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3 years ago

Which of the following phrases describes money?

2 answers:

6 0

The phrases that describes money the best would be: Medium of exchange

Before money were made, in order to obtain a product that we don't own, we need to exchange it with another product that we own. This system is commonly known as barter.

With money, we can obtain a product that we don't own without exchanging it with anything. This function is the reason why money is called medium of exchange

Anuta_ua [19.1K]3 years ago

4 0

Answer: system of investment

Explanation: hmm? :)

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An investment costs $152,000 and has projected cash inflows of $71,800, $86,900, and −$11,200 for Years 1 to 3, respectively. If

Radda [10]

Answer:

No; The IRR is less than the required return.

Explanation:

Calculation of IRR is given by the formula: Lr x NPVL / NPVL - NPVH x (Hr - Lr)

where

Lr = Lower rate of discount

Hr = Higher rate of discount

NPVH = NPV at Higher discount rate

NPVL = NPV at Lower discount rate

Assume a low discount rate of 1% and a high rate of 20%

NPV at 1%

Particulars Year 0 Year 1 Year 2 Year 3

Cash flows 152,000 71,800 86,900 (11,200)

DCF 1% 1 0.99 0.98 0.97

Present values (152,000) 71,082 85,162 (10,864)

NPV = $6,620

NPV at 20%

Particulars Year 0 Year 1 Year 2 Year 3

Cash flows 152,000 71,800 86,900 (11,200)

DCF 20% 1 0.83 0.69 0.58

Present values (152,000) 59,594 59,961 (6,496)

NPV = ($38,941)

Substituting values in the IRR formula we have:

1% x [($6,620 / ($6620 - (38,941))] x (20% - 1%) = 2.06%

Therefore we reject the project because it gives an IRR lower than the required rate of return of 15.5%

8 0

3 years ago

Consider the following information: the marginal products of labor for the US in producing Cars and Wheat are 24 and 18. Given t

stepan [7]

Answer:

0.75 wheat

Explanation:

Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.

the opportunity cost of producing cars, is the quantity of wheat that would have to be forgone to produce one car

18 / 24 = 0.75 wheat

7 0

3 years ago

Q1. Big Money Monster is a business school. The school bases its budgets on two measures of activity: number of students and num

maxonik [38]

Answer:

Big Money Monster

The spending variance for course supplies is:

$50 Unfavorable.

Explanation:

a) Data and Calculations:

Fixed cost Variable cost Variable cost Total

per month per student per course

Faculty wages $4,000 $0 $20

Course supplies $1,000 $10 $50

Administrative expenses $2,000 $20 $30

Budgeted number of students = 300

Budgeted number of courses = 15

Actual number of students = 280

Actual number of courses = 18

Actual Faculty wages = $4,200

Actual Course supplies = $4,800

Budgeted Costs:

Fixed cost Variable cost Variable cost Total

per month per student per course

Faculty wages $4,000 $0 $20 $4,300

Course supplies $1,000 $10 $50 4,750

Administrative expenses $2,000 $20 $30 8,450

Budgeted costs:

Faculty wages = $4,000 + $0 + $20 * 15 = $4,300

Course supplies = $1,000 + $10 * 300 + $50 * 15 = $4,750

Administrative expenses = $2,000 + $20 * 300 + $30 * 15 = $8,450

Budgeted Cost of Course Supplies = $4,750

Actual Cost of Course Supplies = 4,800

Spending variance for Course Supplies = 50 Unfavorable

4 0

3 years ago

Which section of the business plan should come first but be written last? A. Competitive Analysis B. Goals and Strategy C. Execu

Alja [10]

The answer is B. Executive summary. A management summary, or executive summary, is a short article or section of a document, produced for business purposes, that condenses a longer report or proposal or a group of related reports in such a way that readers can rapidly become familiar with a large body of material without having to read it all.

6 0

3 years ago

Read 2 more answers

The definition of inventory includes which of the following items? (Select all that apply.) a) items used currently in the produ

Yanka [14]

Answer:

Items a) and b)

a) items used currently in the production of goods to be sold items

b) held for resale items currently in production for future

Explanation:

Inventory consists of current assets to be used in production of final goods or are the ones which are final goods and held for sale.

In the given case also, statement a includes raw materials, which are used to make the final good to be sold, which is a part of inventory.

Further, statement b includes work in production or final goods which are currently in production but would be resold.

The items which are kept for their use as like machinery or furniture or which shall be disposed are not inventory but are in fixed assets category.

3 0

3 years ago