-4.45%
Real interest rate is the nominal interest rate minus the rate of inflation:
7.85-12.3 = -4.45%
It is <u>false </u>that <span>small ups and downs in real GDP follow a consistent, predictable pattern.
There is no constant, predictable pattern when it comes to GDP - it may fluctuate all the time, and ups and downs do not contribute to the pattern in any way possible. So this statement is false as the fluctuations can never be predicted.</span>
Answer:
The lease would be a better option as their net preset worth is lower than purcahse the machine and carry their cost.
Explanation:
<u>Option A purchase</u>
F0 -160,000
operating cost 5000 per year we solve for the present value of an annuity
C 5,000.00
time 10
rate 0.12
PV -$28,251.1151
PV of the salvage value
Maturity $10,000.0000
time 10.00
rate 0.12000
PV 3,219.7324
<u><em>present worth</em></u>
-160,000 - 28,251.11 + 3,219.73 = -185.031,38
<u>Option B Lease</u>
10 payment beginning immediatly of $25,000
Therefore, it is an annuity-due
C 25,000.00
time 10
rate 0.12
PV -$158,206.2448
Answer: The amusement park are
not liable to Dave injury, because Dave have already signed a memorandum of understanding with the amusement park, this shows that Dave already knows the injury he may get from riding the mechanical bull, but still decide to ride it.
What Dave signed was a warning from the the park, to their customers who wants to ride the mechanical bull, but still Dave did not want to listen to that warning. He has not ride the mechanical bull before, he could have asked for directions on how to control the bull.
The park will also have to show concerns on Dave's injury because it is an accident that happened to a customer in they park. A public liability insurance which covers third party injury should cover the life's of their customers who are within the parks premises.
Answer: Price of bricks will increase and quantity will increase.
Explanation: Since Stone and bricks are substitutes to each other, a rise in the price of stone due to the new regulation will lead to a rise in the demand for bricks. Since bricks are now relatively cheaper as compared to stones after the price rise, people will use more bricks than stones. This will shift the demand for bricks to the right driving upwards the price for bricks and also increase the quantity of bricks being sold in the market.