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3 years ago

How did speculative investing weaken the stability of the stock market

1 answer:

7 0

The main way in which speculative investing weakened the stability of the stock market was that it it led to high overvaluation of a company's worth, meaning that people began to divest quickly, leading to a run on the banks.

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BD Corporation has purchased new computers to modernize the office. The increased efficiency from the computers will lead to inc

Inessa [10]

Answer:

BD Corporation should not purchase the new computers

Explanation:

initial outlay year 0 = -$300,000

increased productivity per year = $75,000 for years 1-5

discount rate = 8%

NPV = -$300,000 + $75,000/1.08 + $75,000/1.08² + $75,000/1.08³ + $75,000/1.08⁴ + $75,000/1.08⁵ = -$300,000 + $69,444.44 + $64,300.41 + $59,537.42 + $55,127.24 + $51,043.74 = -$300,000 + 299,453.25 = -$546.75

since NPV is negative, then the project should be rejected

we can also use an annuity factor to determine the present value of this annuity, PV = $75,000 x 3.9927 = $299,452.50

NPV = -$300,000 + $299,452.50 = -$547.50

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3 years ago

Many people are surprised that working for a charitable organization can be as good for your career as working for a:

erica [24]

I believe the answer is A becuase working at a lemonade stand helps you kinda run a business if you think about it

8 0

3 years ago

Suppose Deborah gets a sales bonus at her place of work that gives her an extra $600 of disposable income. She chooses to spend

Mashutka [201]

Answer:

Option (d) is correct.

Explanation:

Suppose Deborah gets a sales bonus at her place of work,

Disposable Income, YD = $ 600

Consumption, C = $480

Savings , S = $ 120

Marginal propensity to consumer, MPC:

= Consumption ÷ Disposable Income

= 480 ÷ 600

= 0.8

Therefore, Deborah marginal propensity to consume (MPC) is 0.80

Option (d)

7 0

3 years ago

Which department of the U.S. federal government was budgeted to spend over $582 billion on goods and services in fiscal year 201

pav-90 [236]

The answer is Department of Defense

8 0

2 years ago

Aunt Mabel promised to give you $9000 when you successfully complete your freshman year, $6000 when you successfully complete yo

Blababa [14]

Solution :

At every stage the formula used will be :

$\frac{\text{available balance}}{(1+\text{interest rate})}= \text{required bank balance}$

After the junior year, Aunt Mabel's bank balance will be :

$=\frac{8000}{1.0925}$

= $ 7,322.65

Aunt Mabel's bank balance after sophomore year will be :

7,322.65 + 1000 = $ 8,322.65

$=\frac{8,322.65}{1.0325}$

= $ 8060.677

After the freshman year, bank balance of Aunt Mable's will be :

8060.677 + 6000 = $ 14,060.677

$=\frac{14,060.677}{1.0250}$

= $ 14.0606

If Aunt Mabel can predict the interest rate with accuracy, she will have to deposit :

$ 14.0606 + $ 9000 = $ 9,014.06

$=\frac{9014.06}{1.0525}$

= $ 8,565.241

4 0

3 years ago