When choosing which foreign country to enter, a country will be less appealing when?

You are given the following information about equipment that is required for your business. Assume that the equipment will be re

s2008m [1.1K]

Answer:

Machine B EAC is $17,705.78 more than Machine A EAC.

Explanation:

First find the present values of the cost of both machines.

Machine A:

= 200,000 + (15,000 * Present value of annuity interest factor, 15%, 8 years)

= 200,000 + ( 15,000 * 4.4873)

= $‭267,309.5‬0

Machine B

= 300,000 + (17,500 * Present value of annuity interest factor, 15%, 10 years)

= 300,000 + 17,500 * 5.0188

= $‭387,829‬

Equivalent Annual cost Machine A:

= [(NPV * Required return) / 1 - (1 + Required return) ^–Number of Periods

=[(267,309.50 * 15%) / 1 - 1.15⁻⁸

= $59,569.95

Equivalent Annual cost Machine B:

= (387,829 * 15%) / (1 - 1.15⁻¹⁰)

= $77,275.73

Difference:

= 77,275.73 - 59,569.95

= $‭17,705.78‬

4 0

2 years ago

Capital markets can be divided into four main categories: private equity, public equity, private debt, and public debt. An examp

scoray [572]

Answer:

<u>Real Property </u>

Explanation:

Capital markets refer to the market which trades in long term securities whose maturity is more than an year. The instruments traded in capital markets are usually stocks and bonds.

In private equity real estate, public and private investments are pooled together and invested in the real estate property markets. So here the underlying asset whose price fluctuates is property. If property prices soar, the investors stand to gain.

This kind of investment involves high risk but is also capable of generating a higher return as greater the risk involved, greater the return.

3 0

3 years ago

When Sandra and Charles Givens were divorced, the court ordered a division of property and awarded Sandra $65,000. The award was

taurus [48]

Answer:

Yes, it is a binding contract.

Explanation:

A contract is a legal binding agreement between two or more parties at the court of law. The agreement could be in terms of money, services, right or duties between the parties involved.

Since a consent has been reached between the two parties before the judge, Charles would pay the sum in the stipulated manner. The acceptance of the offer of payment by Sandra made it a binding contract for Charles, so he is bound by this service until he pays the full amount to Sandra.

3 0

3 years ago

Develop an argument for why a cosmetics manufacturer should build and maintain an ethical climate

Tju [1.3M]

<span>Cosmetic products will easily lose intended efficacy if exposed to unsuitable climate like high temperature or sunlight. To think they are used for the skin and pricey, the products should be safe and not harmful. Therefore, they should meet the standard safety requirements. </span>

7 0

3 years ago

Assume that a bank receives a cash deposit of $9,000 from a customer. What is the immediate impact of this transaction on the mo

mariarad [96]

Answer:

the money multiplier = 1 / reserve ratio

in this case, the reserve ratio is 10% (required) + 10% (voluntary) = 20%, so the money multiplier = 1/20% = 5

What is the immediate impact of this transaction on the money supply?

None, since the money supply doesn't change. When a customer deposits money in a bank, the money does not increase, only its composition changes.

The maximum amount by which this bank will increase its loans from the transaction in part (a)

the bank will be able to loan ⇒ total deposit x (1 - reserve ratio) = $9,000 x (1 - 20%) = $7,200

The maximum increase in the money supply that will be generated from the transaction in part

since the banks started to "create" money by lending the money, the money supply will increase by ⇒ total deposit x (money multiplier - 1) = $9,000 x 4 = $36,000

Assume that the government increases spending by $9,000, which is financed by a sale of bonds to the central bank. Indicate what will happen to the money supply.

The money supply will increase.

Explain what will happen to the money demand.

The money demand will also increase because aggregate demand and income will increase. Aggregate demand will increase by ⇒ $9,000 x government multiplier. The government multiplier = 1 / MPS.

6 0

3 years ago