1. Jack's 5-year Customer Lifetime Value is $52,900.
2. Jack's 3-year Customer Lifetime Value is $31,500.
1. To calculate Jack's 5-year Customer Lifetime Value (CLV), follow the given steps:
1. Calculate the total revenue generated by Jack over 5 years:
Total revenue = (profit per month * 12 months * 5 years) = ($1,100 * 12 * 5) = $66,000
2. Calculate the total costs incurred by the store for Jack over 5 years:
Total costs = (marketing cost + application cost + account maintenance cost + special service cost + credit card fees + interest fees + referral payments) = ($865 + $585 + ($135 * 12 * 5) + ($150 * 12 * 5) + ($240 * 5) + ($375 * 5) + ($100 * 3)) = $13,100
3. Calculate the Customer Lifetime Value:
CLV = Total revenue - Total costs = $66,000 - $13,100 = $52,900
Therefore, Jack's 5-year Customer Lifetime Value is $52,900.
2. To calculate Jack's 3-year Customer Lifetime Value (CLV), follow the given steps:
1. Calculate the total revenue generated by Jack over 3 years:
Total revenue = (profit per month * 12 months * 3 years) = ($1,100 * 12 * 3) = $39,600
2. Calculate the total costs incurred by the store for Jack over 3 years:
Total costs = (marketing cost + application cost + account maintenance cost + special service cost + credit card fees + interest fees + referral payments) = ($865 + $585 + ($135 * 12 * 3) + ($150 * 12 * 3) + ($240 * 3) + ($375 * 3) + ($100 * 2)) = $8,100
3. Calculate the Customer Lifetime Value:
CLV = Total revenue - Total costs = $39,600 - $8,100 = $31,500
Therefore, Jack's 3-year Customer Lifetime Value is $31,500.
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The open interest on silver futures at a particular time is the number of __________.
The open interest on silver futures at a particular time is the number of outstanding or unclosed contracts for silver futures. It indicates the total number of agreements made by market players that have not yet been offset by a countertrade or fulfilled by the delivery of the underlying silver commodity.
Open interest, which shows market activity and the possibility of future trade or delivery, is a crucial metric in the futures markets. It represents the total amount of buyers and sellers who are actively trading in silver futures at any particular time. Open interest movements can reveal information about the state of the market and anticipated shifts in price trends.
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Consider a 5 corporation. The corporation earns $1.5 per share before taxes. The corporate tax rate is 35%, the tax rate on divide income is 20\%, and the personal income tax rate is set at 28%. What are the shareholder's earnings from the corporation after all corresponding taxes are paid? Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, enter 0.05 answer; or if the answer is $500, write enter 500 as an answer.
The shareholder's earnings from the corporation, after all corresponding taxes are paid, is approximately $0.5616 per share.
To calculate the shareholder's earnings after all corresponding taxes are paid, we need to consider the corporate tax, dividend tax, and personal income tax.
Corporate Tax: The corporation earns $1.5 per share before taxes, and the corporate tax rate is 35%. Hence, the after-tax earnings per share for the corporation is calculated as:
After-tax earnings per share = Earnings per share × (1 - Corporate tax rate)
After-tax earnings per share = $1.5 × (1 - 0.35)
After-tax earnings per share = $0.975
Dividend Tax: The dividend tax rate is 20%. The shareholder will receive a portion of the after-tax earnings as dividends.
Dividend per share = After-tax earnings per share × (1 - Dividend tax rate)
Dividend per share = $0.975 × (1 - 0.20)
Dividend per share = $0.78
Personal Income Tax: The personal income tax rate is 28%. The shareholder needs to pay personal income tax on the dividends received. Hence, the earnings after all corresponding taxes for the shareholder is calculated as:
Earnings after taxes = Dividend per share × (1 - Personal income tax rate)
Earnings after taxes = $0.78 * (1 - 0.28)
Earnings after taxes = $0.5616
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Today is your 20th birthday. Your parents just gave you $8,000 which you immediately invest in a stock mutual fund. Your plan is to add $750 to the stock fund each year on your birthday. Your first $750 contribution will come one year from now on your 21st birthday. You will make a total of 40 payments. (Your 40th and final $750 contribution will occur on your 60th birthday.) However, you plan to withdraw $10,000 from the account 10 years from now to take a trip to Asia. You expect that the account will have an average annual return of 12 percent. How much money will you have in the account on your 60th birthday (i.e., 40 years)
The money that will be in the account on the 60th birthday is estimated to be $279,862.50. This calculation is based on the future value of an annuity formula, considering an annual payment of $750, an interest rate of 12% per period, and a total of 40 periods.
To calculate the amount of money you will have in the account on your 60th birthday, we can use the formula for the future value of an annuity.
The future value of an annuity formula is given by:
FV = P * ((1 + r)^n - 1) / r
Where:
FV = Future value of the annuity
P = Annual payment or contribution
r = Interest rate per period
n = Number of periods
In this case, the annual payment is $750, the interest rate is 12% (or 0.12), and the number of periods is 40.
Using the formula, we can calculate the future value of the annuity:
FV = $750 * ((1 + 0.12)^40 - 1) / 0.12
FV = $750 * (1.12^40 - 1) / 0.12
FV ≈ $750 * (45.9797 - 1) / 0.12
FV ≈ $750 * 44.9797 / 0.12
FV ≈ $279,862.50
Therefore, money that will be in the account on the 60th birthday would be $279,862.50.
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Ind the maximum revenue. at what price should the business sell the product to achieve this revenue?
In order to calculate the business's maximum revenue, multiply the price of items at maximum demand by the amount of goods at maximum demand.
