Answer:
The correct answer is option C.
Explanation:
An increase in the interest makes it more expensive to borrow money. In other words, the cost of borrowing increases. This will cause investment expenditure on machinery, equipment, and factories to decline.
Increased interest rate also increases the opportunity cost of holding money. The consumers will get more return from saving. This will reduce, the consumer spending on durable goods.
The increased interest rate will attract foreign capital inflows. The increase in demand for currency will increase its value. This will reduce exports and increase imports. As a result, net exports will decline.
Answer:
Land = $22,000
Building = $27,500
Machinery = $60,500
Explanation:
Use the appraised values to apportion the Purchase Price ($110,000) to the asset categories.
Total appraised value = $24,000 + $30,000 + $66,000 = $120,000
Answer:
IRR 1.50%
It will receive 300,000 dollars when:
250,000 is return of capital and 50,000 will be considered profit.
Explanation:
1,000 x 300 months = 300,000 dollars
The IRR will make the payment match the present value of the $250,000 principal
That will be the yield of the investment.
C 1,000.00
time 300
rate 0.001251129 ( we solve for the rate using excel goal seek or a financial calcualtor
PV $250,000.0000
Now, as this are monthly payment we multiply by 12 to get the annual convertible rate:
0.001251129 x 12 = 0.015013551
rate = 1.50% per year
Answer: in the inelastic portion of the demand curve
Explanation:
Remaining part of the question is:
.. in the inelastic portion of the demand curve, the elastic portion of the demand curve, or the unit elastic portion?
Elasticity measures how much quantity demand changes in response to a change in price.
An inelastic demand means that when prices change, demand does not change as much. You can therefore increase prices with a good that has inelastic demand and still expect close to the same demand.
If the city wants to raise as much revenue as possible from the tolls, they should increase prices on the inelastic portion. Because it is inelastic, the demand will remain close to the same which would increase revenue as the same number of people are paying higher.
