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koban [17]
3 years ago
10

Suppose that the inflation rate is 2% and the real terminal value of an investment is expected to be $82,500 in 4 years. Calcula

te the nominal terminal value of the investment at the end of year 4. $85,800 $84,150 $89,301 $87,515
Business
1 answer:
Assoli18 [71]3 years ago
3 0

Answer:

The answer is option (c)$89,301

Explanation:

Solution

Given that:

Inflation rate = 2%

The expected value of an investment = 82,500

Now,

nominal terminal value of the investment at the end of year 4.

Thus,

The nominal terminal value rate at the end of year four is given as follows:

= 82, 500 * (1 +2%) ^4

=$89300. 65

= $89,301

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For Tax Year 2019, amounts are indexed using the Chained Consumer Price Index for All Urban Consumers ("chained CPI"). What impa
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Answer:

d. Using the chained CPI will not have a notable impact on 2019 tax returns.

Explanation:

when amounts are indexed using the chanined consumer price index, they increase slowly because there is a period to period connection in the consumer price index.

Therefore, The use of the chained consumer price index would have not have any significant impact on 2019 tax returns.

3 0
3 years ago
Reviewing the Budget
vekshin1

Answer:

For each month we calculate the variance by finding the difference between the Actual numbers and Budget numbers.

Then we indicate if the practice was "Overbudget" or "Underbudget".

If the actual numbers are less than the budget numbers, the budget is we say that the budget is under budget.

If the actual numbers are more than the budget numbers, the budget is we say that the budget is over budget.

Month    Budget   Actual               Variance        Under/ over  

<u>                                                              (Actual -Budget)   Budget </u>

January  23,55,872   17,90,929      -5,64,943      Under Budget

February  26,54,031   28,27,606       1,73,575      Over Budget

March  22,39,980   29,24,180        6,84,200      Over Budget


4 0
3 years ago
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Explain the following term:-<br>a)market segment​
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Answer:Market segmentation is a marketing term that refers to aggregating prospective buyers into groups or segments with common needs and who respond similarly to a marketing action

Explanation:

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3 years ago
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On January 1, 20X7, Poke Corporation acquired 25 percent of the outstanding shares of Shove Corporation for $100,000 cash. Shove
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Answer:

$18,750

Explanation:

Income from investment = 25% * $75,000

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The amount that will be reported by Poke as income from its investment in Shove for 20X8, if it used the equity method of accounting is $18,750

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2 years ago
Due to a recession, expected inflation this year is only 3.75%. However, the inflation rate in Year 2 and thereafter is expected
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Answer:

5.25%

Explanation:

To calculate the inflation for the year 3, we will have to calculate the yield on 1 Year treasury bond.

The yield is calculated using the following formula:

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Here

Inflation for Year One is 3.75%

Real Risk-Free Rate is 3.5%

Nominal yield on bond is Y for year 1

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For 3 years treasury bond,

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Now if we deduct the real risk free rate from the  3 year yield on the treasury bond, then the resultant rate would be the inflation rate for the year 3.

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Inflation Rate for Year 3 = 5.25%

4 0
3 years ago
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