When the final product's value (marginal revenue) and production cost (marginal cost) are equal, the management has maximised profit. Maximum profit is the output at which MC and MR are equal. The company is not making any additional profit but is also not losing money when the total income equals the total expense. The break even point is the moment at which earnings equal expenses. When MR = MC, which is the first order, and the second order depends on the first order, a company maximises profit. Regarding the time frame for making a profit and the objectives of the company, this idea contrasts from wealth maximisation.
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Consider the following assembly line metrics for a single-model lawnmower company which balances its production through use of single-worker workstations.: - Cycle time = one lawnmower every 200 seconds - Sum of the task times =10 minutes Compute the efficiency percentage. Enter your answer in decimal format to four places with no \% sign.( i.e. show 12.34% as .1234). Show work in file submitted to last question
The following assembly line metrics for a single-model lawnmower company which balances its production through use of single-worker workstations are:- Cycle time = one lawnmower every 200 seconds.- Sum of the task times =10 minutes.Using the above metrics, let's compute the efficiency percentage. The following equation is used to compute efficiency percentage: Efficiency percentage = (Sum of task times / (No. of stations × Cycle time)) × 100 But, we are not provided with the no. of stations.
Hence, we will use another formula to find it. No. of stations = Sum of task times / Cycle timeUsing this formula, we getNo. of stations = (10 × 60) / 200= 3 Thus, the efficiency percentage will be Efficiency percentage = (Sum of task times / (No. of stations × Cycle time)) × 100 Efficiency percentage = (10 × 60) / (3 × 200) × 100Efficiency percentage = 3 / 2Efficiency percentage = 1.5 (Answer) Hence, the efficiency percentage of the single-model lawnmower company is 1.5.
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Cortain aspects of the financial statements may have different reievance to investors and creditors. Which of the foliswro Troes of intornafon are each ef the parties MOST concerned with? a. Investons: Cash flows from investing activities, Creditorn: Dividends b. Irvestors: Dividends; Credalore: Suficient cash to make loan payments c. Investors: Sufficient cash to make loan payments; Creditort: Stock prices d. Investors: Sufficient cash to make Ioan payments; Creditors: Cash flows from irvesting activities e. None of these types of information are representative of what investors and creditors are most concerned with.: Certain aspects of the financaal statements may have different raievance to investors and creditors. Which of the followerg Yoes of infornafon are each of tin parties MOST concerned with? 3. Investone: Cash flows from investing activities, Creditorn: Dividends b. Investors: Dividends; Credtore: Suflicient cash to make loan payments c. Imvestors: Sufficient cash to make loan payments; Creditors: Stock prices d. Investors: Sufficient cash to make loan payments; Creditors: Cash flows from investing activities e. None of these types of information are representative of what investors and creditors are most concerned with.
The answer that depicts the types of information that each of the parties are most concerned with is option d. Investors are most concerned with sufficient cash to make loan payments while Creditors are concerned with cash flows from investing activities.
Certain aspects of the financial statements may have different relevance to investors and creditors. Investors are most concerned with sufficient cash to make loan payments while Creditors are concerned with cash flows from investing activities. Investors are individuals who invest their money into a company in the form of buying stocks and are mostly interested in getting profits and dividends from their investment.
Investors mostly focus on the future profitability of the company in which they are investing. Creditors, on the other hand, are entities that lend money to a company or a borrower. They are mostly interested in ensuring that the borrower can repay their debts with interest as it shows how much cash the company has and how much of it can be used to pay off debts.
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If the national saving rate increases, the: A. higher MP
K
in the new steady state. B. higher steady-state growth rate of output per worker. C. higher steady-state growth rate of total output. D. higher steady-state level of output per worker.
If the national saving rate increases, the higher steady-state level of output per worker. The national saving rate refers to the portion of income that households and businesses save rather than consume. When the national saving rate increases, it means that a larger proportion of income is being saved, which can lead to more investment in the economy. Increased investment can enhance productivity and contribute to economic growth. As a result, the steady-state level of output per worker, which represents the long-term equilibrium level of output in the economy, will be higher. This means that each worker will be able to produce more goods and services, indicating an increase in productivity and living standards. Therefore, option D, the higher steady-state level of output per worker, is the correct answer.
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Which of the reimbursement systems incentivises the provision of a minimum amount of healthcare to maximise profits, and the overreferral of patients, resulting in too little available healthcare?
a) Salary
b) Pay-for-performance
c) Fee-for-service
d) Capitation
Option (c), The reimbursement system that incentivizes the provision of a minimum amount of healthcare to maximize profits and the overreferral of patients, resulting in too little available healthcare is the fee-for-service reimbursement system.
In this system, healthcare providers are paid for each service or procedure they perform, which can lead to a focus on quantity rather than quality of care. This can lead to overutilization of services and unnecessary referrals, ultimately impacting the availability of healthcare resources.
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Canton Corporation reported the following items in its adjusted trial balance for the year ended December 31, 2021: Income from continuing operations before income taxes Gain on disposal of discontinued component Loss from operations of discontinued component $114,000 31,600 (54,000) Canton is subject to a 25% tax rate. Required: Prepare the December 31, 2021, income statement for Canton Corporation, starting with income from continuing operations before income taxes. (Amounts to be deducted should be indicated with a minus sign.) CANTON CORPORATION Partial Income Statement For the Year Ended December 31, 2021 Income from continuing operations before income taxes Income tax expense $ 0 Income from continuing operations Discontinued operations: Loss from operations of discontinued component Accrued liabilities Loss on discontinued operations Net income (loss) 0
To prepare the income statement for Canton Corporation for the year ended December 31, 2021, we'll start with income from continuing operations before income taxes and include the relevant items.
