concerned, why was it difficult for the United States to be neutral? Group of answer choices The United States purchased raw materials from both British and German firms. The United States exported the things that both sides needed and would pay for. all of the above The United States purchased manufactured goods from both British and German firms.
It difficult for the United States to be neutral be because The United States exported the things that both sides needed and would pay for.
Due to Germany's persistent violations of human rights, it was challenging. Once we learned about the Zimmerman note, we declared war on Germany and supported the triple Entente.
Which nation did the United States favor in terms of trade?United Kingdom In actuality, when it came to trade, the United States was in favor of . the aforementioned. Why was it so difficult for the United States to be impartial in matters of trade? believed that America ought to remain neutral in the fight.
What did the US undertake to signal its neutrality in World War One?On August 4, 1914, President Woodrow Wilson officially proclaimed the United States' neutrality, a stance that was supported by the vast majority of Americans as World War I broke out in Europe.Germany's attempt to quarantine the British Isles quickly undermined Wilson's early optimism that America might be "impartial in mind as well as in action." One of America's most important commercial partners was Britain, and tensions between the two countries increased after numerous American ships headed to Britain were damaged or sunk by German mines.learn more about United states neutrality at :
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Under the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Securities and Exchange Commission (SEC) will pay _____ percent of the amount the government recovers from financial fraud if the whistleblower provides original information leading to a recovery of more than a million dollars. Group of answer choices
The Securities and Exchange Commission (SEC) will pay 5 to 8 percent of the amount.
What is Dodd-Frank Wall Street Reform and Consumer Protection Act ?In reaction to the financial crisis of 2007–2008, the Dodd–Frank Wall Street Reform and Consumer Protection Act was developed. The legislation, which is named for its supporters Sen. Christopher J. Dodd (D-Conn.) and Rep. Barney Frank (D-Mass. ), contains a number of provisions that are detailed throughout 848 pages and were intended to be implemented over a number of years. A significant piece of financial reform legislation known as the Dodd-Frank Wall Street Reform and Consumer Protection Act was passed in 2010 by the Obama administration. The Dodd-Frank Wall Street Reform and Consumer Protection Act, more often known as the "Dodd-Frank Act," created a number of new government organizations tasked with monitoring the law's many provisions and, consequently, various facets of the financial system.Know more about Dodd-Frank Wall Street Reform and Consumer Protection Act with the help of the given link:
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When the Chili restaurant chain was in financial trouble, its CEO delegated the managers of each of the chain's restaurant to trim costs without sacrificing customer satisfaction. In other words, the individual restaurant managers were: Group of answer choices given hierarchical authority given job security given task leniency made accountable made pseudo-authority figures
The restaurant managers were (1) given hierarchical authority.
What is hierarchical authority?The power structure and authority that grows as one moves up the hierarchy. The person at the top is the most powerful and has the final say.In a typical family system, for example, the parents hold the most authority, followed by the children, and finally by the pets.What is delegation?The transfer of responsibility for specific duties from one person to another is referred to as delegation. Delegation occurs in management when a manager assigns particular duties to their employees.Delegation is the delegation of authority to another person to do certain tasks. It is the practice of delegating and entrusting work to another person, and as such, it is one of the fundamental ideas of management leadership.As we can know that delegation is the transfer of responsibility from a superior to subordinates.
Therefore, The restaurant managers were (1) given hierarchical authority.
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Correct question:
When the Chili restaurant chain was in financial trouble, its CEO delegated the managers of each of the chain's restaurants to trim costs without sacrificing customer satisfaction. In other words, the individual restaurant managers were:
Given hierarchical authority given job security given task leniency made accountable made pseudo-authority figuresWhile in the short run an economic profit is more likely in an unregulated monopoly, ___________ may group competing resources and create a new power base to challenge the existing monopoly.
While in the short run an economic profit is more likely in an unregulated monopoly, any of the above may group competing resources and create a new power base to challenge the existing monopoly.
