Which economic indicator measures inactivity rather than activity ?

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slega [8]

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6 0

3 years ago

Which definition(s) of the money supply include(s) only items which are directly and immediately usable as a medium of exchange?

Gala2k [10]

The definition of money supply which include only items which are directly and immediately usable as medium of exchange is M1. Money supply refers to the entire stock of currency and other liquid assets that are circulating in a particular economy at a particular period of time.
M1 include cash and checking deposits which are very liquid in nature and are suitable as medium of exchange.

7 0

3 years ago

Check Laura won $5,000,000 in the state lottery, which she has elected to receive at the end of each month over the next 30 year

Svetllana [295]

Option 'C' is correct

<u>Explanation:</u>

Present value of an ordinary annuity of $1

The present value of an annuity is the current value of future payments from an annuity, given a specified rate of return or discount rate.

$\text { Annuity amount }=\$ 5,000,000 / \mathrm{PVAF}(7 \% / 12,360 \text { periods })$

The future estimation of cash is determined by utilizing a rebate rate. The markdown rate alludes to a financing cost or an accepted pace of profit for different speculations. The littlest markdown rate utilized in these figurings is the hazard free pace of return. U.S. Treasury bonds are commonly viewed as the nearest thing to a hazard-free venture, so their arrival is regularly utilized for this reason.

6 0

3 years ago

Diane Manufacturing Company is considering investing $600,000 in new equipment with an estimated useful life of 10 years and no

agasfer [191]

Answer:

Annual estimated net income is $360,00.

Annual estimated net cash inflow is $216,000.

Explanation:

1. Determine the annual estimated net income

Annual estimated net income = Annual cash inflows - Annual cash outflow

Annual estimated net income = $600,000 - $240,000 = $360,00

2. Determine the annual estimated net cash inflow

Annual Tax = Annual estimated net income × Tax rate

Annual Tax = $360,00 × 40% = $144,000.

Annual estimated net cash inflow = Annual estimated net income - Annual Tax

Annual estimated net cash inflow = $360,00 - $144,000 = $216,000.

Note that depreciation is not considered in the calculation because depreciation not a cash expense.

8 0

3 years ago

Read 2 more answers

XYZ Development, Inc. leases commercial space to businesses. Most of the leases are long-term, from five to fifteen years in len

adoni [48]

Answer:

B. Escalator Clause

Explanation:

XYZ development acts as landlord to businesses, there is agreement that rent can change based on the level of tax. An escalator clause is a clause in any agreement that gives room for increase in prices under certain condition. If an agreement has got an escalator clause, if for instance the tax rate rises, then the prices rise proportionately. In this case of XYZ Development Inc., the escalator clause is in use. The correct answer is B.

3 0

3 years ago