Answer:
have inferior production capabilities (such as a low value of A in the production function) and not enforce property rights (so that investments in the poor countries might be expropriated by the governments there).
Explanation:
According to our discussion in class, two reasons why capital may not flow to poor countries are that the poorer countries may: have inferior production capabilities (such as a low value of A in the production function) and not enforce property rights (so that investments in the poor countries might be expropriated by the governments there).
Poor countries have lower levels of capital per worker and this explains, in part, the reason for their poverty. Although the expected return on investment might be high in many developing countries, it does not flow there because of the high level of uncertainty associated with those expected returns. and lack of enforcement of property rights
Answer:
39,183 bonds
Explanation:
In order to determine the number of bonds that must be sold to realize cash of $71.8 million,the price per bond needs to be established using pv formula in excel as found below:
=-pv(rate,nper,pmt,fv)
rate is yield to maturity of 6.46% divided by 2
nper is the number of coupon payments which is 25 years multiplied by 2 i.e 50
pmt is the amount of semiannual coupon i.e $2000*5.78%*6/12=$57.8
fv is the face value of $2000 per bond
=-pv(6.46%/2,50,57.8,2000)=$ 1,832.43
number of bonds to be issued=$71,800,000/$ 1,832.43 = 39,183 bonds
Answer:
the company purchase is $94,000
Explanation:
The computation of the total amount of the company merchanise purchase for the month is shown below:
Cost of goods sold = Beginning merchandise inventory + Purchases − Ending merchandise inventory
$92,000 = $14,000 + Purchase - $16,000
So, the purchase is
= $92,000 + $16,000 - $14,000
= $94,000
Hence, the company purchase is $94,000
Answer: The economy of the United States is that of a highly developed country with a mixed economy. It is the world's largest economy by nominal GDP and net wealth and the second-largest by purchasing power parity (PPP).
Explanation:
Answer:
113,000.
Explanation:
Let go through all the items to see whether we need to include them in the initial outlay or not.
(1) $100,000 worth of equipment => Yes
(2) Shipping will cost $5,000 and installation will cost $8,000 => Yes (Add to purchase price of equipment)
(3) Paid a management consultant $4,000 to analyze this project => No =>This is sunk cost (already incurred regardless of accept or reject the prject)
(4) Increase sales by $20,000 per year => No => under operating cashflow.
(5) $3,500 to train the employees to use the new equipment => No => under operating cashflow.
So, total initial outlay = 100,000 + 5,000 + 8,000 = 113,000.
