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Oksana_A [137]
3 years ago
15

When an investor was analyzing the risks in a property, he was considering an 8% return on his investment compared to a 10% retu

rn. In terms of the purchase price, what will happen?
Business
1 answer:
jekas [21]3 years ago
8 0

Answer:

The higher the risk, the lower the purchase price.

Explanation:

The investment with higher risk should have lower purchase price. When an investment is more risky the rate of returns is higher, so a lower price will be paid for the 10% investment. This is done to balance the risk of loss.

The investment with lower risk and lower returns will carry higher purchase price because probability of loosing invested funds is low.

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Petroski Natural Dying Corporation measures its activity in terms of skeins of yarn dyed. Last month, the budgeted level of acti
algol13

Answer:

$577 Unfavorable

Explanation:

The calculation of spending variance for dye costs is shown below:-

Spending variance for dye cost = (Standard rate - Actual variable) × Actual units

= ($0.67 - $13,910 ÷ 19,900) × 19,900

= (0.67 - 0.69899) × 19,900

= $577 Unfavorable

Therefore for computing the spending variance for dye costs we simply applied the above formula.

6 0
3 years ago
Give examples of three cash crops that were grown in latin america and explain why they were cash crops.
fgiga [73]
<span>Coffee/ sugar cane / bananas can grow on a small farm, lower startup costs and risks. Countries clear cut natural forests and wildlife to make room for these crops. without export, they cannot sustain the country.</span>
3 0
3 years ago
What are the three main goals of monetary policy?
MakcuM [25]
The three objectives of monetary policy are :
-controlling inflation
-managing employment levels
-maintaining long term interest rates.

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6 0
2 years ago
What is money used by a business for a certain venture or initiative
Dennis_Churaev [7]

A business will employ seed capital to fund a specific project or activity. It is the capital raised to start working on a new product or business idea.

<h3>What kind of capital is invested in a business?</h3>

The money a company has on hand to cover both its ongoing expenses and potential future expansion is known as capital. Working capital, debt, equity, and trade capital are the four main types of financial resources.

<h3>What kind of business venture capital is that?</h3>

Venture Capital (VC) is a term used to describe funding given by investors to start-up or small businesses that have a high potential for growth. A venture capital fund is a type of private equity funded by institutional and private investors, including investment banks, insurance providers, and pension funds.

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7 0
1 year ago
Expansionary monetary policy is usually has real expansionary short-run effects. as prices adjust, the long-run impact of?
denpristay [2]

Expansionary monetary policy is usually has real expansionary short-run effects. as prices adjust, the long-run impact of inflationary effect.

Expansionary or known as  loose policy is a form of macroeconomic policy that seeks to encourage economic growth. Expansionary policy might consist of either monetary policy or it can be  fiscal policy or it can be the combination of the two.

It is a part of the general policy prescription of Keynesian economics which is  to be used during economic slowdowns as well as the recessions in order to moderate the downside of economic cycles.

Expansionary policy can involve significant costs as well as the risks which includes macroeconomic or microeconomic, and political economy issues.

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4 0
1 year ago
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