If the consumer price index falls from 120 in 2010 to 116 in 2012, the economy has experienced deflation of 3.33 percent.
Price index, a measure of relative charge adjustments, such as a sequence of numbers organized in order that contrast between the values for any durations or places will show the common exchange in costs among durations or the common distinction in charges between places.
The price index commonly picks a base year and makes that index value identical to a hundred. every different 12 months is expressed as a percentage of that base yr. In this example, allow 2000 to be the base yr: 2000: unique index price became $2.50; $2.50/$2.50 = one hundred%, so the new index price is a hundred.
In most international locations charge indexes are used to measure inflation, every focusing on the charges of a collection of goods and services critical to a selected segment of the financial system.
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Answer:
Diego's initial deposit is $11,111
Explanation:
Let A be the initial deposit Diego made
The amount he will get after two years with continuously compounded interest rate 8% is given by
V = A 
Where r is the annual interest rate and t is the number of years (2)
And the actual amount he receive is 13,000
So A = 
= 13,000 / 1.17 = $11,111
Answer:
The correct option is C. which is <em>assess how long a company with positive cash flows from financing activities can continue to operate</em>
Explanation:
<em>The ratio of cash to monthly cash expenses can be used to make assessment of a company whether how long it can determine without additional financing and positive cash flows generated from operations.</em>
The formula of The ratio of cash to monthly cash expenses
= Cash s of year end ÷ Monthly Cash Expenses
Answer:
The correct answer to the following question is option A, i.e., To create more value for customers.
Explanation:
Generally, this answer is best for this question because customer satisfaction is more valuable for your business. The word 'value' is mostly means to price or any other things which have value for the businessman as well as the customers also.
In other words, when we create more value to the customer then we get more profit and if we do not value our customer then we suffer loss.
So, the customer value is more valuable or precious for the businessman or the firm.
If a project has a salvage value greater than zero, the salvage value will increase the net present value.
<h3>What is the relationship between salvage value and net present value?</h3>
Net present value is the present value of after-tax cash flows from an investment less the amount invested. Salvage value is the value that can be gotten from an asset at the end of its useful life.
If the salvage value is greater than zero, it would increase the cash inflows to the owner of the asset and this would increase the value of the net present value.
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