Answer:
The plot of the yields is attached.
Explanation:
i) 6%, 7%, 8%, 7%, 6%
Interest rate on 1 year maturity = 6%/1 = 6%
Interest rate on2 year maturity = (6%+7%)/2 = 6.5%
Interest rate on 3 year maturity = (6%+7%+8%)/3 = 7%
Interest rate on 4 year maturity = (6% + 7% + 8% + 7%)/4 = 7%
Interest rate on 5 year maturity = (6% + 7% + 8% + 7% + 6%)/7 = 6.8%
ii)6%, 5%, 4%, 5%, 6%
Interest rate on 1 year maturity = 6%/1 = 6%
Interest rate on 2 year maturity = (6% + 5%)/2 = 5.5%
Interest rate on 3 year maturity = (6% + 5% + 4%)/3 = 5%
Interest rate on 4 year maturity = (6% + 5% + 4% + 5%)/4 = 5%
Interest rate on 5 year maturity = (6% + 5% + 4% + 5% + 6%)/5 = 5.2%
Answer:
CCA for year 2 is $164,062.50
Explanation:
Total cost of machine = $750,000
CCA rate = 25%
CCA in year 1 = (Total cost / 2) * CCA rate
CCA in year 1 = ($750,000/2)*0.25
CCA in year 1 = $93,750
For year 2, CCA = (Total cost - CCA in year 1) *CCA rate
For year 2, CCA = ($750,000 - $93,750)*0.25
For year 2, CCA = $164,062.50
Hence, CCA for year 2 is $164,062.50
Answer:
95%, 73.1%
Explanation:
Actual output= 950 per year
Design capacity= 1300 per year (Theoretical capacity)
Effective capacity= 1000 per year (efficiency of the shop)
Now Efficiency = actual output/effective capacity = 950/1000 = 0.95, 95.0%
Utilization= actual output/ design capacity = 950/1300 = 0.7308, 73.1%
The degree of operating leverage can be calculated by subtracting variable costs from sales and dividing it by sales minus variable costs and fixed costs.
The degree of operating leverage is
(3,800−300)÷(3,800−300−1,000)
=1.4
Answer:
The correct answers are letters "A", "B", "C", and "D": beer market; car market; wheat market; market for breakfast cereal.
Explanation:
The supply-and-demand analysis is one of the most basic principles in economics. In simple terms, it states that when an item is scarce, but many people want it, the price of that item will rise. The theory can be applied to markets of <em>goods and services, labor, capital, </em>and <em>all the factors of production</em>. It could be useful to study the fluctuations of a firm or the overall economy.