CANTON CORPORATION
Partial Income Statement
For the Year Ended December 31, 2021
Income from continuing operations before income taxes $114,000
Income tax expense (25% of income from continuing operations) ($28,500)
Income from continuing operations $85,500
Discontinued operations:
Loss from operations of discontinued component ($54,000)
Accrued liabilities ---
Loss on discontinued operations ($54,000)
Net income (loss) $31,500
In the given information, there is no specific information provided for accrued liabilities in the discontinued operations section. If there are any accrued liabilities related to the discontinued component, you should include them in the income statement. However, since no specific amount is given, it is indicated as blank in the statement above.
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Database Design
Can draw the diagrams in Word, PowerPoint, Visio, Lucid Chart or Excel. Please convert all file into PDF for submission (i.e., using print to PDF function). Please attach LINK AND GIVE ME ACCESS FOR THE DIAGRAMS - there should be THREE DIAGRAMS in total. Thank you!
1. IMDB
The Internet Movie Database (IMDb) is an online database of information related to films and television shows including cast, production crew, biographies, plot summaries, and reviews. Design a relational database model for IMDB. Your design should contain the basic entities such as Movie and Actor, but you are also welcome to extend your design by considering more entities such as Genre, User, Review, TV shows/series, or anything else you can find on IMDB.
Start with the Entity-Relationship Model. List all entities, attributes, and relationships among entities.
Build upon the ERD and create the relational model.
2. Walmart
The local Walmart store is upgrading its legacy database system. The new database system will be used to manage the supply chain and transactional data, including products, vendors, customers and invoices. Design a relational database model for this system. Some of the business rules are asfollows:A productcanhavemanyvendors,andavendorcansupplymanyproducts.Acustomer can have many invoices, and each invoice is associated with only one customer. Each invoice may contain many different products, and a product can appear on many invoices (For example, a TV model can be purchased by many customers and therefore appears on multiple invoices).
Start with the Entity-Relationship Model. List all entities, attributes, and relationships among entities.
Build upon the ERD and create the relational model.
3. MTD
Champaign Urbana Mass Transit District (MTD) provides public transportation to the cities of Champaign, Urbana, Savoy, and the University of Illinois. Being in the service industry, MTD relies heavily on feedback and complaints through their customers to give the best transportation service possible. Recently, MTD planned to create an electronic complaint system that allows customers to file complaints about its services. Design a relational database model for this system.
Some of the business rules are as follows: An MTD route offers multiple rides (for example, Route 100 yellow offers multiple rides from 6:00 am to the midnight on weekdays). Each route has many stops, and one stop may be shared by many different routes. Each ride has a unique number and is operated by one driver. A driver is assigned to many rides, and a ride is driven by different drivers based on the shift schedule. The system allows a customer to file a complaint for a particular ride.
Start with Entity-Relationship Model. List all entities, attributes, and relationships among entities.
Build upon the ERD and create the relational model.
1. IMDB:
Entities: Movie (ID, Title, Release Year, Plot Summary), Actor (ID, Name, Date of Birth), Genre (ID, Name), User (ID, Name, Email), Review (ID, Movie ID, User ID, Rating, Comment).
Relationships: Movie-Actor (Many-to-Many), Movie-Genre (Many-to-Many), Movie-Review (One-to-Many), User-Review (One-to-Many).
2. Name, Price), Vendor (ID, Name, Address), Customer (ID, Name, Address), Invoice (ID, Customer ID, Date).
Relationships: Product-Vendor (Many-to-Many), Customer-Invoice (One-to-Many), Invoice-Product (Many-to-Many).
3. MTD:
Entities: Route (ID, Name), Ride (ID, Route ID, Driver ID, Start Time, End Time), Stop (ID, Name), Driver (ID, Name), Complaint (ID, Ride ID, Customer ID, Description).
Relationships: Route-Ride (One-to-Many), Route-Stop (Many-to-Many), Driver-Ride (Many-to-Many), Ride-Complaint (One-to-Many).
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Which of the following statement is FALSE? Select one: a. In the short-run, society faces a trade-off between inflation and unemployment. b. The government can potentially improve market outcomes if market inequalities or market failure exists. c. Variations in the standard of living across countries is due almost entirely to differences in each nation' s total output of goods and services. d. One way that governments can improve market outcome is to ensure that individuals are able to own and exercise control over their scarce resources.
The statement that is FALSE is c. Variations in the standard of living across countries is due almost entirely to differences in each nation's total output of goods and services.
While a nation's total output does contribute to its standard of living, it is not the sole factor. Other factors such as distribution of income, access to resources, technological advancements, and government policies also play a significant role.
In conclusion, the false statement is c.
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A firm has net working capital of $5,115, net fixed assets of $27,783, sales of $51,510, and current liabilities of $4,964. How many dollars worth of sales are generated from every $1 in total assets? Dollars of sales generated per $1
in Total Assets =
The firm generates approximately $1.567 in sales for every $1 in total assets.
To calculate the dollars worth of sales generated per $1 in total assets, we can use the total asset turnover ratio. The total asset turnover ratio measures a company's ability to generate sales from its total assets.
In this case, the firm has sales of $51,510 and total assets of $32,898, which includes net working capital and net fixed assets. By dividing the sales by the total assets, we can determine the total asset turnover ratio.
Total Asset Turnover = Sales / Total Assets
= $51,510 / $32,898
≈ 1.567
Therefore, for every $1 in total assets, the firm generates approximately $1.567 in sales. This ratio indicates the efficiency of the firm in utilizing its assets to generate revenue. A higher ratio suggests better asset utilization and revenue generation.
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How does Selling technological knowledge tie into managing technology?
The Selling technological knowledge ties into managing technology by leveraging expertise in technology to generate revenue and make informed decisions.
Selling technological knowledge can be a valuable way to generate revenue for a company and to improve its technology management capabilities.
