The inflation rates in the U.S. and France are expected to be 4% per annum and 7% per annum, respectively. If the current spot rate is $.1050, then the expected spot rate in three years is
A. .$.1150
B. $.1112
C. $.0964
D. $.0992

Answers

Answer 1

The expected spot rate in three years is $.0992.

The expected spot rate in three years is calculated using the Purchasing Power Parity (PPP) formula. This formula is expressed as:

Expected Spot Rate = Current Spot Rate x (1 + Inflation Rate of Home Country / 1 + Inflation Rate of Foreign Country)3

Therefore, for the given situation, the expected spot rate in three years is calculated as follows:

Expected Spot Rate = $.1050 x (1 + 4% / 1 + 7%)3

Expected Spot Rate = $.1050 x 0.964

Expected Spot Rate = $.0992

Hence, the correct answer is D. $.0992

For more questions like Spot rate click the link below:

https://brainly.com/question/15059630

#SPJ4


Related Questions

when a deposited check is drawn against another bank the collection of that check will ___ the reserves and the checkable deposits of the bank from which it draws
reduces

Answers

The collection of a deposited check reduces the reserve and checkable deposits of the bank from which it is drawn when it is drawn against another bank.

What is meant by deposit?

Money stored at a financial institution is called a deposit within side the global of finance. A deposit is a deal wherein cash is given to a person else to hold safe. A part of cash used as safety or collateral for the transport of an awesome also can be called a deposit.

A deposit encompasses exclusive meanings. One sort of deposit entails a switch of price range to some other celebration for safekeeping. Using this definition, deposit refers back to the cash an investor transfers right into a financial savings or bank account held at a financial institution or credit score union.

Often, someone needs to deposit a sure amount of cash a good way to open a brand new financial institution account, recognized at the least deposit. Interest is decided with the aid of using what form of account the cash is deposited into—now no longer all checking bills earn interest, at the same time as maximum financial savings bills and certificate of deposit do.

Most banks will take deposits within side the shape of cash, checks, cash orders, or cashier's checks. If you are the use of a take a look at to open an account, there can be a keeping duration at the same time as the brand new financial institution waits for the take a look at to clear.

To learn more about deposit refer to:

https://brainly.com/question/28861154

#SPJ4

Comprehension requirements for informed consent can be met by explaining the treatment plan, potential outcomes, and ______ .

Answers

This ought to be a skill with multiple components that can be broken down into individual steps. The prerequisites must be taught first if the student lacks those abilities.

How many times per month are you required to meet with your supervisor for RBT?

A minimum of 5% of each RBT's monthly hours spent providing applied behavior-analytic services must be under ongoing supervision. At least two monthly face-to-face, synchronous interactions with the supervisor must involve the supervisor observing the RBT providing services.

Which differential reinforcement strategy makes it possible to reward any behavior?

While this page focuses on DRA, differential reinforcement of other behaviors (DRO) is another type of differential reinforcement. With DRO, support is conveyed for all ways of behaving aside from the undesired way of behaving. As a result, DRO reinforces challenging behavior's absence or non-occurrence.

To learn more about behavior-analytic services here

https://brainly.com/question/29493274

#SPJ4

In the current year, Norris, an individual, has $50,000 of ordinary income, a Net Short Term Capital Loss (NSTCL) of $10,000 and a Net Long Term Capital Gain (NLTCG) of $2,800. From his capital gains and losses, Norris reports: A) an offset against ordinary income of $10,000
B) an offset against ordinary income of $3,000 and a NSTCL carryforward of $7,000.
C) an offset against ordinary income of $2,800 and a NSTCL carryforward of $7,200.
D) an offset against ordinary income of $3,000 and a NSTCL carryforward of $7,200.
E) an offset against ordinary income of $3,000 and a NSTCL carryforward of $4,200.

Answers

From his capital gains and losses, Norris reports:

an offset against ordinary income of $3,000 and a NSTCL carry forward of $4,200.

Capital is a vast term that can describe something that confers cost or advantage to its owners, including a manufacturing unit and its machinery, highbrow property like patents, or the economic belongings of a commercial enterprise or an individual.

