The problem with this survey is: <span>The sample is too small so it is a flawed sampling method
The survey with this kind of small number often does not represent the truth of the general recipients simply because it does not leave enough room for margin of errors.
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Answer:
The Net Present Value is - $20324
Explanation:
We can use our financial calculator to work out the NPV using the cashflows from the different periods and using the discount rate given. Which is 18%.
We have 11 periods. Starting off with CF 0. ( CF = cashflow ) We will work in Thousands to make it easier to read and compute. $ ' 000
CF 0 Machine Investment (750) Working Capital Investment (25) Total=(775)
CF 1 160 inflow
CF 2 160 inflow
CF 3 160 inflow
CF 4 160 inflow
CF 5 160 inflow
CF 6 160 inflow
CF 7 160 inflow
CF 8 160 inflow
CF 9 160 inflow
CF 10 160 inflow
CF 11 160 inflow. 35 salvage value from machine. Working capital 25. Total Cashlow = 220
We now use our financial calculator and input these amounts into the calculator.
We start of by entering the data and hitting ENT and do so for every Cash flow. At the end we press 2nd function CFI on our calculator. We then enter the discount rate of 18%. and press down button to get to NPV and then press COMP.
We get an answer of -20,32400407
We now need to put the amount into thousands. Thus = -20324,004
rounded to the nearest dollar we get - $ 20324
Answer:
a.$30,000
b.The alternative i could suggest to Shawn is that he may sell the factory building instead of him to purchase the apartment building in order for him to recognize the loss which will inturn lower his taxes.
Explanation:
a. Calculation of what is Shawn’s realized gain or loss and the basis of the apartment building
Since Shawn tend to received the apartment building which has a Fair Market Value of $320,000 in exchange of his $350,000 worth of factory , this means he had a lost of $30,000 which is calculated as ($320,000-$350,000) which can therefore be deferred
b. The alternative i could suggest to Shawn is that he may sell the factory building instead of him to purchase the apartment building in order for him to recognize the loss which will inturn lower his taxes.
Answer:
Short range predictors:
c. Nominal interest rate differential
d. Psychological effects
e. Investor expectations
f. Bandwagon effect
Long range predictors:
a. Relative monetary growth
b. Relative inflation rates
Explanation:
Nominal rate, the real rate, and inflation. long term predictors of an economic theory in which a relationship between inflation, nominal interest rate and real interest rate is identified. It defines that real interest rate is equal to inflation minus nominal interest rate.
Bandwagon effect is a short range predictor because it is effect of uptake when people follow others. They take decisions what other do and its their belief that other people have taken the right decision so we too. This is just a short term hop based on beliefs regardless of any underlying evidence.
Answer:
Explanation:
Inventories are part of investment and therefore included in GDP because firms produce goods and these goods may be unsold at the time GDP is computed
The value added method of calculating GDP recognizes inventory. Value added from raw materials to work in process and to finished goods are part of what goes into the computation of GDP