By selling its expertise in technology, a company can gain access to new resources, build relationships with potential partners, and gain insights into market trends. This can all help the company to make better decisions about its technology investments and to improve its overall technology management practices.
specific ways in which selling technological knowledge can benefit technology management:
Expertise: Selling technological knowledge requires a deep understanding of the technology involved. This expertise is valuable in managing technology because it allows for effective decision-making, problem-solving, and planning.
Revenue generation: Selling technological knowledge can be done through consulting services, training programs, or licensing agreements. This generates revenue that can be reinvested in managing technology, such as acquiring new technologies or upgrading existing systems.
Market insights: Through the process of selling technological knowledge, organizations gain insights into market trends, customer needs, and industry demands. These insights can inform technology management strategies, such as identifying emerging technologies to adopt or adjusting existing technology solutions.
Collaboration: Selling technological knowledge often involves working with clients or customers. This collaboration provides opportunities for knowledge exchange, networking, and partnerships. These relationships can enhance technology management through access to new resources, expertise, and potential collaborations.
Overall, selling technological knowledge is closely intertwined with managing technology as it leverages expertise, generates revenue, provides market insights, and fosters collaboration.
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A builder is offering $103,980 loans for his properties at 9 percent for 25 years. Monthly payments are based on current market rates of 9.5 percent and are to be fully amortized over 25 years. The property would normally sell for $110,000 without any special financing.
B) At what price should the builder sell the properties to earn, in effect, the market rate of interest on the loan if the property is resold after 10 years and the loan repaid? (Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.)
To calculate the price at which the builder should sell the properties to earn the market rate of interest on the loan, we need to consider the present value of the loan payments and the future value of the property.
1. Calculate the monthly payment on the loan:
The loan amount is $103,980, the interest rate is 9% per year (or 0.09 as a decimal), and the loan term is 25 years. Using the formula for calculating the monthly payment on an amortizing loan, we can calculate the monthly payment:
P = L[c(1 + c)^n]/[(1 + c)^n - 1]
Where:
P = Monthly payment
L = Loan amount
c = Monthly interest rate
n = Total number of payments
Using the given values, we have:
P = 103980[(0.09/12)(1 + (0.09/12))^300]/[((1 + (0.09/12))^300 - 1]
Calculating this expression, the monthly payment on the loan is approximately $880.52.
2. Calculate the present value of the loan payments after 10 years:
To calculate the present value of the remaining loan payments after 10 years, we need to discount the future cash flows back to the present using the market interest rate of 9.5% per year (or 0.095 as a decimal). The remaining loan term is 15 years (25 years - 10 years).
Using the formula for present value of an annuity, we can calculate the present value of the remaining loan payments:
PV = C[(1 - (1 + r)^(-n))/r]
Where:
PV = Present value
C = Cash flow (monthly payment)
r = Discount rate (monthly interest rate)
n = Number of periods (remaining loan term in months)
Using the given values, we have:
PV = 880.52[(1 - (1 + 0.095/12)^(-180))/(0.095/12)]
Calculating this expression, the present value of the remaining loan payments after 10 years is approximately $87,337.20.
3. Calculate the price at which the builder should sell the properties:
To earn the market rate of interest on the loan, the builder should sell the properties for an amount that covers the present value of the loan payments. Additionally, the property would normally sell for $110,000 without any special financing.
Therefore, the price at which the builder should sell the properties is:
Price = Present value of the loan payments + Property value
Price = 87337.20 + 110000
Price = $197,337.20
So, the builder should sell the properties for approximately $197,337 to earn the market rate of interest on the loan after 10 years.
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you assume that books for the next four years will cost $565 in one year, $665 in two years, $746 in three years, and $337 in four years when you really don't care anymore. at a discount rate of 4.5%, what is the present value of all four cash flows combined?
The present value of all four cash flows combined, at a discount rate of 4.5%, is approximately $2104.54.
How to determine the present value of all four cash flows combined, at a discount rateTo calculate the present value of the cash flows, we need to discount each cash flow back to the present using the discount rate of 4.5%.
The present value of each cash flow can be calculated using the formula:
PV = [tex]CF / (1 + r)^n[/tex]
Where PV is the present value, CF is the cash flow, r is the discount rate, and n is the number of periods.
Calculating the present value for each cash flow:
[tex]PV1 = $565 / (1 + 0.045)^1 = $541.55\\PV2 = $665 / (1 + 0.045)^2 = $612.14\\PV3 = $746 / (1 + 0.045)^3 = $655.39\\PV4 = $337 / (1 + 0.045)^4 = $295.46[/tex]
Now, we can sum up the present values of all four cash flows to find the total present value:
Total PV = PV1 + PV2 + PV3 + PV4
= $541.55 + $612.14 + $655.39 + $295.46
= $2104.54
Therefore, the present value of all four cash flows combined, at a discount rate of 4.5%, is approximately $2104.54.
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Auditing Standards Explicitly Require Auditors To Plan The Audit True False
The statement "Auditing Standards Explicitly Require Auditors To Plan The Audit" is True as Auditing standards explicitly require auditors to plan the audit.
Auditing standards explicitly require auditors to plan the audit. Planning is a crucial phase of the audit process and is mandated by auditing standards to ensure that the audit is conducted effectively and efficiently. The planning stage involves developing an overall strategy for the audit, determining the scope and objectives of the audit, and establishing an audit plan that outlines the procedures to be performed.
The purpose of audit planning is to enable the auditor to obtain sufficient and appropriate audit evidence to support the audit opinion. It helps the auditor to identify risks, assess the materiality of transactions and balances, determine the nature, timing, and extent of audit procedures, and allocate resources effectively.