A benefit is an increase inside the price of an asset even as a loss refers to the lack of value. each profits and losses can be divided into found out and unrealized. buyers understand a gain or a loss when they promote an asset, except the found out charge suits precisely what they paid.

Learn more about capital here:-

brainly.com/question/23631000

#SPJ4

Suppose that in march the government undertakes the type of policy that is necessary to bring the economy back to the natural level of output in the preceding scenario. in july 2023, consumer confidence increases, leading to an increase in consumer spending. Because of the______________associated with implementing monetary and fiscal policy, the impact of the policymakers' stabilization policy will likely______________________once the effects of the policy are fully realized.
LAGS
Push the economy below the natural level of output

Answers

The LAGS associated with implementing monetary and fiscal policy, the impact of the policymakers' stabilization policy will likely Push the economy below the natural level of output  once the effects of the policy are fully realized.

What do you know about stabilization policy ?

A stabilisation policy is a set of measures implemented to stabilise a financial system or an economy. The term can refer to policies in two contexts: business cycle stabilisation and credit cycle stabilisation. It is a form of discretionary policy in either case. The term "stabilisation" can refer to the process of correcting the normal behaviour of the business cycle, thereby improving economic stability. In this context, the term generally refers to demand management through monetary and fiscal policy to reduce normal fluctuations and output, also known as "keeping the economy on track."

In these circumstances, policy changes are typically countercyclical, compensating for expected changes in employment and output to increase short- and medium-run welfare.

So, The required answers are LAGS and Push the economy below the natural level of output.

To learn more about Stabilization Policy:

https://brainly.com/question/29529505

#SPJ4

central to agency theory is the relationship between two primary players, the principals (stockholders) and agents (management). True or False ?

Answers

i think the correct answer is true

christian pilgrimages influenced the development of church architecture for all of the following reasons except:

Answers

Except for the fact that pilgrims had to pay a fee to enter the churches, pilgrimage boosted the economic growth for each of the reasons listed below. endless doom.

Which pilgrimage is the world's oldest?

Mount Kailash near Tibet is regarded to be the world's oldest place of pilgrimage. A 52-kilometer trip around the mountain has been thought to bring good fortune for more than 15,000 years. This pilgrimage is often completed on foot in about a month.

What does "pilgrimage" mean exactly?

In quest of new or enlarged meaning about oneself, others, environment, or a higher good through the experience, a person embarks on a pilgrimage, frequently into an uncharted or foreign location. It may result in a private The pilgrim then resumes their regular life after their makeover.

To know more about pilgrimages visit :

https://brainly.com/question/13176282

#SPJ4

a decrease in the mortgage rate will cause which of the folowing to happen in the loanable funds market

Answers

A decrease in the mortgage rate will cause Increase in demand in the loanable funds market.

What do mortgage rates actually mean?

One of the fees associated with borrowing money from a lender is the mortgage rate, sometimes known as the mortgage interest rate or rate of interest. The interest is charged аѕ part of our monthly mortgage payment, not as a one-time payment to your mortgage lender.

What does having a high mortgage rate mean?

The cost of a property has increased due to higher mortgage rates, but there is less competition because of the decline in demand. Due to this, buyers can purchase a home less than the asking price, or sellers may pay closing costs or mortgage points to help lower the high interest rates a little.

To know more about mortgage rate visit :

https://brainly.com/question/14950723

#SPJ4

The process of buying an underpriced security and selling an equivalent overpriced security until the prices converge is known as arbitrage.a. Trueb. False

Answers

The process of buying an underpriced security and selling an equivalent overpriced security until the prices converge is known as arbitrage. This statement is true.

What Is Arbitrage?

The arbitrage approach, used in foreign exchange trading, allows investors to lock in profits by simultaneously buying and selling the same security, good, or currency on two different marketplaces. By using this strategy, traders can profit from the disparities in pricing for the same asset across the two different regions that are represented on each side of the trade.

Arbitrage is the practice of purchasing an underpriced security and selling an equivalently-priced asset until the prices converge. Trading on illegal insider knowledge may result in abnormal profits even if the efficient market theory is accurate in a semi-strong sense.

