Same i dunno how :/ shajjabduajsjjxhcisks
Answer:
a. -$82,250
Explanation:
Calculation for what is the projects initial cash
flow for net working capital
Initial cash flow=-$216,000 + $181,000 - ($525,000 *0.09)
Initial cash flow=-$216,000 + $181,000 - $47,250
Initial cash flow = - $82,250
Therefore the projects initial cash
flow for net working capital will be - $82,250
Answer:
The reason is that high rates of money growth actually lower interest rates.
Explanation:
During economic hardship, governments employ expansionary fiscal policy: this policy consists in the central bank (the Fed in the case of the U.S.) printing money to lower interest rates. The reason is that more money in the economy raises the availability of loanable funds, and this reduces in turn the interest rates that securities pay.
Government bonds, being the safest security, will have their interest rates reduce substantially during times of high money growth due to expansionary fiscal policy.