Answer:
$155.5
Explanation:
The Consumer price index indicates how prices change through time of a determined basket of goods and services. Inflation is calculated by the percentage change of this index in two periods of time. In this case, we must calculate the percentage change:
1995: 152.4
2015: 237.0
(237-152.4/152.4)*100= 0.555*100=55.5%
The inflation rate for this period is 55.5%. To buy a similar amount of goods and services in 2015 we have to pay an 55.5% extra, which means we have to pay $155.5
Answer:
Direct expenses
Explanation:
Manufacturing expenses are categorized into direct and indirect expenses.
Direct expenses are the costs that can be traced to a specific product or service. There are the expenses that relate to the production or provision of a particular good or service. Direct expenses include the cost of material, direct labor, and direct factory overhead costs.
Indirect expenses consist of operating expenses such as rent, administrative salaries, insurance, telephone, internet , and computer costs. These costs cannot be linked to a particular product.
Option C is correct. Valuing cash flows with infinite growth in the dividend discount models (DDMs may not be calculated using any DDM unless growth is less than the discount rate.
<h3>How do you value cash flows?</h3>
In order to carry out the value of cash what a person has to do would be to get the present value of the cash in the flow and then add them up.
Hence the answer to the question that we have here is option C. Valuing cash flows with infinite growth in the dividend discount models (DDMs may not be calculated using any DDM unless growth is less than the discount rate.
Read more on cash valuation here:
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An acceptable investment is at minimum that <span>a. is exactly equal to its net present value. However, any investor would not want to see this as he expects his investment would soar higher than the npv and gain through the years. Nonetheless, instead of losing, the minimum requirement is still equal to npv.</span>