To know more about Arbitrage, refer:

https://brainly.com/question/16178885

#SPJ4

Bob connects to his bank's SSL-protected website. The browser reports that the site's domain name does not match the domain name in the SSL certificate. Which of the following may be true? Select all that apply.
The bank might use two or more domain names on its site, and Bob used a URL that doesn't match the name in the certificate.
A hacker may have set up a site whose domain name masquerades as the bank; the certificate contains the name of a different site the hacker owns.

Answers

In the above case

The bank might use two or more domain names on its site, and Bob used a URL that doesn't match the name in the certificate.A hacker may have set up a site whose domain name masquerades as the bank; the certificate contains the name of a different site the hacker owns.

Hence, both of these apply.

One of SSL's primary functions is to encrypt data, which shields you from hackers and data skimmers. Data that has been encrypted can only be decrypted by an authorized person, such as a server or browser. Credit card transactions, IDs, passwords, etc. mostly use this.

An SSL certificate is required for a website in order to protect user information, confirm the site's ownership, stop hackers from building a fake version of the site, and win over users. SSL/TLS encryption is made possible by the pairing of public and private keys that SSL certificates make possible.

To know more about SSL here

https://brainly.com/question/10450768

#SPJ4

Open market operations are 1) the buying and selling of existing U.S, government securities in open private markets by the Fed. 2) the actions of the Fed that are used to finance deficit financing by the government. 3) the selling of new government securities in order to increase the money supply 4) the buying of existing corporate securities in secondary markets by private citizens, banks and the Fed.

Answers

The Fed engages in open market operations when it purchases and sells current U.S. government securities on public and private exchanges.

What is the term for the Fed's purchases and sales of securities?

In order to regulate interest rates and the money supply, the Federal Reserve buys and sells government assets. Open market activities are what this activity is known as.

How does the Fed alter the amount of money in circulation through open market operations, often known as the buying and selling of government securities?

Major Takeaways. Interest rates are manipulated by the Federal Reserve using open-market operations. The Fed influences demand by purchasing and selling assets to alter supply, which in turn affects demand and causes rates to rise or fall. One method by which the Fed affects the economy is through open-market activities.

To know more about Open market operations visit :-

https://brainly.com/question/28290429

#SPJ4

of the following types of government spending, which are discretionary and which are mandatory components of a government budget?a. A new interstate highwayb. Medicarec. International aid

Answers

(a) New interstate highway is an example discretionary component of budget.

(b) Medicare & international aid is an example of mandatory component of budget.

What are discretionary and mandatory component of budget?

Discretionary component: Spending that is subject to the appropriations process, in which Congress sets a new funding level each fiscal year (which starts on October 1st), is referred to as discretionary spending.

Roughly one-third, or roughly $1 trillion, of the federal government's activities are funded through appropriations legislation.

Mandatory component: All spending that does not occur through appropriations legislation is referred to as mandatory spending. Spending that is necessary includes contributions to entitlement systems like Social Security and Medicare as well as required interest payments on the national debt. About two-thirds of all federal spending is accounted for through mandatory spending. Mandatory expenditure typically, but not always, is ongoing; it happens every year absent a change in the underlying law that supplies the cash.

(a) Spending that is discretionary is spending that must go via the appropriations process.

The construction of a new interstate is an optional component.Mandatory component of MedicareThe optional component of international aid.

Spending that is mandated by laws other than yearly appropriation acts is referred to as mandatory spending.

Medicare was introduced in 1965.

(b) Mandatory expenditures

Explanation-Due to new entitlements like Medicare and Medicaid, the earn income tax credits, and the child tax credit, the United States spends up to 61% of its annual budget.

Learn more about discretionary and mandatory components here:

https://brainly.com/question/12602941

#SPJ4

_____ protects you against financial loss when your car damages other vehicles, street signs, or buildings. A. Bodily injury liability
B. Comprehensive physical damage
C. Property damage liability
D. No-fault insurance
E. Assigned risk coverage

Answers

Option A is correct. When you choose for collision damage auto insurance plan coverage, the fee of repairs to your car that has been broken is reimbursed.

To determine the cost of collision coverage, its age and Insured Declared Value are taken into account to arrive at the premium.

What is first and 0.33 birthday party insurance?

