Answer:
Future value equals the present value multiplied by one plus the rate of interest in decimals.
Explanation:
Future value = present value x (1 + interest rate)
Interest rate = present value x interest rate
Answer: shift to the left
Explanation:
The social return helps in comparing the value of benefits and the costs to achieving the benefits. The social return is the ratio of net present value of the benefits in comparison to the net present value of the investment or the costs to getting the benefits.
In this case, if a small electric automobile manufacturer is able to gain the social return generated by its electric motor, it would decrease the demand for financial capital which simply means that the demand for financial capital will shift to the left. This shift to the left is as a result of the gain in its social return gotten by the electric motor.
Answer:
$267.1211
Explanation:
return on preference share per unit is $6 , thus at 12% annual rate of return. Initial value of preference shares will be $50 per unit ( $6 divided by 12%).
Total value of preference shares = $50 multiplied by 100 preference shares = $5000
Future value of preference shares = 5000 (1.12)^5 = $8,811.7084
to find the value of money to be deposited to be able to buy the preference shares at the end of 5 yrs.
we work back to get the present value using the mutual fund annual rate
$8811.7084 = pv (1.06)^60 the rate is compounded monthly. Hence we shall compound the return 60 times in 5 years
Bank account money = 8811.7084 divided by 32.9877 = $267.1211
Answer:
Cost to make $337,600
Cost to make $344,400
The company should make the product
Explanation:
Calculation to determine the total incremental cost of making 84,000 and buying 84,000 units
COST TO MAKE
Relevant per unit Relevant fixed cost Total relevant cost
Variable cost per unit $2.90 - $243,600(84000*$2.90)
Fixed manufacturing costs - $94,000 $94,000
Cost to make $337,600
($243,600+$94,000)
COST TO BUY
Relevant per unit Relevant fixed cost Total relevant cost
purchase per unit $4.10 - $344,400[$4.10*84000]
Cost to make $344,400
Based on the above calculation the cost of buying is higher than the cost of making therefore the company should MAKE the product.
Answer:
The equilibrium level of output will be Y=2200
Explanation:
Comnsider the following formulas to solve the exercise.
1. Using the Expenditure approach to GDP,
Y=C+I+G
Y=200 + 0.75(Y-200)+200+300
Y=700+0.75Y-150
0.25Y=550
The equilibrium level of output will be Y=2200