<span>The gdp price index for that year is 300.
This is how we calculate this;
Gdp price index = 100 x nominal gdp / real gdp
=100 x 240 / 80
=24000/80
</span>Gdp price index = 300
Answer:
Selection 1 has lowest NPV = $316.9
Explanation:
Rate of discount is 10% therefore PV factor for every year =
Here 0.1 because interest rate is 10% n = number of year for year 1 = 1 for year 2 = 2 and so on.
Selection 1
Year Cash Flow PV Factor Value
1 $100 0.909 $90.9
2 $100 0.826 $82.6
3 $100 0.751 $75.1
4 $100 0.683 $68.3
Net Present Value = $316.9
Selection 2
In this only in 4th year the payment is received = $500 X 0.683 PV Factor
= $341.5
Selection 3
Only in year 1 $350 is received = $350 X 0.909 = $318.15
Selection 4
Year Cash Flow PV Factor Value
1 $50 0.909 $45.45
2 $50 0.826 $41.3
3 $50 0.751 $37.55
4 $375 0.683 $256.125
Net Present Value = $380.425
Selection 1 has lowest NPV = $316.9
Answer:
29,394 units
Explanation:
The formula for break even point is given as Fixed cost / Contribution margin.
Where;
Contribution margin = Sales per unit - Variable cost per unit
Given that ;
Fixed cost = $194,000
Unit selling price = $14.90
Unit variable cost = $8.30
Therefore;
BEP(units) = $194,000 / $14.90 - $8.30
= $194,000 / $6.6
= 29,394 units
Answer:
25 years
Explanation:
4% of 100 is $4, $4 times 25 is $100
Answer:
customer must complete an Options Agreement
Explanation:
Options account can be regarded as
brokerage account which is been
approved for the sake of buying and selling options.To Open an option account an investor must be able to complete an option agreement, then collect a brochure that gives description of the risks of trading a standardized options.Options can be regarded as derivative product that give room to investors in speculating on as well as hedge against volatility that could come from underlying stock.
It should be noted that when a new customer wishes to open an options account with a firm, the following procedures are required prior to the first trade ;
1)new account form must be completed
2)customer must be sent an Options Disclosure Document
3)Registered Options Principal must approve the account before the first trade