A third celebration in an insurance coverage can be anyone. To specify, it can be any man or woman or property that receives affected by the first party's vehicle. Coverage. First-party insurance plan covers the damages or losses induced to the policyholder or his/her vehicle, alongside with third-party liabilities.

Physical damage insurance covers damage to the insured auto in opposition to many conditions like theft, fire, accidents, calamities, etc. and the collision cover gives insurance against injury due to the auto colliding with some other object. This is the fundamental difference between physical harm cowl and collision cover.

Learn more about collision insurance here:

https://brainly.com/question/27123933#SPJ4

Independent wholesalers that buy goods from manufacturers on their own account and then resell them to other businesses are: A. brokers B. agents C. horizontal marketing systems D. merchant wholesalers E. vertical marketing systems

Answers

Independent wholesalers that buy goods from manufacturers on their own account and then resell them to other businesses are Merchant wholesalers.

A merchant wholesaler is a type of business that is involved in the selling of goods to other businesses, rather than to individual consumers. These businesses typically buy goods in large quantities from manufacturers or other types of suppliers and then resell them to smaller businesses or retail outlets.

A Merchant wholesalers is an independent wholesaler who can be either generalists, who sell a wide range of different products, or specialists, who focus on a particular type of product or market.

Hence, the correct option is "D".

To know more about wholesalers, click here.

https://brainly.com/question/28256108

#SPJ4

A fall in the price of a good causes producers to reduce the quantity of the good they are willing to produce. This fact illustrates: O Law of demand O Law of supply Change in Supply O Change in Demand.

Answers

Answer: Change in demand

Explanation:

John Gardner is the city planner in a medium-sized city. The city is considering proposal to award an exclusive contract to Clear Vision, Inc., a cable television carrier. Mr. Gardner has discovered that an economic planner hired a year before has estimated the inverse demand, marginal revenue, total cost, and marginal functions given below:
P = 28 – 0.0008Q
MR = 28 – 0.0016Q
C = 120,000 + 0.0012Q
MC = 0.0012Q
Conditions change very slowly in the community so that Mr. Gardner considers the cost and demand functions to be reasonably valid for present conditions. Mr. Gardner knows relatively little economics and has hired you to answer the questions listed below:
a) What price and quantity would be expected if Clear Vision, Inc. is allowed to operate completely unregulated?
b) Mr. Gardner has asked you to recommend a price and quantity that would be socially efficient. Recommend a price and quantity to Mr. Gardner using economic theory to justify your answer.
c) Compare the economic efficiency implications of sub-questions (a) and (b) above. Calculate the CS, PS, and DWL in both the unregulated scenario and regulated scenario using your recommended price and quantity in (b).

Answers

If Clear Vision, Inc. is permitted to operate in an entirely deregulated environment, price is $20, and Q = 10,000 would be anticipated.

What three elements determine the price?

The primary factors that influence the pricing are: Product Price. Demand and Utility. the degree of market competition. The interaction of a market's supply and demand factors determines price. The desire of consumers and producers to engage in purchasing and selling is represented by demand and supply. When buyers and sellers can agree on a price, a product exchange takes place. According to the theory of price in microeconomics, the connection between producer supply and consumer demand at any given instant determines the price of a certain commodity or service. Prices ought to increase when demand outpaces supply and decrease when supply outpaces demand.

Price and quantity would be anticipated if Clear Vision, Inc. is given entire freedom to operate.

MR = MC

28- 0.0016Q = 0.0012Q

Q = 10,000

P = 28 - 0.0008Q is known.

P = 28 - 0.0008(10,000) = $20.

To know more about Price visit:

brainly.com/question/18117910

#SPJ4

Which sentence in the paragraph conveys the main idea of the letter?

I would like to apologize for the lost package. I understand your frustration. You are absolutely right to complain about it. We value and hope to keep your business. I assure you that this is an unusual incident. Please allow me to issue you a $500 prepaid gift card to compensate for the lost order.

A.
I would like to apologize for the lost package.
B.
Please allow me to issue you a $500 prepaid gift card to compensate for the lost order.
C.
I assure you that this is an unusual incident.
D.
You are absolutely right to complain about it.

