Delay in writing a claim letter makes the claim appear less important to the receiver. The given statement is true. The reason why the above statement is true is that, once a consumer faces a problem with a product or service, he/she should instantly write a claim letter or a complaint letter to the supplier or the manufacturer.Due to the delay in writing a claim letter, the supplier or manufacturer may doubt the legitimacy of the claim.
They may believe that the customer may not be serious about the issue or the issue may not be severe. Moreover, a delay in writing a claim letter may indicate that the customer has accepted the issue. This can lead the supplier or manufacturer to believe that the customer may have lost the right to file a complaint or claim. Therefore, writing a complaint letter as soon as possible can have a significant impact on the result of a claim or complaint.
Generally, the credibility of the claim is based on the time period between the occurrence of the problem and the filing of the claim. If the claimant waits too long to file a claim letter, it may lead the supplier or manufacturer to question its authenticity. That is why it is crucial to send claim letters without delay to enhance the chance of an early resolution.
To know more about claim letter visit:
brainly.com/question/28280083
#SPJ11
Green Landscaping, Inc. is using net present value (NPV) when evaluating projects. Green Landscaping’s cost of capital is 7.03 percent. What is the NPV of a project if the initial costs are $1,415,854 and the project life is estimated as 8 years? The project will produce the same after-tax cash inflows of $467,188 per year at the end of the year.
Round the answer to two decimal places.
If the initial costs are $1,415,854 and the project life is estimated as 8 years, NPV would be $1,370,548.65
For calculating the Net Present Value(NPV), after-tax cash inflows of $467,188 per year at the end of the year need to be discounted at the given discount rate of 7.03% for 8 years and the initial investment would be deducted from that.
Year 1 - 467,188 × 0.9343 = 436493.74
Year 2 - 467,188 × 0.8729 = 407808.40
Year 3 - 467,188 × 0.8156 = 381038.53
Year 4 - 467,188 × 0.7620 = 355997.25
Year 5 - 467,188 × 0.7120 = 332637.86
Year 6 - 467,188 × 0.6652 = 310773.46
Year 7 - 467,188 × 0.6215 = 290357.34
Year 8 - 467,188 × 0.5807 = 271296.07
Total discounted inflows = $2786402.65
NPV = Present Value of Cash Inflows - Initial Investment
NPV = $2786402.65 - $1,415,854
NPV = $1,370,548.65
For more information about NPV, refer
https://brainly.com/question/31865886
#SPJ4
Describe the potential advantages and disadvantages of global
expansion. Are the pros and cons the same for small firms as they
are for large once? Are they the same for service firms and
manufacturer
Potential advantages and disadvantages of global expansion advantages of global expansion include reaching new customers, accessing new markets, diversifying risks, and acquiring new resources and knowledge. Potential disadvantages of global expansion include political
the main advantages and disadvantages Advantages of global expansion:1. Increased market potential: Global expansion provides access to new customers and markets that are not available in the domestic market. The increase in the potential customer base can lead to increased revenues and profits.2. Diversification of risks: Global expansion allows firms to diversify risks across different markets. This can reduce the impact of economic and political changes in one market on the firm's overall performance.3. Access to new resources and knowledge: Global expansion provides access to new resources and knowledge that are not available in the domestic market. For example, a firm might be able to source raw materials more cheaply from overseas or access new technologies that are not available in the domestic market.4. Competitive advantage: Global expansion can provide a competitive advantage over rivals who are not operating in international markets
firm might be able to offer lower prices or higher quality products due to economies of scale. Disadvantages of global expansion:1. Political and legal risks: Global expansion exposes firms to political and legal risks that are not present in the domestic market. For example, a change in government policy or a new regulation could have a significant impact on a firm's operations.2. Cultural differences: Global expansion requires firms to operate in different cultural environments that can be very different from the domestic market. This can lead to misunderstandings and the communication problems.3. Language barriers: Global expansion requires firms to operate in different languages. This can be challenging, especially if the firm does not have employees who are fluent in the local language.4. Increased competition: Global expansion exposes firms to increased competition from local and international rivals. Are the pros and cons the same for small firms as they are for large ones No, the pros and cons are not the same for small firms as they are for large ones. Small firms may not have the resources or expertise to compete in international markets, while large firms may be better equipped to handle the risks and challenges of global expansion. they the same for service firms and manufacturers , the pros and cons are not the same for service firms and manufacturers. Service firms may face different cultural and language barriers than manufacturers, while manufacturers may face different political and legal risks than service firms.Explanation:In summary, global expansion can provide firms with many advantages, such as increased market potential, diversification of risks, access to new resources and knowledge, and competitive advantage. However, global expansion also exposes firms to many risks and challenges, such as political and legal risks, cultural differences, language barriers, and increased competition. The pros and cons of global expansion are not the same for small firms as they are for large ones, or for service firms as they are for manufacturers.
To know more about customers Visit;
https://brainly.com/question/31192428
#SPJ11
Voucher system and control of cash payments LO P1 Determine whether each cash payment procedure is an internal control strength or weakness. Cash payments strength or weakness. 1. In the voucher system, the company's accounting department requests purchases of inventory and records the transaction 2. The owner of a small business has authority to write and sign checks 3. Requesting and receiving merchandise is handled by the same department. 4. Only authorized departments and individuals can incur liabilities 5. A voucher system is used for all payments of liabilities 6. To save time, all departments are allowed to incur liabilities.
Strengths of internal control include the use of a voucher system, authorization of liabilities, and limiting access to authorized departments and individuals. Weaknesses include lack of segregation of duties and potential lack of control over expenditures.
Here is an assessment of each cash payment procedure in terms of internal control strength or weakness:
In the voucher system, the company's accounting department requests purchases of inventory and records the transaction.
Strength: This is a strength of internal control as it establishes a proper process where the accounting department initiates and records inventory purchases. It helps ensure that all purchases are authorized and recorded accurately.
The owner of a small business has authority to write and sign checks.
Weakness: This is a weakness of internal control as it lacks segregation of duties. Ideally, the owner should not have complete control over check writing and signing to prevent potential misuse or fraud. It is recommended to have a separate individual involved in the authorization and signing of checks.
Requesting and receiving merchandise is handled by the same department.
Weakness: This is a weakness of internal control as it lacks segregation of duties. Separating the responsibilities of requesting and receiving merchandise helps prevent potential fraud or errors by ensuring that multiple individuals are involved in the process.
Only authorized departments and individuals can incur liabilities.
Strength: This is a strength of internal control as it ensures that liabilities can only be incurred by authorized departments and individuals. It helps prevent unauthorized spending and ensures accountability.
A voucher system is used for all payments of liabilities.
Strength: This is a strength of internal control as a voucher system provides a documented approval process for payments, ensuring that all liabilities are properly authorized before payment is made.
