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Andru [333]
3 years ago
11

5. Explain what would happen to interest rates if a new process was developed that allowed automobiles to run off oil that was f

ormulated based on lemonade? The technology used to convert this liquid to gas would be pricey but well worth it. What impact would this technology have on interest rates?
Business
1 answer:
harkovskaia [24]3 years ago
3 0

Answer:

When the new processes are developed for manufacturing it results in interest rate fluctuations. However, operational costs would become uncertain which would further affect the total production costs. Thus the value of an investment would be impacted. Automobile demand from the customers will also get affected. thus, fall in interest rate will have a significant and positive affect on the sale of automobiles as well as revenue.

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BigBox and CheapStore are the only two firms in a market. Each firm must decide whether to price high or price low. The payoffs
Papessa [141]

I would need to see the chart but if BigBox has more, it would be they are the dominant, and same for CheapStore. basically, whoever has more revenue (money production) will have the dominant strategy.

8 0
3 years ago
A manufacturing company incurs depreciation costs of $6,000 per month on manufacturing machinery. The depreciation cost per unit
klasskru [66]

The depreciation cost per unit is $3.

<h3>What is the depreciation cost per unit?</h3>

Depreciation is the process used to expense the cost of an asset. Depreciation is the reduction of the carrying value of an asset. Depreciation occurs as a result of the wear and tear of an asset.

The depreciation cost per unit can be determined by dividing the total deprecation by the units manufactured by the company.

The depreciation cost per unit = depreciation cost / units manufactured

$6000 / 2000 = $3

To learn more about the activity based depreciation method, please check: brainly.com/question/27303607

#SPJ1

4 0
2 years ago
Darryl would like to work as an accountant full time. A full-time position is not available, however, so he must accept a part-t
ivolga24 [154]

Answer: Employed.

Explanation:

Daryl is employed, because he has a job, where he works 15 hours a week. The job although it is not a full-time job still is a form of employment, where Daryl works and is paid.

5 0
3 years ago
John’s home is up for sale. He originally bought it five years ago for $300,000. Its current value is $350,000. His real estate
Mumz [18]

Answer:

Market value

Explanation:

The market value of a product is the price at which a buyer is willing to purchase a good irrespective of prevalent price of a commodity. It is that amount a buyer and seller are willing to strike a deal for given normal market conditions.

In this scenario John originally bought his five years ago for $300,000. Its current value is $350,000. His real estate agent notified him that a buyer just made an offer on his home for $365,000.

Despite the house now being $350,000, $365,000 is the market price at which the buyer and seller are willing to settle.

8 0
3 years ago
Rossdale Co. stock currently sells for $72.87 per share and has a beta of 1.22. The market risk premium is 7.10 percent and the
Paul [167]

Answer:

Cost of Equity =11.56%

Explanation:

The cost of equity can be determined using any of the following methods:

  1. The Dividend Valuation Model(DVM)
  2. Capital Asset Pricing Model (CAPM)

The Dividend Valuation Model(DVM) is a technique used to value the worth of an asset.

According to this model, the value of an asset is the sum of the present values of the future cash flows would that arise from the asset discounted at the required rate of return.  

Price = D/Kp

D- Dividend payable

Kp- cost of preferred stock

The capital asset pricing model (CAPM): relates the price of a share to the market risk or systematic risk. The systematic risk is that which affects all the all the economic agents, e.g inflation, interest rate e.t.c  

This CAPM is considered superior to DVM because it incorporates risk. Hence, we will use the CAPM  

Using the CAPM , the expected return on a asset is given as follows:  

E(r)= Rf +β(Rm-Rf)  

E(r) =? , Rf- 2.90%, Rm-Rf- 7.10% β- 1.22

E(r) = 2.90% + 1.22×(7.10)% = 11.562  %

Cost of Equity =11.56%

7 0
3 years ago
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