Answers

The sentence in the paragraph that conveys the main idea of the letter is A. I would like to apologize for the lost package.

What is the main idea ?

The main idea of a paragraph can be described as the  primary point or concept that the author wants to communicate to the readers about the topic.

From the text we can see that the writer syays that I would like to apologize for the lost package and  I understand your frustration. You are absolutely right to complain about it which implies that he was apologizing.

Therefore, option A is correct.

Learn more about idea at:

https://brainly.com/question/24572492

#SPJ1

the purpose of the statue of frauds is to ensure that, for certain types of contracts, there is reliable evidence of the contracts and their terms.

Answers

The goal is to stop fraud and other wrongdoing.

What does the Statute of Frauds quizlet aim to accomplish?

The intention was to prevent anyone from falsely claiming that a contract covered by the act had been entered into based on fabricated oral testimony, as well as for judicial economy. CON: Enforcing a written agreement could nullify an oral one.

What does the law hope to achieve?

The act, which "covers all things confided to the authority of an agency or department," is seen as attempting to safeguard both the functioning and integrity of the government. Rogers v. United States, 466 U.S. 475, 479 (1984).

To know more about Statue

Visit:

https://brainly.com/question/7692374

#SPJ1

Accounting Equation
Jan Petri is the stockholder and operator of Galaxy LLC,
a motivational consulting business. At the end of its
accounting period, December 31, 20Y2, Galaxy has
assets of $552,000 and liabilities of $132,000. Using the
accounting equation, determine the following amounts:
a. Stockholders' equity as of December 31, 20Y2.
LA
X
b. Stockholders' equity as of December 31, 20Y3,
assuming that assets decreased by $105,000 and
liabilities decreased by $32,000 during 20Y3.
A
X

Answers

The Stockholders' equity as of December 31, 20Y2 is $420,000.

The Stockholders' equity as of December 31, 20Y3 is $347,000.

What is the Stockholders' equity as of December 31, 20Y2?

Stockholders' equity mean the assets remaining in a business once all liabilities have been settled. It is calculated by subtracting the total liabilities from total assets or by taking the sum of share capital and retained earnings, less treasury stock.

The General accounting equation is "Total assets = Total stockholder equity + Total liabilities"

The total stockholder equity is:

= Total assets - total liabilities

= $552,000 - $132,000

= $420,000

In case of decrease in assets and liabilities, the total stockholder equity is:

= Total assets - total liabilities

= ($552,000 - $105,000) - ($132,000 - $32,000)

= $347,000.

Read more about Stockholders' equity

brainly.com/question/17403665

#SPJ1

is the discipline of managing the flow of materials and transportation activities to ensure adequate customer service at reasonable cost.

Answers

Logistics is the discipline of managing the flow of materials and transportation activities to ensure adequate customer service at reasonable cost.

Give a brief account on logistics.

The term "logistics" describes the total process of controlling the way resources are obtained, stored, and delivered to their intended location. Determining the efficiency and accessibility of potential distributors and suppliers is a part of logistics management. Logistics managers are regarded as logisticians. Military personnel used the term "logistics" to describe the way they acquired, stored, and transported equipment and supplies.

The phrase is increasingly frequently used in the business world, especially by firms in the manufacturing industries, to describe how resources are managed and transported around the supply chain. A resource or input must be available in the proper quantity and timing, transported to the proper location in good condition, and delivered to the proper internal or external customer. This is the essence of logistics management.

To know more about, logistics, visit :

https://brainly.com/question/25380728

#SPJ1

Property taxes, office expenses, and insurance and depreciation on nonmanufacturing assets are included in the: Multiple Choice Sales budget Overhead budget. Selling expense budget. General and administrative expense budget Cash payments budget

Answers

The Correct option is D. Property taxes, office expenses, and insurance and depreciation on nonmanufacturing assets are included in the General and administrative expense budget.

A price is a value that companies incur in walking their operations. prices include wages, salaries, renovation, hire, and depreciation. charges are deducted from sales to arrive at profits. businesses are allowed to deduct sure charges from taxes to help alleviate the tax burden and bulk up earnings.