To save time, all departments are allowed to incur liabilities.
Weakness: This is a weakness of internal control as it lacks proper authorization and control. Allowing all departments to incur liabilities without a centralized approval process increases the risk of unauthorized or unnecessary spending.
Learn more about accounting department
https://brainly.com/question/29586998
#SPJ4
a firm suffering economic losses decides whether or not to produce in the short run on the basis of whether a. revenues from operating are sufficient to cover fixed plus variable costs. b. revenues cover variable costs. c. revenues from operating are sufficient to cover fixed costs. d. firms suffering economic losses will always shut down.
In the short run, a firm suffering economic losses decides whether or not to produce based on whether revenues from operating are sufficient to cover fixed plus variable costs. Option A is the correct answer.
The firm's decision to produce in the short run depends on its ability to cover both fixed and variable costs with its operating revenues. Option A is the correct answer because it considers both fixed and variable costs. If the firm's revenues are enough to cover both fixed costs (such as rent, insurance, and salaries) and variable costs (such as raw materials and labor), then it may choose to continue production despite incurring economic losses.
However, if the firm's revenues only cover variable costs (Option B) or just fixed costs (Option C), it may not be enough to sustain the business and cover all expenses, leading to a decision to shut down operations (Option D). Therefore, Option A is the most comprehensive and accurate choice.
You can learn more about economic losses at
https://brainly.com/question/20314608
#SPJ11
Which of the following best describes the concept of materiality in respect to auditing?
Select one:
a. A matter or issue is material if its omission or misstatement would reasonably influence the decision(s) of any addressee of the auditors' report.
b. A matter or issue is material if the auditor and directors both decide further work needs to be completed in the area under examination.
c. A matter or issue is only matter if it changes the audit report.
d. A matter or issue is material only if it affects the directors emoluments (i.e., salary, benefits
The concept of materiality in respect to auditing is best described as a matter or issue being material if its omission or misstatement would reasonably influence the decision(s) of any addressee of the auditor's report. The correct answer is a.
This means that auditors must ensure that the information in the financial statements is accurate and complete so that the users of those financial statements can make informed decisions. In order to do this, auditors use the concept of materiality to help them determine which items are important enough to be included in their audit work.
Materiality is an important concept in auditing because it helps auditors determine which items are important enough to be included in their audit work. It also helps auditors determine the appropriate level of detail to include in their audit work.
Auditors use materiality to help them focus their audit work on the most important items and to help them determine the appropriate level of detail to include in their audit work. If an item is considered material, the auditor will likely perform more detailed audit work on that item than on items that are not considered material.
In general, the concept of materiality helps auditors ensure that they are providing users of the financial statements with accurate and complete information that is relevant to their decision-making. Therefore, The correct answer is a.
To learn more about concept of materiality click here:
https://brainly.com/question/23740201#
#SPJ11
Gugulethu plans to purchase a car that depreciates (loses value) at a rate of 14% per year. The initial cost of the car is R258 400. Which equation represents the value, v, of the car after three year
The value of the car after three years is R0.01.
The value of a car that depreciates at a rate of 14% per year, if Gugulethu plans to purchase a car whose initial cost is R258 400 can be calculated using the equation for straight-line depreciation (which assumes that the car depreciates by the same percentage each year).
Straight-line depreciation is calculated as:
Annual Depreciation = (Initial Cost - Salvage Value) / Number of Years of Useful Life
Therefore, the annual depreciation for this car is:
Annual Depreciation = (R258 400 - 0) / 3 = R86 133.33
The salvage value is assumed to be zero since the question does not provide that information.
Using the straight-line depreciation method, the value of the car after three years can be calculated as:
V = Initial Cost - Total Depreciation after Three Years
V = R258 400 - (R86 133.33 * 3)V = R258 400 - R258 399.99
V = R0.01
To know more about the Annual Depreciation, click here;
https://brainly.com/question/27971176
#SPJ11
Financial institutions in the U.S. economy Suppose Dmitri would like to use $8,000 of his savings to make a financial investment. One way of making a financial investment is to purchase stock or bonds from a private company. Suppose TouchTech, a hand-held computing firm, is selling stocks to raise money for a new lab-a practice known as share of TouchTech stock would give Dmitri ____the firm. In the event that TouchTech runs into financial difficulty, ____will be paid first. Suppose Dmitri decides to buy 100 shares of TouchTech stock. Which of the following statements are correct? Check all that apply. a. The Dow Jones Industrial Average is an example of a stock exchange where he can purchase TouchTech stock. b. Expectations of a recession that will reduce economywide corporate profits will likely cause the value of Dmitri's shares to decline. c. An increase in the perceived profitability of TouchTech will likely cause the value of Dmitri's shares to rise. Alternatively, Dmitri could make a financial investment by purchasing bonds issued by the government of Japan. interest rate Assuming that everything else is equal, a bond issued by a government that is engaged in a civil war most likely pays a than a bond issued by the government of Japan.
a. The Dow Jones Industrial Average is an example of a stock exchange where he can purchase TouchTech stock. (This statement is not correct. The Dow Jones Industrial Average is an index that tracks the performance of 30 large publicly traded companies in the United States, but it is not a stock exchange where individual stocks can be purchased.)
b. Expectations of a recession that will reduce economywide corporate profits will likely cause the value of Dmitri's shares to decline. (This statement is correct. During a recession, corporate profits tend to decline, which can negatively impact the value of stocks, including TouchTech stock.)
c. An increase in the perceived profitability of TouchTech will likely cause the value of Dmitri's shares to rise. (This statement is correct. If TouchTech's profitability increases, it can have a positive impact on the value of its stock, potentially causing the value of Dmitri's shares to rise.)
Regarding the second part of the question:
A bond issued by a government that is engaged in a civil war most likely pays a higher interest rate than a bond issued by the government of Japan. (This statement is generally correct. Governments in countries experiencing civil unrest or instability are considered to have higher default risk, so they need to offer higher interest rates to attract investors to their bonds. On the other hand, the government of Japan, which is considered to have a stable economy and low default risk, can offer lower interest rates on its bonds.)About IndustryIndustry is a field or economic activity related to the processing/manufacturing of raw materials or the manufacture of finished goods in factories using skills and labor and the use of tools in the field of processing agricultural products, and their distribution as the main activity.
Learn More About Industry at https://brainly.com/question/1082619
#SPJ11
Russia, Poland, Hungary, and other Eastern European nations have turned away from communism and toward economic systems governed by supply and demand rather than by central planning. O True O False
The statement "Russia, Poland, Hungary, and other Eastern European nations have turned away from communism and toward economic systems governed by supply and demand rather than by central planning" is true.
After the end of World War II, most of the countries of Eastern Europe were occupied by Soviet troops, and communist-led governments were put in place. These countries underwent rapid industrialization and economic development, with centrally planned economies and significant state control over industry and agriculture.
