niversal Studios sold the Mamma Mia! DVD around the world. Universal charged $21.40 in Canada and $32 in Japanlong dashmore t
han the $20 it charged in the United States. Assume Universal's marginal cost of production (m) is $1.20. Determine what the elasticities of demand must be in Canada and in Japan if Universal is profit maximizingLOADING.... The elasticity of demand in Canada must be epsilon Subscript Upper Cequals nothing. (Enter a numeric response using a real
Isabel Martinez de Perón of Argentina was the very first woman or lady to serve as leader of a country as president, taking over as vice president following her husband died in 1974.
On July 21, 1960, Sirimavo Bandaranaike was chosen as the world's first women Prime Minister.
The correct answer is the Public Company Accounting Oversity Board.
The Sarbanes-Oxley Act was enacted in 2002. It’s purpose was to protect investors and add additional oversight for corporations after a number of companies were caught up in accounting scandals and investors lost billions of dollars.
<em>Note:</em> the question is incomplete and it lacks essential data to be used in part 4. Without the exhibits mentioned in the questions, it is not possible to solve this question completely. We will be solving it till part 3.
1) What would be the total annual cash inflows associated with the new machine for capital budgeting purposes?
Answer:
In this we have to calculate the total annual cash inflows and the formula to calculate it is mentioned below:
Total Annual Cash Inflows = Savings in Part Time help annually + Additional contribution Margin from Expected Sales.
Total Annual Cash Inflows = 3800 + ( 1000 x 1.20)
Total Annual Cash Inflows = 3800 + 1200
Total Annual Cash Inflows = 5000
2. What discount factor should be used to compute the new machine’s internal rate of return?
Answer:
Formula to calculate the Discount factor:
Discount Factor = Price of new machine/ annual cash inflow
Price of new machine = 18600 USD
Annual cash inflow = 5000
Discount Factor = 18600 /5000
Discount Factor = 3.72
3. What is the new machine’s internal rate of return?
Answer:
As, it can be seen from the exhibits (which are missing from this question) that the discount factor for 6 years is nearly closest to 16%, hence the new machine's internal rate of return = 16%
<em>Note:</em> the question is incomplete and it lacks essential data to be used in part 4. without the exhibits mentioned in the questions. It is impossible to solve further.
Answer: b. The quantity of the country's currency supplied exceeds the quantity demanded.
Explanation:
A country operating a fixed-exchange rate system would be actively trading its currency to ensure that it remains at a certain rate. If the currency is overvalued, it means that the currency is actually weak and is being propped up by the company's actions in the forex market.
A reason for the weakness would be that the supply is higher than the demand of the currency which means that, as per the rules of supply and demand, the currency is trading at a lower price, i,e., it is weak.