In easy terms, charges suggest a cost. In accounting phrases, the expense is the operational value this is paid to earn commercial enterprise revenues. It method the outflow of coins in go back for items or services. costs can also be written as the sum of all of the operations that normally bring income.

Expenses and costs are comparable concepts, and they may be once in a while used interchangeably, but there are some differences for companies to remember. A cost generally refers back to the fee paid to accumulate an asset, at the same time as a rate is an ongoing cost, inclusive of an employee's income or hire on a retail space.

To learn more about Expenses visit here:

brainly.com/question/29842871

#SPJ4

Complete Question:

Property taxes, office expenses, and insurance and depreciation on nonmanufacturing assets are included in the:

A). Overhead budget.

B). Selling expense budget.

C). General and administrative expense budget.

D). Cash payments budget.

In a flywheel business, which of the following is the most important source of new prospects?
A. Marketing
B. Sales
C. Advertisements
D. Word-of-mouth

Answers

Answer:

marketing

Explanation:

Transfer pricing exists when one division of a company produces a product that can be used in the production by a different division. A. TrueB. False

Answers

The transfer price is revenue to the selling division and cost to the buying division. The given statement is true.

What is transfer price?

Transfer pricing in taxation and accounting refers to the guidelines and procedures for valuing transactions within and between businesses that share ownership or control.

When one division of a company produces a good that another division can use in production, transfer pricing exists. The selling division receives revenue from the transfer price, and the buying division incurs costs. The absolute maximum price that can be accepted is the minimum transfer price.

The price that is charged when one department of a company sells products or services to another department. the cost that one division levies. For a middleman, another division of the same business.

To learn more about transfer price visit:https://brainly.com/question/14085963

#SPJ4

consumers around the world place a great deal of trust in financial services firms compared to other industries. T/F

Answers

Compared to other industries, financial services companies have a higher level of confidence from consumers worldwide. False.

Who are the consumers?

They are people or other economic agents who make use of a good or service. Furthermore, they don't sell the goods they purchased. They are the final consumers in the supply chain for goods and services. In fact, the customer may not always be the purchaser.

who are some instances of consumers?

Any individual or group who uses a service or product for the last time is referred to be a consumer. Here are a few illustrations: a client who pays a hairstylist to trim and their hair. a business that purchases a printer for business purposes.

To know more about consumers visit:

https://brainly.com/question/13420317

#SPJ4

According to the Business Roundtable, representing the largest U.S. corporations, the most important quality of a good board of directors is that they do not get involved in critiquing company strategies
False

Answers

This is false. According to the Business Roundtable, representing the largest U.S. corporations, the most important quality of a good board of directors is that they do not get involved in critiquing company strategies.

What is the most important quality of a good board of directors?

The personal traits of your board's members are essential to its effective operation. Integrity, skill, wisdom, insight, commitment, and effectiveness are essential. Key characteristics of a successful board member include: Passion: a genuine interest in your organization's mission.

A board of directors' primary duty, whether they work for a publicly listed company, a privately held company, or a nonprofit organization, is to offer direction and control so that the latter can carry out its objectives.

Read more on board of directors here:https://brainly.com/question/21121907

#SPJ1

According to the Business Roundtable, representing the largest U.S. corporations, the most important quality of a good board of directors is that they do not get involved in critiquing company strategies

False / True

Refer to Table 2-5. Table 2-5 shows one set of production possibilities. Based on the values in the table, the production possibilities frontier is
a. bowed outward indicating increasing opportunity costs.
b. bowed outward indicating decreasing opportunity costs.
c. a straight line indicating constant opportunity costs.
d. bowed inward indicating increasing opportunity costs.

Answers

Bowed outward indicating increasing opportunity cost. (A) is the right answer.

Corn Marginal Wheat Marginal     Opportunity cost

2000      0            0             0                0.00

1600  400   700     700        1.75

1200 400           1300    600        1.50

800         400          1800    500        1.25

400  400         2200   400        1.00

0        400          2500   300        0.75

Opportunity cost = Marginal production of wheat / Marginal production of Corn

The value of the next-highest-valued alternative use of a resource is what economists mean when they talk about its "opportunity cost." You cannot, for instance, read a book at home during the time you would have spent seeing a movie and spend the money you would have spent on something else.

