Answer:
Policy impact will be positive
Explanation:
When investors pull out their funds from Asian, it will amount to scarcity of funds for developmental purposes. The contrary is the case when such funds are plunged into the US market. Its impact to the economy include:
1. Create more opportunity for development
2. Reduces the interest rate of lending in the society
3. Exchange rate value will decrease just because more of these funds will be used for business transactions
4. The prices of goods will be adjusted to balance the different caused by inflation
Answer:
Is the best method of analyzing mutually exclusive projects.
Explanation:
Net present value is equal to the present value of all the future cash flows of a project, less the initial outlay of project.
Net present value analysis simply concluded about a project to be worth doing when it finds the present value of future cash flows greater than the initial investment and vice versa.
We just have to see which is higher, the present value of future cash flows or the initial investment.
It is assumed that an investment with a positive NPV will be profitable, and an investment with a negative NPV will result in a net loss.
Answer:
total budgeted costs = $141,570
budgeted production = 1,000 units
standard rate = $141,570 / 1,000 = $141.57 per unit
total actual costs = $135,810
actual production = 850 units
actual rate = $135,810 / 850 = $159.78 per unit
- total fixed overhead variance = actual overhead costs - budgeted overhead costs = $135,810 - $141,570 = -$5,760 favorable. The actual overhead expense was lower than budgeted.
- controllable variance = (actual rate - standard rate) x actual units = ($159.78 - $141.57) x 850 units = $15,478.50 unfavorable. The actual overhead rate was higher than the standard rate, that is why the variance is unfavorable (more money was spent than budgeted).
- volume variance = (standard activity - actual activity) x standard rate = (1,000 - 850) x $141.57 = 150 x $141.57 = $21,235.50 unfavorable. Less units where produced than budgeted, that is why the variance is unfavorable.
Answer:
A greater saving will reduce the impact of the multiplier.
Explanation:
A multiplier generally refers to the factor that amplifies or increase the initial change of something else.
In economics, multiplier refers how change in spending or saving results into a larger change in local output and income.
Since addition of marginal propensity to consume (MPC) and marginal propensity to save (MPS) is equal to 1, the formula for calculating a multiplier can be stated as:
Multiplier = 1/(1 - MPC) or 1/MPS
From the question therefore, when MPS = 0.10, we have:
Multiplier = 1/0.10 = 10
When MPS is increases to 0.20, we have:
Multiplier = 1/0.20 = 5
Since 5 is less than 10, a greater saving will therefore reduce the impact of the multiplier.
Answer:
Total cost of front end loader in asset account $ 114,600
Explanation:
Computation of total costs of front end loader
List price of equipment $ 117,270
Discount on cash payment = 5.5 % ( $ 117,270 * 5.5 %) <u>$ ( 6,450)</u>
Net price of equipment $ 110,820
Freight in costs $ 2,790
Calibration costs <u>$ 990</u>
Total cost of front end loader in asset account $ 114,600
The other data items such as the loader salary and additional insurance
premium are annual costs and are thus not to be added to the cost of the equipment.
