Answer:
The answer is $36,000.
Explanation:
If the average individual earns an annual salary of $60,000 and the government reduces all salaries and prices by 40%, then the salary of the average individual annualy decreases by $24,000 and comes down to $36,000 per year. But since the costs of services and prices of goods recude by 40% as well, it doesn't change the real salary.
I hope this answer helps.
Answer:
$7,473
Explanation:
Calculation to determine the amount of gross margin that results from these transactions
First step is to calculate COGS
COGS=$16,100-($16,100 * 0.03)+$610
COGS=$16,100-$483+$610
COGS=$16,227
Now let calculate the Gross margin
Using this formula
Gross margin = Sales revenue - COGS
Let plug in the formula
Gross margin=$23,700 - $16,227
Gross margin =$7,473
Therefore the amount of gross margin that results from these transactions is $7,473
Answer: B
Explanation: Cockroaches have a strong oily odor from them.
Answer:
The manager should pick project B
Explanation:
To determine what decision the manager should make, the NPV of both projects should be calculated.
Net present value is the present value of after tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
NPV for project A
Cash flows:
Year 0 = $-335,000
year 1 = $140,000
year 2 = $150,000
year 3 = $100,000
I = 6%
NPV= $14,536.87
NPV for project B
Cash flows:
Year 0 = $-365,000
year 1 = $220,000
year 2 = $110,000
year 3 = $150,000
I = 6%
NPV= $66,389.67
Both projects are profitable but because the firm uses capital rationing , the manager has to pick the now profitbale project, which is project B.
To find the NPV using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
I hope my answer helps you
Answer:
B. Banks would make fewer loans
Explanation:
The discount rate is the interest rate that commercial banks pay to the Federal Reserve for loans received. Banks usually borrow to cater to their short-term cash-flow requirements. The discount rate is higher than the inter bank rate or the fed funds rate(the rate that banks charge each other for loans).
An increase in the discount rate causes the inter bank rate to rise (the Fed controls both rates). It means commercial banks are borrowing money from the Fed and each other at a higher interest rate. Consequently, commercial banks charge a higher interest rate for loans advanced to customers. An increase in interest rates at the banks discourages customers from borrowing.