Unregulated monopolies have market power and can affect prices. Examples: Microsoft and Windows, DeBeers and Diamonds, and local natural gas companies. Individual restaurants and other products that enjoy "brand loyalty" in a highly competitive market choose prices and production in the same way as monopolies.
Unregulated monopoly: Standard calculations show that an unregulated monopoly produces y = 80 and the price is p = 60. AR (y) = (200y) / 2. y = 150 or 10. Therefore, there are two outputs, AC = AR: 10 and 150.
An unregulated monopoly provider is probably inefficient when it comes to allocations, as the price of a monopoly is higher than the MC. In a highly competitive market, prices will be lower and more consumers will benefit from purchasing goods. Monopoly leads to a loss of surplus welfare for consumers and producers.
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Following the passage of the _____________ Act in 1930 over 60 nations trading with America quickly matched higher tariffs resulting in a fall in a drastic fall in global trade. Following the passage of the _____________ Act in 1930 over 60 nations trading with America quickly matched higher tariffs resulting in a fall in a drastic fall in global trade.
After the Smoot-Hawley Act was passed in 1930, more than 60 countries that traded with America swiftly matched higher duties, causing a sharp decline in world trade.
Smoot-Hawley ActHawley, on June 17, 1930, President Herbert Hoover signed it. The law increased US duties on more than 20,000 imports. A bill to raise money, control trade with other nations, support domestic industries, safeguard American workers, and further many objectives.
How did the Hawley Smoot Tariff backfire?The Hawley Smoot Tariff had a disastrous effect on commerce as enraged European nations levied a charge on American goods that made them prohibitively expensive to purchase in Europe. This restriction on trade also exacerbated the Great Depression's economic crisis.
What effect did the Smoot-Hawley tariff have?It made it more difficult for American farms and businesses to sell abroad by increasing tariffs and inciting other nations to do the same.
The Smoot-Hawley Tariff failed, why?According to the experts, the tariff rises would increase the cost of living, reduce our exports as other nations reacted, harm U.S. investors since it would be more difficult for foreign debtors to repay their loans due to the high tariffs, and harm our ties with other countries. Sadly, this is what took place.
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Given an anticipated inflation premium of 1. 35% and a nominal rate of interest of 5. 40%, what is the real interest rate? round your answer to 4 decimal places.
Answer:
6.9
Explanation:
you will mutiple the inflation by the interest rate
Which of the following statements is true? Group of answer choices Economic profits include opportunity costs. Economic profits ignore opportunity costs. Accounting profits include all of the opportunity costs. Economists consider sunk costs in their decision making
The true statement among the given option is option a)Economic profit include opportunity costs.
Opportunity costs are revealed through implicit costs. Only explicit costs are included in accounting profit. However, economic profit includes both implicit and explicit costs. Opportunity cost is included on economic profit because economic profit includes implicit costs, and implicit costs display opportunity costs.
The key benefits of opportunity costs include: Awareness of Lost Opportunity: Opportunity costs make you think about the fact that, when choosing between possibilities, you lose up something in the one that is not chosen.
Therefore the correct option is a)Economic profits include opportunity costs.
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A strategic challenge facing Boeing includes driving __________ into their culture to help accelerate performance for the future.
A strategic challenge facing Boeing includes driving more diverse technical skill into their culture to help accelerate performance for the future.
What is technical skill?Technical skills can be regarded as specialized knowledge as well as expertise that is needed to a job.
Therefore, strategic challenge facing Boeing includes driving more diverse technical skill into their culture to help accelerate performance for the future.
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In real estate markets, a transaction occurs only when the investment value of the buyer exceeds the investment value of the seller. The seller's investment value is the ________ that he or she would be willing to pay for a particular property, while the buyer's investment value is the _______ that he or she would be willing to accept
The seller's investment value is the maximum that he or she would be willing to pay for a particular property, while the buyer's investment value is the minimum that he or she would be willing to accept.
How Is Market Value Determined in the Real Estate Market?The fair market value (FMV) of a property is the amount it would fetch in a typical market. So, both individuals who own a property and those who are responsible for paying its taxes should consider its FMV.
