Answer:
a). M1=$808 billion
b). M2=1,068 billion
Explanation:
M1 is the money supply that is the most liquid and is or can be easily converted into cash. The formula for calculating M1 is;
M1=C+D+T+S
where;
M1=money supply
C=currency held outside banks
D=checkable deposits
T=traveler's checks
S=small-denomination time deposits
In our case;
M1=unknown
C=$354 billion
D=$250 billion
T=$4 billion
S=$200 billion
replacing;
M1=(354+250+4+200)=$808 billion
M1=$808 billion
M2 includes elements of M1 and additional money supply that are near liquid. The formula is;
M2=M1+savings deposit+mutual funds
where;
M1=$808 billion
savings=$100 billion
retail money market mutual funds=$160
replacing;
M2=(808+100+160)=1,068 billion
M2=1,068 billion
Answer:
D) Shares in a brewery
Explanation:
Beer is not a durable good, and the security analyst reported non-durable goods are not going to perform well. The analyst didn't specify which non-durable goods would not perform well, but beer is the only possible option. The other three alternatives all relate to durable goods (steel, industries, home appliances).
Answer:
This question does not include what you are required to do. I looked it up on the web and it is asking for the Internal rate of return (IRR)
Explanation:
Internal rate of return used in project evaluations is the rate at which the NPV of a project equals to zero.
You can solve for IRR using a financial calculator and the cashflow "CF " function. Key in the following inputs;
Initial investment; CF0 = -54,000
Yr1 cashflow inflow ; C01 = 27,000
Yr2 cashflow inflow ; C02 = 25,000
Yr3 cashflow inflow ; C03 = 20,000
Then key in IRR then CPT = 16.792%
Therefore, the Internal rate of return(IRR) for this equipment is 16.79%
