Answer:
First option will be recommended.
Explanation:
To determine which option to be taken, we calculate the net present value each option generates. The option generating higher NPV should be recommended.
- Net present value of first option = Lump sum receipt = $150,000.
- Net present value of second option will be found by discounting cash flows at investing rate 12% and calculated as followed:
+ Present value of 20 equal annual payment of $14,000 + Present value of $60,000 paid in 20 years = (14,000/12%) x [ 1 - 1.12^(-20)] + 60,000/1.12^20 = $110,792.
As net present value of the first option is higher than the second option, first option will be recommended.
Answer:
1. economic growth;
2. the size of the economy
Explanation:
According to the neoclassical standpoint on issues relating to macroeconomics, it is believed that, over a long period of time, the economy will vary around its potential GDP and its natural rate of unemployment.
Therefore, the size of the economy is defined by potential GDP, and wages and prices will adjust in an intelligent manner so that the economy will move back to its potential GDP level of output.
Hence, The neoclassical view holds that long-term expansion of potential GDP due to ECONOMIC GROWTH will determine THE SIZE OF THE ECONOMY
Answer:
reported as income for all three years is $7,000
Explanation:
given data
cost of the ending inventory = $181,000
market value inventory = $160,000
to find out
Shondee Corporation must add income
solution
we get here Income per year that is
Income per year = (Value under FIFO Method - Value Under Cost Method ) ÷ Number of year ..............................1
put here value we get
Income per year = 
Income per year = 
Income per year = $7000
so reported as income for all three years is $7,000
Answer:
A. 118%
Explanation:
22w= 26,
Hence:
The weight in the managed portfolio is
26/22
= 118%
Therefore the adjusted portfolio P* needed to calculate the M2 measure will have 118% invested in the managed portfolio and the rest in T-bills.
