Answer: A
Explanation:
derive the net present value of the equity investment.
Answer: Option D
Explanation: Annuity refers to the payments made by an individual to another at equal intervals of time. And perpetuity refers to an annuity that has no end.
Hence the correct option is D. As in first two options the amount of payment will increase. Also in the last option the payments are made forever and equally so it is a perpetual annuity.
Answer:
a. Aggregate demand will shift to the left and unemployment rate will rise
Explanation:
Aggregate demand (AD) is the sum of consumer spending, government spending, investment, and net exports. The AD curve assumes that money supply is fixed. Increased money supply causes reduction in interest rates and further spending and therefore an increase in AD. <u>On the other hand, decreased money supply causes increase in interest rates and therefore a decrease in Aggregate Demand</u>
<u>Since the FED is buying Bonds it is reducing money supply and hence aggregate demand will fall causing the curve to shift to the left.</u>
Secondly inflation and unemployment has an inverse relationship. More money in the economy is inflation and unemployment level will be low because there will be an increase in wages <u>BUT when the FED reduces money supply by buying bonds, as a means of countering inflation, then unemployment will rise.</u>
Answer:
37 F
Explanation:
Direct materials Quantity variance 597 F
Less: Direct materials Price variance 560 U
Direct materials Flexible Budget variance 37 F
Answer:
During a period of inflation, Mast’s ending inventory and income tax payable will be higher using LIFO than FIFO.
Explanation:
In a period of inflation the closing inventory will be higher because of increase in price. In LIFO the oldest unit is sold first and the last purchased remains in the inventory. So Closing inventory is higher which decrease the Cost of goods sold and Increase in profit and ultimately Increase in Taxes as well. In FIFO the Newest unit is sold first and the oldest unit purchased remains in the inventory. So closing inventory is lower which increase the Cost of goods sold and decrease in profit and ultimately decrease in Taxes as well.
