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velikii [3]
3 years ago
14

A war begins between two countries, causing a need for thousands of men workers to produce uniforms and Nezos

Business
1 answer:
nydimaria [60]3 years ago
7 0

<u>Answer:</u> Option C World event

<u>Explanation:</u>

The labor market which is affected by a man made event that is the world event is known as war. Here in the above case the labor market demand increases when there is war situation between two countries. As the demand for uniforms and weapons increases. This is because the countries require additional resources to prove their strength.

Excess demand for labor exist when there is war. This changes the unemployment situation and any labor with or without skills are hired to meet the demand in the labor market.

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A corporation makes an investment of $20,000 that will provide the following cash flows after the corresponding amounts of time:
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A) The company should not invest in the provided project due to the negative NPV of the project.

B) The NPV of the project comes out to be (286).

<h3>What is NPV?</h3>

NPV is an abbreviated form of Net present value and computed by deducting the cash outflows from cash inflows at the present value.

Given values:

Cash flow of year 1: $10,000

Cash flow of year 2: $10,000

Cash flow of year 3: $2,000

Cash outflow (cost of investment) =$20,000

Step-1 Computation of PV of cash inflows of every year:

PV of year 1 = Cash inflow of year 1 / (1+ interest rate)^ 1

                    = $10,000 / (1+0.07) ^ 1

                    = $10,000 X 0.934579

                    = $9,346

PV of year 2 = Cash inflow of year 1 / (1+ interest rate)^ 2

                    = $10,000 / (1+0.07) ^ 2

                    = $10,000 X 0.873438

                    = $8,735

PV of year 3= Cash inflow of year 1 / (1+ interest rate)^ 3

                   = $2,000 / (1+0.07) ^ 2

                    = $2,000 X 0.816297

                    =$1,633

Step-2 Computation of total amount of PV of cash inflows:

\rm\ PV \rm\ of \rm\ cash \rm\ inflows = \rm\ PV \rm\  of \rm\  year \rm\  1 + \rm\  PV \rm\ of \rm\ year \rm\ 2 + \rm\ PV \rm\ of \rm\ year \rm\ 3\\\rm\ PV \rm\ of \rm\ cash \rm\ inflows =\$9,346 + \$8,735 + \$1,633\\\rm\ PV \rm\ of \rm\ cash \rm\ inflows =\$19,714

Step-3 Computation of NPV:

\rm\ NPV=\rm\ PV \rm\ of \rm\ cash \rm\ inflows- \rm\ Cost \rm\ of \rm\ investment\\\rm\ NPV=\$19,714-\$20,000\\\rm\ NPV=\$ (286)

Therefore, the NPV comes out to be a negative amount of 286, and hence, the company should not accept the project.

Learn more about the net present value in the related link:

brainly.com/question/14015430

#SPJ1

5 0
2 years ago
2) You purchase one MBI July 125 call contract (equaling 100 shares) for a premium of $5. You hold the option until the expirati
PtichkaEL [24]

Answer:

D) $500 loss

Explanation:

The computation of the realized value on the investment is shown below:

= Number of shares × premium

= 100 shares × $5

= $500 loss

Since the call is for 125 shares for $125 and the selling price per share is $123  due to which the contract is not implemented. So the premium amount would be recorded as a loss of $500

8 0
3 years ago
To derive the demand curve we assume that A. marginal utility is constant. B. tastes are constant. C. prices are constant. D. re
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Answer:

C. prices are constant.

Explanation:

  • A demand is the scheduling the price of all the commodity as content and is derived as the price of the goods may changes in the future as general the demand curve is downward sloping and is shown by the equilibrium prices and movement along the curve takes place when the change in price causes the quantity demanded to change.
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3 years ago
___ comes from increases in the money supply.
vagabundo [1.1K]

Answer:

Consumer Price Index (CPI)

Explanation:

1- By definition CPI is the weighted average of a consumer's basket volume for any purchase service or good. When money supply increases, GDP increases, and the spending of a customer increases. Hence resulted in increased CPI.

2- Interest rate decreases when money supply increases

3- Inflation is by definition a steady increase in the money supply if a country. So one can be replaced by another. Inflation does not come from money supply increase, it is in fact money supply increase

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2 years ago
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Webcast :) i believe is the answer
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3 years ago
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