The author used his word choice to darken the tone of this excerpt.
Answer:
Choice 1 is more profitable.
Explanation:
Giving the following information:
Choice 1:
You receive $100 starting today once a year every year for the rest of eternity.
Choice 2:
You receive $200 today and then $50 once a year starting next year for all of eternity.
<u>I will assume an interest rate of 8%</u>
The first option and second option are a perpetual annuity. To calculate the present value, we need to use the following formula:
Choice 1:
PV= Cf/i
Cf= 100
i=0.08
PV= 100/0.08= $1,250
Choice 2:
PV= 50 + 50/0.08= $825
Choice 1 is more profitable.
Answer:
a. Items 1,5,9 and 10
Explanation:
M1 refers to Money Supply which includes physical currencies, coins, demand deposits, amounts in checking accounts, liquid cash and other forms of cash that can be withdrawn immediately eg in ATM.
<u>Items under M1 from the question are:</u>
3. Currency (coins and paper money) in circulation
6. Checkable deposits
M2 refers to money supply that comprises of the items in M1 and also include other types of deposits eg Savings deposits, mutual funds by individuals, time deposits. Funds that even though cannot be readily converted to cash but can be withdrawn with more effort.
<u>Items under M2 from the question are:</u>
2. Non-checkable savings deposits
4. Small-denominated (under $100,000) time deposits
7. Money market deposit accounts
8. Money market mutual fund balances held by individuals
answer:
different types of products would be referred to as product mix
Answer:
Results are below.
Explanation:
<u>To calculate the break-even point in units, we need to use the following formula:</u>
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 4,290,000 / (650 - 455)
Break-even point in units= 22,000
<u />
<u>Now, if the selling price is $655, the break-even point in dollars is:</u>
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 4,290,000 / [(655 - 455) / 655]
Break-even point (dollars)= $14,049,750
