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galina1969 [7]
2 years ago
4

According to the lc/pi hypothesis, a college student should? consume more than she has in income. consume less than she has in i

ncome. exactly consume her income. not consume.
Business
1 answer:
Umnica [9.8K]2 years ago
6 0

According to the Life Cycle/Permanent Income hypothesis, a college student should consume more than she has in income. People should smooth their consumption to keep it roughly constant. Therefore, a college student should take out loans and spend more than she makes.

According to the Life Cycle/Permanent Income hypothesis, consumers should take a long-term view of the resources at their disposal for current consumption. In other words, customers act as though they must adhere to a lifetime "budget" rather than a period-by-period one. The amount of anticipated long-term income is then regarded as the maximum amount of "permanent" revenue that can be spent without risk.

To learn more about Life Cycle/Permanent Income hypothesis, click here

brainly.com/question/18722046

#SPJ4

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Border is something that goes right around an object.

Shading is the color of an object.

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3 years ago
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Ingram Electric Products is considering a project that has the following cash flow and WACC data. What is the project's MIRR? No
SpyIntel [72]

Answer:

the project's MIRR is 13.50 %.

Explanation:

MODIFIED INTERNAL RATE OF RETURN (MIRR)

-It is the rate that causes the Present Value of the Terminal Value (Future Cash flows at the end of the Project) to equal Present Value of Cash outflows.

-MIRR assumes a reinvestment rate at the end of the project

The First Step is to Calculate the Terminal Value at end of year 3.

Terminal Value (FV) = Sum of (PV x (1 + r) ^ 3 - n)

                                 = $350 x (1.11) ^ 2 + $350 x (1.11) ^ 1 + $350 x (1.11) ^ 0

                                 = $431.24 + $388.50 + $350.00

                                 = $1,169.74

The Next Step is to Calculate the MIRR using a Financial Calculator :

(-$800)        CFj

0          CFj

0          CFj

$1,169.74  CFj

Shift IRR/Yr 113.50 %

Therefore, the MIRR is 13.50 %

6 0
3 years ago
Industry low, industry average, and industry high cost of benchmarks on p 6 of each issue of the footwear industry report are
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When this type of situation happen, each issue of the footwear industry report will be most likely.
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3 years ago
1. What is the Law of Demand?
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3 0
3 years ago
A bank is earning 6 percent on its $150 million in earning assets and is paying 4.75 percent of its liabilities. The bank's inte
iren [92.7K]

Answer:

Interest rate spread will be 1.25 %

Explanation:

We have given a bank is earning 6 % on its $150 million earning assets

So interest earned = 6 %

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We have to find the bank interest rate spread

We know that bank interest rate spread is given by

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So interest rate spread will be 1.25 %

3 0
3 years ago
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