Answer:
Net Present Value (NPV) is 506
Explanation:
See document attached. To get the net present value, we make a cash flow in excel.
At moment 0 we have the investment cost , in this case $13,400. From period 1 to period 4, we have different incomes. Then, we calculate the Net cash flow that is the difference between benefits and cost.
To get net present value, we use VNA formula.
=VNA(required rate of return; Net cash flow from moment 1 to moment 4 )+Net cash flow at moment 0
Answer:A and C
Explanation:
Interest is compounded in savings accounts and me to reduce the amount that I must deposit today and still have my desired $1 million on the day I retire then I should either, invest in a different account paying a higher rate of interest meaning the invested amount will be compounded at a higher rate thus my initial investment amount requirement reduced. Or, since compounded interest is a function of time, if I retire later, that would mean a longer time for my initial investment to compound to $1 million, thus reducing my initial investment amount requirement.
Answer:
a. 24 pesos / dollar.
b. 48 pesos / dollar.
Explanation:
a. Peso dollar exchange rate = P peso / P dollar = 42 pesos / $1.75 = 24 pesos / dollar.
Now, considering the double prices.
b. Peso dollar exchange rate = P peso / P dollar = 84 pesos / $1.75 = 48 pesos / dollar.
The budget process makes fiscal policy difficult to implement because
<span>---The budget process begins a year and a half before the budget is implemented, and this will make it difficult to know what type of fiscal policy will be needed because it requires us to predict the problem and opportunities that arise during the operation.
---Many budget decisions are made for political reasons , because many politicians was appointed by interest groups that controlled by big companies.
---Nearly two-thirds of the budget is mandated by federal programs and cannot be easily changed, even if it could be changed, the cost could outweihgt the benefit.</span>