Russia, Poland, Hungary, and other Eastern European countries have since then abandoned communism and shifted toward economic systems that are governed by supply and demand rather than by central planning.
To know more about communism refer to:
https://brainly.com/question/30758854
#SPJ11
sometimes, advertising tactics can be used to promote public awareness of social issues. in class we viewed some canadian public service announcements that were not accepted to be aired by mainstream television. what was the topic of these psas?
It is also possible that the PSAs addressed lesser-known or niche issues that are often overlooked by mainstream media.
While they may not have been accepted for mainstream television, they can still serve a valuable purpose by being shared online or in alternative media channels to reach a specific target audience and stimulate dialogue around the topics they address.The topic of the Canadian public service announcements (PSAs) that were not accepted to be aired by mainstream television was likely a controversial or sensitive social issue. PSAs are typically created to raise public awareness about various topics, ranging from health and safety issues to environmental concerns or social injustices. However, due to their potential to provoke controversy or discomfort, some PSAs may face resistance from mainstream television networks.The specific topic of the PSAs you viewed in class could vary, as there are numerous social issues that can generate controversy or discomfort. Some common themes explored in PSAs include anti-discrimination campaigns, mental health awareness, substance abuse prevention, sexual assault prevention, climate change, and human rights.
These rejected PSAs often seek to challenge the status quo, provoke critical thinking, and spark conversations about important social issues.
for such more questions on valuable
https://brainly.com/question/27968241
#SPJ11
A group of Japanese investors is visiting your office. During a
meeting there is a long period of silence. What should you do?
Answer:
Stay quiet until the silence breaks
Explanation:
Anthony, Bridgette and Coleen entered into a partnership. They invest $80,000, $ 100,000 and $ 200,000 respectively. At the end of the first year, Bridgette withdraws $ 40,000, while at the end of the second year, Coleen withdraws $80,000. In what ratio will the profit be shared at the end of 3 years? Select one: a. 6:7:8 b. 6:4:7 c. 12:16:28 d. 12:11:26 e. 12:7-8
The ratio in which the profit willl be shared at the end of 3 years is c. 12:16:28.
How to solveAnthony invested $80,000, while Bridgette contributed $100,000 and Coleen invested $200,000.
The distribution of profits will be based on the product of the investors' capital and the duration of investment.
Anthony: 80,000 * 3 = 240,000
Bridgette: 100,000 * 1 + 60,000 * 2 = 160,000
Coleen: 200,000 * 2 = 400,000
Therefore, the profit will be shared in the ratio of 240,000:160,000:400,000, which is equal to 12:16:28.
Read more about profit here:
https://brainly.com/question/29785281
#SPJ4
Lewis Mumford, one of the prominent historians of technology, once wrote that from late the Neolithic Era (roughly 2000 BCE), "right down to our own day, two technologies have recurrently existed side by side: one authoritarian, the other democratic, the first system-centered, immensely powerful, but inherently unstable, the other man-centered, relatively weak, but resourceful and durable." Langdon Winner uses this as his starting point to discuss the politics of technology and argues that technologies affect the "relative distribution of power, authority, and privilege." In your post for this discussion, please respond to the following questions:
Do you agree or disagree and why? Please give specifics to backup your assertions.
Do you think that artifacts, or technologies, have politics and are some these necessarily democratic or totalitarian?
Can you give any specific examples similar to the ones used by Winner; i.e., the tomato harvester and the bridges built by Robert Moses.
The relationship between technology and politics is complex and multifaceted. While technologies themselves may not possess inherent political qualities, their design, implementation, and use can have significant political implications. The extent to which technologies are democratic or totalitarian depends on how they are deployed and the social contexts in which they operate.
1. Agreement or disagreement with Lewis Mumford and Langdon Winner:
The statement made by Lewis Mumford and further discussed by Langdon Winner suggests that technologies can have political implications and impact the distribution of power, authority, and privilege. This viewpoint emphasizes the relationship between technology and social structures. Whether one agrees or disagrees with this perspective depends on their interpretation of the role and influence of technology in society.
Those who agree may argue that technologies are not neutral but embedded within social, cultural, and economic contexts. They can shape and be shaped by power structures and can reinforce or challenge existing systems of authority and control. They may point to examples like the internet, which has the potential to democratize access to information and communication, but also raises concerns about surveillance and control.
Those who disagree may argue that technologies themselves are neutral tools, and it is the way they are developed, implemented, and regulated that determines their impact on power dynamics. They may emphasize that the political implications of technology arise from human choices and actions, rather than inherent qualities of the technologies themselves.
2. The politics of artifacts/technologies:
The concept that artifacts or technologies have politics suggests that they can embody certain values, ideologies, or power relations. The design, use, and distribution of technologies can influence social relations and the allocation of resources and benefits. Some technologies may facilitate democratic participation, empower individuals, or challenge existing hierarchies, while others may enable surveillance, control, or concentration of power.
It is important to note that the political nature of technologies is not inherent or fixed but emerges from their interaction with social contexts and human agency. Technologies can be appropriated, repurposed, or contested in different ways, leading to diverse outcomes and interpretations.
3. Specific examples:
Langdon Winner's examples of the tomato harvester and the bridges built by Robert Moses are often cited to illustrate the political dimensions of technology.
The tomato harvester exemplifies how the adoption of labor-saving technologies in agriculture can have both positive and negative consequences. While the technology increased productivity and reduced labor requirements, it also led to job displacement and socioeconomic changes in farming communities. The political implications of this technology relate to the distribution of power and resources among different stakeholders.
The bridges built by Robert Moses in New York City are often seen as symbolic of the power dynamics associated with urban planning and infrastructure development. Moses' approach favored the automobile-centric model, resulting in the displacement of communities, segregation, and unequal access to resources. This example highlights how the design and implementation of technological systems can shape social and political realities.
These examples demonstrate that the impact of technologies is shaped by political decisions, social contexts, and power dynamics. They illustrate how technologies can reinforce or challenge existing structures of authority and privilege.
To know more about power dynamics, refer to the link below:
https://brainly.com/question/20290780#
#SPJ11
Bentz Corporation bought and sold several securities during 2021. Listed below is a summary of the transactions: February 17 Purchased $102,000 of U.S. Treasury 6% bonds at par plus accrued interest of $1,000. The security is to be held for short-term profits. April 10 Purchased 500 shares of Gauges Inc. common stock at $140 per share. This security will be held for an unspecified period of time. Sold 100 shares of Gauges Inc. for $150 per share. August October 5 Sold half of the U.S. Treasury bonds for $51,500 plus accrued interest of $300. Required: Prepare the journal entries for the above transactions.
