What can you expect when you ask clients for testimonials? A. They'll want to come up with full-blown ideas.

To calculate a year-to-year percentage change in any financial statement line item such as sales, you should take the current ye

Makovka662 [10]

Answer:

the prior year's amount

Explanation:

In financial statements when measuring performance increase the percentage change in various financial statement lines are usually used.

Financial statement lines are individual items on financial statements. For example current assets, current liabilities, and sales.

The percentage change aims to compare increase in a financial statement line item against the previous year's amount.

This will give an idea of how much increase has occurred on previous performance.

So it is calculated by deducting previous year amount from current year amount, then divide by the previous year amount and multiply by 100

7 0

3 years ago

Suppose some banks decide to increase their holdings of excess reserves relative to deposits. Ceteris paribus, this action will

slava [35]

The action of the bank will put decreased pressure on the money supply, and to reduce the impact of this action, the Fed could decrease the discount rate.

Basically, a decrease in discount rate will make it easy and cheaper for commercial banks to borrow money from Federal Reserve System and thus, results to increase in available credit and lending in the economy

Therefore, if the commercial banks decide to increase their holdings of excess reserves supposed to be remitted to Feds, then, this will put decreased pressure on the money supply, and the Fed would act by decreasing the discount rate.

Read more about this here

brainly.com/question/20023706

5 0

2 years ago

Old Time Savings Bank pays 3% interest on its savings accounts. If you deposit $3,000 in the bank and leave it there: (Do not ro

____ [38]

Answer:

Interest= $90

Explanation:

Giving the following information:

Initial investment= $3,000

i= 3%

Number of periods= 1

First, we need to calculate the future value, using the following formula:

FV= PV*(1+i)^n

FV= 3,000*1.03= $3,090

Now, the interest earned:

Interest= 3,090 - 3,000

Interest= $90

8 0

2 years ago

Two investors have the following pattern of expected returns (Before-Tax Cash Flows): Investment A: Y1: $5,000; Y2: $10,000; Y3:

Arada [10]

Answer:

Investment A = 11.089%

Investment B = 12.772%

Explanation:

The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.

The internal rate of return can be calculated using a financial calculator

For investment A,

Cash flow in year zero = -$110,000

Cash flow in year 1 = $5,000

cash flow in Y2 = $10,000

cash flow in Y3 = $12,000

Cash flow in Y4 = $15,000 + $120,000 = $135,000

Irr = 11.089%

For investment B,

Cash flow in year zero = -$120,000

Cash flow in year one = $2,000

cash flow inY2: $4,000

cash flow in Y3: $1,000

cash flow in Y4: $5,000 + $180,000 = $185,000

IRR = 12.772%

To find the IRR 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 IRR button and then press the compute button.

I hope my answer helps you

4 0

2 years ago

After cost overruns of the solar project, $10 million was already spent and unrecoverable. It was going to cost $12 million more

Brrunno [24]

Answer:

a. continue with the project provided that the additional solar electricity is worth more than $10 million.

Explanation:

It is provided that after cost overruns of the project is $10 million, which can never be recovered, thus, it is a kind of sunk cost.

Sunk cost is the cost which is made previously, and now in no manner will affect the decision, as cannot be recovered.

Therefore, such cost is ignored.

Further provided additional cost will be $12 million, therefore, now the society shall make a rational choice whether to continue the project providing solar electricity of $10 million, as in case of amount of solar energy is $32 million or $22 million, then the choice is obvious to accept,

Rational choice will be for solar electricity worth $10 million.

Therefore, correct statement is

a. continue with the project provided that the additional solar electricity is worth more than $10 million.

4 0

3 years ago