By requiring auditors to plan the audit, auditing standards emphasize the importance of a systematic and structured approach to the audit process. Adequate planning helps in identifying potential issues and challenges early on, ensuring that the audit is conducted in accordance with professional standards, and enhancing the overall quality and reliability of the audit engagement.
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critically discuss the flexible accelerator of the theory of investment. What are the key
investment projects
c.In an economy where there is high-capacity underutilization, an accelerator principle of
b.Discus the present value and marginal efficiency of investment as a criterial for ranking
determinants of investment in the economy?
investment may not hold.
Dear Chegg Expert, kindly answer all the questions and clearly label the answers.thank you .
a. The flexible accelerator theory of investment postulates that the investment of a firm is influenced by changes in output. According to the theory, the level of capital stock or investment in an economy is determined by the level of expected demand for a firm’s output.
An increase in expected demand leads to increased investment by firms in the economy. On the other hand, a decrease in expected demand leads to reduced investment by firms in the economy. The theory also postulates that the level of investment in an economy is influenced by the adjustment costs of investment, which arise from the need to change the existing capital stock or to acquire new capital.
b. \The key investment projects are those that have a high expected demand for a firm's output, which would lead to increased investment. The key investment projects also have low adjustment costs, which would make it easier for firms to invest in them.
c. The accelerator principle of investment may not hold in an economy where there is high-capacity underutilization. This is because firms in such an economy would not see the need to invest in new capital since they have a lot of unused capacity.
d. Present value and marginal efficiency of investment are two criteria used in ranking investment projects in the economy. Present value is the current value of future cash flows from an investment project, while marginal efficiency of investment is the additional output that can be produced from an additional unit of capital. These criteria help firms to choose the most profitable investment projects.
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Tammy Terrified received a notice from the IRS Center demanding payment in full of $50,000 of additional tax, $10,000 in penalties and $5,000 in statutory interest. The computerized statement sets out in bold letters, "Final Notice - Payment Due Within 10 Days." Tammy Terrified looks in the Yellow Pages and finds that representation in tax matters seems to be touted by a number of different professions. She seeks your hep in deciding which ones she could call for her problem. Terrified tells you that she does owe the tax, penalties, and interest, but that she and her nine children have been abandoned, left penniless and are on welfare.
A web search of local tax practitioners has the following listing:
ACCOUNTANT - noncertified enrolled to practice before the IRS
ACCOUNTANT - Certified Public - licensed to practice in this state
ATTORNEY - licensed to practice in this state - divorce, real estate, tax, personal injury and Workers' Compensation cases accepted
BOOKKEEPING SERVICE - accounting and bookkeeping service, general ledger, profit and loss and financial statements, and tax return preparation
CONSULTATNT - tax and related matters, mergers, acquisitions and business closings - MBA and MS in Taxation, High Standards University
TAXMAN - preparation of Forms 1040EX, 1040A, 1040, 1040X, 1120, 1120S, 940, 941, and other federal tax forms - inexpensive but good - We talk tax!
A) Explain in detail which one(s) Tammy Terrified could call, and explain the powers and authority of each representative
B) Explain in detail the reason for rejecting any individual, including lack of authority
C) If Tammy Terrified asks you to make a single choice, which one would you choose and why?
A certified public accountant (CPA) could provide Tammy with a more detailed understanding of the tax debt and her situation. Specifically, a CPA could go over the tax documents and help to predict the potential liability.
Consequences from any actions Tammy takes in regard to her relief. In addition, a CPA could perform an audit of Tammy's accounts to ensure accuracy and compliance with any tax laws. However, a CPA would not be able to directly negotiate Tammy's tax debt with the IRS or represent her in court.
A tax consultant is not a certified professional or licensed attorney. Since it is not legal to provide any type of tax advice in the United States without a proper license or certification, the tax consultant would most likely be unable to legally represent Tammy in her case. As such, this individual should not be contacted to represent Tammy in any IRS proceedings.
A bookkeeping service and “Taxman” would also not likely have the authority to represent Tammy in her case. Bookkeepers are not certified professionals and typically focus on bookkeeping services and general ledger, profit and loss, and financial statements. Taxman is simply a tax preparation service that does not have the legal authority to represent Tammy in her tax debt case.
Given these options, the best choice for Tammy is to consult a licensed attorney. They would have the necessary legal authority to represent her interests in court, and to negotiate with the IRS on her behalf. An attorney could also advise Tammy on other potential tax relief options and can help her to verify the accuracy of the tax debt.
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Tickets to a Cubs' playoff game are sold out and available only on a black-market basis. Sally and Mike are big Cubs' fans and work together at a local bar. Mike tells Sally that he will go buy some tickets and asks her how many she wants. Sally replies: "If the price per ticket is $150, buy one ticket for me. If the price per ticket is $100, buy two tickets for me. And, if the price per ticket is $50, buy three tickets for me." Mike responds: "What are you talking about? You're saying you're willing to pay more in total for two tickets than for three. You are behaving irrationally." Evaluate Mike's statement. Is Sally behaving irrationally?
Mike's statement is incorrect. In conclusion, Sally is not behaving irrationally. She is simply expressing her preference based on the price per ticket and the number of tickets she wants.
To evaluate Mike's statement,Let's analyze the scenario step-by-step.
Sally states that if the price per ticket is $150, she wants one ticket. This would cost her $150.
If the price per ticket is $100, Sally wants two tickets. This would cost her $200 ($100 per ticket * 2 tickets).
Lastly, if the price per ticket is $50, Sally wants three tickets. This would cost her $150 ($50 per ticket * 3 tickets).
So, in total, Sally is willing to pay $150 for one ticket, $200 for two tickets, and $150 for three tickets. This means that she values the tickets differently based on their price.