Here are the journal entries for Bentz Corporation’s transactions during 2021:February 17: Purchased $102,000 of U.S. Treasury 6% bonds at par plus accrued interest of $1,000.
The security is to be held for short-term profits.
Dr. U.S. Treasury Bonds$103,000
Cr. Cash$103,000
April 10: Purchased 500 shares of Gauges Inc. common stock at $140 per share.
This security will be held for an unspecified period of time.Dr. Gauges Inc. common stock$70,000
Cr. Cash$70,000
Sold 100 shares of Gauges Inc. for $150 per share.Dr. Cash$15,000
Cr. Gauges Inc. common stock$14,000
Cr. Gain on sale of stock$1,000
August 5: Sold half of the U.S. Treasury bonds for $51,500 plus accrued interest of $300.
Dr. Cash$51,800
Dr. Loss on sale of securities $200
Cr. U.S. Treasury Bonds $51,500
Gain on sale of stock is calculated as follows:
Purchase price of 100 shares = 100 shares × $140
= $14,000
Sale price of 100 shares = 100 shares × $150
= $15,000
Gain on sale of 100 shares = $15,000 – $14,000
= $1,000
Loss on sale of securities = Proceeds – Cost
= ($51,500 + $300) – (($102,000 + $1,000)/2)
= $52,000 – $51,000
= $200.
To know more about accrued visit :
brainly.com/question/30157582
#SPJ11
examine the freshdirect business model and list reasons for its competitive advantage using the porter's five forces model
Fresh Direct is an online grocery delivery service that sources food directly from manufacturers and farms and delivers them to customers' doors. Using Porter's Five Forces Model, we can analyze its business model and list the reasons for its competitive advantage.
Porter's Five Forces Model examines five competitive forces that shape a company's environment: the threat of new entrants, bargaining power of suppliers, bargaining power of buyers, threat of substitutes, and competitive rivalry. Here's how FreshDirect's business model fares in each of these forces:
1. Threat of New Entrants: FreshDirect faces a high barrier to entry due to its complex supply chain network and customer base. It has established relationships with suppliers and customers that would be hard to replicate.
2. Bargaining Power of Suppliers: FreshDirect has established partnerships with various suppliers. It purchases products directly from farmers and manufacturers, which allows it to offer better prices to customers while still generating revenue.
3. Bargaining Power of Buyers: FreshDirect's business model of sourcing food directly from suppliers allows it to offer competitive prices to customers. It also offers various promotions and discounts, which increases its bargaining power with customers.
4. Threat of Substitutes: While there are substitutes like traditional grocery stores and other online grocery delivery services, FreshDirect's unique business model of sourcing food directly from suppliers is hard to replicate, which gives it a competitive advantage.
5. Competitive Rivalry: FreshDirect faces competition from other online grocery delivery services like Amazon Fresh, Instacart, and Peapod. However, its unique business model and established supplier relationships make it stand out in the market.
In conclusion, FreshDirect's business model has a competitive advantage due to its established supplier relationships, low bargaining power of buyers, and the uniqueness of its business model. These factors help FreshDirect overcome some of the challenges posed by Porter's Five Forces Model.
To know more about customers visit:
https://brainly.com/question/31192428
#SPJ11
You were tasked to evaluate an expansion project and you collected the following information: Initial investment is $1.2m. Your annual EBIT is going to be $500,000, which is net of depreciation of $150,000 and before tax, whereby your corporate tax rate is 21%. At the project start, you need to build up net working capital to a level $100,000, and at project end, in 3 years, you will release that net working capital again and you are expected to recover the full $100,000. There are no other salvage value considerations for this project. Assuming a risk-adjusted discount rate of 10%, the net present value of this project equals…
Select one:
a.1,155,669
b.-144,331
c.130,466
d.-44,331
The project should be rejected. Therefore, the correct option is letter b. -144,331.
Evaluation of the expansion project using net present value (NPV) method The net present value (NPV) method of evaluating an expansion project compares the present value of future cash flows generated by the project to the initial investment cost. To arrive at a net present value, the initial investment cost is subtracted from the present value of future cash flows.
A positive net present value indicates that the project is expected to generate sufficient returns to cover the cost of the initial investment and meet the company's required rate of return. While a negative net present value indicates that the project is not expected to be profitable and should be rejected.
Therefore, to calculate the net present value, the following steps are carried out; Calculate the present value of cash inflows from the project Calculate the present value of cash outflows associated with the project Subtract the present value of cash outflows from the present value of cash inflows to determine the net present value (NPV) of the project Now let's apply the steps to the scenario given in the question above.
Present value of cash inflows from the project The annual earnings before interest and taxes (EBIT) for the project is $500,000, which is net of depreciation of $150,000 and before tax. Since depreciation is a non-cash expense, it is added back to the EBIT in order to arrive at the cash inflow. This can be calculated as follows: EBITDA = EBIT + Depreciation = $500,000 + $150,000 = $650,000To calculate the cash inflow, we need to subtract the tax rate from the EBITDA and then discount it to the present value using the risk-adjusted discount rate of 10%.Cash inflow = (EBITDA - Tax) / (1 + r)ⁿwhere r is the risk-adjusted discount rate and n is the number of years into the future. The tax rate is 21%, and n is 3 years.
Cash inflow = ($650,000 - 0.21*$650,000) / (1 + 0.1)³= $444,881.24 Present value of cash outflows from the project The initial investment cost for the project is $1.2m. At the project start, net working capital needs to be built up to a level of $100,000, which is part of the initial investment cost. At project end, in 3 years, the net working capital will be released, and the company is expected to recover the full $100,000. Therefore, the only cash outflow from the project is the initial investment cost.
This can be discounted to the present value using the risk-adjusted discount rate of 10%.Present value of cash outflows = Initial investment cost / (1 + r)ⁿ= $1.2m / (1 + 0.1)³= $828,620.69Net present value of the project The net present value of the project is calculated as follows: NPV = Present value of cash inflows - Present value of cash outflows= $444,881.24 - $828,620.69= -$383,739.45 Since the net present value is negative, it indicates that the project is not expected to generate sufficient returns to cover the cost of the initial investment and meet the company's required rate of return. Therefore, the project should be rejected. Therefore, the correct option is letter b. -144,331.
For more such questions on cash outflow
https://brainly.com/question/735261
#SPJ11
Which of the following is true of Islamic countries?
A. Their cultures are more homogeneous than that of Western countries.
B. A clear separation of religion and state exists in these countries.
C. Religion is the basis for many legal, as well as ethical, standards in these countries.
D. Trade and commerce with Western countries is usually prohibited in these countries.
Religion is the basis for many legal, as well as ethical, standards in these countries is true of Islamic countries. The correct option is C.
Islamic nations are frequently distinguished by Islam's influence on various facets of society, including the law and morality. These nations legal systems and social norms and practices are significantly influenced by Islamic teachings and principles. Many Islamic nations legal systems are based on Islamic law also known as Sharia which is derived from religious texts.
