When the fed sells bonds to financial institutions, new money moves directly "out of the loanable funds market".
The Federal Reserve System,sometimes alluded to as the Federal Reserve or essentially "the Fed," is the national or central bank of the United States. It was made by the Congress to give the country a more secure, more adaptable, and more steady fiscal and budgetary framework. The Federal Reserve was made on December 23, 1913, when President Woodrow Wilson marked the Federal Reserve Act into law. Today, the Federal Reserve's obligations fall into four general zones.
Answer:
inflation <u>SHOULD BE</u> included explicitly in the cash flow analysis, and debt payments by the subsidiary <u>SHOULD BE</u> included explicitly in the cash flow analysis.
Explanation:
A capital budgeting analysis is carried out in order to determine how a company should invest their capital assets.
The discounted cash flow method is the primary tools used in this type of analysis. Cash flows from foreign countries that have high inflation rates will be negatively affected since high inflation tends to currency depreciation which in turn leads to lower cash flows in US dollars. The same applies to debt payments made by the subsidiaries since they also reduce net cash flows. Lower net cash flows result in lower NPV and IRR.
1.perfect competition
2.monopolistic competition
3.oligopoly
4.monopoly
Answer:
$3,515
Explanation:
The computation of the catering supplies is shown below:
= Catering supplies per month + per job cost × expected number of jobs + per meal cost × expected number of meals
= $350 + $89 × 21 jobs + $9 × 144 meals
= $350 + $1,869 + $1,296
= $3,515
Since the question is asking for planning budget so we considered the expected units in terms of jobs and meals
Answer:
B. $6,448,519
Explanation:
The computation of the present value of this growing annuity is given below:
PVA = [Cash flow at year 1 ÷ (interest rate - growth rate)] × {1 - [(1 + growth rate) ÷ (1 + interest rate)^number of years}
= [$675,000 ÷ (0.18 - 0.13)] × [1 - (1.13 ÷ 1.18)^15]
= $6,448,519
Hence, the correct option is b.
