Answer:
Rivian
The equivalent annual annuity is:
$28,053,400.
Explanation:
a) Data and Calculations:
R1T assembly investment cost = $95,000,000
Net cash flows = $37,000,000 per year
Cost of capital = 10%
Period of investment and annuity = 5 years
Annuity factor = 3.791
Present value of annuity = (3.791 * $37,000,000)/5
= 140,267,000/5
= $28,053,400
b) The net cash flows of $37 million per year will produce an annuity value of $28,053,400. In comparison with the investment cost in the R1T assembly, the present value of the annuity is reasonable.
Answer: C. Decrease government spending and increase taxes
Explanation:
The current GDP of this economy is $670 billion and this figure is higher than the $620 billion that the economy should be at.
This means that the economy is in danger of overheating and needs to be adjusted.
To do this one can use option C.
By REDUCING Government Expenditure, government purchases will drop which will aid in reducing the GDP.
By also INCREASING Taxes, the amount of money left for people to consume after they pay their taxes is less so that REDUCES Consumption as well leading to a smaller GDP.
Doing this is known as a CONTRACTIONARY FISCAL POLICY.
Monopoly market................
Answer:
B. False
Explanation:
People with high assertiveness respect themselves because they are very willing to defend their interests. They can freely express their thoughts and feelings. Since they are aware of their rights and others', they always work to resolve conflicts. But cultures with low assertiveness tend to allow others to manipulate them while displaying low self-esteem.
Answer:
$12,146
Explanation:
The computation of present value of this opportunity cost is shown below:-
Net After tax Operating Profit Per month = Rent space per month × Profit margin on the renting the space percentage
= $1,000 × 30%
= $300
Project is for 4 Years
Total months = 4 × 12
= 48 Months
Interest Rate Per month = 9% ÷ 12
= 0.75%
As per the question the Rent is Received at the start of the month
So Present Value of this opportunity cost = $300 (1 + PVAF (0.75%,47))
= $300 × ( 1 + 39.486)
= $12,145.85
= $12,146