Every good in a market economy has a value determined by the process of price discovery. The goal of producers and resellers is to locate buyers who have values that are close to their proposed fictitious values. Consumers, on the other hand, bid up or bid down prices based on their shifting perceptions of the worth of commodities. This procedure is flawed and dynamic.
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A drug company that makes pain relief medication with an advertising slogan, "targeted relief for pain," is using which type of segmentation strategy that directly focuses on a specific consumer problem?.
A drug company that makes pain relief medication with an advertising slogan, "targeted relief for pain," is using a social influence type of segmentation strategy that directly focuses on a specific consumer problem.
Consumer services include compounding, molding, and technology for most consumer products such as foods, herbs, beverages, vitamins, pharmaceuticals, cosmetics, hair care products, household cleaners, paints, plastics, metals, waxes, and coatings, minerals, and ceramics. Related to advice and testing.
Building materials and water, indoor air quality testing, non-medical forensic testing, and damage analysis. Includes services in various areas such as biology, chemistry, physics, engineering, and web-based services.
Web-based consumer services The evolution of the web has moved from information-centric to service-centric. All possible physical services today include web-enabled B2B, B2C, and C2C businesses such as retail, supply chain, customer care, banking, and auctions. Online bookings, online consultations, and online bill payments are now ordering web-based consumer services.
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Business communicators are encouraged to profile or visualize the audience for their messages. How is this possible if you don't really know the people who will receive a sales letter or who will hear your business presentation
In Business communications senders can learn as much as possible about receivers by asking questions, doing research, and putting themselves in the shoes of the members of the audience.
How to do Business Communications?Business messages frequently have recipients who are unknown to the sender. Rarely are the recipients of business letters or presenters known in advance. But by asking questions, doing research, and putting themselves in the audience members' place, senders can find out as much as they can about receivers. You should make an effort to determine what stake they have in the idea you are presenting and what might inspire them, particularly if you are trying to persuade someone to take action or change their beliefs. Depending on the reader's educational background, you may be able to determine what level of language to employ. How much information or jargon to include depends on the receiver's professional background.To learn more about Business Communications refer to:
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In a period of rising prices, the inventory method which tends to give the highest reported net income is?
In a period of rising prices, the inventory method which tends to give the highest reported net income is FIFO (First In First Out ).
The FIFO method is used for the purpose of assuming cost flow. In manufacturing, the costs associated with this product must be incurred when the item moves to a later stage of development and the finished inventory item are sold.
The FIFO assumes that the cost of the first purchased inventory is recognized first. This process removes inventory from company ownership, reducing the dollar value of total inventory. Inventory-related costs can be calculated in a variety of ways. One of them is the FIFO method.
Typical economic conditions include inflationary markets and rising prices. In this situation, if the FIFO allocates the oldest cost to the cost of goods sold, in theory, the price of that oldest cost will be lower than the latest inventory purchased at the current soaring price.
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Mrs. Arnold is spending all her money income by buying bottles of soda and bags of pretzels in such amounts that the marginal utility of the last bottle is 60 utils and the marginal utility of the last bag is 30 utils. The prices of soda and pretzels are $0.60 per bottle and $0.40 per bag, respectively. It can be concluded that
Mrs. Arnold should spend more on soda and less on pretzels.
What is diminishing marginal utility?Reduced marginal utility the idea that a person's utility decreases as they accumulate more of something over time. As consumption increases, satisfaction declines.Which of the following is correct if marginal utility is diminishing?Total utility will rise if marginal utility is decreasing and is positive.What is marginal utility?Insignificant Utility the difference in overall utility brought on by consuming one more unit of a particular commodity.What is diminishing marginal utility example?The phenomenon known as diminishing marginal utility describes how each extra unit of gain results in an ever-smaller rise in subjective value. For instance, three sweet bites are preferable to two, but the twentieth bite does not significantly improve the experience past the nineteenth (and could even make it worse).Learn more about marginal utility here:
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China, india, and indonesia are expected to be among the world’s seven largest economies by 2050. Economic development in a country can be measured using.