It is important to keep in mind that different Islamic nations may have different cultural and political traditions, so generalizations may not always hold true. While some Islamic nations might have a more uniform culture others might have a more varied culture. The degree of separation between state and religion can also vary from those with a definite separation to those where religion plays a more significant role in governance. The correct option is C.
Learn more about Religion at:
brainly.com/question/30228180
#SPJ4
Gamma Petroleum made the following transactions, all relating to one lease: a. On March 10, 2017, Gamma Petroleum paid delinquent property taxes of $4,000 on an undeveloped lease. Assume that these taxes are recoverable out of future delay rental or royalty payments. Give the entry to record payment. b. On February 15, 2018, a delay rental payment of $1,000 is due. Determine the amount of cash actually paid and give the entry to record payment. c. On July 21, 2018, Gamma Petroleum decided to surrender the lease. Give the entry to record abandonment with respect to the delinquent property taxes. Ignore acquisition costs of the property. d. Assume instead that the $4,000 payment of delinquent taxes was not recoverable and was made at the time Gamma Petroleum was acquiring the lease. Give the entry to record the payment. e. Assume instead that the $4,000 payment was not recoverable and was made by Gamma Petroleum six months after acquiring the lease in order to protect Gamma's investment.
REQUIRED: Give the entry to record the payments.
On March 10, 2017, the payment made by Gamma Petroleum to pay the delinquent property taxes of $4,000 on an undeveloped lease can be recorded with the following journal entry
Dr. Property tax expense - $4,000
Cr. Cash - $4,000b.
On February 15, 2018, Gamma Petroleum owes a delay rental payment of $1,000.
The entry to record payment is:
Dr. Lease expense - $1,000
Cr. Cash - $1,000c.
On July 21, 2018, Gamma Petroleum has decided to abandon the lease and abandon the delinquent property taxes.
To record the abandonment with respect to the delinquent property taxes, the following entry will be made:
Dr. Property tax expense - $4,000
Cr. Lease liability - $4,000
In this case, the $4,000 payment of delinquent taxes is not recoverable and was made at the time Gamma Petroleum acquired the lease. To record the payment, the following entry will be made:
Dr. Property tax expense - $4,000
Cr. Cash - $4,000e.
If the $4,000 payment was not recoverable and was made by Gamma Petroleum six months after acquiring the lease to protect the company's investment, the following entry will be made:
Dr. Property tax expense - $4,000
Cr. Cash - $4,000
Note: In all entries above, I have assumed that no acquisition costs have been incurred by Gamma Petroleum for acquiring the lease.
To know more about property visit :
brainly.com/question/30757120
#SPJ11
Utilitarianism means compelling a CEO to support actions that produced the greatest good for the organization.
a. true
b. false
b. false Utilitarianism is an ethical theory that focuses on producing the greatest overall happiness or well-being for the greatest number of people.
It does not specifically compel a CEO to support actions that solely benefit the organization. Instead, utilitarianism considers the consequences of actions on all stakeholders involved, including employees, customers, and the wider community. The aim is to maximize overall happiness, not just organizational success. Utilitarianism encourages decision-making that considers the broader impact and promotes the greatest good for all, rather than prioritizing the interests of a single entity or organization.
Learn more about CEO here:
https://brainly.com/question/30163830
#SPJ11
An electronics company uses the activity-based costing system to ascertain the cost per unit of its tablets. The cost accountant has identified the following three (3) activities and related cost drivers for manufacturing overhead costs. Activity Cost Driver Materials and Handling Number of Materials moves Engineering Engineering change notices Power Kilowatt hours Three (3) types of tablets produced: Tab A35, Gen X20 and Zen G50. The following information concerns each product for the month of June 2019: Tab A35 Gen X20 Zen G50 Direct materials cost $750,000.00 $1,000,000.00 $1,750,000.00 Direct labour cost $390,000.00 $ 310,000.00 $ 280,000.00 Materials moves 1,250.00 1,000.00 750.00 Direct labour hours 1,250.00 250.00 1,000.00 Kilowatt hours 25,000.00 15,000.00 10,000.00 Engineering change notices 275.00 200.00 150.00 Units produced and sold 2,500.00 2,000.00 1,000.00 Overhead manufacturing costs for the month were: Materials Handing $ 900,000.00 Engineering $ 500,000.00 Power $ 920,000.00 Total overhead costs $ 2,320,000.00 Required: a. Calculate the total cost allocated to each product and the cost per unit using the activity-based costing system. (12 marks) b. Assuming that the company used the traditional system and uses a labour hour rate; determine the total cost and the cost per unit allocated to each product. (5 marks) c. In which of the two systems above do you have more confidence? Explain your answer. (3 marks)
a) The total cost allocated to each product and the cost per unit using the activity-based costing system are given in the table below: Products Tab A 35 Gen X 20 Zen G 50 Direct materials cost $750,000.00 $1,000,000.00 $1,750,000.00 Direct labor cost $390,000.00 $310,000.00 $280,000.00 Material moves $187,500.00 $100,000.00 $75,000.00 (Materials moves per unit x cost driver rate)
Direct labor hours $292,500.00 $58,500.00 $234,000.00 (DLH per unit x cost driver rate) Power $460,000.00 $276,000.00 $184,000.00 (Power per unit x cost driver rate) Engineering $137,500.00 $100,000.00 $75,000.00 (ECN per unit x cost driver rate)
Total cost allocated $2,217,500.00 $1,844,500.00 $2,518,000.00 Cost per unit $887.00 $922.25 $2,518.00
Calculation of the cost driver rate for the Material and handling is as follows;
Material and Handling = Total material handling cost / Total Material moves = $900,000/3000 = $300
Materials moves cost per unit for Tab A 35 = 1250 * 300 = $375,000
Materials moves cost per unit for Gen X 20 = 1000 * 300 = $300,000
Materials moves cost per unit for Zen G 50 = 750 * 300 = $225,000
Calculation of the cost driver rate for the Engineering cost is as follows;
Engineering cost = Total Engineering cost / Total Engineering change notices (ECN)
Engineering cost per unit for Tab A 35 = 275 * 1,500 = $412,500
Engineering cost per unit for Gen X 20 = 200 * 1,500 = $300,000
Engineering cost per unit for Zen G 50 = 150 * 1,500 = $225,000
Calculation of the cost driver rate for the Power cost is as follows;
Power cost = Total Power cost / Total Kilowatt hours
Power cost per unit for Tab A 35 = 25,000 * 23.2 = $580,000
Power cost per unit for Gen X 20 = 15,000 * 23.2 = $348,000
Power cost per unit for Zen G 50 = 10,000 * 23.2 = $232,000
b) The cost allocated to each product and the cost per unit using the traditional system are given in the table below:
Product Tab A 35 Gen X 20 Zen G 50 Direct materials cost $750,000.00 $1,000,000.00 $1,750,000.00
Direct labor cost $390,000.00 $310,000.00 $280,000.00
Direct labor hours $292,500.00 $58,500.00 $234,000.00 (DLH per unit x labor rate)
Overhead costs $780,000.00 $624,000.00 $546,000.00 (Overhead rate per DLH x DLH per unit)
Total cost allocated $2,212,500.00 $1,992,500.00 $2,810,000.00 Cost per unit $885.00 $996.25 $2,810.00
c) In the activity-based costing system, more cost pools are created than the traditional system. The cost is allocated based on activities and not on one cost driver. Thus, the activity-based costing system is more reliable than the traditional system.
