<span>A rapid increase in the money supply may lead to a "Deflation"
Hope this helps!
</span>
Answer:
option B
Explanation:
In other to know how return fluctuation can be predicted with for instance, x%, predictability, one has to look at the normal distribution curve of return (average returns) to standard deviation of those returns. (check the attached file for additional details).
Hence, to be 95% sure that investment losses are less than 8% one needs to look at 95% of all returns which infact Mean return plos or minus 20. If the lower bound of this interval is less than 8% then the investment needs to be selected
check attached file for additional details
Answer:
e
Explanation:
A good has positive externality if the benefits to third parties not involved in production is greater than the cost. an example of an activity that generates positive externality is research and development. Due to the high cost of R & D, they are usually under-produced. Government can encourage the production of activities that generate positive externality by granting subsidies.
Answer:
(1) $19,500
(2) $142,000
(3) $27,000
(4) $15,000
Explanation:
Depreciation is the systematic allocation of the cost of an asset to the p/l over the useful life of the asset. It may be computed as
Depreciation = (cost - salvage value)/useful life
Annual depreciation = ($220,000 - $25,000)/10
= $19,500
4 years later
Carrying amount of the equipment
= $220,000 - 4 * $19,500
= $220,000 - $78,000
= $142,000
If the asset is impaired
An asset is said to be impaired when the carrying amount is higher than recoverable amount where the recoverable amount is the higher of the fair value less cost to sell or the value in use of the asset which is the present value of the future expected inflow from the use of the asset.
Value in use = $115,000
Fair value = $85,000
Value in use = $115,000
Impairment loss = $142,000 - $115,000
= $27,000
Remaining number of years is 6
New carrying amount = $115,000
the annual depreciation expense = ($115,000 - $25,000)/6
= $90,000/6
= $15,000
Answer:
TVM=34,720*0.075/12 : [1-(1+0.075/12)^-48]
TVM=839.49
Explanation:
An=34,720
t=4 yrs , ---> n=48 (4*12)
j=7.5 %.---> i=0.075/12
m=12
* i=j/m
*n=mt
TVM=An*i : [1-(1+i)^-n]
TVM=34,720*0.075/12 : [1-(1+0.075/12)^-48]
TVM =839.49 (round two decimal)
