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3 years ago

If federal resere wants to lower inflation what might it do

1 answer:

3 0

Decrease the money supply, increase the interest rate, thus lowering investment spending and gdp, and the AD curve will shift to the left.

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How can higher prices negatively affect other producers of goods and services

alexira [117]

If too high ppl won't buy. If no buyers, no profit, and it is basically a cause and effect :)

7 0

3 years ago

Your firm is looking at setting up a new manufacturing plant in South Park to produce garden tools. The company bought some land

Serga [27]

Answer:

the proper cash flow amount is -$17,313,900

Explanation:

The computation of the proper cash flow amount is given below:

= Land value + plant cost + grading cost

= -$5,400,000 - $11,200,000 - $713,900

= -$17,313,900

Hence, the proper cash flow amount is -$17,313,900

7 0

3 years ago

Required: Mr. Jones, eager to please the board of directors, requests you, as the newly appointed management accountant, to prep

Rzqust [24]

Answer:

I don't understand what you wrote

Explanation:

please reply sir

3 0

3 years ago

Amanda Forsythe of Springfield, Missouri, must decide whether to buy or lease a car she has selected. She has negotiated a purch

geniusboy [140]

Answer:

Since the cost of financing for leasing is higher than buying, Amanda she should finance the car.

Explanation:

Solution

Buy versus Lease problem:

Now,

Buy case

The Purchase price = Gross capitalized cost = $30,000

The Down payment = $3300

The Present value of borrowing from credit union = 30,000 - 3300 = $26700

The EMI payment = $614.88,

No of months = 48, Annual percentage rate (APR) = 5%

The Monthly Percentage rate = 5%/12 = 0.4%

Then

We find future value at the end of 48 months

By applying Excel,

PV=26700, N=48, I/Y=0.4%, PMT=614.88

FV = -0.14079 which is approximate to Zero (given that EMI payment was rounded off to digit of 2 , FV has resulted slightly differ from zero)

So, at the end of four years, the car has no residual value as per the buy option.

The Finance charges of borrowing the car = Sum of all the EMI payments – principal payment

= $61488*48 - 26700 = $2924.724

The lease case

The cost reduction capital= $3300 (capitalized cost is paid by customers to decrease the rate of lease while leasing cars)

Fee disposition on the car = $350

The Residual value = $12,400

Then,

PV = $30,000 - $3300 = $26,700, EMI = $330, Number of months leased = 48

FV = Residual value – Disposition fee = $12,400 - $350 = $12,050

The cost of dollar of leasing = Sum of all the payments of EMI - payment based on principal value at the end of the lease period = 330 * 48 – (26700 – 12050) = $1190

Therefore, since the cost of financing for leasing is higher than buying, Amanda she should finance the car.

4 0

3 years ago

You have some property for sale and have received two offers. The first offer is for $189,000 today in cash. The second offer is

Sonbull [250]

<h3>Hello there!</h3><h3>Answer: Receive the $189,000 today. It has a net value that's higher</h3>

The reason why you should receive the $189,000 today because it would have a net value that's higher than the second value.

When you get the $189,000, all of that money belongs to you, you don't have to worry about the discount rate of the property. The person that buys the property would be affected by the discount rate.

But for the second offer, you would apply the discount rate.

In the second offer, you're suppose to be getting $200,000. However, the discount rate will take away some of the money.

$200,000*0.0875=17,500\\\\200,000-17,500=182,500$

You would technically only get $182,000, meaning that you would be getting less than what you expected.

<h3>I hope this helps!</h3><h3>Best regards,</h3><h3>MasterInvestor</h3>

6 0

4 years ago