Answer:
$195,751
Explanation:
Calculation for the project's expected operating cash flow
The first step will be to find the EBIT
using this formula
EBIT =(Earnings before interest, taxes, depreciation, and amortization -Depreciation expense)
Let plug in the formula
EBIT= 283,104 - 53,228
EBIT= 229,876
Second step is to find the NOPAT using this formula
NOPAT = EBIT(1- tax rate)
NOPAT= 229,876(1 - 0.38)
NOPAT= 142,523
Last step is to calculate for Expected Operating Cash flow
Using this formula
Operating cash flow = NOPAT + Depreciation expenses
Let plug in the formula
Operating cash flow = 142,523 + 53,228
Operating cash flow = $195,751
Therefore the project's expected operating cash flow will be $195,751
Answer:
Explanation:
.1.Scale economies in connection with urban economics (i.e., related to land use,housing, or firm location)A.2.Pecuniary agglomeration economiesA.3.Technological agglomeration economiesA.4.Retail agglomeration economiesA.5.ExternalitiesA.6.ceteris paribus assumptionA.7.A numeraire goodA.8.An efficient allocation of resources
Answer and Explanation:
As per the data given in the question,
The central bank have various tools to apply expansionary policy and these tools are :
- Reserve ratio.
- Discount rate.
- Open market operations.
The open market operations include the buying and selling of government owned securities by central bank to impact the monetary base in the economy. In case of any recession, the central bank should purchase government securities to enhance the money supply. Because whenever they do any kind of open market purchase there would definitely be increase in money in the economy. That's why increment in money supply decrease the interest rate in economy.
Nominal interest rate is the cost of borrowing so if there is decrement in interest rate, there would be consumption and investment activities. these both are the component of aggregate demand so the aggregate demand will increase, and this increment in aggregate demand helps the economy to recover in the situation of recession.