For more question on product
https://brainly.com/question/25922327
#SPJ8
FILL THE BLANK. "number 19
STOCK PRICE IN 3 YEARS........... 19) Z Space, Incorporated, is a new company and currently has negative earnings. The company's sales are $1.6 million and there are 122,000 shares outstanding. If the"
The stock price in 3 years is uncertain and cannot be determined based on the given information.
Can the stock price in 3 years be determined with the given information?why the stock price in 3 years cannot be determined with the given information.
The stock price in 3 years for Z Space, Incorporated cannot be determined based solely on the provided information. The fact that the company currently has negative earnings and the sales and number of shares outstanding are given does not provide enough data to estimate the future stock price accurately.
Determining the stock price involves considering various factors such as the company's financial performance, profitability, market conditions, industry trends, and investor sentiment. While the sales and number of shares outstanding are relevant pieces of information, they alone do not provide a complete picture of the company's financial health or its future prospects.
To estimate the stock price in 3 years, one would need additional details such as the company's earnings growth rate, dividend policy, capital structure, competitive position, and market outlook. These factors play a crucial role in determining the value and potential growth of a company's stock.
Therefore, without more comprehensive information, it is not possible to accurately predict the stock price of Z Space, Incorporated in 3 years.
Learn more about stock price
brainly.com/question/18366763
#SPJ11
Question Seth and Sara Moore are married taxpayers with a 35% marginal income tax rate. During the current year, they earned $10,000 interest on a bond investment. Seth and Sara have five minor children. Seth and Sara transfer the bond investment into a trust so that each child is taxed on $2,000 interest income as a beneficiary.
1. What was the yearly tax on the interest prior to the transfer?
If Seth and Sara Moore are married taxpayers with a 35% marginal income tax rate, the yearly tax on the interest prior to the transfer was $3,500.
Prior to the transfer of the bond investment into the trust, Seth and Sara Moore earned $10,000 in interest income. Since they are married taxpayers with a marginal income tax rate of 35%, their tax liability on this interest income can be calculated by multiplying the interest income by the tax rate:
Tax on Interest = Interest Income * Tax Rate
Tax on Interest = $10,000 * 0.35
Tax on Interest = $3,500
The tax liability is determined based on the interest income and the applicable tax rate. In this case, Seth and Sara's marginal tax rate is 35%, so they would owe 35% of their interest income as taxes.
Transferring the bond investment into the trust and allocating $2,000 interest income to each child is a separate tax planning strategy, and the tax implications of the trust and the children's tax liabilities would need to be considered separately.
To learn more about interest click on,
https://brainly.com/question/30217717
#SPJ4
Use the following information for the question(s) below. Market Value Balance Sheet and Cost of Capital for the firm Econtainer Inc. Assets Liabilities Cost of Capital Cash 650 Debt 1050 Debt 3% Other Assets 1200 Equity 800 Equity 15% Corporate Tax: TC 50% The firm has a new project available. New project Free Cash Flows: Year 0 1 Free Cash Flows($445) $552.5 Assume that the new project is of average risk for the firm and that the firm wants to hold constant its D/E ratio. (a) What is the unlevered cost of capital? What is the (post-tax) weighted average cost of capital? [10 marks] [SHOW YOUR WORKING] (b) Should the firm do the project? (Yes/No). How much firm increases in value thanks to the new project? [10 marks] [SHOW YOUR WORKING] (c) What is the debt capacity for the new project in year 0? [10 marks] [SHOW YOUR WORKING]
The debt capacity for the new project in year 0 is $1050 , WACC is 8.01% and Increase in value is $53.5
Unlevered cost of capital is a financial metric that shows the required rate of return of a company without taking into account its financial structure.
Unlevered cost of capital is used to evaluate an investment or a new project.
To calculate the unlevered cost of capital (UCC), we can use the following formula:
UCC = (Cost of equity x Equity / (Equity + Debt)) + (Cost of debt x (1 - TC) x Debt / (Equity + Debt))
Where, Cost of equity = Earnings per share / Current market value per share
Cost of debt = Interest expense / Debt
Equity = Market value of equity
Debt = Market value of debt
TC = Corporate tax rate
Given, Cost of equity = 15%
Equity = 800
Debt = 1050
Cost of debt = 3%
Corporate Tax (TC) = 50%
UCC = (0.15 x 800 / (800 + 1050)) + (0.03 x (1 - 0.5) x 1050 / (800 + 1050))
UCC = 9.74%
Post-tax weighted average cost of capital is a financial metric that takes into account a company's debt and equity to determine the average cost of capital after taxes.
To calculate the post-tax weighted average cost of capital (WACC), we can use the following formula:
WACC = (E / (E + D)) × Re + (D / (E + D)) × Rd × (1 - TC)
Where,E = Equity
D = Debt
Re = Cost of equity
Rd = Cost of debt
TC = Corporate tax rate
Given,E = 800D = 1050
Re = 15%
Rd = 3%
TC = 50%
WACC = (800 / (800 + 1050)) × 15% + (1050 / (800 + 1050)) × 3% × (1 - 0.5)
WACC = 8.01%
The value of a project can be determined by using the present value of the expected future cash flows from the project.
The formula to calculate the present value of cash flows is as follows:
Present value of cash flows = Cash flow / (1 + r)t
Where, r = Discount rate (in decimal)
Cash flow = Cash inflow - Cash outflow
Given,Year 0
Free Cash Flow = ($445) + $552.5
= $107.5
Discount Rate (r) = 8.01%
Year 1 Free Cash Flow = $552.5
PV of cash flows = -107.5 / (1 + 0.0801)0 + 552.5 / (1 + 0.0801)1
PV of cash flows = $498.5
The present value of cash inflows is greater than the present value of cash outflows. Hence the firm should do the project. The increase in value can be calculated as follows:
Increase in value = Present value of cash inflows - Present value of cash outflows
Increase in value = $498.5 - $445
Increase in value = $53.5
To calculate the debt capacity for the new project in year 0, we can use the following formula:
Debt Capacity = Total assets - Equity
Given,Total Assets = $650 + $1200
= $1850
Equity = $800
Debt capacity = $1850 - $800
Debt capacity = $1050
To know more about WACC visit :
brainly.com/question/17215817
#SPJ11
Which of the following is likely to lead to an increase in inflation? O A. An increase in taxes. O B. Monetary and credit policies that reduce private consumption. OC. More efficient public activities. O D. An increase in money-financed spending by government. OE. None of the above.
