The Simpson Corporation is trying to choose between the following two mutually exclusive design projects: Year Cash Flow (1) Cash Flow (II) O -$54,000 -$ 19,000 1 25,000 10,200 4 25,000 10,200 1 25,000 10,200 a-1. If the required return for both projects is 11 percent, what is the profitability index for both projects? (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.) a-2.If the company applies the profitability index decision rule, which project should the firm accept?
b-1. What is the NPV for both projects? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b-2.If the company applies the NPV decision rule, which project should it choose?

Answers

Answer 1

a-1 The profitability index for both project is:

PROFITABILITY INDEX OF PROJECT 1:=>   1.24

PROFITABILITY INDEX OF PROJECT 2: => 1.32

a-2 Project 2 would be accepted, since it has a higher profitability index

b-1 NPV OF PROJECT 1: $15,208

NPV OF PROJECT 2: $5729

b-2 Project 1 would be accepted, since it has a higher NPV

Capital Budgeting Techniques

Net present value(NPV) and profitability index (PI) methods are discounted cash flow techniques of capital budgeting. NPV is calculated as present value of cash inflows minus present value of cash outflows.PI is calculated as present value of cash inflows divided by present value of cash outflows.

Year Cash Flow (I)      Cash Flow (II)

0        $ 63,000          $ 18,100

1         32,000                  9,750

2        32,000                  9,750

3        32,000                  9,750

Answer a - 1

PROFITABILITY INDEX OF PROJECT 1:

Project 1 gives an annuity of 32,000 every year. In order to find the present value of cash inflows, we need to multiply this annuity amount by present value interest factor for an annuity(PVIFA) of $1 for 3 years at 11%Present value of cash inflows =32,000 × PVIFA11%,3years

= 32,000 × 2.444 = $78,208

Present value of cash outflows ( or initial investment) = $63,000Profitability index = Present value of cash inflows / Present value of cash outflows

= 78,208 / 63,000

= 1.24

PROFITABILITY INDEX OF PROJECT 2:

Project 2 gives an annuity of 9750 every year. In order to find the present value of cash inflows, we need to multiply this annuity amount by present value interest factor for an annuity(PVIFA) of $1 for 3 years at 11%Present value of cash inflows =9750 × PVIFA11%,3years

= 9750 × 2.444 = $23,829

Present value of cash outflows ( or initial investment) = $18,100Profitability index = Present value of cash inflows / Present value of cash outflows

= 23,829 / 18,100

= 1.32

Answer a-2

According to the profitability index decision rule, the project with the higher profitability index will be accepted.

Project 2 would be accepted, since it has a higher profitability index

Answer b-1

NPV OF PROJECT 1:

NPV = present value of cash inflows - initial investment

= 78,208 - 63,000

= $15,208

NPV OF PROJECT 2:

NPV = 23,829 - 18,100

= $5729

Answer b-2

According to the NPV decision rule, the project with the higher NPV will be accepted.

Project 1 would be accepted, since it has a higher NPV

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Related Questions

Which factors can affect a stock's price? Check all that apply.
RE
market performance
the company's financial health
the quantity products produced
location of the company
the economy

Answers

I have no idea haha but how’s your guys day going

1. What is the purpose of using credit?



2. List several sources of consumer credit.




3. What types of information are asked for on a typical credit
Application?



4. How are store credit accounts different from bank credit card
Accounts?



5. How are credit cards different from charge cards?



6. How is a single payment similar to an installment loan? How is it
Different?




7. Give two examples of collateral that might be used to secure a loan.



8. What is the responsibility of a cosigner of a loan?



9. How is a line of credit different from other types of loans?





10. List several benefits of using credit.

Answers

Answer: To earn CREDIT

Explanation:

what are the common barriers to entry that entrepreneurs might experience in business operations?

Answers

Answer:

Common barriers to entry include special tax benefits to existing firms, patent protections, strong brand identity, customer loyalty, and high customer switching costs. Other barriers include the need for new companies to obtain licenses or regulatory clearance before operation.

Explanation:

The effort used to coordinate the factors of production is a description of:_______
a. physical capital.
b. human capital.
c. labor.
d. entrepreneurship.

Answers

Answer:

The effort used to coordinate the factors of production is a description of entrepreneurship.

The effort used to coordinate the factors of production is a description of d. entrepreneurship.

What are the factors of production in entrepreneurship?

The elements of production are assets that are the constructing blocks of the financial system; they're what human beings use to produce items and offerings. Economists divide the factors of production into 4 categories: land, labor, capital, and entrepreneurship.

