<span>It's hard to say definitively what the impact would be because the answer depends on how much gasoline costs affect overall inflation, but we can say in what direction this technology would push interest rates, all other things being equal.
First, it's important to understand that interest rates vary depending on inflation, or the rate at which money becomes less valuable.
Because the technology is quite expensive in the short run, a lot of borrowing may be necessary to develop it. Even if that were not the case, the cost to develop the technology would be reflected in prices throughout the economy, so the pressure would be inflationary. More inflation causes higher interest rates.
However, in the long run, the technology causes gasoline prices to go down (and demand for loans to go down with it). Because so many goods in our economy have to be moved or produced or both using electricity, or gasoline, or oil, the prices for everything would likely go down as the cost of these goods went down. Then the impact would be deflationary. Lower inflation rates lead to lower interest rates.</span>
Answer:
$14,800
Explanation:
The computation of the selling price of the truck is shown below:
The depreciation expense is
= ($60,000 - $12,000) ÷ 6 years
= $8,000
Now the depreciation for 5.5 years is
= $8,000 × 5.5 years
= $44,000
Now book value is
= $60,000 - $44,000
= $16,000
ANd, finally the selling price of the truck is
= $16,000 - $1,200
= $14,800
Answer:
A need is something you can live without. a want is something you would like to have. is what you give up when making a financial decision.
Explanation:
Answer:
Expected return or the cost of equity capital for the firm = 14%
Explanation:
V(0) = D1 / r - g
v = 20, D1 = 2, r = ?, g = 0.04
20 = 2 / (r - 0.04)
20r - 0.8 = 2
20r = 2 + 0.8
20r = 2.8
r = 2.8/20
r = 0.14
r = 14%
Note: Application of constant growth dividend discount model was required to solve the question
Answer:
speak with confidence
encourage the interviewer to do most of the talking- after all he is the interviewer, you don't want to dominate the interview.
Hope this helps! ;D