Option (D) is the right choice. An increase in money-financed spending by the government .Inflation is the consistent and persistent rise in the general price level over time. The rate at which prices are increasing is used to describe inflation.
To describe the situation in which prices are declining over time, we use the term deflation. Inflation is measured as a percentage increase in the overall price level.The central bank or the government can stimulate economic growth by expanding the money supply and lowering interest rates.
Because of the link between the amount of money in circulation and the general price level, this policy can result in higher inflation. An increase in money-financed spending by the government can lead to inflationary pressure. How can inflation be reduced The government must take some measures to reduce inflationary pressure. Some measures are given below :Increase in taxes Reduce the money supply Increase the interest rates Improve the efficiency of public activities These measures can lead to the reduction of inflation.
To learn more about inflation
brainly.com/question/28136474
#SPJ11
Suppose the Chinese subsidiary of an MNC uses capital structure that differs substantially from the MNC's optimal capital structure. Provide justification for the Chinese subsidiary to be financed using local debt. Would the differing capital structure decisions prevent the MNC from enhancing its shareholders' wealth?
The Chinese subsidiary of an MNC may choose to finance itself with local debt if its optimal capital structure differs significantly from that of the MNC. This could be due to a variety of reasons, including differences in regulations, currency exchange rates, and local market conditions.
Local debt financing may help the subsidiary reduce its cost of capital and optimize its capital structure, resulting in better returns for its shareholders. However, the use of differing capital structure decisions does not necessarily prevent the MNC from enhancing its shareholders' wealth. The MNC can still benefit from the subsidiary's operations by receiving dividends and capital gains from its investment.
In conclusion, the Chinese subsidiary of an MNC may use local debt to finance itself if it differs significantly from the MNC's optimal capital structure. This can be justified by local market conditions and regulations.
Learn more about Chinese subsidiary https://brainly.com/question/31518878
#SPJ11
Question 1: (Cost Types, Cost behaviour, Pricing) (20 Marks)
You are the manager of Bellow Manufacturers (Pty) Ltd. The company operates as a jobbing shop and manufactures Bellows for the Petroleum industry. The company operates a Just in Time inventory system with only minimum stock levels of consumable stock being maintained. Material used in the manufacturing of a bellow consists mainly of Stainless Steel and Mild steel. Stainless steel is imported, and mild steel is locally available. The company outsource the draughtman’s function. The company does have its own machine shop, however certain machining tasks are being outsourced. Bellows are being graded depending on where they will be used in the petroleum plant. Heat and pressure are the main deciding factors. Although the company does have its own quality control department, depending on the grade of the Bellow, final quality needs to be signed off by an independent qualified engineer. The company has 18 Employees of which 10 is directly involved in the production of Bellows. Overtime is at time and a half and Sunday and Public Holidays at double time. Nonproduction staff consists of the general Manager, accountant, buyer, sales staff, and general administration staff. The company operates a consumable store. The storeman is also responsible for the receiving of all material on site. The company does have it own fleet of vehicles, but they are only being used for collection and delivery of light weight items. External transporters are being used for the collection of material and the final delivery of the bellows. The factory has its own 24-hour security guard. This function is being outsourced. Selling pricing is based on a gross profit percentage of 45%. The company calculates gross profit as follows: Gross profit = Selling price – production cost.
Recently, the company received a Request for Quote" RFQ, from customer. All the required specifications are listed, and the company needs to submit a quote. The company estimated the following costs to manufacture the bellow:
1. Draughtman to draught the drawings R 2500.
2. Stainless steel: import 25m2 (square meters) of stainless steel at a cost of R1,500 per m2 .
3. Import cost: The company uses an outside transporter to deliver the stainless steel to site. The cost of delivery is R1,000 per ton. (1 m2 = 100kg)
4. Mild Steel: purchase 35 m2mild steel at a cost of R150 per m2 . The supplier will deliver to site.
5. 100kg’s of welding wire (consumable stock) needed for the job. The total cost of the welding wire issued is R 900.
6. Total estimated production hours are 150 normal hours and 25 overtime hours. Included in the overtime hours are 9 hours to be worked on a public holiday. The average rate of wages is R60 per hour.
7. The job will require the final sign off from an independent engineer. The cost will be R5,000.
8. Outsourced machining: R 2,500.
9. The storeman monthly salary is R9,000 and the factory security is R 7,500.
10. The general manager’s salary is R20,000 per month.
11. Manufacturing overheads are being allocated based on the total number of manufacturing hours. The current allocation rate is R80 per hour.
12. The company receives a quote to the value of R 2,750 as delivery cost to the customer.
Required: 1. Calculate the estimated selling price of the Bellow. If you exclude any item, please provide the reason. Marks will be allocated to all the items. Use the following table in your workings. Show all your calculations as marks will be awarded for calculations.
Description Material R Labour R Manufacturing Overhead. R Total Cost
To calculate the estimated selling price of the bellow, we need to determine the cost of each item and sum them up. Based on the information provided, we can calculate the estimated selling price as follows:
Draughtsman: R 2,500
Stainless steel:
Import cost: 25m2 x R1,500/m2 = R 37,500
Import delivery cost: R 1,000 per ton (1 m2 = 100kg)
Weight of 25m2 of stainless steel = 25m2 x 100kg/m2 = 2,500kg
Delivery cost: (2,500kg / 1,000kg) x R 1,000 = R 2,500
Total stainless steel cost = R 37,500 + R 2,500 = R 40,000
Mild steel: R 150/m2 x 35m2 = R 5,250
Welding wire (consumable stock): R 900
Labour cost:
Normal hours: 150 hours x R 60/hour = R 9,000
Overtime hours: 25 hours x R 60/hour = R 1,500
Public holiday overtime: 9 hours x R 60/hour x 2 (double time) = R 1,080
Total labour cost = R 9,000 + R 1,500 + R 1,080 = R 11,580
Independent engineer cost: R 5,000
Outsourced machining: R 2,500
Storeman's salary: R 9,000
Factory security: R 7,500
General manager's salary: R 20,000
Manufacturing overhead:
Normal hours: 150 hours x R 80/hour = R 12,000
Overtime hours: 25 hours x R 80/hour = R 2,000
Public holiday overtime: 9 hours x R 80/hour = R 720
Total manufacturing overhead = R 12,000 + R 2,000 + R 720 = R 14,720
Delivery cost to the customer: R 2,750
Total Cost = Sum of all the above costs = R 2,500 + R 40,000 + R 5,250 + R 900 + R 11,580 + R 5,000 + R 2,500 + R 9,000 + R 7,500 + R 20,000 + R 14,720 + R 2,750
Estimated Selling Price = Total Cost / (1 - Gross Profit Percentage)
Gross Profit Percentage = 45% = 0.45
Estimated Selling Price = Total Cost / (1 - 0.45)
Learn more about industry here:
https://brainly.com/question/28384339
#SPJ4
A firm has a P/E ratio of 50 and a price-to-sales (P/Sales)
ratio of 5. What should be the profit margin?
a. 100%
b. 1%
c. 10%
d. 25%
The profit margin should be 1% for a firm with a P/E ratio of 50 and a price-to-sales (P/Sales) ratio of 5. So, the correct option is B.
