the answer to this is true
Answer: Option (C)
Explanation:
Here, in this case the corporation E-Gadgets is providing its consumers with place utility. The organization E-Gadgets creates the utility for their product solely by character of its location. The organization is known to have more than 170 outlets that are located in most of the large cities. Under the place utility it is known that the attractiveness of a commodity that is sold can be further increased by changing the location.
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:
If management decides to eliminate this product line, the company’s net income will reduce by $22,000
Explanation:
<em>A product should be shut down if doing so would make the savings in fixed costs associated with the product to exceed the lost contribution. Other wise , the product should remain.</em>
<em>In a shut down decision , the following relevant cash flows should be considered:</em>
- <em>Lost contribution from the product to be shut down</em>
- <em>Savings in fixed directly attributable to the product under consideration.</em>
$
Lost contribution from shut down (100,000)
Savings in fixed cost (60% × 130,000) <u> 78,000</u>
Net loss from shut down <u> (22,000)</u>
Net loss from shut down = $(22,000)
If management decides to eliminate this product line, the company’s net income will reduce by $22,000
Answer:
Nominal interest rate (i)= expected inflation rate (f) + real interest rate (r)
i= 5+r
Explanation:
The Fisher Effect is an economic theory created by economist Irving Fisher that describes the relationship between inflation and both real and nominal interest rates.
The Fisher Effect states that the real interest rate equals the nominal interest rate minus the expected inflation rate.
The Fisher Effect can be seen each time you go to the bank; the interest rate an investor has on a savings account is really the nominal interest rate.
