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3 years ago

Which are three of the four main economic variables?

2 answers:

4 0

Employment, inflation, productivity, and taxes and interest rates.
From those four I'd say the first three but taxes and interest rates are also important in certain cases as for purchasing but for working too!

topjm [15]3 years ago

4 0

external shocks, business investment, and interest rates is the answer

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generally accepted government auditing standards define and describe three broad types of audits that may be performed: financia

QveST [7]

Generally accepted government auditing standards define and describe three broad types of audits that may be performed: financial audits, attestation engagements and performance audits.

<h3>What is Government?</h3>

A government is refer as administrative body which helps in the proper functioning of the country by maintaining peace and order by implementing laws and legislation describe in the constitution.

Generally accepted government auditing standards are refers as measures or guidelines provided by the government to calculate the or check the accountability and performance.

Learn more about Government, here:

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3 0

1 year ago

Two investment opportunities are as follows:________. Alt A Alt B First Cost 200 100 Uniform annual benefit 32 27 End of useful

Talja [164]

Answer:

Since the 4.34 NPV of Alt A is greater than the 2.35 NPV of Alt B, it therefore implies that Alt A should be selected.

Explanation:

Note: The data in the question are merged together. They are therefore sorted before answering the question as follows:

Alt A Alt B

First Cost 200 100

Uniform annual benefit 32 27

End of useful life salvage value 20 0

Useful life, in years 10 5

The explanation to the answer is now given as follows:

a. Calculation of NPV of Alt A

First Cost = 200

PV of uniform annual benefit = P * ((1 - (1 / (1 + r))^n) / r) ……………………. (2)

Where;

P = uniform annual benefit = 32

r = MACC = 10%, or 0.10

n = number of useful years = 10

Note: The formula for calculating the present value of ordinary annuity is being used here to calculate the Present Value (PV) of uniform annual benefit.

Substitute the values into equation (1) to have:

PV of uniform annual benefit = 32 * ((1 - (1 / (1 + 0.10))^10) / 0.10) = 32 * 6.14456710570468 = 196.63

PV of Salvage value = FV / (1 + r)^n ..................... (2)

Where;

FV = End of useful life salvage value = 20

r = MACC = 10%, or 0.10

n = number of useful years = 10

Note: The normal formula for calculating the present value (PV) is being used here to calculate the PV of Salvage value

Substitute the values into equation (2) to have:

PV of Salvage value = 20 / (1 + 0.10)^10 = 20 / 2.5937424601 = 7.71

Net present value (NPV) of Alt .A = PV of uniform annual benefit + PV of Salvage value - First cost = 196.63 + 7.71 - 200 = 4.34

b. Calculation of NPV of Alt B

First Cost = 100

PV of uniform annual benefit = P * ((1 - (1 / (1 + r))^n) / r) ……………………. (3)

Where;

P = uniform annual benefit = 27

r = MACC = 10%, or 0.10

n = number of useful years = 5

Note: The formula for calculating the present value of ordinary annuity is also being used here to calculate the Present Value (PV) of uniform annual benefit.

Substitute the values into equation (3) to have:

PV of uniform annual benefit = 27 * ((1 - (1 / (1 + 0.10))^5) / 0.10) = 27 * 3.79078676940845 = 102.35

NPV of Alt B = PV of uniform annual benefit - First cost = 102.35 – 100 = 2.35

c. Decision

Since the 4.34 NPV of Alt A is greater than the 2.35 NPV of Alt B, it therefore implies that Alt A should be selected.

6 0

2 years ago

Vulcan, Inc., has 8.7 percent coupon bonds on the market that have 10 years left to maturity. The bonds make annual payments and

Lana71 [14]

Answer:

$880.72

Explanation:

Bond price will be calculated by following formula

Bond Price = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F x ( 1 + r )^-n ]

Bond Price = $87 x [ ( 1 - ( 1 + 0.107 )^-10 ) / 0.107 ] + [ $1,000 x ( 1 + 0.107 )^-10 ]

Bond Price = $87 x [ ( 1 - ( 1.107 )^-10 ) / 0.107 ] + [ $1,000 x ( 1.107 )^-10 ]

Bond Price = $518.87 + $361.85

Bond Price = $880.72

6 0

2 years ago

PQR Corporation has a Beta of 1.5. The risk-free rate is 6%, and the market risk premium is 9%. What is the required rate of ret

shusha [124]

Answer:

1. Using CAPM, the required return is;

Required return = risk free rate + beta * market risk premium

= 6% + 1.5 * 9%

= 19.5%

2. First find the portfolio beta which is a weighted average of the individual betas;

= (60% * 2.4) + (40% * 0.9)

= 1.8

Now use CAPM

= risk free rate + beta * (Market return - risk free rate)

= 4% + 1.8 * (13% - 4%)

= 20.2%

3.Geometric average can be calculated by;

=( ((1 + r1) * (1 + r2) * (1 + r3)) ^1/n) - 1

= (((1 + 6%) * (1 + 10%) * (1 - 6%)) ^ 1/3) - 1

= ‭(1.09604‬^1/3) - 1

= 3.1%

6 0

3 years ago

Suppose a company selling in various country markets makes statements such as "we know what the customer wants, and he or she wi

Iteru [2.4K]

Answer:

Ethnocentric

Explanation:

Ethnocentric pricing strategy requires for the price of a specific merchandise to be similar all over the world. When this method is practised by an organization, it renounces some prospects to set higher prices in nations where an inferior pricing is required.

7 0

3 years ago