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3 years ago

The impact of inflation in businesses

Business

1 answer:

levacccp [35]3 years ago

4 0

Answer:

Rapidly rising prices not only affect the price consumers pay, they also affect the cost businesses have to pay for materials and inventory. When replacement inventory costs more than the inventory you just sold, it can lead to inventory shortages.

Explanation:

I hope it helped

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Q 1.16: spelling corporation only maintains enough finished product inventory to cover their average weekly order volume. althou

vfiekz [6]

I think that Spelling Corporation uses JUST-IN-TIME inventory method.

Just-in-time inventory method requires producers to forecast demand as accurately as possible to ensure that the supply is sufficient to cover demand without excesses that may result to wastage and losses. Just-in-time inventory method promotes increase in efficiency in producing products.

Other inventory methods are manual counts, perpetual inventory, first-in first-out (FIFO), and last-in first-out (LIFO).

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3 years ago

Nissan’s all-electric car, the Leaf, has a base price of $32,780 in the United States, but it is eligible for a $7500 federal ta

katen-ka-za [31]

Answer:

Nissan's all-electric car, the Leaf

PV cost of Leaf Purchase = $16,529

PV cost of Leasing = $12,944.78

The company should lease the car.

Explanation:

a) Costs incurred to purchase the Leaf:

Base price $32,780

less Federal tax credit ($7,500)

Charging station 2,200

less 50% tax credit (1,100)

Cash paid $26,380

Sales value after 3 yrs (9,851) ( $26,380 - 40% of base discounted to PV)

Net PV Investment $16,529

b) Calculation of Discounted Present Values of Payments under Leasing, using online financial calculator:

PV (Present Value) $12,944.78

N (Number of Periods) 3.000

I/Y (Interest Rate) 10.000%

PMT (Periodic Payment) $4,200.00

Starting Investment $2,500.00

Total Principal $15,100.00

Total Interest $2,129.50

c) The purchase of the Leaf would involve a present value cost of $26,380 after deducting all the savings from tax. The 40% sales value of the car at the end of 3 years = $13,112 ($32,780 x 40%). When this sales value is discounted to PV of $9,851, the PV of the car investments becomes $16,529 ($26,380 - $9,851). On the other hand, leasing will cost in PV the sum of $12,944.78

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3 years ago

Michelle Lansbury Company deposits all receipts and makes all payments by check. The following information is available from the

Gre4nikov [31]

Answer:

The solution is given in the table file attached below

Explanation:

Download docx

8 0

3 years ago

In the new communication environment, advertising is often the single most important element of a marketing communications progr

Delvig [45]

The given statement is True.

In this new communication environment, advertising is often the single most important element of a marketing communication program for sales and building brand and customer equity.

Explanation:

Advertising is an important part of Marketing. Advertising is basically a written, verbal, non verbal, visual, promotional message about the product or service by the company.

In this new world of communication, Advertising is very important, because without advertising, it is very difficult to attract customers and make the customer's base and build the brand image among them.

Advertising is done by companies through medium like, Television, Magazines, Billboards, Hoardings, Promotional Events, etc.

Learn more about Advertising at:

brainly.com/question/11698706

#LearnWithBrainly

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3 years ago

If the economy is hit by a negative real shock that raises inflation and unemployment, which fiscal policy action should the gov

aev [14]

Answer: There is no fiscal policy action that can keep the inflation and unemployment stable.

Explanation:

If there is a negative real shock such as an oil crisis, it will be hard fir the affected economy to adjust and be stable.

A negative real shock will lead to a reduction in growth and a rise in inflation. Even in cases whereby there is an increase in the money supply, this will lead to a rise in real growth but the result will be that there will be an higher inflation

Therefore, there is no fiscal policy action that can keep the inflation and unemployment stable.

8 0

4 years ago

The impact of inflation in businesses​

The impact of inflation in businesses