Answer:
Real purchasing power increase= 2.16%
Explanation:
Giving the following information:
You deposit $1,900 in your savings account that pays an annual interest rate of 3.25%. The inflation rate is 1.09%.
In this example, we have two different and opposite effects. The interest rate increases your purchasing power. If the inflation rate is 0, the purchasing power will increase (in one year) 3.25%.
The inflation rate decreases the purchasing power of nominal income.
Real purchasing power increase= annual interest rate - inflation rate
Real purchasing power increase= 3.25 - 1.09= 2.16%
Answer:
17 million
Explanation:
The computation of the outstanding common shares is shown below:
= Number of common shares outstanding - treasury common stock
where,
Number of common shares outstanding = Total value of the common shares ÷ par value of the share
= $105 million ÷ $5
= 21 million
And, the treasury common stock is 4 million
Now put these values to the above formula
So, the value would equal to
= 21 million - 4 million
= 17 million
Answer:
Testerman Construction Co.
Internal rate of return method in analyzing capital expenditure:
Present value of expenditure = $149,630
Present of cash inflows annuity = $149,630 (using 20% discount rate and present value annuity factor of 3.3251 x $45,000)
NPV = $0 (PV of cash outflow - PV of cash inflow)
Therefore, the IRR = 20%
Explanation:
a) Data and Calculations:
Investment cost = $149,630
Annual net cash flows = $45,000
Investment period = 6 years
Annuity of future cash flows = 3.3251
b) Testerman’s IRR (Internal Rate of Return) is a capital budgeting and analysis tool which determines the discount rate that makes the present value of future inflows equal to the present value of outflows from a project. This IRR helps the managers to determine the projects that add value and are worth undertaking. IRR is based on assumptions. Similar projects with the same IRR will differ in returns due to the differences in timing and the size of the cash, the amount of debts and equity used to generate the returns, and the assumption of a constant reinvestment may which IRR makes.
Answer:
The correct answer is the fourth option: It helps in performing corrective or preventive maintenance for a system.
Explanation:
To begin with, a <em>patch management</em> is a technology process used nowadays in the organizations in order to establish a better way to organize the multiple server that it uses currently. It basically focus on the process of regularly performing patch deployment to keep computers up to date therefore that the process detects the missing patches and correct them in order to help the company to reduce system-related failures so that it can improve in productivity and save in the costs associated with it.
