Answer:
Option 2 is best option on the basis of present value analysis of all the options available.
Explanation:
Option 1 NPV = ($2.21 Annual Inflow * 6.814 Annuity Factor 12 year @10%) = $15.06m
Option 2 NPV = $19.5m
Option 3 NPV = $5.4m + ($1.7m Annual Inflow * 6.145 Annuity Factor for next 10 years @10%) = $15.85m
From the above options the best option available is option 2 which is worth more in todays prices than other options available.
Answer:
First we need to find the increase in her disposable income by subtracting the old disposable income from the new disposable income.
Old Disposable income= 40,000
New disposable income = 50,000
Change in disposable income = 50,000-40,000= 10,000
Although her mpc is 0.8 we need to find out what proportion of her disposable income does she spend on consumption.
So her disposable income was 40,000 and consumption was 36,000
36,000/40,000= 0.9
This means that Jane spends 90% of her dispoasble income on consumption, so if her disposable income increase by 10,000 her increase in consumption was
0.9*10,000= 9,000
Increase in consumption = $9,000
Explanation:
Answer:
Locking in customers.
Explanation:
July Networks is locking in customers for the next two years by telling them to subscribe with July Networks. This will keep these customers loyal to them for two years, during which they can further implement retention strategies to keep the customers with them more than two years.
This is a good business strategy and customers are attracted to subscribe because of the cutting edge television technology that is being provided by July Networks.
Answer:
B. increases; decreases
Explanation:
Foreign exchange market can be defined as type of market in which the currency of one country is converted into that of another country.
For example, the conversion of dollars of the United States of America can be converted into naira (Nigeria) at the foreign exchange market.
Efficient market school is the market school which argues that forward exchange rates do the best possible job for forecasting future spot exchange rates, so investing in exchange rate forecasting services would be a waste of time because it is impossible to have a consistent alpha generation on a risk adjusted excess returns basis as market prices are only affected by new informations.
The efficient market school also known as the efficient market hypothesis (EMH) is a hypothesis that states that asset (share) prices reflect all information and it is very much impossible to consistently beat the market.
Also, forward exchange rates are exchange rates controlling foreign exchange transactions at a specific future date or time.
An interest rate can be defined as an amount of money that is charged as a percentage of the total amount borrowed from an individual or a financial institution.
Generally, if the interest rate rises in the United States relative to other nations, then in the foreign exchange market the demand for dollars increases and the supply of dollars decreases because of the high value of the dollar compared to the other currency.
Answer:
b. $360,000.
Explanation:
Data provided in the question
Purchase value of the patent = $720,000
At the time of purchase, the patent life is 15 years
And, the useful life of the patent is 10 years
So, the amortization expense recorded value is
= $720,000 ÷ 10 years × 5 years
= $360,000
The five years is counted from the year 2006 to the year 2011
