75 I think not 100% but that makes Sense
Answer:
Real purchasing power increase= 2.16%
Explanation:
Giving the following information:
You deposit $1,900 in your savings account that pays an annual interest rate of 3.25%. The inflation rate is 1.09%.
In this example, we have two different and opposite effects. The interest rate increases your purchasing power. If the inflation rate is 0, the purchasing power will increase (in one year) 3.25%.
The inflation rate decreases the purchasing power of nominal income.
Real purchasing power increase= annual interest rate - inflation rate
Real purchasing power increase= 3.25 - 1.09= 2.16%
Answer:
Project A
Explanation:
There are two things to consider here when deciding on the project selection. First, the manager requirement to select the project which at least earns 12%.
Second, maximum return that could be generated from the project. This could be confirmed when determining which project has the highest Net present value (NPV). As NPV, is the difference between the present value of cash outflow (investment) and present value of cash inflow (returns) which is discounted at present time. If positive NPV is calculated then this means project is worthwhile.
Assessing the information given in the question, both projects earn at least 12%, therefore they both meet manager's requirements. While in case of Net present value Project A has the highest NPV and therefore suggest a better return on the project's investment in comparison to project B.
Hence, manager will likely choose Project A.
Answer:
Providing proper incentives for the employees to work more efficiently.
Explanation:
The objective of a good corporate governance is mainly in the interest of the company's shareholders. The shareholders should be able to see through (transparency) the activities of the company.