Therefore, Sally's behavior is rational because she is making a trade-off between the number of tickets and the price per ticket. She is willing to pay more for two tickets at a lower price per ticket because she values having two tickets more than having three tickets at a higher price per ticket.
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In this chapter we discussed monetary neutrality. According to monetary neutrality, when the Fed increases the money supply it will (select all that apply) increase employment. increase the demand for money. pull the economy out of recession. increase the price level. cause the value of money to fall. increase the amount of saving and investment done.
Monetary neutrality is an economic theory that suggests that changes in the supply of money have no effect on the economy in the long run. This means that in the long run, money is neutral. So correct answer is D
According to monetary neutrality, when the Fed increases the money supply it will (select all that apply):increase the demand for money.cause the value of money to fall.increase the price level.Thus, monetary neutrality theory predicts that in the long run, monetary policy will not have any impact on output or employment, since wages and prices will adjust to the change in money supply.
This is because the economy will eventually adjust to changes in the money supply, and prices and wages will rise to reflect the increase in the money supply. As prices and wages rise, the demand for money will also increase, which will cause the value of money to fall. This, in turn, will lead to an increase in the price level.
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Andrews corp. ended the year carrying $23,602,000 worth of inventory. had they sold their entire inventory at their current prices, how much more revenue would it have brought to andrews corp.?
To determine how much more revenue Andrews Corp. would have generated if they had sold their entire inventory at the current prices, we would need the cost percentage or markup percentage for the inventory.
Without that information, we cannot provide an exact amount. This will be an example calculation using a hypothetical markup percentage.
The revenue generated from selling inventory is typically calculated based on the selling price, not the cost. If Andrews Corp. had sold its entire inventory at the current prices, the revenue would depend on the markup percentage applied to the cost of the inventory.
For example, let's assume Andrews Corp. applies a 20% markup on the cost of their inventory. In this case, the selling price of the inventory would be 120% of the cost.
Revenue = Selling Price * Quantity
Assuming the cost of the inventory is $23,602,000, the revenue would be:
Revenue = $23,602,000 * 1.20
Revenue = $28,322,400
Therefore, if a 20% markup is applied, selling the entire inventory at current prices would have brought approximately $28,322,400 in revenue to Andrews Corp.
Please note that the actual markup percentage and the specific details of Andrews Corp.'s pricing strategy would determine the accurate revenue amount.
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Calculate the price of a 10 year, $1000 par value bond that makes semiannual payments, has a coupon rate of 12%. Calculate the price using a yield to maturity of 13% and illustrate it on a timeline. Is the bond traded at premium, par or discount?
Based on the calculated price of $901.92, the bond is trading at a discount because the price is lower than the face value of $1000.
To calculate the price of a bond, we can use the formula for the present value of a bond's cash flows:
Price = C * [1 - (1 + r)^(-n)] / r + F / (1 + r)^n
Where:
C = Coupon payment
r = Yield to maturity (expressed as a decimal)
n = Number of periods (semiannual periods in this case)
F = Face value or par value
Given:
Coupon rate = 12%
Par value = $1000
Yield to maturity = 13%
Number of periods = 10 years (20 semiannual periods)
First, let's calculate the coupon payment:
Coupon payment = Coupon rate * Par value / 2
Coupon payment = 0.12 * $1000 / 2
Coupon payment = $60
Now, let's calculate the price using the yield to maturity of 13%:
Price = $60 * [1 - (1 + 0.13/2)^(-20)] / (0.13/2) + $1000 / (1 + 0.13/2)^20
Calculating this expression, we find:
Price ≈ $901.92
On the timeline:
bash
Copy code
1 2 3 4 5 6 7 8 9 10
C = $60 C = $60 C = $60 C = $60 C = $60 C = $60 C = $60 C = $60 C = $60 C = $60
markdown
Copy code
|__________|__________|__________|__________|__________|__________|__________|__________|__________|__________|
PV = $25.32 PV = $25.32 PV = $25.32 PV = $25.32 PV = $25.32 PV = $25.32 PV = $25.32 PV = $25.32 PV = $25.32 PV = $25.32
bash F = $1000
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A decision maker (DM) has a car worth $30,000 and $10,000 cash. These are all of his assets. There is a risk of an accident in which case he will loose the car altogether. DM can insure against this accident completely for a premium of $350. In other words, if he buys this insurance his assets will be worth $39,650, whether or not there is an accident. Probability of accident is 0.01i (a) What is the expected net earnings (the premium minus the expected amount paid to the client) of the insurance company? (b) If the decision maker is risk neutral, would he buy this insurance policy? (c) If the decision maker is an expected utility maximizer and has utility function vx, where x is the value of his total assets, would he buy this insurance policy? (d) Suppose he can buy partial insurance that covers 80% of the losses for a premium of $280. Would he buy this insurance? which one does he prefer, 100% insurance for $350 or 80% insurance for $280 or no insurance?
Considering the expected net earnings, the decision maker would prefer not to buy any insurance, as it minimizes the expected loss compared to the other options. However, the ultimate decision would also depend on the decision maker's risk preferences and their assessment of the potential loss and premium amounts.
(a) To find the expected net earnings of the insurance company, we calculate the expected amount paid to the client and subtract it from the premium. The expected amount paid to the client is the product of the probability of an accident (0.01) and the amount paid in case of an accident, which is the value of the car ($30,000). Therefore, the expected amount paid to the client is $300. The premium is $350. Hence, the expected net earnings of the insurance company are $350 - $300 = $50.
(b) If the decision maker is risk-neutral, their decision is based solely on the expected monetary value. Since the premium of $350 is higher than the expected amount paid to the client ($300), the decision maker would not buy this insurance policy.