Within the first halg of the 20th century, some authors added the work of organization or entrepreneurship as a fourth factor of manufacturing. This has become preferred within the publish-struggle Neoclassical synthesis.

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Ricardo wants to rent a personal watercraft for a beach party. Wavy Dave's charges $17. 50 per hour plus a $20 fuel fee. Sun'N'Fun charges $15. 00 per hour plus a $30 fuel fee. After how many hours will Sun'N'Fun be cheaper than Wavy Dave's?.

Answers

Answer:

5 hours

Explanation:

(h = hour)

Wavy Dave's:

h1=20 + 17.50= 37.50

h2= 20 + 17.50 + 17.50 = 55

h3= 20 + 17.50 + 17.50 + 17.50 = 72.50

h4 = 20 + 17.50 + 17.50 + 17.50 + 17.50 = 90

h5= 20 + 17.50 + 17.50 + 17.50 + 17.50 + 17.50 = 107.50

Sun'N'Fun:

h1= 30 + 15 = 45

h2= 30 + 15 + 15 = 60

h3= 30 + 15 + 15 + 15 = 75

h4= 30 + 15 + 15 + 15 + 15 = 90

h5= 30 + 15 + 15 + 15 + 15 + 15 = 105

Which situations offer examples of banking and related services workers? select three options. anna analyzes loan applicants to decide whether to give them loans. aaron helps customers put money into and remove money from their accounts. jared researches the credit history of people applying for credit. tamara reviews the finances of a business to determine whether it is profitable. raquel helps individuals and companies prepare their tax forms. troy helps a family create a budget to save more money.

Answers

Examples of banking and related services workers are;

Anna analyzes loan....Aaron helps customers put money...Jared researches the...What is banking?

Banking sweves as the business of protecting money for others, it involves lending if money and generating interest that creates profits .

Therefore, example of banking is when Aaron helps customers put money into and remove money from their accounts.

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Answer:

ANNA, AARON, JARED

Explanation:

A; Anna analyzes loan applicants to decide whether to give them loans.

B; Aaron helps customers put money into and remove money from their accounts.

C; Jared researches the credit history of people applying for credit.

science week1 qarter4 grade 8​

Answers

Answer:

Explanation:

444

Describe the goal of a good financial manager according to you?

Answers

Answer:

Financial managers are responsible for the financial health of an organization. They produce financial reports, direct investment activities, and develop strategies and plans for the long-term financial goals of their organization. Financial managers typically: ... Help management make financial decisions.

The Goal of the Financial Manager. How can financial managers make wise planning, investment, and financing decisions? The main goal of the financial manager is to maximize the value of the firm to its owners. The value of a publicly owned corporation is measured by the share price of its stock

Explain why socialist societies do not use a circular flow chart.

Answers

They don’t use a circular flow chart because it don’t give a precise answer to what they are answering.

Using the following information:
1. The bank statement balance is $2,762.
2. The cash account balance is $3,113. 3. Outstanding checks amounted to $724. 4. Deposits in transit are $884. 5. The bank service charge is $182
6. a check for $40 supplies was recorded as $31 in the ledger.
prepare a bank reconciliation for miller co. for august 31
Miller co.
Bank Reconciliation
August 31
Cash balance according to bank statement
Adjusted balance
Cash balance according to company's records
Adjusted balance

Answers

Adjusted balance according to bank statement is $2,922 and adjusted balance according to company's records is $2,940

Let's prepare a bank reconciliation for Miller Co. for August 31 using the provided information.

Miller Co.
Bank Reconciliation
August 31

Step 1: Start with the bank statement balance.
Cash balance according to bank statement: $2,762

Step 2: Add deposits in transit.
Adjusted balance: $2,762 + $884 = $3,646

Step 3: Subtract outstanding checks.
Adjusted balance: $3,646 - $724 = $2,922

Step 4: Start with the cash account balance.
Cash balance according to company's records: $3,113

Step 5: Add or subtract any errors in the ledger.
In this case, a check for $40 supplies was recorded as $31, so we need to correct this error by adding the difference ($9) to the cash account balance.
Adjusted balance: $3,113 + $9 = $3,122

Step 6: Subtract the bank service charge.
Adjusted balance: $3,122 - $182 = $2,940

Now, let's compare the adjusted balances:

Adjusted balance according to bank statement: $2,922
Adjusted balance according to company's records: $2,940

In this case, the adjusted balances do not match. It is important to review the bank reconciliation and look for any errors or discrepancies that may have occurred to find the cause of this difference.

