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lidiya [134]
3 years ago
11

Relative-price variability Group of answer choices rises with inflation, leading to an improved allocation of resources. rises w

ith inflation, leading to a misallocation of resources. falls with inflation, leading to an improved allocation of resources. falls with inflation, leading to a misallocation of resources.
Business
1 answer:
LekaFEV [45]3 years ago
7 0

Answer:

Correct option is <u>rises with inflation, leading to an improved allocation of resources </u>

Explanation:

Relative price variability has a direct relation with Inflation and an increase in Inflation leads to increased relative price variability and effective resources allocation.

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Here are some important figures from the budget of Crenshaw, Inc., for the second quarter of 2019:
STALIN [3.7K]

Answer:

Crenshaw, Inc.

Cash Budget for the months of April, May, and June:

                                                               April            May           June

Beginning cash balance                  $109,000   $325,000      $419,950

Cash receipts                                     140,700       122,850         153,650

Cash collections from credit sales   197,400        241,200        210,600

Total cash available                        $447,100     $689,050      $784,200

Cash disbursements:

Wages,  taxes, and expenses            79,700          75,200         103,900

Interest                                                9,400             9,400            9,400

Equipment purchases                      33,000             5,500         147,000

Purchases of goods                                               179,000         167,000

Total cash disbursements               122,100         269,100        427,300

Ending balance                            $325,000       $419,950     $356,900

Explanation:

a) Data and Calculations:

Budget for the second quarter of 2019:

                                             April           May             June

Credit sales                    $402,000    $351,000    $439,000

Credit purchases              179,000       167,000      200,000

Cash disbursements:

Wages,  taxes, ^ expenses 79,700        75,200       103,900

Interest                                 9,400          9,400           9,400

Equipment purchases       33,000          5,500       147,000

Predictions:

Uncollectibles                    20,100          17,550          21,950

Collections                       381,900       333,450        417,050

Total credit sales         $402,000      $351,000    $439,000

Cash Collections:

Month of sales 35%       140,700         122,850       153,650

Following month  60%  197,400         241,200       210,600

Total cash collections   338,100        364,050       364,250

4 0
3 years ago
Oakmont Company has an opportunity to manufacture and sell a new product for a four-year period. The company�s discount rate is
Lelu [443]

Answer:

NPV = 35,660.291

Explanation:

NPV = PV of cash flow + PV at project end - investment - overhaul

.17 discount rate

275,000

86,000

<em>Investment 361,000</em>

420,000

-205,000

-87,000

128,000 net cash flow

PV of cash flow

C * \frac{1-(1+r)^{-time} }{rate} = PV\\

128,000 \times \frac{1-(1.17)^{-4} }{0.17} = PV\\

<em>PV = 351,134.081 </em>

overhaul

-10,000 overhaul in year 2

\frac{Nominal}{(1 + rate)^{time} } = PV

\frac{-10,000}{(1.17)^{2} } = PV

<em>PV -7305.14</em>

At end of project

+86,000 working capital

+13,000 salvage value

99,000 at project end

PV at project end

\frac{Nominal}{(1 + rate)^{time} } = PV

\frac{99,000}{(1.17)^{4} } = PV

<em>PV = 52831.35</em>

NPV = PV of cash flow + PV at project end - investment - overhaul

NPV = 351,134.081  + 52831.35 - 361,000 -7305.14

NPV = 35,660.291

5 0
3 years ago
Industry is the supply side of the market.<br><br> Question 20 options:<br> True<br> False
nlexa [21]
True. Hope this helps
6 0
3 years ago
Read 2 more answers
Gabriele Enterprises has bonds on the market making annual payments, with eight years to maturity, a par value of $1,000, and se
iVinArrow [24]

Answer:

Coupon rate = 5.8%

Explanation:

The price of a bond is the present value (PV)  of the future cash flows discounted at its yield.

So we will need to work back to ascertain the coupon rate

Step 1

<em>Calculate the PV of redemption value and PV of interest payments</em>

<em>PV of Redemption </em>

= 1.067^(-5) × 1000

=723.06

<em>PV of the annual interest rate</em>

= price of the bond - PV of redemption

= $964- 723.06

= 240.934

Step 2

<em>Calculate the interest payment</em>

Interest payment = PV of redemption value / annuity factor

Annuity factor =( 1 -(1+r)^(-n) )/r

<em>Annuity factor at 6.7% for 5 years</em>

Factor =( 1-1.067^(-5) )/0.067

          = 4.1333

Interest payment =  <em>PV of the annual interest rate</em> / Annuity factor

Interest payment=

=240.93/4.1333

=58.290

Step 3

<em>Calculate the coupon rate</em>

Coupon rate = interest payment/ par value

Coupon rate = (58.290/1000) × 100

= 5.8%

Coupon rate = 5.8%

4 0
3 years ago
To be able to explain and defend their ideas objectively to others, individuals usually need to have effective __________ skills
Tems11 [23]
Individuals usually need to have effective communication skills
3 0
3 years ago
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