Answer:
Increase in the Federal fund rate
Explanation:
The Federal fund rate may be defined as the interest rate that the bank charges on another bank for an overnight loans. In other words it is the interest charged on the excess reserve that other borrows or lends overnight.
The Federal bank takes help of the Federal fund rates to keep a control on the inflation which encourages healthy economic growth.
In the context, when the economy of a country is experiencing sharp increase in inflation rate, I would recommend to increase the Federal fund rate so as to control the inflation rate being increased.
Both inflation rate and Federal fund rate are related closely to the relative availability of the reserves or the relative scarcity of he reserves in the Federal.
Answer:
a. incremental cash flows.
Explanation:
Incremental cash flows is a capital budgeting technique used to determine whether to accept or reject the project. Analysis that considers incremental cashflow evaluates the net benefits of accepting the project versus if it is not accepted. This includes incremental revenue or sales, incremental expenses, changes in net working capital. Erosion effects is part of incremental cashflow which happens when a part of regular sales declines due to acceptance of a project.
Answer:
The correct answer is the option A: True.
Explanation:
To begin with, the contracts inside the law are regulated by the Anglo-America common law that defines a contract as the agreement between two or more parties in which they establish the basis and principles of the agreement and the clauses that could cause to end the contract. Moreover, a contract is also part of the civil law and therefore that it does not implicate the public as a whole in any way due to the fact that in order to be a correct contract the parties must accept the bond between only them and nobody else.
Answer:
a) 12%
b) 12.36%
c) 12.55%
d) 12.68%
Explanation:
Data provided in the question:
Nominal rate of return, r = 12% = 0.12
Now,
Effective rate of interest is given as :
i = [ 1 + ( r ÷ n ) ]ⁿ - 1
here,
Number of compounding periods = n
Thus,
a) compounded annually %
n = 1
i = [ 1 + (0.12 ÷ 1 )]¹ - 1
= 1.12¹ - 1
= 0.12 or 12%
b) compounded semiannually %
n = 2
i = [ 1 + ( 0.12 ÷ 2 ) ]² - 1
= 1.06² - 1
= 0.1236 or 12.36%
c) compounded quarterly %
n = 4
i = [ 1 + ( 0.12 ÷ 4 ) ]⁴ - 1
= 1.03³ - 1
= 0.1255 or 12.55%
(d) compounded monthly %
n = 12
i = [ 1 + ( 0.12 ÷ 12 ) ]¹² - 1
= 1.01¹² - 1
= 0.1268 or 12.68%
Question Completion:
Dimension Importance Spike Olaf Andy
Cost 4 1 5 3
Reliability 2 5 2 3
Cost 3 3 3 4
Answer:
Great Pumpkin Inc.
Great Pumpkin should choose Olaf Manufacturing with the highest weighted score of 33.
Explanation:
a) Data and Calculations:
Dimension Importance Spike Olaf Andy
Cost 4 4 (1*4) 20 (5*4) 12 (3*4)
Reliability 2 10 (5*2) 4 (2*2) 6 (3*2)
Cost 3 9 (3*3) 9 (3*3) 12 (4*3)
Total weighted scores 23 33 30
b) Based on the total weighted scores, Olaf Manufacturing performed best among the three companies. It should be chosen. To obtain the weighted scores for each company, the scale it obtains under each dimension is multiplied by the importance of the dimension. This is done for each dimension and each company before the total weighted scores are obtained and the company with the highest score is adjudged the winner.