If the price of the steel used to produce steel falls, it would cause the price of American cars to fall.
<h3>How does the price of resources affect demand?</h3>
The price of a resource used in the production of goods can have a huge effect on the price.
If the price of steel is high, it would make the price of cars to be on the increase hence reducing the demand for the product in the market.
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Answer:
U.S. Department of Commerce.
Explanation:
The U.S Department of Commerce can be defined as a governmental organization that is saddled with the responsibility of promoting economic growth and development, better standard of living for the citizens and provision of job opportunities.
Basically, the U.S Department of Commerce have specialized tools and resources to help gather economic information and demographic data such as amount of export and imports into the United States of America.
In this scenario, Honeywell, Goodrich, and UTC Aerospace are among the suppliers to Embraer. If these companies want to look for other export opportunities or information on exporting, the most comprehensive source of information in the United States is the U.S. Department of Commerce.
Answer: strategic alliance
Explanation:
A strategic alliance is an agreement that takes place when parties come together to share risks, assets, control, strengths, and rewards in order to pursue some objectives.
This is used by the companies since the two companies are each going to assign two engineers to this project and have agreed to share any and all costs.
Answer:
Present Value of Annuity is $1,263,487
Explanation:
A fix Payment for a specified period of time is called annuity. The discounting of these payment on a specified rate is known as present value of annuity.
Formula for Present value of annuity is as follow
PV of annuity = P x [ ( 1- ( 1+ r )^-n ) / r ]
Where
P = Annual payment = $91,000
r = rate of return = 5.15%
n = number of years = 25 years
PV of annuity = $91,000 x [ ( 1- ( 1+ 0.0515 )^-25 ) / 0.0515 ]
PV of Annuity = $1,263,487
Solution :
Given :
Coupon rate for Bond J = 3%
Coupon rate for Bond K = 9%
YTM = 6 %
Therefore,
The current price for Bond J = $ 718.54 =PV(6%/2,13x2,30/2,1000)x -1
The current price for Bond K = $ 1281.46 =PV(6%/2,13x2,90/2,1000)x -1
If the interest rate by 2%,
Bond J = $ 583.42 = -18.80% (change in bond price)
Bond K = $ 1083.32 = -15.46% (change in bond price)
