Answer:
the payback period is 14 months
Explanation:
The computation of the payback period is shown below:
Profit is
= $2,000,000 - $1,669,426
= $330,574
Now payback period is
= 1 + $330,574 ÷ $1,669,426
= 1 +0.198 years
= 1.198 years
= 14.37 months
= 14 months
Hence, the payback period is 14 months
Answer:
Money multiplier= 1 / reserve requirement
a. Reserve requirement = 0.09
Money multiplier = 1 / 0.09
Money multiplier = 11.11
b. Reserve requirement = 0.25
Money multiplier = 1 / 0.25
Money multiplier = 4
c. Reserve requirement = 0.12
Money multiplier = 1 / 0.12
Money multiplier = 8.33
d. Reserve requirement = 0.04
Money multiplier = 1 / 0.04
Money multiplier = 25
Answer: Diversification
Explanation: Diversification strategy involves widening the scope of the organization across different products and market sector. Furthermore, it is used to expand firms operations and productivity by adding markets, products, services, or stages of production to the existing business and the main aim of diversification is to minimize the risk by investing in range of products. It helps in reducing the market volatility.
With the straight line equation, we can assume y = household spending, x is the income earned monthly, and b would be the base amount spent per month ($1000). m = 1/2 of the income that is spent (additional spending).
Therefore our equation takes shape as follows:
y = 1/2($income) + $1000
Answer:
If a person sold euro futures on <u>3/01</u> then he/she will post a profit on <u>3/02</u> :
Explanation:
Date 3/01 3/02 3/03 3/04
Euro Spot Price $1.1585 $1.1589 $1.1584 $1.1593
July euro Futures Contract Price <u>$1.1850</u> <u>$1.1812</u> $1.1823 $1.1820
On March 1, the price of the euro futures contract was $1.1850 per euro, which means that a €1,000 contract is worth $1,185.50. On March 2, the euro futures contract was worth less, only $1.1812 per euro, that means that a €1,000 contract is worth $1,181.20. So you could have earned $1,185.50 - $1,181.20 = $4.30 per contract. It doesn't seem much, but it represents a 0.36% gain in one day.