PPC will always bowed outside with Increasing opportunity cost and bowed inside for decreasing opportunity cost.

To learn more about opportunity cost

https://brainly.com/question/13036997

#SPJ4

Net Present Value Method and Internal Rate of Return Method for a service company
Keystone Healthcare Corp. is proposing to spend $139,360 on a six-year project that has estimated net cash flows of $32,000 for each of the six years.
a. Compute the net present value, using a rate of return of 12%. Use the table of present value of an annuity of $1 presented above. If required, round to the nearest dollar. Use the minus sign to indicate a negative net present value.
Present value of annual net cash flows $fill in the blank 1
Less amount to be invested $fill in the blank 2
Net present value $fill in the blank 3
b. Based on the analysis prepared in part (a), is the rate of return (1) more than 12%, (2) 12%, or (3) less than 12%?
c. Determine the internal rate of return by computing a present value factor for an annuity of $1 and using the table of the present value of an annuity of $1 presented above.
fill in the blank 5 %

Answers

(a)  The Net present value at 12% is $364,256.00, (b) Based on the analysis prepared, the rate of return is lower than 12%. Option B.  (c) The international rate of return  is 44% and Present value of annuity is $2033.30

How to determine the NPV?

We should know that net present value (NPV) is a  series of cash flows occurring at different times.

Let us use the table to determine the NPC

Year         CF         DF(12%)     PV          DF(10%)        PV

1          32000         0.893   28576           0.909     29088

2         32000         1.690    54080           1.736       55552

3          32000         2.402    7664           2.487        79648

4          32000         3.037    97184           3.170         101440

5          32000         3.605    115360         3.791          121312

6          32000          4.111      131552          4.355        139360

Total                                       503616                         526400

                                                               12%                10%

PV of annual net cashflow            503616            526400

Less amount to be invested           139360            139360

Net Present Value                          364256            387040

Internal Rate of Return

IRR  =  LR + [tex]\frac{NPV_{LR} }{NPV_{LR}-NPV_{HR} } *HR-LR[/tex]

Where

IRR= Internal Rate of Return

LR= Lower rate

HR= Higher rate

NPV= Net present value

Applying the formula

IRR=0.1+[tex]\frac{387040}{387040-364256} *0.12-0.10[/tex]

Simplifying the expression to get

IRR= 0.10+[tex]\frac{387040}{22784} *0.02[/tex]

IRR=0.44*100

IRR=44%

Present Value of Annuity.

A.= [tex]\frac{P}{CDF}[/tex]

Where

A=Annuity when constant sum is given

P=Principal sum/Present value

CDF= Cumulative discount factor at the rate given over the entire period

A= 32000/15.738

A. = $2033.30

Therefore the Annuity is $2033.30

Read more about capital budgeting on https://brainly.com/question/15683430

#SPJ1

Odd pricing originated as a way to force clerks to make change, thus serving as a cash-control device.
True

Answers

True. Odd pricing was first used as a cash management strategy to make cashiers make change.

What is odd pricing ?Unusual price. Also known as odd-even pricing, this type of psychological pricing involves setting prices a few cents or dollars below a round amount to give the impression that the price is low.Odd pricing was first used as a cash management strategy to make cashiers make change.By making minute tweaks to the pricing structure, odd pricing is a pricing strategy designed to maximize profit. It is predicated on the notion that consumers dislike doing math and will, as a result, only read the first few digits of a price while making a purchase.

To learn more about Pricing strategy refer,

https://brainly.com/question/27124956

#SPJ4

Clarence Danvers is buying a Cinnabon franchise at the airport in Tulsa. Danvers knows that he will get all of the following benefits EXCEPT:
a)national advertising
b) a proven track record
c) assistance in personal income tax preparation
d) standard goods and services
a set operating procedures

Answers

Clarence Danvers will receive all of the following benefits EXCEPT assistance in personal income tax preparation.

What is personal income tax preparation ?Personal income tax preparation is the process of preparing and filing an individual's personal income tax return. This involves collecting and organizing information about the individual's income, deductions, and credits, and using this information to calculate the amount of tax owed or the amount of refund that the individual is entitled to receive.Personal income tax preparation may be done by the individual themselves or by a tax professional, such as an accountant or tax preparer. There are many resources available to help individuals prepare their own tax returns, including tax software and online tools, as well as tax guides and instructions provided by the Internal Revenue Service (IRS) and other tax agencies.

