Answer:
PV of cash outflows = Annuity*(1-1/(1+rate)^number of terms)/rate
= 5000000000*(1-1/(1+9%)^6)/9%
= 22429592951.15
PV of inflows at end of 6 years= Annuity*(1-1/(1+rate)^number of terms)/rate
= 200000000*(1-1/(1+9%)^100)/9%
= 2221820304.00
PV of inflows now = 2221820304/1.09^6 = $1,324,798,853.47
NPV = -22429592951.15+1324798853.47
= -21104794098
We see that the Net Present value added by this method is negative. Hence the project is not beneficial.
Answer:
The correct answer is letter "D": interfere with the rationing function of prices.
Explanation:
While talking about price floors and price ceiling, <em>the rationing function of prices</em> refers to the fact that both governmental measures are imposed to protect sellers and buyers from unfair practices driven by supply and demand. Thus, price floors protect producers from prices that could go below their production costs and price ceilings protect buyers from prices that could be set above their income.
The rationing function of prices can be also understood as the measures taken to discourage demand to keep resources to use them over a determined period.
Answer:
(i) $940 billion
(ii) $380 billion
(iii) -$80 billion
(iv) $300 billion
Explanation:
Income, Y = $1,500 billion
Government spending, G = $260 billion
Taxes, T = $180 billion,
Investment spending, I = $300 billion
As Y = C + G + I
Consumption spending, C = $1,500 - $260 - $300
= $940 billion
Private savings = Y - T - C
= $1,500 - $180 - $940
= $380 billion
Public saving = T - G
= $180 - $260
= -$80 billion
National saving = private + public
= $380 - $80
= $300 billion
<span>Unsure if there is a question posed or implied here. In any event, Trevor should have immediately researched and documented the suspect batch(es) of peanut butter, contacted any retailers who may have received the contaminated batches and then confirmed that those batches had been returned to his plant and destroyed. At the same time he should have instructed his employees to shut down the production of peanut butter, destroy the plants current output, and completely clean, inspect and retest the line in order to ensure that uncontaminated peanut butter was being produced. During this self-inspection stage, he shoudl have also notified the US FDA and reported onwhat had been done and documented.</span>
Answer:
B
Explanation:
The value of tax shield is simply given as corporate tax rate times the cost of debt times the market value of debt.
If the debt is constant and perpetual, the company’s tax shield depends only on the corporate tax rate and the value of debt. Then the present value of tax shield equals the discounted value of debt
