A line of credit similar to a credit card because interest is charged only on the amount you actually borrow.
Answer:
the ending inventory is $13,200
Explanation:
The computation of the dollar value of the ending inventory under variable costing is shown below:
= Variable production cost per unit × difference in units
= $13.20 per unit × (5,200 units - 4,200 units)
= $13.20 per unit × 1,000 units
= $13,200
hence, the ending inventory is $13,200
Answer: Monetary policy has a long outside lag.
Explanation:
The options are that:
a. It wants to avoid time inconsistency problems.
b. It takes time for the Central Bank to implement its policy decisions.
c. Monetary policy has a long outside lag.
d. Forecast errors are often rather large.
Monetary policy is the use of interest rate and the supply of money to control the economy. Optimal monetary policy helps to maximizes the welfare of individuals and firms given the frictions that occur in the economic environment.
Under optimal monetary policy, the central bank adjusts its policy based on anticipated rather than current inflation and output gaps because monetary policy has such long outside lags. It has a long outside lag because they mainly affect the investment plans of business and a change in the rate of interest might not really have a full effect on the spending on investment for several years.
Answer:
At the end of year 4 (one year before the first cash flow)
Explanation:
According to the present value of perpetuity concept here we divided the predicted cash flows by the rate of that period by calculating this it provides the present value that is prior to the cash flow now if we want for more years so we should have to discount over that time period
Since in the given situation the starting of the cash flows is from the ending of year 5 therefore the timeline would be at the closing of year 4 i..e one year prior to the first cash flow
Answer:
$144015.76 approx.
Explanation:
Depreciation is the fall in the value of an asset due to wear and tear and efflux of time. Motor vehicles i.e movable assets usually depreciate more in comparison to equipment.
Book Value as on today = $165000
Rate of depreciation = 3% percent i.e 1.5% semi annually
Time period = 4.5 years × 2 = 9 periods
A =
where, A = Book value at a future date
P= Book value as on today
r= rate of interest semi annually
n = time period
A =
A = 165000 ×
A = 165000 × 0.8728
A = $144,015.76 approx.