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3 years ago

What is most likely to happen if the Fed prints too much currency?

Business

1 answer:

Butoxors [25]3 years ago

8 0

Depreciation of money would occur, meaning that the cost of an item would increase.

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Professional Properties is considering remodeling the office building it leases to Heartland Insurance. The remodeling costs are

Virty [35]

Answer:

- $651,234.54

Explanation:

Data provided in the question:

Cost of remodeling = $3.4 million = $3,400,000

Rent paid each year = $820,000

Duration, n = 5 years

Discount rate, r = 15% = 0.15

Now,

Present value of the amount rent paid each year = A × $\left[ \frac{1-(1+r)^{-n}}{r} \right]$

Here,

A = Rent paid each year

Thus,

Present value of the amount rent paid each year

= $820,000 × $\left[ \frac{1-(1+0.15)^{-5}}{0.15} \right]$

= $820,000 × 3.352153

= $2,748,765.46

Therefore,

Benefit = Present value of the amount rent paid - Cost of remodeling

= $2,748,765.46 - $3,400,000

= - $651,234.54

7 0

3 years ago

Which of the following is not true regarding economic exposure? a. The impact of a change in the local currency on inflow and ou

Natali [406]

Answer:

Option A The impact of a change in the local currency on inflow and outflow variables can sometimes be indirect and therefore different from what is expected.

Explanation:

The reason is that the changes in the currency exchange rate in which the company receives the payment and is also not a home currency, such risk exposure is known as economic exposure. So the only option that correct here is option A.

Option B is incorrect because depreciation is non cash item and it is not exposed to currency fluctuations.

Option C and D are also incorrect because domestic firms don't face any economic exposure.

8 0

4 years ago

This activity is important because marketing managers must discover what prospective customers need and want. Marketing managers

RUDIKE [14]

Answer:

Note: See table attached to question below to fully understand

Marketing mix Business traveller Luxury traveller

element segment segment

Product strategy Luxury car SUV or Minivan

Price strategy Premium Saver

Promotion strategy Gold club Free car seat

Place strategy Airport hubs Park access

8 0

3 years ago

Refined Grains, Inc., agrees to sell to sunny cereal company a certain quantity of refined oats each week but no mention is made

lions [1.4K]

Answer:

sddasdhasjdasd

Explanation:

7 0

3 years ago

For each of the following situations, identify (1) the case as either (a) a present or a future value and (b) a single amount or

taurus [48]

Answer:

a. The present value of a future value of $10,000 is $7,310.

b. The present value of an annuity for a future value of $10,000 is $1,043.54.

c. Yes, you will retire with $1,036,226.07 .

Explanation:

a) Data and Calculations:

Future value = $10,000

Interest - 8% compounded semiannually

Period of investment = 4 years

Using the present value table, the discount factor of 0.731, the future value of $10,000 is $7,310

b) You will need to contribute $1,043.54 at the beginning of each period to reach the future value of $10,000.00.

FV (Future Value) $10,000

PV (Present Value) $7,306.90

N (Number of Periods) 8.000

I/Y (Interest Rate) 4.000%

PMT (Periodic Payment) $1,043.54

Starting Investment $0.00

Total Principal $8,348.30

Total Interest $1,651.70

c) $1,000,000 in 40 years:

FV (Future Value) $1,036,226.07

PV (Present Value) $47,698.45

N (Number of Periods) 40.000

I/Y (Interest Rate) 8.000%

PMT (Periodic Payment) $4,000.00

Starting Investment $0.00

Total Principal $160,000.00

Total Interest $876,226.07

5 0

3 years ago