Answer:
b. producers are more willing and able to hire that resource
Explanation:
In production resources are defines as various inputs in the production process of a product.
It contributes to the final product that a consumer buys and they have their various costs which are used to obtain their use.
So when the price of a resource decreases, it means that the cost of production also decreases.
There is now more outlay of cash that can be used hire that resource.
Producers are able to produce more of the final product so supply increases.
Answer:
The Scion xA EAC: -7,953.41
The Toyota Prius EAC: -8,043.16
Explanation:
<em>The equivalent cost is the PMT of the present worth of the asset,</em> so the first step to solve for EAC is to calculate the present worth:
<u>The Scion xA:</u>
Purchase 15,500
Present value of the cash flow needs:
C 1,500
time 3
rate 0.12
PV $3,602.7469
<u><em>Present worth: </em></u>15,500 + 3,602.75 = 19,102.75
<em>Now, we calcualte the PMT:</em>
PV 19,103
time 3
rate 0.12
C $ 7,953.410
<u>Toyota Prius:</u>
Purchase: 22,000
present value of annual OCF
C 800
time 4
rate 0.12
PV $2,429.8795
present worth: 24,429.88
Equivalent annual cost:
PV 24,430
time 4
rate 0.12
C: $ 8,043.158
Answer:
bank credit
Explanation:
A bank credit is money that is collected from a bank or financial institution that is determined by the ability of the person to repay the loan and the total money the bank has available to pay.
The bank calculates the ability of the person to pay back a certain percentage of the loan over a particular period before disbursement.
In the given scenario Parker's expansion will cost approximately $150,000 in construction costs. Purchasing the additional inventory will cost $50,000. Over the next two years Parker believes this will increase sales 20% and profitability 25%.
The bank will verify the efficacy of these projections and give the loan to Parker
Answer:
The estimated Value of Share of PepsiCo stock will be $20 x $4.15 = $83.
Explanation:
Going by its Peer Average
Coca-Cola P/E ratio = $40.64 divided by $1.99 = $20.42
The Seattle based Soda producer had $33.3, this is very likely as it would incur less Marketing Costs among other Costs compared to Pepsico and Coca-Cola
Very likely Pepsico will be about $20 on average considering the size of its business and costs of doing Business just like its Peer Coca-Cola.
Therefore the estimated Value of Share of PepsiCo stock will be $20 x $4.15 = $83.
Answer:
The answer is 8.55 percent
Explanation:
This is Capital Assets Pricing Model(CAPM) shows the relationship between undiversified risk(systemai risk) and the expected rate of return for shareholders. It is used to determine the cost of equity. This model is widely used in finance.
The formula is: Risk free rate of return + beta(market return - risk free rate of return ).
Note that risk free rate of return - market return is known as risk premium i.e the compensation for taking risk.
Risk free rate of return - 4 percent
market return - 11 percent
Beta - 0.65
4 + 0.65(11 - 4)
4 + 0.65(7)
4 + 4.55
=8.55 percent