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Somebody help me pls

Answers

Answer:

yr question is not here???????

What is it that you need help with?

It's probably best to specify that in the question first.

ps12-1 Derek currently has $11,844.00 in an account that pays 4.00%. He will withdraw $5,032.00 every other year beginning next year until he has taken 6.00 withdrawals. He will deposit $11844.0 every other year beginning two years from today until he has made 6.0 deposits. How much will be in the account 29.00 years from today?
2-Derek can deposit $221.00 per month for the next 10 years into an account at Bank A. The first deposit will be made next month. Bank A pays 13.00% and compounds interest monthly. Derek can deposit $2,567.00 per year for the next 10 years into an account at Bank B. The first deposit will be made next year. Bank B compounds interest annually. What rate must Bank B pay for Derek to have the same amount in both accounts after 10 years?
3-Assume the real rate of interest is 3.00% and the inflation rate is 4.00%. What is the value today of receiving 14,424.00 in 12.00 years?
ps5 Derek will deposit $7,128.00 per year for 19.00 years into an account that earns 11.00%, The first deposit is made next year. How much will be in the account 38.00 years from today?

Answers

1. The amount in the account 29 years from today will be approximately $51,390.08, considering withdrawals and deposits made every other year. 2. Bank B must pay an interest rate of approximately 61.47% for Derek to have the same amount in both Bank 3. The value today of receiving $14,424.00 in 12 years, is approximately $9,632.78.

1. To calculate the amount in the account 29 years from today, we need to consider both withdrawals and deposits. The withdrawals occur every other year, and the deposits also occur every other year but start two years from today. Assuming the interest is compounded annually, we can calculate the future value of both the withdrawals and deposits separately and then subtract the total withdrawals from the total deposits.

For the withdrawals: Since $5,032.00 is withdrawn every other year, there will be a total of 6 withdrawals over 12 years. Using the future value of an annuity formula, we can calculate the future value of the withdrawals as $5,032.00 * [(1 + 0.04) ^ 2 - 1] / 0.04 = $37,695.04.

For the deposits: Since $11,844.00 is deposited every other year starting two years from today, there will be a total of 6 deposits over 12 years. Using the future value of an annuity formula, we can calculate the future value of the deposits as $11,844.00 * [(1 + 0.04) ^ 2 - 1] / 0.04 = $89,085.12. Finally, we subtract the total withdrawals from the total deposits to get the amount in the account 29 years from today: $89,085.12 - $37,695.04 = $51,390.08. Therefore, the amount in the account 29 years from today will be $51,390.08. 2. To find the interest rate Bank B must pay for Derek to have the same amount in both accounts after 10 years, we can set up an equation of future values.

For Bank A: Derek will deposit $221.00 per month for 10 years, which amounts to $2,652.00 per year. Using the future value of an ordinary annuity formula, we can calculate the future value of Bank A's account as $2,652.00 * [(1 + 0.13/12) ^ (12 * 10) - 1] / (0.13/12) = $47,850.63.

For Bank B: Derek will deposit $2,567.00 per year for 10 years. Using the future value of an ordinary annuity formula, we can calculate the future value of Bank B's account as $2,567.00 * (1 + r) ^ 10, where r is the interest rate Bank B must pay. Setting up an equation: $47,850.63 = $2,567.00 * (1 + r) ^ 10 Simplifying and solving for r: (1 + r) ^ 10 = $47,850.63 / $2,567.00 (1 + r) ^ 10 = 18.6336 1 + r = (18.6336) ^ (1/10) 1 + r = 1.6147 r = 1.6147 - 1 r ≈ 0.6147 Therefore, Bank B must pay an interest rate of approximately 0.6147 or 61.47% for Derek to have the same amount in both accounts after 10 years.

3. To calculate the value today of receiving $14,424.00 in 12 years, we need to account for the effects of inflation. The real rate of interest is given as 3.00%, which represents the interest rate adjusted for inflation. To find the nominal interest rate, we add the inflation rate to the real rate of interest: nominal interest rate = real rate of interest + inflation rate = 3.

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Fill in the table by indicating the changes in the determinants necessary to decrease short-run aggregate supply (increase/decrease)

Fill in the table by indicating the changes in the determinants necessary to decrease short-run aggregate

Answers

Input prices and burdensome regulation will lead to an increase in the short-run aggregate supply while human capital leads to a decrease.

