Answer:
Farming Art Inc. should deposit $284.42
Explanation:
Giving the following information:
Framing Art Inc. will need to purchase two new cashier machines in 2 years, for $148 each. A savings account pays 2% per year compounded quarterly.
Total cost=148*2= $296
To calculate the monetary value to deposit today, we need to use the following formula:
PV= FV/(1+i)^n
FV= 296
i= 0.02/4= 0.005
n=2*4= 8
PV= 296/1.005^8= $284.42
Answer:
Decrease, Decrease
Explanation:
From the question we are informed about my financial investments which consist of U.S. government bonds maturing in twenty years and shares in a start-up internet company. In the case whereby the interest rates on newly-issued government bonds increase, then the price of my bonds will decrease and the price of the shares you own will decrease. Financial investment can be regarded as asset which one put money on hoping that there will be growth of the asset and the asset will appreciate to sum of money larger than the asset. Bond is an example of this, a bond can be explained as fixed income instrument which is a representation of a loan that is set up by an investor given out to a borrower. This borrower could be governmental or Corporate.
The Owners of bonds could be
debtholders as well as creditors of the firm that issue it i.e the issuer. Details of bonds is " end date"
Answer: The optimal price is higher than market price by less than $0.50.
Explanation:
Since, it was given that Coase theorem doesn't hold in this situation, hence, the social marginal cost is greater than the private marginal cost by $0.50. The social marginal cost curve lies towards the left of demand curve.
Since the demand and supply curve are not perfectly elastic or inelastic, so the optimal equilibrium occurs at a point (price) which is greater than the prevailing market price, but the difference in the price is less than $0.50.
Therefore, the optimal price is higher than market price by less than $0.50.
Answer:
D : cost of goods sold
Explanation:
The plastic are used to build the milk jugs that are used to sell milk . So the cost of them is part of the goods sold since withouth the sell of the milk , the jugs won't exist
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