If the consumers are further confident they will expend additional dollars at entirely earnings stage and the consumption function moves upward. This increase in expenditure reasons the aggregate demand curve to move to the right. The ceteris paribus is known as a alteration in interest rates reasons a movement alongside the investment demand curve.
We need to compare the present values (PV) of all the expenses of all the investments to make an investment decision. The formula of PV = ((C1/(1+r)1) + ((C2/(1+r)2) + ((C3/(1+r)3) +…….+ ((Cn/(1+r)n) + present value of investment – present value of the salvage value
Where, Cn refers to the expense incurred in the nth period and r is the rate of interest per period.
For Machine A, present value of the expenses is
= ((1600/(1+0.20)1) + ((1600/(1+0.20)2) + 15,000 – ((3000/(1+0.20)2)
= 1333.33 + 1111.11 + 15000 – 2083.33
= 15361.11
For Machine B, present value of the expenses is
= ((400/(1+0.20)1) + ((400/(1+0.20)2) + ((400/(1+0.20)3) + ((400/(1+0.20)4) + 25,000 - ((4000/(1+0.20)2)
= 333.33 + 277.77 + 25,000 – 2777.77
= 22833.33
We can see that Machine A is the least cost alternative; therefore, Machine A should be selected.
When creating a budget you want to remember your income level and what you can afford. If you only make 200$ every week you don't want out budget to be 200$ cause you won't have anything for savings. You also want to keep in mind your wants verses needs. the last thing you want to keep in mind is whatever your buying is it worth spending money on i.e. good quality, last you while, etc.
Answer:
Explanation:
I believe the best advice that can be given is to do thorough research into the company before investing and do not invest more than you are willing to lose. Initial Public Offerings (IPO) can be incredibly risky investments because they can be complete scams or can be legit startup companies but make one mistake and quickly go bankrupt causing the shares to be worthless and you lose all of your money. But with great risk comes great reward, If they do manage to take you off you can make a lot of money. Therefore, research and invest only what you can live without is the best advice.
Answer: Money Laundering
Money laundering is the process in which the money earned or received from illegal sources or illicit activities are shown as money originated from legitimate sources. Money laundering activities are generally done for large amount of money generated from terrorist activities, drug trafficking, smuggling etc. The laundered money is injected in the financial system through banks and other financial institutions by concealing the source. Once the money gets into the financial system, it become white or legitimate.