China, India, and Indonesia are expected to be among the world’s seven largest economies by 2050. Economic development in a country can be measured using gross national income.
Gross countrywide profits (GNI) is defined as gross home product, plus net receipts from overseas of reimbursement of employees, assets income, and internet taxes much fewer subsidies on production.
GDP looks at the production degree of a financial system or the entire annual value of what's produced within the kingdom; it measures an economy's size and increases the fee. GNI is the total dollar cost of the whole thing made with the aid of a rustic and the income its residents receive—whether or not it is earned domestically or overseas.
For instance, the cost of watermelon from the farm can be $1, then $five at the grocery save. In this situation, the watermelon's “final desirable” fee is $five, and so the total price of the good could matter in the country's earnings as $5
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On June 30, 2021, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to pay Genovese $19,000 on the purchase date and the balance in five annual installments of $7,000 on each June 30 beginning June 30, 2022. Assuming that an interest rate of 12% properly reflects the time value of money in this situation, at what amount should Johnstone value the equipment
Johnstone should value the equipment at $125,096.
What are installments?Simply put, an installment payment is a quantity of money that is paid over a specific period of time in smaller installments. A recurring payment called an installment payment plan enables clients to make larger purchases without having to pay the full amount up front.What is the interest rate?The amount of interest due each period expressed as a percentage of the amount lent, deposited, or borrowed is known as an interest rate. The total interest on a loaned or borrowed sum is determined by the principal amount, the interest rate, the frequency of compounding, and the period of time the loan, deposit, or borrowing took place.Solution -PV = $28,000 + $5,000 (3.79079) = $125,096
Equipment Present value of an ordinary = $125,096
Therefore, Johnstone should value the equipment at $125,096.
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People tend to Question content area bottom Part 1 A. look at the entire situation when analyzing an individual security. B. be underconfident in their judgment of investments. C. overestimate the effects of random chance. D. ignore information that contradicts their current beliefs.
People tend to Question content area bottom Part (D) ignore information that contradicts their current beliefs.
I contend that confirmation bias is crucial because it enables people to hold onto their social ideas (such as characteristic attributions) even when the data doesn't yet support them.The psychology term "confirmation bias" describes the propensity of people to exclusively look for evidence that validates their own beliefs. As a result, you become biased in favor of your initial viewpoint because you will only ever find evidence to support your original viewpoint if you only look for it.What are the 3 types of bias?Information bias, selection bias, and confounding are the three categories of bias that can be distinguished. Various examples are used to discuss these three different types of prejudice as well as possible solutions.
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Nico's net take-home pay per month is $2,100. What is the maximum dollar amount of debt payments, excluding a home mortgage, he should have
The answer here is $420 that should be with Nico.
According to experts, one shouldn't pay more than 20% of net income (i.e., after-tax) toward debt. So, 20% of $2100 is $420. So, the maximum dollar amount of debt payments he should have is $420.
Anything owing by one party to another is a debt. Debt may be secured by real estate, cash, services, or another kind of payment. Debt in the context of finance is more specifically defined as funds obtained via the issuing of bonds. An arrangement wherein one person loans money to another is known as a loan, which is a type of debt.
Therefore he should have $420 to pay off his debt.
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Nissan sets the suggested price of an automobile at $19,999, rather than $20,000. This type of pricing is extremely common for consumer goods. This is an example of _______. a. psychological pricing or odd-even pricing b. one-part pricing c. price lining d. price skimming
A) Psychological pricing.
How does psychological pricing work?The technique of putting prices just below a whole number is known as psychological pricing. The theory behind this approach is that since customers don't round up these prices, they will perceive them as being lower than they actually are. Customers typically ignore the last few digits of a price because they process prices from the leftmost to the right. When the fractional portion of a price is displayed in a smaller font than the rest of the price, this impact seems to be amplified. Setting the price of an automobile at $19,999 rather than $20,000 is an example of psychological pricing. Pricing of this kind is very typical for consumer goods.
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