What is supply?

It should be noted that supply is the quantity of goods that a producer is willing to sell at a price and particular period.

In this case, input prices and burdensome regulation will lead to an increase in the short-run aggregate supply while human capital leads to a decrease.

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What type of federal funding is free money, but is based
on financial need only?

A.Federal grants

B.All federal scholarships

C.The 529 Plan

D.None of these are correct

Answers

Answer:

Try A. Federal Pell Grant

Answer:

answer : b

Explanation:

cauise

the game. The most diversified portfolio would include all of these various options. On average, should this diversified portfolio have the highest return? Why or why not

Answers

A diversified portfolio, which comprises a number of asset types such as equities, bonds, real estate, and commodities, may assist in lowering overall investment risk while simultaneously increasing profits.

What is a diversified portfolio?

Generally, A diversified portfolio, which includes a variety of asset classes such as stocks, bonds, real estate, and commodities, can help to reduce risk and increase returns.

The idea behind diversification is that different asset classes perform differently in various market conditions, so by spreading investments across different asset classes, the overall portfolio can be less affected by any one market downturn.

However, it does not necessarily mean that a diversified portfolio will always have the highest return. It depends on the current market conditions, economic outlook and the skill of the portfolio manager.

It is important to keep in mind that diversification does not guarantee a profit or protect against loss.

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what was the most purchased product by rocky mountain bikes? how much did they purchase over all the years?

Answers

In Northern California, USA, the sport gained popularity in the 1970s when participants rode dated, single-speed balloon tire bicycles down rocky hillsides.

Why is Rocky Mount famous?

The economy of Rocky Mount has evolved to incorporate biological pharmaceuticals, manufacturing, and logistics in addition to its traditional industries of rail transportation, textiles, and agriculture. In 1969 and 1999, Rocky Mount was given the All-America City Award by the National Civic League.

What is the most well-known mountain bike manufacturer?

Giant is a big rival in the industry, but Trek and Specialized enjoy greater notoriety across the globe for their brands. I keep coming back to Giant because of their affordable prices and well-known brand every time I help someone in their search for a new bike.

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What does an effective food defense program accomplish?.

Answers

Answer:

The system will be able to detect pathogens in food, identify their source, and contain the contamination. It also includes prevention measures such as cooking practices, personal hygiene, and sanitation. Effective food defense systems will help to reduce the risk of foodborne illnesses.

The effective food defense system will be able to identify pathogens in food and identify their source as well as the source of contamination. Cooking practises, personal hygiene, and sanitation are also included as prevention measures. Foodborne illness risks can be reduced with effective food defence systems.

Food security, nutrition, and safety are all inextricably linked. Every year, an estimated 600 million people – nearly one in every ten people in the world – become ill after eating contaminated food, and 420 000 die, resulting in a loss of 33 million healthy life years (DALYs).

Each year, low- and middle-income countries lose US$ 110 billion in productivity and medical costs as a result of unsafe food. Children under the age of five account for 40% of the foodborne disease burden, with 125 000 deaths each year. Foodborne diseases stymie socioeconomic development by taxing health-care systems and wreaking havoc on national economies, tourism, and trade.

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4. In your progress report, you want the Work Completed section to follow your
Summary of Costs. To date, the company has rewritten the home page content,
created a new logo, and updated the overall structure of the site. Currently, an idea
for site navigation has been proposed but not yet confirmed. You want to include a
visual of the navigation option in the progress report.

a. The navigation option includes these links from the Home Page: About, Services,
Customer Reviews, and Contact. The About section would include links to History
and Our Mission; the Services section would also include links to Pricing, Scope, and
Timeline. Show an example of a simple, custom graphic to display the navigation. (3
points)

4. In your progress report, you want the Work Completed section to follow yourSummary of Costs. To date,

Answers

Links to About, Services, Customer Reviews, and Contact are included in the suggested navigation option, along with dropdown menus for About (History and Our Purpose) and Services (Pricing, Scope, and Timeline).

What type of bar chart is most popular?

When showing a sequence of statistics over time, it is highly helpful. If long labels are needed, vertical bar graphs have the drawback of not leaving much room at the bottom of the chart.

Which bar charts are frequently employed to display time series data?

Using a sequence of bars, time series bar charts can display changes in a metric over time. This allows you to plot several series, display the breakdown of a metric across dimensions, and display the evolution of the values over time.

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in terms of external organizational environments, the __________ environment affects all organizations while the __________ environment is unique to each company.