(c) If the decision maker is an expected utility maximizer, their decision will depend on their utility function, vx. Without knowledge of the specific utility function, it is not possible to determine whether the decision maker would buy the insurance policy or not.
(d) If the decision maker has the option to buy partial insurance that covers 80% of the losses for a premium of $280, the expected amount paid to the client in case of an accident would be 0.01 * $30,000 * (1 - 0.8) = $600. The expected net earnings for the insurance company would be $280 - $600 = -$320. In this case, the decision maker would prefer not to buy any insurance, as the expected net earnings for the insurance company are negative.
To summarize the choices:
100% insurance for $350: Expected net earnings = $50 (positive net earnings for the insurance company).
80% insurance for $280: Expected net earnings = -$320 (negative net earnings for the insurance company).
No insurance: The decision maker would face the risk of losing the full value of their car in case of an accident.
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Equivalent Units of Production: Average Cost Method Units of production data for the two departments of Atlantic Cable and Wire Company for July of the current fiscal year are as follows: Drawing Department Winding Department 1,300 units, 55% completed 400 units, 25% Work in process, July 1 completed 20,300 units 700 units, 3590 Completed and transferred to next processing department during July 20,800 units 1,000 units, 65% completed Work in process, July 31 completed Each department uses the average cost method a. Determine the number of whole units to be accounted for and to be assigned costs and the equivalent units of production for the Drawing Department. Whole units Equivalent units of production b. Determine the number of whole units to be accounted for and to be assigned costs and the equivalent units of production for the Winding Department. Whole units Equivalent units of production units units units units
The equivalent units of production for each department is 31,965 units and 1,175 units.
To calculate the equivalent units of production for each department using the average cost method.
We need to consider the percentage of completion for the work in process at the beginning and end of the month.
a. Drawing Department:
Whole units to be accounted for: Units in process on July 1: 20,300 units, Units started and completed during July: 20,800 units
Total units to be accounted for = 20,300 + 20,800 = 41,100 units
Equivalent units of production: Units in process on July 1: 20,300 units × 55% = 11,165 units
Units started and completed during July: 20,800 units
Total equivalent units of production = 11,165 + 20,800 = 31,965 units
b. Winding Department:
Whole units to be accounted for: Units in process on July 1: 700 units
Units started and completed during July: 1,000 units
Total units to be accounted for = 700 + 1,000 = 1,700 units
Equivalent units of production:
Units in process on July 1: 700 units × 25% = 175 units
Units started and completed during July: 1,000 units × 100% = 1,000 units
Total equivalent units of production = 175 + 1,000 = 1,175 units
Summary: a. Drawing Department: Whole units to be accounted for: 41,100 units
Equivalent units of production: 31,965 units
b. Winding Department: Whole units to be accounted for: 1,700 units
Equivalent units of production: 1,175 units
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True or False. When using the optimization-in-levels approach, the optimal choice is one that corresponds to maximum total net benefit ( = total benefit - total cost) . 1) True. 2) False. Q12 (1 point) True or False. When using the optimization-in-differences approach, the optimal choice is one that corresponds to maximum marginal net benefit (= marginal benefit - marginal cost) . 1) True. 2) False.
Both statements are true because the optimization-in-levels approach aims to maximize total net benefit, considering overall impact, while the optimization-in-differences approach aims to maximize marginal net benefit, focusing on incremental impact.
In the optimization-in-levels approach, the optimal choice is determined by comparing the total net benefit, which is equal to the total benefit minus the total cost. The goal is to find the choice that maximizes the total net benefit. This approach considers the overall impact of a decision on total benefits and costs.
In the optimization-in-differences approach, the optimal choice is determined by comparing the marginal net benefit, which is equal to the marginal benefit minus the marginal cost.
The objective is to find the choice that maximizes the marginal net benefit. This approach focuses on the incremental impact of a decision by considering the change in benefits and costs.
The optimization-in-differences approach aims to maximize marginal net benefit, focusing on the incremental impact of a decision. Both approaches provide useful frameworks for decision-making and resource allocation in economics.
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The difference between real and nominal rates is
timing of the cashflows from the bond
an inflation adjustment
a reduction in the bond price for nominal quotes
there is no brokerage fee if you buy a bond with real interest
The main difference between real and nominal rates is that real rates are adjusted for inflation, while nominal rates are not.
Real rates reflect the true purchasing power of money, while nominal rates only represent the stated interest rate. Real rates are therefore more accurate in determining the actual return on an investment, as they take into account the impact of inflation on the value of money over time. the difference between real and nominal rates is mainly about how they account for inflation. Nominal rates are the stated interest rates on an investment, without any adjustment for inflation. Real rates, on the other hand, are adjusted for inflation and reflect the actual purchasing power of money. By factoring in inflation, real rates provide a more accurate measure of the return on investment and help investors understand the true value of their money over time. In essence, real rates consider the erosion of purchasing power caused by inflation, while nominal rates do not.
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Your brother has asked you for a loan and has promised to pay you $5,500 at the end of three years. If you normally invest to earn 7.0 percent per year, how much will you be willing to lend to your brother if you view this purely as a financial transaction (i.e., you don't give your brother a special deal)? (Round intermediate calculations to 6 decimal places, e.8. 2.512512 and final answer to 2 decimal places, e.g. 2,515.25.) Amount to be loaned today
The amount you should be willing to lend to your brother if you view this purely as a financial transaction.
Explanation: To calculate the amount to be loaned today, we can use the present value formula. The formula is:
Present Value = Future Value / (1 + Interest Rate)^Time
In this case, the Future Value is $5,500, the Interest Rate is 7.0% per year, and the Time is 3 years.
