Answer:
Undervalued
Explanation:
The PPP exchange rate is the implicit exchange rate, so that everywhere, one dollar has the same purchasing power. In general, this exchange rate is different from the exchange rate on the market.
Because the same nominal GDP translates to a higher real GDP by using the PPP exchange rate, one Pakistan Rupee must be valued more in terms of U.S. dollars than in contexts of the market exchange rate under the PPP exchange rate. The Pakistan Rupee is therefore worth less than its true value in the economy, i.e., undervalued.
Answer:
B) to pay your roommate at least $100 but no more than $200 to clean up after herself
Explanation:
According to the Coase theorem, you should work a solution that benefits both Linda and yourself. Since Linda's benefits for being messy = $100, and your costs for her being messy = $200, then you should offer Linda an amount of money that is between $100-$200 so that she cleans her mess.
The Coase theorem states that disputing parties should negotiate an economically optimal solution, regardless of what originated the problem or who had the property rights at the beginning.
In this case Linda is responsible for all the mess but it will not help you to just complain about it, instead you should find an economical solution to the problem.
Answer:
$1,747
Explanation:
Given:
Generate Cash flows = $20,000 per year
Salvage value = $10,000
Interest = 10% = 0.10
Computation:
Net present value = PV of cash inflows - PV of cash outflow
= [($20,000 X 6.1446) + ($10,000 X 0.3855)] - $125,000
= [$122,892 + 3855] - $125,000
= $1,747
PV factor (for salvage value)
Inflow PV factor = 6.1446
Answer:
increased erosion in the area.
Explanation:
When houses or properties are laid or biult on surfaces that obstruct free flow of water, such can lead to erosion.
When there is an increased erosion in an area, there would be loss in benefit that should be derived from eco system. The components that make up eco system such as soil, micro organisms, water sources, minerals would all be lost because all the components interact with one another which are beneficial to mankind.
One of the importance of eco system is that it support lives control important ecological components. There is also nutrients recycling among biotic and non biotic factors.
Answer:
The annual benefits will be$8,581.05
Explanation:
The applicable formula is the present value of an ordinary annuity,which is given as;
PV=A*(1-(1+r)^-N)/r
PV is the amount that would be in the plan at retirement which is $100,000
A is the annual benefits which is unknown
n is the number of years the investment would take which is 25 years
r is the rate of return on investment which is 7%
A=PV/(1-(1+r)^-N)/r
A=100000/(1-(1+7%)^-25/7%
A=100000/1-(1.07)^-25/0.07
A=100000/(1-0.184249178
)/0.07
A=100000/11.65358317
A=$8581.05