Answers

In terms of external organizational environments, the general or macro environment affects all organizations, while the specific or micro environment is unique to each company.

In terms of external organizational environments, the general environment affects all organizations, while the specific environment is unique to each company.

The general environment encompasses broad societal, economic, technological, political, and ecological factors that influence multiple industries and organizations universally.

It includes trends, laws, cultural shifts, and global events that impact businesses in various ways. On the other hand, the specific environment is specific to each company and includes factors such as competitors, customers, suppliers, regulatory bodies, and local communities.

These factors directly affect a company's operations, performance, and competitive position. Understanding and adapting to both the general and specific environments is essential for organizations to navigate external influences and achieve long-term success.

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Do you think you should use a zero-based budgeting system? Explain why or why not.

Answers

yes, because it gives you an opportunity to put forth money for the future on what to do with it. but only if you reach the zero at the end of the month. you can use it in many ways like emergency funds or an envelope system.

Assume an issuer incurs $1 million in other expenses to sell 3 million shares at $40 each to an underwriter and the underwriter sells the shares at $43 each. By the end of the first day's trading, the issuing company's stock price had risen to $70. In percentage terms, how much of the day's closing market value was absorbed by the total costs associated with the issue

Answers

Approximately 47.62% of the day's closing market value was absorbed by the total costs associated with the issue.

To determine the percentage of the day's closing market value absorbed by the total costs associated with the issue, we need to calculate the total costs and the closing market value.

The issuer incurs $1 million in other expenses to sell 3 million shares at $40 each to an underwriter. Therefore, the total costs associated with the issue are $1 million.

The underwriter sells the shares at $43 each. Since there are 3 million shares, the total proceeds from the sale are $43 * 3 million = $129 million.

By the end of the first day's trading, the issuing company's stock price had risen to $70. So, the closing market value of the issued shares is $70 * 3 million = $210 million.

To calculate the percentage of the day's closing market value absorbed by the total costs, we can use the formula:

Percentage = (Total Costs / Closing Market Value) * 100

In this case, the percentage is:

Percentage = ($1 million / $210 million) * 100 = 0.47619 * 100 = 47.62%

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wich situation would cause the price of a product to fall the most

Answers

The quality of that product I think

Adrian owns an older used car that is valued at about $1,000.

He is considering whether to change his car insurance policy.

He has the option to purchase additional coverage for $200/month that will protect his vehicle if it is damaged in an accident. If there is an accident, the insurance company will pay Adrian the amount his vehicle is worth.

Purchasing insurance can help Adrian risk.

Adrian’s best decision in this case is to because the policy is

Answers

Answer:

Purchasing insurance can help Adrian  minimize  risk. Adrian’s best decision in this case is to  not buy the insurance because the policy is too expensive in relation to the value of his vehicle

Adrian can reduce risk by buying insurance. The wisest course of action for Adrian in this situation is to refuse to purchase the insurance because the premiums are too high in comparison to the worth of his car.

What is insurance?

A party promises to compensate another party in exchange for a fee in the case of a certain loss, damage, or injury as a way of financial loss protection. It is a method of risk management that is primarily employed to protect against the risk of a potential loss.

An insurer, insurance business, insurance carrier, or underwriter is a corporation that offers insurance. A person or company that purchases insurance is referred to as a policyholder, while someone or anything that is protected by the policy is referred to as an insured.

The insurance policy that the insured gets outlines the terms and circumstances under which the insurer will make payments to them, their chosen beneficiary, or assignee.

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8-1 Discussion: Blockchain and Cryptocurrency
Blockchain and cryptocurrency have great potential to bring prosperity into our world. The concept of a truly shared and democratic economy is at the core of the blockchain initiative.
In your initial post, address the following:
Discuss your experience with cryptocurrencies.
Have you used Bitcoin, Dogecoin, Ripple, Tether, Litecoin, Ethereum, or other cryptocurrencies? If so, explain why you used one of these systems and describe your experience.
If you haven’t used cryptocurrencies, discuss your opinion about using them. Would you be interested in using or investing in cryptocurrency? Explain why or why not.
How do you think blockchain technology and cryptocurrency might affect the economy in the future?

Answers

Cryptocurrencies have gained significant attention and popularity in recent years. Bitcoin, Ethereum, and Litecoin are among the most well-known cryptocurrencies.

Blockchain technology, which underlies cryptocurrencies, has the potential to revolutionize various sectors of the economy. Its decentralized and transparent nature can enhance security, efficiency, and trust in transactions and data management. Blockchain has the potential to streamline processes, reduce intermediaries, and enable new business models.

