Answer:
The city's income base fell by $80 million
Explanation:
If during 2004 the city was able to raise $20 million with a 5% income tax, then the city's income base was:
($20 million / 5) x 100 = $400 million
If during 2005 the city was only able to raise $19.20 million with a 6% income tax, then the city's income base lowered to:
($19.20 million / 6%) x 100 = $320 million
This means that the city's income base was reduced by $80 million (= $400 million - $320 million)
Answer:
Marketing
Explanation:
Marketing is responsible for communicating with customers about products, explaining who is offering them and why they are desirable. Marketing is also responsible for listening to customers and communicating back to the provider about how well they are satisfying customer needs and opportunities for improvement.
Given:
Original Investments:
Maria : 24,000
Christina: 8,000
Total: 32,000
Profit and Loss Ratio
Maria: 24,000 / 32,000 = 75%
Christina: 8,000 / 32,000 = 25%
Profit of 60,000
Maria: 60,000 x 75% = 45,000
Christina: 60,000 x 25% = 15,000
Answer:
c. This is a good project if the probability of expropriation is smaller than 0.5
Explanation:
initial outlay = $8,000,000
if no expropriation, NPV = -$8,000,000 + $1,500,000/0.12 = $4,500,000
if the risk of expropriation is 0.33:
NPV = $925,211
if the risk of expropriation is 0.5:
NPV = -$425,265
the breakeven risk = 44.6%