Answer:
The answer is A. $5,784,000
Explanation:
[(1.08)/(1.11)] -1 = -3.6%
Thus one year forward rate is 0.60*[1 +(0.036)] = $5784
$5784 * 10 000 000= <u>$5,784,000</u>
Answer:
Project 1
Explanation:
The computation of the payback period is shown below:
As we know that
Payback period = Initial investment ÷ Net cash flow
For project 1
The payback period would be
= $60,000 ÷ $20,000
= 3 years
For project 2
The payback period would be
= $80,000 ÷ $20,000
= 4 years
Based on the payback period, project 1 should be chosen as the initial amount would be recovered in 3 years instead of 4 years shown in project 2
Answer:
b. FALSE
Explanation:
Economists do not have a unanimous consensus that an increase in the minimum wage will cause greater employment opportunities. In fact, the opposite is the case because research shows that when the minimum wage is increased, there is less demand for low-skill workers. Given that these firms would be paying more, they would want to only employ those that have a high-skill set and thus save their organization of some funds. Since businesses are not charity organizations, they must make decisions that will benefit them.
