Answer:
The answer is below
Explanation:
The Federal Reserve System Board of Governors is one of the five branches of the Federal Reserve System. Their roles involve carrying out the analysis of economic data, executing supervision of Reserve Banks, establishing and overseeing financial regulations.
The board comprises seven members with 14-year terms. They also partake in the Federal Open Market Committee and as well liaising with leaders in other parts of the government.
Answer:
raises;larger;decrease;always.
Explanation:
Consider the relationship between monopoly pricing and the price elasticity of demand. If demand is inelastic and a monopolist raises its price, quantity would fall by a larger percentage than the rise in price, causing profit to decrease. Therefore, a monopolist will always produce a quantity at which the demand curve is elastic because he or she will be maximizing profits.
A monopolistic market is a type of market structure that is typically characterized by a single supplier or seller of a particular product without any competition from any other in the market. The features of a monopolistic market are;
- Single seller.
- Profit maximizer.
- Price maker.
- High barriers to entry for others.
- Price discrimination.
- No close substitutes or competition.
Answer:
Financial disadvantage of 138,600
Explanation:
![\left[\begin{array}{cccc}&produce&buy&Differential\\$Purchase&&-447,000&-447,000\\$Avoidable\: Cost&-283,400&0&283,400\\$Unavoidable\: Cost&-114,400&-114,400&0\\$Total Cost&-397,800&-561,400&-163,600\\$additional segment&0&25,000&25,000\\$Net Effect&-397,800&-536,400&-138,600\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bcccc%7D%26produce%26buy%26Differential%5C%5C%24Purchase%26%26-447%2C000%26-447%2C000%5C%5C%24Avoidable%5C%3A%20Cost%26-283%2C400%260%26283%2C400%5C%5C%24Unavoidable%5C%3A%20Cost%26-114%2C400%26-114%2C400%260%5C%5C%24Total%20Cost%26-397%2C800%26-561%2C400%26-163%2C600%5C%5C%24additional%20segment%260%2625%2C000%2625%2C000%5C%5C%24Net%20%20Effect%26-397%2C800%26-536%2C400%26-138%2C600%5C%5C%5Cend%7Barray%7D%5Cright%5D)
The allocate cost and teh depreciation cost will be unavoidable, so should be considered as a cost for the purchase option
Also the inocme from teh additional segment is only considered for the purchase option
<u>The avoidable cost will be:</u>
Direct Materials
Direct Labors
Variable overhead
Supervisor
Thse cost are zero in the purchase escenario
Answer:
Project A
Years Cashflows Discount factor Present values
0 250,000 1 -250,000
1-10 45,100 6.144 277,094.40
Sum of all present value=NPV=27,094.40
IRR (by using trial and error method) = 12.4696%
Note: Discount factor for the year 1-10 is calculated by using annuity formula i.e [1-(1+10%)]/10% = 6.144
Project B
Years Cashflows Discount factor Present values
0 (350,000) 1 (350,000)
1 72,500 0.91 65,975
2 65,500 0.83 54,365
3 73,800 0.75 55,350
4 71,500 0.68 48,620
5 69,800 0.62 43,276
6 75,500 0.56 42,280
7 31,000 0.51 15,810
8 47,500 0.47 22,325
9 55,500 0.42 23,310
10 29,200 0.38 11,096
Sum of all present values=NPV=32,407
IRR(by using trial and error method=12.4186%
On the basis of NPV project B is better because it gives higher NPV than project A. Whereas, Project A is better than project B on the basis of IRR because project A has slightly higher IRR than project B.
b)The conflict between both the investment appraisal technique is likely due to different cash flow patterns of both the project. In such situation decision should be based on NPV because this is an absolute measure
Decrease, cut, halt, slow down.
