Answer:
Increase in premium
Decrease in the risk premium
Explanation:
Premium can be defined as the rewards earned by investors who has decided to engage in new businesses in a risk free state while risk premium is defined as the excess reward earned above the free risk rate that is expected to earn in the course of investment.In order word , it is a form of compensation for the risk undertaken .
As economy starts expanding , one of the consequences is that the premium will increase while the development reduces related risks and risk premium reduces.
Answer:
a. What is the MRP? What is the MRC? Should the firm add this delivery vehicle?
marginal revenue product = marginal product of labor x marginal revenue per output unit
MRP = 1,500 packages x $0.10 per package = $150
marginal resource cost (MRC) = $100 (the cost of renting the delivery truck)
The company should add the delivery truck because MRP is higher than MRC.
b. Now suppose that the cost of renting a vehicle doubles to $200 per day. What are the MRP and MRC in this situation?
MRP = $150 (doesn't change from question a)
MRC = $200 (the cost of renting the delivery truck)
The company should not add the delivery truck because MRP is less than MRC.
c. Next suppose that the cost of renting a vehicle falls back down to $100 per day, but, due to extremely congested freeways, an additional vehicle would only be able to deliver 750 packages per day. What are the MRP and MRC in this situation? Would adding a vehicle under these circumstances increase the firm's profits?
MRP = 750 packages x $0.10 per package = $75
MRC = $100
The company should not add the delivery truck because MRP is less than MRC.
Answer:
$7,372.99
Explanation:
Discounting is the method used to determine the present worth of a future amount which compounding is used to determine the future worth of a present amount. The relationship between both is such that;
Fv = Pv(1 + r)^n
where
Fv = future amount
Pv = present amount
r = interest rate and
n = time
The future amount = $11,700
time = 6 years
rate = 8%
$11,700 = Pv(1 + 0.08)^6
Pv = $11,700(1 + 0.08)^-6
Pv = $7,372.99
You need to deposit $7,372.99 today to reach your $11,700 goal in 6 years.
Answer:
A) Salaries Payable
Explanation:
The Balance sheet consists of all assets and liabilities account and the personal account whereas. Since employees had worked for last two weeks in Dec and their payment is still due on Dec 31 so it’s a liability on part of company account and its recognized in form of salaries payable and shown under current liability side.
Globalization has brought benefits in developed countries as well as negative effects. The positive effects include a number of factors which are education, trade, technology, competition, investments and capital flows, employment, culture and organization structure.
