Answer: See Explanation
Explanation:
The payback period for both projects would be calculated as:
Alpha Project
Cost = $530,000
Annual net cash flow = $60,000
Payback period = Cash / Annual net cash flow
= $530,000 / $60,000
= 8.83
Beta Project
Cost = $170,000
Annual net cash flow = $18,000
Payback period = Cash / Annual net cash flow
= $170,000 / $18,000
= 9.4
We can see that Alpha Project is better as the payback period is lesser than Beta project
Answer:
The correct option is b) USD to GBP; GBP to CHF; CHF to USD.
Explanation:
A triangular arbitrage can be described as the act of taking advantage of a foreign exchange market arbitrage opportunity created by a pricing difference between three different currencies.
A triangle arbitrage method entails three deals, with the first currency being converted to a second, the second currency being converted to a third, and the third currency being converted to the first.
In the question, USD is the first currency, GBP is the second currency, and CHF is the third currency. Based on the explanation above, the three steps which will create triangular arbitrage profit are as follows: first step, convert <u>USD to GBP</u>; second step, convert <u>GBP to CHF</u>, and third step, convert <u>CHF to USD</u>.
Therefore, the correct option is b) USD to GBP; GBP to CHF; CHF to USD.
Answer: See explanation
Explanation:
There are a number of reasons for the reduction in the power of unions in the last few decades.
One reason attributed to this is due to the shift in the composition of the economy of the United States. Nowadays, there are more people whom work in the service industries, and these sector usually have lower unionization rate.
Also, there is a reduction in the number of unions in the ndustrial sector. Some states have a right to work laws in place which has also led to reduction in the power of the unions.
Lastly, thecemployer reactions are also a contributory factor as they're more aggressive so as to keep unions from their companies.
Answer:
A.- DECREASE
B.- DECREASE
C.- INCREASE
D.- INCREASE
E.- INCREASE
Explanation:
a. The discount rate increases
DECREASE the discoutn factors will be higher therefore, the present values lower.
b. The cash flows are in the form of a deferred annuity, and the total to $100,000. You learn that the annuity lasts for 10 years rather than 5 years, hence that each payment is for $10,000 rather than for $20,000
DECREASE Because the cashflow is generate on a longer period there is more exposure to discount rates.
c. The discount rate decreases
INCREASE The discount factor are lower. This situation is the opposite as (a)
d. The riskiness of the investment's cash flows <u>decreases</u>
INCREASE a lower risk derivates in lower cost of capital thus, lower iscount rates. This increase the present value of the cashflow.
e. The total amount of cash flows remains the same, but more of the cash flows are received in the earlier years and less are received in the later years.
INCREASE as most of the future cash flows are at the beginning they have less exposure to time value of money.
Answer:
Inelastic
Explanation:
Inelastic demand is when the buyer's demand does not change as much as the price changes. When price increases by 20% and demand decreases by only 1%, demand is said to be inelastic.
Inelastic demand in economics is when people buy about the same amount, whether the price drops or rises. This situation happens with things that people must have, like gasoline and food. Drivers must purchase the same amount even when the price increases.
