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3 years ago

How does competition in a free-market system effect the game of economics?

1 answer:

8 0

A free market is where the prices of good ands service are detirmined by the open market and consumers, in which the laws and forces of supply and demand are controlled by government or any other authority.

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Ann got a 30 year FRM with annual payments equal to $12,000 per year. After 2 years of payments Ann will refinance the balance i

IrinaK [193]

Answer:

Ann s annualized IRR from refinancing is -0.0960

Explanation:

A / 1 B C D E F G H

2 Ann

3 FRM duration in years 30

4 Annual payment $ 12,000

5 Total Payments for 30 years $360,000

6 Payments made for 2 years

7 Payment amount for 2 year $24,000

8 after two years FRM outstanding $336,000

10 Refinancing is done for 28 years

11 Annual payment $10,000

12 Total Payments for 28 years $ 280,000

13 Refinancing Cost $2,500

14 Total amount of cost $282,500

15 Balance outstanding before refinancing 336,000

16 Amount saved at the end of 2nd year $53,500 period cashflow cash payment cost of refinance prepayment NetFlow

0 360,000 360,000

1 (12,000.0) (12,000)

2 (12,000.0) (2,500) (14,500)

3 280,000.0 (10,000) (336,000) (66,000)

4 (10,000) (10,000)

5 (10,000) (246,000) (256,000)

640,000 (54,000) (2,500) (582,000) 1,500

IRR = -0.0960%

Therefore, Ann s annualized IRR from refinancing is -0.0960

3 0

2 years ago

A manager is trying to see how business has been going. She wants to know if there is a need for any type of change in how they

Sveta_85 [38]

She should do C, to find the best way to optimize profits.

5 0

3 years ago

Read 2 more answers

A newspaper reports that the average price of new homes in a certain city had decreased, and the number of new homes sold had al

Zielflug [23.3K]

Answer: Decreasing the incomes of people in the city

Explanation:

According to the given situation, the newspaper reporting about the average price range of the new homes are decreased in the city and also the new homes selling average are also decreases.

It is basically caused by the average income level of that specific city are get decease.

When the income of the people are decreases then it cause less spending on the things and the budget are get highly effected so that is why they are unable to buy any kind of property.

Therefore, Decreasing the incomes of people in the city is the correct answer.

3 0

2 years ago

Kansas Enterprises purchased equipment for $72,500 on January 1, 2021. The equipment is expected to have a five-year service lif

Papessa [141]

Answer:

Annual depreciation= $12,970

Explanation:

Giving the following information:

Kansas Enterprises purchased equipment for $72,500 on January 1, 2021. The equipment is expected to have a five-year service life, with a residual value of $7,650 at the end of five years.

To calculate the depreciation expense under the straight-line method, we need to use the following formula:

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (72,500 - 7,650)/5

Annual depreciation= $12,970

7 0

3 years ago

Bailey, Inc., is considering buying a new gang punch that would allow them to produce circuit boards more efficiently. The punch

cricket20 [7]

Answer:

a) Present value of the investment: $198,936

b) if the present worth of the investment which are discounted at MARR rate is positive, the investment is worth investing, while if the present value of the investment is negative, Investor should not invest.

c) As calculated in (a), present value of the investment is $198,936, Bailey should buy the gang punch

Explanation:

Please find detailed of calculation in (a) which is shown as below:

Present value = Present value of saving in raw material - Present value of increase in labor cost - Initial investment = [ (12,250/ 5%) x (1-1.05^-15)] - [ (3,200/ 5%) x (1-1.05^-15)] - 105,000 = $198,936.

7 0

3 years ago