Answer:
$11.2
Explanation:
Calculation to determine what the unit price of Y in 2012 is closest to
Using this formula
GDP deflator = nominal GDP / real GDP
First step is to calculate the Nominal GDP 2013 using 2013 price
Nominal GDP 2013= (13.8 *352) + (11.1 *182.5)
Nominal GDP 2013= 4857.6 + 2025.75
Nominal GDP 2013 = 6883.35
Second step is to calculate Real GDP 2013 using 2012 price
Real GDP 2013= (13.3* 352) + (Pa 182.5)
Real GDP 2013= 4681.6 + 182.5(Pa)
Now let what the unit price of Y in 2012 is closest to:
102.4% = 6883.35 / (4681.6 + 182.5Pa)
Pa =$ 11.18
Pa=$11.2 (Approximately)
Therefore the unit price of Y in 2012 is closest to:$11.2
Answer:
The dam should be constructed. The investment discounted payback is 25 years.
Explanation:
We have to make a cash flow for this case with the given data. See the document attached.
We consider an Initial cost of 30 millions in period 0, then we have every periods benefit of 2.800.000 and 100000 direct cost.
With those, is obtained net cash flow for each year (period), if we consider the given rate of interest, can be calculated the discounted cash flow
To know when this project covers all the investment, we have to consider the cumulative discounted cash flow. We have to see in the cash flow chart when the cumulative discounted cash flow break the 0 (became higher than 0).
In this case , that will be at period 25. So we have to wait 25 years to recover the initial cost. Considering that the dam usually has a lifetime higher than that time, the project at this scenario, should be done.
Answer:
1. Operating plan.
2. Operating plan.
3. Financial plan.
4. Dividend policy.
5. B and C.
Explanation:
1. Operating plan: provides detailed implementation guidance for a firm's operations, as well as a forecast of the company's expected future free cash flows.
2. Operating plan: provides the inputs necessary for a risk management evaluation using sensitivity analysis, scenario analysis, or simulations.
3. Financial plan: Is based on knowledge of the amount of funds necessary to compensate the firm's shareholders, and the mix of debt and equity capital used to finance the firm.
4. Dividend policy: sets forth specific targets for cash or share distributions to the firm's shareholders.
Capital structure: describes specific targets for the mix of debt and equity used to finance a firm.
Financial planning can be defined as the process of estimating the amount of capital required for the smooth operations of the business and determine how to achieve the firm's set goals and objectives.
Hence, the following statements are true about financial planning;
I. Once a firm's forecasted financial statements are prepared, the firm must determine how much capital it will need to support these plans.
II. Management must monitor operations after implementing a financial plan to detect deviations from the plan and adjust accordingly.