Answer:
NPV= 5,493.79
Explanation:
<u>To calculate the net present value (NPV), we need to use the following formula:</u>
NPV= -Io + ∑[Cf/(1+i)^n]
Cf1= 18,708 / 1.09= 17,163.30
Cf2= 21,200 / 1.09^2= 17,843.62
Cf3= 17,800 / 1.09^3= 13,744.87
∑[Cf/(1+i)^n]= $48,751.79
NPV= -43,258 + 48,751.79
NPV= $5,493.79
Answer:
a) Bonds Payable.
Explanation:
Since there is an issue of bonds as against cash, which need to be paid back in future, amount received will be credited to bonds payable.
Further the purpose of bonds will always be to acquire a capital asset as bonds are issued for long term finance generally, therefore, the bonds will be credited as bonds payable, rather than capital contributions.
Though a general note in notes to account can be added clearly specifying the purpose of issue of bonds.
a) Bonds Payable.
Answer:
Refer to the Article Summary. Implementing a negative interest rate policy, as is discussed in the article summary, would be designed to ___lower_____ the price level and ___improve_____ real GDP.
Explanation:
The Fed will consider negative interest rates when it wants to increase borrowing and lending during economic recessions. The effects of a negative interest rate are the reduction of the cost of borrowing economy-wide and the increase of economic activity. The increased economic activity will be achieved through increased investments and increased consumption spending. Thus, banks and consumers are encouraged to lend and borrow more money so that the economy can spend its way out of recession.
Answer:
The correct answer is B.
Explanation:
Giving the following information:
Cash flow= $500
Number of months= 50
Monthly interest rate= 0.07/12= 0.00583
First, we need to calculate the future value using the following formula:
FV= {A*[(1+i)^n-1]}/i
A= cash flow
FV= {500*[(1.00583^50) - 1]} / 0.00583
FV= $28,928.06
Now, the present value:
PV= FV/(1+i)^n
PV= 28,928.06/(1.00583^50)
PV= $21,631.67
The best answer is "C" or demand. Consumers will buy more or less depending on the demand.
I hope this helps!
<em>~cupcake</em>