<span>I believe the answer for you question would be life-cycle</span>
Answer:
Air Europe should produce aircrafts
a. True
Explanation:
Air Europe has payoff matrix which will maximize the profits if it chooses to produce air crafts. The airline will be able to earn 90 million if it chooses to produces and will loose 2 million if chooses not to produce. There is subsidy of $9 million which is a plus for Air Europe therefore it should produce aircrafts.
Answer:
a. an increase in lending activity.
Explanation:
Interest rate caps (ceilings) are a normative in adjustable-rate mortgage agreements. They define the maximum interest rate permitted in the loan period.
Since they evidently benefit the borrowers (they will never have an exorbitant interest rate), that gives them the incentive to borrow. On the other hand, banks become more secure that the borrowers will not default the loan (when the interest rate becomes high), so they get the incentive to lend.
Answer:
$4,927
Explanation:
The computation of tax liability is shown below:-
Suta wage base is $28,200. So, income besides $28,200 is not subject to Suta tax.
Total taxable income = Annabelle + Beatrice + Michael + Howard
= $28,200 + $24,880 + $28,200 + $28,200
= $109,480
Suta tax liability = Total taxable income × Tax rate
=$109,480 × 4.5%
= $4,927
So, for computing the Suta tax liability we simply multiply the total taxable income with tax rate.
Answer:
$116.78
$110.66
IRR is 3.03%
Find attached
Explanation:
The cash paid for the investment is the present value of all cash flows including coupon and face value promised by the bond discounted using the yield to maturity of 3.03%
=-pv(rate,nper,pmt,fv)
rate is the yield to maturity of 3.03%
nper is the number of annual coupon payments receivable by bondholders which is 10
pmt is the annual coupon=$100*5%=$5
fv is the face value of $100
=-pv(3.03%,10,5,100)=$116.78
Price after four years means that there are only six years left to maturity,hence, nper changes to 6
=-pv(3.03%,6,5,100)=$110.66
