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Ierofanga [76]
3 years ago
6

A reserve requirement of 20 percent implies a potential money deposit multiplier of

Business
1 answer:
lions [1.4K]3 years ago
7 0
The answer is B
It has to be B
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You are buying a new car. The price (MSRP) is $16,995. You are trading in your old car which is valued by the dealer at $5,500 (
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The answer is $12,360.22(rounded)

16,995-5,500= 11,495
11,495+7%= 12,360.2151

Hope this helps!! :)
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Although you may know William Shakespeare from his classic literature, what is not well-known if that he was an astute investor.
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If a patent lawyer works for a startup without cash compensation, but receives instead shares in the presumably soon-to-be-succe
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Another term for trade balance​
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3 years ago
Read 2 more answers
Your buddy in mechanical engineering has invented a money machine. The main drawback of the machine is that it is slow. It takes
NemiM [27]

Based on the amount it would cost to build the machine and the interest rate as well as the payoff, the following are true:

  • A. $333
  • B. $667

a. The machine will take a year to build which means the payoff will only start coming in next year.

First find the present value of the perpetuity:

= 70 / 5%

= $1,400

You then need to find the present value of the above in the current period:

= 1,400 / ( 1 + 5%)

= $1,333

NPV is:

= 1,333 - 1,000 cost

= $333

B. If the amount produced increases by 1%, you should use the Gordon Growth Model:

<em>= Next payoff / ( Interest - Growth)</em>

=70/ ( 5% - 1%)

= $1,750

Take this to current year:

= 1,750 / 1.05

= $1,667

NPV will be:

= 1,667 - 1,000

= $667

Find out more about NPV at brainly.com/question/7254007.

3 0
2 years ago
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