Plugging in the values, we have:
Present Value = $5,500 / (1 + 0.07)^3
Calculating this, we get:
Present Value = $5,500 / (1.07)^3 = $4,628.40
Therefore, you should be willing to lend your brother $4,628.40 if you view this purely as a financial transaction.
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T-Mobile has the best competitive strategy in the mobile phone market. Change my mind!
While T-Mobile is a significant player in the mobile phone market and has implemented successful strategies, it is important to consider that determining the "best" competitive strategy is subjective and can vary based on individual perspectives and market conditions.
Here are some points to consider:
Market Share: While T-Mobile has made impressive strides in recent years, market share alone does not necessarily indicate the best competitive strategy. Other companies like Apple and Samsung have strong market positions and employ different strategies that cater to their target customer segments.
Innovation: While T-Mobile has introduced disruptive initiatives such as eliminating contracts and offering unlimited data plans, other competitors have also made significant advancements in terms of product innovation, user experience, and technological advancements. Companies like Apple with its iPhone and Samsung with its Galaxy series have made significant impacts on the industry.
Pricing and Value Proposition: T-Mobile has positioned itself as a value-oriented option with competitive pricing and customer-friendly policies. However, different consumers have varying priorities and may value factors such as brand reputation, product features, customer service, or network coverage over price alone. Therefore, what may be the best strategy for one customer segment may not necessarily be the same for others.
Network Coverage: Network coverage is a crucial factor for consumers, especially in rural or remote areas. While T-Mobile has made efforts to expand its coverage, it may not offer the same level of coverage as its competitors in all regions. This limitation may impact its competitiveness in certain markets or for specific customer segments.
Competitive Landscape: The mobile phone market is highly dynamic and competitive, with multiple players constantly evolving their strategies. Each competitor brings its own strengths and weaknesses, and what may be considered the best strategy today could change in the future as new technologies, market trends, or consumer preferences emerge.
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Adverse selection is when
a. there is perfect information in the market
b. parties to a contract alter their behaviour
c. parties to a contract alter their behaviour as a result of the contract
d. a party to a contract ends up dealing with the wrong type of people
Which of the following is most likely to be operating in an oligopoly market structure if the market is Christchurch City?
a. A dairy. (A small corner shop)
b. A hairdresser
c. A fish and chip shop
d. A Countdown supermarket
If peas and beans are substitute goods, an increase in the cost of production of peas will most likely result in
a. an increase in the quantity supplied of beans, and a decrease in the supply of peas
b. all of the above
c. an increase in demand for beans and a decrease in the quantity demanded of peas
d. an increase in demand for beans and a decrease in supply of peas
1. Adverse selection is when parties alter their behavior due to imperfect information in a contract. The correct option is b. 2. In an oligopoly market structure, a Countdown supermarket is most likely to operate in Christchurch City. The correct option is d. 3. An increase in the cost of production of peas will likely lead to an increase in demand for beans and a decrease in the supply of peas. Correct option is a
Adverse selection refers to the situation where parties to a contract alter their behavior due to imperfect information in the market. This means that one party may have more information or knowledge about a product or service than the other party, leading to a potential imbalance in the contract terms. For example, if a seller knows that a used car has hidden defects but fails to disclose this information to the buyer, it creates adverse selection.
In an oligopoly market structure, where a few firms dominate the market, the most likely business to operate in Christchurch City would be a Countdown supermarket. Oligopolies are characterized by a small number of firms controlling the majority of the market share. A supermarket like Countdown has the scale and resources to compete in such a market structure.
If peas and beans are substitute goods, an increase in the cost of production of peas will most likely result in an increase in demand for beans and a decrease in the supply of peas. When the cost of production for one good increases, consumers tend to switch to the substitute good, resulting in increased demand for beans. At the same time, the decrease in the supply of peas due to higher production costs will further contribute to the shift in demand towards beans.
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Demtanc ance Supply in Litoor Markets: As the text surgests, the demand and supply model predicts that the new computer and cominunications technologies will raise the pay of highiskil labor but reduce the pay of low-skill labor. Explain how this works wire the four-step process in Section 4.1 of the textbook. Response die 9/14 Reply to 2 classmates by 9/17
The four-step process in Section 4.1 of the textbook explains how the demand and supply model predicts that the new computer and communication technologies will raise the pay of high-skill labor but reduce the pay of low-skill labor in the Demtanc ance supply in Litoor markets.
Step 1: Identify the Shifts in Demand and Supply
When new computer and communication technologies are introduced, it increases the productivity of high-skill labor. This leads to an increase in demand for high-skill labor and a shift in the demand curve to the right. On the other hand, low-skill labor becomes less in demand, causing a decrease in demand and a shift in the demand curve to the left.
Step 2: Determine the Direction of Price and Quantity Changes
With the increase in demand for high-skill labor, its price or wage increases. Conversely, the decrease in demand for low-skill labor results in a decrease in its wage. As a result, the pay of high-skill labor rises, while the pay of low-skill labor decreases.
Step 3: Analyze the Impact on Market Outcomes
As the pay of high-skill labor increases, it incentivizes individuals to acquire higher skills through education or training. This leads to an increase in the supply of high-skill labor and a shift in the supply curve to the right. The increased supply helps moderate the rise in wages for high-skill labor.
Step 4: Evaluate the Efficiency and Equity Implications
The increased wages for high-skill labor reflect the increased productivity and the market's ability to reward skills in demand. However, the decrease in wages for low-skill labor may result in income inequality and challenges for individuals in that sector.
In summary, the demand and supply model predicts that new computer and communication technologies will raise the pay of high-skill labor due to increased demand, while reducing the pay of low-skill labor due to decreased demand. The four-step process explains how this works by analyzing shifts in demand and supply, determining price and quantity changes, analyzing market outcomes, and evaluating efficiency and equity implications.
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