In the future, blockchain technology and cryptocurrencies could impact the economy in several ways:

Financial Inclusion: Cryptocurrencies can provide financial services to the unbanked population worldwide, allowing individuals without access to traditional banking systems to participate in the global economy.

Disintermediation: Blockchain technology can remove the need for intermediaries in various industries, such as banking, supply chain management, and real estate, reducing costs and increasing efficiency.

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Ted is a favorite among his subordinates, as he gets directly involved in the minute details of their work. He is task-oriented and has clear knowledge on critical operational details of his team. In this context, Ted can be considered a(n) _____ leader.

Answers

Answer:

ingratiating.

Explanation:

It is correct to say that Ted can be considered an ingratiating leader, which is a technique used to improve personal relationships through the use of sympathy, assistance, interest and collaboration, so that there is a positive influence on people and consequently greater individual willingness to respond to expectations of that person.

As the question explains, Ted has the sympathy of subordinates and is considered one of the favorite leaders because he gets involved in the work, understands the workers and helps with tasks, so he is a ingratiating leader.

when effective leaders hear others complaining about a problem, which action would they most likely take?

Answers

When effective leaders hear others complaining about a problem, THE action would they most likely take is: To try to learn how big the problem really is.

Who is a leader?

A leader is person that possess a leadership skills  and help to direct and lead the people that are under him/her.

An effective Leaders does not  ignore problems but they  tend to  learn how big the situation  and try to figure and solve it.

Therefore the action would they most likely take is: To try to learn how big the problem really is.

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T/F : The costs related to rent, utilities, and salaries in the current reporting period are examples of liabilities.

Answers

This statement is False. The costs related to rent, utilities, and salaries in the current reporting period are not examples of liabilities.

Liabilities refer to obligations or debts owed by a company to external parties. They represent the company's financial obligations that arise from past transactions or events. Examples of liabilities include accounts payable, loans, and accrued expenses. On the other hand, costs related to rent, utilities, and salaries are typically considered as expenses or operating costs. These expenses are incurred by a company as part of its day-to-day operations and are recorded on the income statement. They are not classified as liabilities because they do not represent obligations or debts owed to external parties.

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If the next chair of the Federal Reserve Board has a reputation for advocating an even slower rate of money growth than the current​ chair, what will happen to interest​ rates? A. Slower money growth will lead to a liquidity​ effect, which will lower interest rates.​ Moreover, the lower​ income, price​ level, and inflation will reinforce the decrease in interest rates. B. Slower money growth will lead to a liquidity​ effect, which will raise interest​ rates; however, the lower​ income, price​ level, and inflation will tend to lower interest rates. C. Slower money growth will lead to a liquidity​ effect, which will lower interest​ rates; however, the lower​ income, price​ level, and inflation will tend to raise interest rates. D. Slower money growth will lead to a liquidity​ effect, which will raise interest rates.​ Moreover, the lower​ income, price​ level, and inflation will reinforce the increase in interest rates.

Answers

Answer: B. Slower money growth will lead to a liquidity​ effect, which will raise interest​ rates; however, the lower​ income, price​ level, and inflation will tend to lower interest rates.

Explanation:

Slower money growth would mean there is less money in the economy which means that there is less liquidity. This will increase interest rates because there would be less money available to loan out to people and so the ones that will be available have to be done at high rates.

As a result of the lower money supply though, people would have lower incomes and demand less goods which would reduce the price level. These will have the effect of reducing the rates to enable people get loans.

what method of financing do entrepreneurs often use when they are first developing their business idea?

Answers

Self-funding, also known as bootstrapping, is an powerful way of startup financing, in particular when you are just beginning your commercial enterprise.




First-time marketers regularly have trouble getting investment without first showing a few traction and a plan for capacity achievement. you may make investments out of your personal financial savings or can get your circle of relatives and friends to contribute. this may be smooth to elevate due to less formalities/compliances, plus much less fees of raising. In maximum situations, circle of relatives and friends are flexible with the interest fee.Self-funding or bootstrapping should be considered as a first funding option because of its blessings. when you have your personal money, you are tied to enterprise. On a later level, buyers don't forget this as a good point.


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Diana's gross pay was $890 and her total deductions were $89. What is her net pay?

Answers

Answer=801$

Explanation:

Greetings !

Diana's gross payment - Her deductions = Her net payment.

Thus, $890-$89=801$=Net payment of Diana.

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