Payment is only part of total compensation.

You go on vacation to Mexico and take $1,000 with you. During your time in Mexico, the peso appreciates in value relative to the

pogonyaev

Answer:

We will be able to purchase fewer goods and services.

Explanation:

Appreciation of a currency in terms of another currency implies an increase in the worth of a currency in terms of another currency.

An appreciation in the value of peso in terms of dollars means that the worth of peso has increased in terms of dollar.

In other words, the worth of dollar in terms of peso has decreased. The value of $1,000 will decline.

So, a tourist in Mexico with $1,000 will be able to buy fewer goods an services.

4 0

2 years ago

Read 2 more answers

On the basis of the details of the following fixed asset account, indicate the items to be reported on the statement of cash flo

iragen [17]

Answer:

Flows Added

Oct. 4: Proceeds from Sale of fixed asset $151,000

Oct. 4: Gain on sale of fixed asset $22,000

Flows Deducted

Mar. 12: Purchase of fixed asset $274,000

Explanation:

The Cash flow statement is prepared under the following headings :

Cash flow from operating activities
Cash flow from investing activities
Cash flow from financing activities

Therefore form the transactions we need to establish what amount fall in which category.

Here is an extract of the Cash flow statement based on the given data

Cash flow from Operating Activities

Adjustment to non-cash items

Gain on sale of asset ($151,000 - $129,000) $22,000

Cash flow from Investing Activities

Purchase of Asset ($274,000)

Proceeds from sale of Asset $151,000

Cash flow from Financing Activities

8 0

3 years ago

Which of the following pairs are characteristics of price-takers?

son4ous [18]

Answer:

C. Target costing and heavy competition

Explanation:

6 0

3 years ago

Respond to the following comments:

MakcuM [25]

Answer:

Comment for statement A - The firm must still compare the IRR with the opportunity cost of capital when using the IRR rule. Therefore, even with the IRR method, the appropriate discount rate must still be specified.

Comment for statement B - There should be a higher discount rate on risky cash flows than the rate used to discount less risky cash flows.

Making use of the payback rule is equivalent to using the NPV rule with a zero discount rate for cash flows before the payback period and an infinite discount rate for cash flows thereafter.

Explanation:

a)

“I like the IRR rule. I can use it to rank projects without having to specify a discount rate”

The firm must still compare the IRR with the opportunity cost of capital when using the IRR rule. Therefore, even with the IRR method, the appropriate discount rate must still be specified.

b.

“I like the payback rule. As long as the minimum payback period is short, the rule makes sure that the company takes no borderline projects. That reduces risk”

There should be a higher discount rate on risky cash flows than the rate used to discount less risky cash flows.

Making use of the payback rule is equivalent to using the NPV rule with a zero discount rate for cash flows before the payback period and an infinite discount rate for cash flows thereafter.

5 0

3 years ago

1. In your opinion, what do you think are the common thing that is found in all the elasticity

kari74 [83]

Answer:

Elasticity is an economic concept used to measure the change in the aggregate quantity demanded of a good or service in relation to price movements of that good or service. A product is considered to be elastic if the quantity demand of the product changes more than proportionally when its price increases or decreases

6 0

2 years ago