The percentage of revenue that is turned into profit is represented by the profit margin, which serves as a gauge of a company's profitability. We must comprehend the connection between the P/E ratio, P/Sales ratio, and profit margin in order to calculate the profit margin in this case.
By dividing the share price by the earnings per share (EPS), the P/E ratio is determined. Considering that the P/E ratio in this instance is 50, it can be concluded that stockholders are prepared to pay 50 times the company's earnings per share.In contrast, the market capitalization is divided by the company's revenue to determine the P/Sales ratio. The P/Sales ratio in this instance is 5, indicating that investors are placing a 5 times the company's yearly revenue value on it.To find the profit margin, we will use the formula, then we will get:
Profit Margin = (Net Income / Revenue) * 100
We must assume based on the available data because we don't have the net income or revenue figures. Investors likely have high expectations for the company's possible future earnings given the high P/E and P/Sales ratios.Considering this, a profit margin of 1% seems reasonable. This indicates that for every dollar of revenue generated, the company can convert 1 cent into profit. It reflects a relatively low-profit margin, which suggests that the company may have higher operating costs or lower profit margins compared to its competitors.
For more questions on exchange rates
https://brainly.com/question/32233225
#SPJ11
A company limited by shares incorporated with two directors. One of them died of a heart attack during the pandemic of COVID19. Explain whether the company could continue to exist with the remaining director. Support your answer based on the Companies Act 2016.
The company limited by shares incorporated with two directors can continue to exist with the remaining director. This is in accordance with the Companies Act 2016, which states that a private company can operate with only one director.
Thus, the remaining director can continue to run the company without any legal impediment. However, the company must still follow the regulations and provisions outlined in the Companies Act 2016, including maintaining proper records and filing annual returns.
Under Section 122(1) of the Companies Act 2016, a private company must have at least one director, while a public company must have at least two directors. The death of one of the directors does not necessarily mean that the company must be dissolved or that the remaining director cannot continue to operate the business. As long as the company is properly registered and follows the regulations outlined in the Companies Act 2016, it can continue to operate with a single director. However, it is advisable to appoint a new director to ensure that the company has adequate leadership and management.
Know more about shares incorporated, here:
https://brainly.com/question/27410391
#SPJ11
Both sides of the quantity theory of money identity represent: Real GDP. Inflation Nominal GDP. The Money Supply.
The quantity theory of money identity asserts that the supply of money and the rate of inflation are proportional. It asserts that changes in the supply of money lead to proportionate changes in nominal GDP.
It's represented by the formula MV = PY, where M is the money supply, V is the velocity of money, P is the price level, and Y is the real GDP.
Both sides of the quantity theory of money identity are represented by nominal GDP. The left side of the formula MV is the money supply multiplied by the velocity of money.
The money supply is defined as the amount of currency in circulation plus deposits in bank accounts. Velocity of money, on the other hand, measures how many times a unit of currency is used to buy goods and services.
When multiplied together, this is known as the number of transactions occurring in the economy. The right side of the formula PY is nominal GDP, which represents the total value of goods and services produced in an economy at current market prices.
Real GDP represents the total value of goods and services produced in an economy, adjusted for inflation. The quantity theory of money identity maintains that changes in the money supply will result in a proportionate increase in the nominal GDP.
This concept is the fundamental basis of monetarism, which holds that controlling the money supply is critical in regulating inflation.
To know more about nominal GDP here
https://brainly.com/question/13105292
#SPJ11
Which of the following is NOT considered a software threat to security?
worms
spyware
trojan virus
file corruption
Viruses and trojans are common external security threats to organizations and often come in e-mail attachments.
File corruption s NOT considered a software threat to security. Debugging is the process of identifying and fixing defects in computer programmes, software, or systems. It is a crucial step in computer programming and software development.
Software threats are harmful programmes and bits of code that can harm your computer and steal your personal or financial data. Because of this, these harmful programmes are frequently referred to as malware (short for "malicious software").
Malware, social engineering, web application exploits, supply chain assaults, denial of service attacks, and man-in-the-middle attacks are the primary categories of cybersecurity threats that businesses today must deal with. An expression of intent to cause damage or loss to another person is known as a threat.
To learn more about software, click here.
https://brainly.com/question/32393976
#SPJ4
Project A and B are mutually exclusive. Project A has a 5 year life and project B has a 7 year life. The cost of capital for both projects is 10%. The NPV of project A is $13.72 million while the NPV of Project B is $20 million. What is the Equivalent Annual Annuity for Project B?
Main answer:The equivalent annual annuity (EAA) is the uniform annual cash flow that would produce the same net present value (NPV) as the existing investment. The calculation of EAA is quite easy, since it entails dividing the NPV by the present value factor of an annuity. NPV (Net present value) is the total sum of cash flows in the future and present reduced by the opportunity cost (cost of capital).
The cost of capital is used as the discount rate. The EAA of Project B is $3.07 million.Explanation:Given: NPV of Project A is $13.72 million and NPV of Project B is $20 million. The cost of capital for both projects is 10%. The life of project A is 5 years, and that of project B is 7 years.NPV = present value of cash inflows - present value of cash outflowsThe NPV of project A is given as:NPVA = $13.72 millionThe NPV of project B is given as:NPVB = $20 millionTo calculate the EAA of project B,
we can use the following formula:EAA = NPV / Present value factor of annuityEAA = NPV / [(1 - (1 + r)^-n) / r]where r = cost of capital, and n = life of the project.The present value factor of annuity can be calculated as:(1 - (1 + r)^-n) / rwhere r = 10%, and n = 7 yearsPresent value factor of annuity = (1 - (1 + 0.1)^-7) / 0.1 = 4.8689Using this, we can calculate the EAA of project B:EAA = $20 million / 4.8689 = $3.07 millionTherefore, the equivalent annual annuity for Project B is $3.07 million.
To know more about cash flows visit:
brainly.com/question/735261
#SPJ11