Answer: Aggregate demand would shift to the left due to a decrease in US exports.
Explanation When the dollar appreciated against foreign currencies, U.S. goods and services become relatively more expensive, reducing exports and boosting imports in the United States. Such a reduction in net exports reduces aggregate demand.
Answer:
conflict caused by the hardware store adopting "scrambled merchandising" marketing.
Explanation:
Scrambled merchandising occurs when a shop sells a good that is not the usual type of products it sells. A store owner may adopt scrambled merchandising to utilise unused space or to increase bottom line.
When a store owner sells many unrelated goods it gives the buyer the impression that the seller does not specialise in a particular type of product.
The conflict in this case arises through scrambled merchandising. A hardware store starts to sell ice cream like our own business.
Answer: a. 15%
b. Initial Cost divided by Annual Net Cash Inflow
Explanation:
1. Cost of new machine = $800,000
Residual value = $0
Estimated total income from machine = $300,000
Expected useful life = 5 years
Average rate of return on this asset will be calculated thus:
Firstly, we'll calculate the net income per year = Total net income / Number of years = $300000/5 = $60000
Average investment = $80000/2 = $400000
Average rate of return = Net Income per year / Average investment = $60000/$400000 = 0.15 = 15%
2. Cash payback period is computed as the initial cost divided by the annual net cash inflow. It is the amount of time that is required for the cash inflows that is generated by a particular project to be able to offset its initial cash outflow.
Answer:
two motivations to sell an asset, even if the current value is less than what you paid for it, are:
1. You want to buy new assets that are performing well currently.
2. You want to diversify the types of assets that you own.
Explanation:
Asset management needs to implement measures in order to administrate risk. When you have an asset, whose value is less than the price you paid for it. Selling this asset becomes a logical decision when you either want to diversify your portfolio or buy a new asset that has a better performance in the market.
Diversifying a portfolio is very important to avoid market risk. Having all your eggs in one basket is never a good investment decision because if something goes wrong with that particular investment your losses will be greater. For this reason, is always a good decision to keep different types of financial assets that help you to divide the risk among several assets.
Besides, if the current performance of a given assets is way better than an asset that is currently giving you no return in the investment because its actual price is less than the price you paid for it.