To learn more about income tax refer :

https://brainly.com/question/26316390

#SPJ4

A ______ is a general term encompassing mutual savings banks, savings and loan associations, and credit unions.

Answers

Mutual savings banks are a trendy time period encompassing mutual savings banks, savings and loan institutions, and credit score unions.

The term financial institution refers to FDIC-insured banks, mutual savings banks, savings banks, and savings associations; federally insured credit unions; non-federally insured banks, credit score unions, and thrift institutions; businesses and branches of overseas banks; and Federal home mortgage bank (FHLB) participants.

They're often together held (regularly known as mutual savings banks), which means that the depositors and borrowers are individuals with voting rights, and have the potential to direct the financial and managerial dreams of the agency like the participants of a credit score union or the policyholders of a mutual coverage enterprise.

Learn more about mutual savings banks here

https://brainly.com/question/3865574

#SPJ4

The business impact analysis (BIA) identifies the resources for which a business continuity plan (BCP) is necessary. a. Trueb. False

Answers

Answer:

a

Explanation:

this is for safety reasons

Other Questions
The price of a share of stock changed by -$19.20over a 5-day period. What was the average dailychange in the price of a share of the stock? Refer to Figure 18-12. If the world price of a baseball is $3 and a tariff of 51 per baseball is imposed in the United States, which area represents the aim tariff revenue the United States government collects?a. ab. bc. ed. f according to the text, critics working within the critical-cultural tradition are unapologetically subjective in their approach to scholarship. what is their goal? 8. assume you calculated a financial ratio variance of 2x the usual balance for accounts receivable. why did you calculate a financial ratio variance of 2x the usual balance? julia buys herself a new car, and now notices for more of the same model and color of car than she ever did before her purchase. this is an illustration of LA Unit 3B CFA (22-23)0 James Jareh6Use the sentence to answer the following question.The organization granted waivers to students from foreigncountries to attend the convention.Based on context, what would be the best synonym for the word organization?A ventureB consoleC institute#6 of 10 -D assurance What is the salinity of normal sea water? *A. about 35 parts per thousandB. about 40-45 parts per thousandC. about 17 degrees CelciusD. about 1.025 grams/ml Which of the following equations has an axis of symmetry with the equation x = 3?y=x + 6x-3y= 2x + 6x-3y=x - 6x +3y=3x + 6x-3 What evidence can you find to support the idea that the sneakerhead culture is alive and kicking? If a solid line represents a covalent bond and a dotted line represents an intermolecular interaction, which choice shows a hydrogen bond?. Find the x-intercept of the line 2x4y= 12. Please answer with the equation The perimeter of a rectangle is 80 inches. The width of the rectangle is 5 less than triple the width? This image reflects the situation in the Midwest during the early 20th Century, a situation known asA) Dirty FarmingB) DeforestationC) Dry FarmingD) The Dust Bowl What causes the colorful images seen in the art in 1916, congress approved legislation for the creation of the national park service, a power expressly given in which clause? Describe the sufferings and hardships the Continental Army faced at Valley Forge. Consider Y= F(x) =2- 3x. using the space determine the equation that represents the inverse of f(x) Andrei has a glass tank. First, he wants to put in some marbles, each of which has a volume of 0. 40. 040, point, 04 liters. Then, he wants to fill the tank with water until it's completely full. If he uses 505050 marbles, he will have to add 333333 liters of water. What is the volume of the tank?. a client is seen in the health care clinic for complaints of vaginal bleeding and mild abdominal cramping. on further data collection, the nurse notes that the client's last menstrual period was 10 weeks ago. the client reports that a home pregnancy test was performed and the results were positive. on physical examination, it is noted that the client has a dilated cervix. the nurse understands that the client is at risk for which type of abortion? _____ is the conflict-handling style in which a person neglects his or her own concerns and allows the concerns of another to prevail. a) Forcing b) Avoiding c) Accommodating d) Collaborating e) Compromising