Answer:
NPV= 2333.28
Explanation:
Giving the following information:
So we have an initial investment in year 0 of $80,000 and a cash-flow of $20,200 (increase by 4% each year) for five years. Interest rate is 10%
Io= -80000
I1= 20200
I2= 21008
I3= 21848.32
I4= 22722.26
I5= 23631.15
To calculate the net present value we need to use the following formula:
n
<h3>NPV= -Io + ∑[Ct/(1+i)^n]</h3>
t-1
NPV= 2333.28
Answer:
Total Quality Management
Explanation:
Total Quality Management is an approach in which all the employees of the company work to improve the entire process to offer a good customer experience. According to this, the answer is that the term that means managing the entire organization so that it excels on all dimensions of products and services that are important to customers is Total Quality Management.
Entry to close the income summary account at the end of the year:
At the time of closing the Income Summary account, the Income Summary account is debited and Retained earnings account is credit with the amount of Net Income. Net Income can be calculated as follows:
Net income = Revenue – Expenses = 201,000-111,700 = $89,300
Hence the entry to close the income summary account at the end of the year shall be as follows;
Income Summary Debit $89,300
Retained earnings Credit $89,300
Answer:
(a) What is the amount by which Carla Bank's liabilities have changed?
Carla Bank's liabilities increased by $15,000 (bank deposits are liabilities).
(b) Calculate the change in required reserves for Carla Bank.
Carla Bank's reserves must increase by $15,000 x 5% = $750
(c) What is the dollar value of the maximum amount of new loans Carla Bank can initially make because of Christopher's deposit?
Carla Bank can loan $15,000 x 95% = $14,250
(d) Based on the central bank's open-market purchase of bonds, calculate the maximum amount by which the money supply can change throughout the banking system.
Money multiplier = 1 / 5% = 20
The money supply has the potential to increase by $15,000 x 20 = $300,000
(e) How will the change in the money supply in part (d) affect aggregate demand in the short run? Explain.
Aggregate demand will increase since the total money supply increases. This should also help to decrease the interest rates and foster investment.
The costs for office equipment in the first year of a business can run from approximately $3,000 to $12,000. Therefore, the option B holds true.
<h3>What is the significance of costs?</h3>
Costs can be referred to or considered as the amount to be incurred by a firm in order to ensure smooth functioning of its business operations. They vary from the department to department and the nature of the firm.
Costs such as office equipment can have a varying range for different natures of the firm. Most of the firms will have a cost for these equipments between $3,000 to $12,000. This range is not exhaustive, though.
Therefore, the option B holds true and states regarding the significance of costs for office equipments.
Learn more about costs here:
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