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Gennadij [26K]
3 years ago
9

The time value of money theory consists in four beliefs: (1) Investment risk is important; (2) money today is worth more than mo

ney tomorrow; (3) inflation must be considered when making investment decisions; and (4) investment opportunity costs must be considered.
Business
1 answer:
Schach [20]3 years ago
4 0

Answer:

The four beliefs are true. But accuracy is demanded

Explanation:

1 Investment risk is important ir order to estimate the likelihood of occurrance of  losses in the future.

2. money today is worth more than <em>the same amount </em>of money tomorrow.

3. inflation must be considered when making investment decisions, because  makes money lose their value in the future.

4. investment opportunity costs must be considered. Is necessary to compare investments with financial products or other commercial activities.

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Hull Company’s record of transactions concerning part X for the month of April was as follows.
olga55 [171]

Answer:1. $7720  

2. $7945

3. $7758

Explanation: 1. First in First out method which means the first inventory to be purchased by company will be the first to be sold.  

Total cost of Sales   = Total number of units Sold * Total Cost of inventory sold    

                                  = 100units*$5+ 300units*$5.30+ 200units*$5.35 + 450units*$5.60

                                   =$7720

Total units sold=1450  we started from first inventory which was the balance of inventory of 100 units downwards up to the 1450th unit sold that was purchased on the 26th of April by the company.

2. Last in first out method is where the last bought inventory is sold first.

Total cost of sales= Total number of units sold * Total cost of units sold =200units$*5.80+ 600units*$5.60+ 200units*$5.35+300units*$5.30+150units*$5.1

=$7945

Total units sold still 1450 but we calculated the cost from the last purchased unit from 30th April to the 1450th unit sold which was on the 12th of April.

3. Average Cost = (Sum of all costs/Total number of costs)* total units sold

                     = (($5+$5.1+$5.3+$5.35+$5.6+$5.8)/6)* 1450

=$7769.58

4 0
3 years ago
A perpetual bond with a par value of $1,000 and a coupon rate of 7.75% has a current market price of $900. What is its yield to
photoshop1234 [79]

Answer: e. 8.61%

Explanation:

This is a perpetual bond so the price is calculable by;

Price = Coupon / Yield to Maturity

Coupon = 7.75% * 1,000

= $77.50

900 = 77.50/ YTM

900 * YTM = 77.50

YTM = 77.50/900

= 8.61%

6 0
3 years ago
Lyft raises ride-sharing fares when more people need rides and vice versa. This is referred to as _______. a. pricing based on p
Leto [7]

Lyft raises ride-sharing fares when more people need rides and vice versa. This is referred to as Surge pricing. Hence option D is correct.

<h3>What does pricing stand for?</h3>

Pricing is the process of determining the value that a manufacturer will receive in exchange for their goods and services. The producer uses a pricing strategy to make the cost of its products suitable for both the manufacturer and the consumer.

When a business increases the price of a good or service when demand is high and lowers prices when demand is low, this practice is known as "surge pricing."

Hence option d is correct.

Learn more about Surge pricing:

brainly.com/question/14237787

#SPJ1

8 0
1 year ago
Lopes Increase the size of store and parking lot Do not increase the size of store and parking lot
Zielflug [23.3K]

Answer:

c. $1.0 million for Lopes and by $1.5 million for HomeMax.

Explanation:

If Lopes and HomeMax both wants to maximize their profits they should choose a strategy which is beneficial for both of them. If both choose to increase the size of store and parking lot this will bring them maximum returns according to the matrix. They will be Nash equilibrium state which is a stable state.

5 0
3 years ago
Jon consulted with an accountant to prepare his tax return. He recommended the accountant to his friend saying that this year, t
miss Akunina [59]

Answer:

Jon's conclusion is not valid.

Explanation:

To a particular extent the tax to be paid by a person can be minimum 0. It can never happen that the tax is negative and tax department pays back to the client, with no tax liability.

Jon contends that from the previous year the tax paid by him is less by 150%, which cannot be true as the tax amount can be reduced by 100% making tax = 0.

Assuming tax paid last year = $100

Tax paid in current year = $100 - $100 \times 150%

= $100 - $150 = -$50

It means tax paid is negative $50, that concludes tax department paid $50 to Jon, which cannot be true.

Thus, Jon's conclusion is not valid.

8 0
3 years ago
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