Answer:
Changes in interest rates can have both positive and negative effects on the markets. Central banks often change their target interest rates in response to economic activity: raising rates when the economy is overly strong, and lowering rates when the economy is sluggish. In economics, capital references non-financial assets used in the production of ... used up immediately in the process of production, unlike intermediate goods ... As a term, it is used to define balanced growth where the goal is to improve human capital ... The interest rate directly impacts economic choices.
Explanation:
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Answer:
$24.09
Explanation:
[Sales units quantity × (Selling price per unit - Variable cost per unit)] - Fixed costs - Depreciation = Earning before interest and taxes
Sales units quantity 16,000
Selling price per unit $29
Fixed costs $52,000
Depreciation $12,000
Earning before interest and taxes $14,600
Variable cost per unit ?
[16,000 × ($29 - Variable cost per unit )] - $52,000 - $12,000 = $14,600
$29 - Variable cost per unit = ($14,600 + $52,000 + $12,000)/16000
Variable cost per unit = $29 - $4.91
Variable cost per unit = $24.09
You should inquire.
If the bill is incorrect, this could be a cause of fraud or a simple calculating error. The same could apply for you wanting more information - the supplier should be able to provide you information about it.
Answer:
PLAN A
Year Cashflow [email protected] PV
$'m $
0 (12.4) 1 (12.4)
1 14.88 0.8905 13.25
NPV 0.85
PLAN B
Year Cashflow [email protected] PV
$'m $'m
0 (12.4) 1 (12.4)
1-20 2.2034 7.3309 16.15
NPV 3.75
Project B should be accepted
Explanation:
In this case, we need to discount the cash inflow of plan A at 12.3% for 1 year and then deduct the initial outlay from the present value of cash inflow. The discount factor could be derived from the present value table.
For plan B, we will discount the cash inflow at 12.3% for 20 years. In this case, we will use the annuity factor for 20 years. Thereafter, we will multiply the cashflow by the annuity factor for 20 years to obtain the present value. The initial outlay will be deducted from the present value so as to obtain the net present value(NPV).
The annuity factor can be obtained from the present value of annuity table.
The project with the higher NPV will be accepted.
