two years ago, krusty krab restaurant purchased a grill for $50,000. the owner, eugene krabs, has learned that a new grill is available that will cook krabby patties twice as fast as the existing grill. this new grill can be purchased for $80,000 and would be depreciated straight line over 8 years, after which it would have no salvage value. eugene krab expects that the new grill will produce ebitda of $50,000 per year for the next eight years while the existing grill produces ebitda of only $35,000 per year. the current grill is being depreciated straight line over its useful life of 10 years after which it will have no salvage value. all other operating expenses are identical for both grills. the existing grill can be sold to another restaurant now for $30,000. krusty krab's tax rate is 21%. if krusty krab's opportunity cost of capital is 12%, what decision should krusty krab take regarding the new grill? group of answer choices

Answers

Answer 1

According to the question the Net present value of new grill is $37,092.80

What is Net present value?

Net Present Value (NPV) is a financial calculation used to determine the current value of a future stream of cash flows. It is a way of measuring the profitability or attractiveness of an investment by discounting future cash flows to the present day.

Krusty Krab should purchase the new grill, as the net present value of the new grill is positive. The net present value of the new grill is calculated as follows:
Cost of new grill: $80,000
Less: Salvage value: 0
Net cost: $80,000
Less: Proceeds from sale of existing grill: $30,000
Net cost of new grill: $50,000
EBITDA of new grill: $50,000
Less: EBITDA of existing grill: $35,000
Net increase in EBITDA: $15,000
Present value of net increase in EBITDA: $15,000 x (1 - 0.21) / (1.12)^8 = $12,907.20
Net present value of new grill: $50,000 - $12,907.20 = $37,092.80
Since the net present value of the new grill is positive, Krusty Krab should purchase the new grill.

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Answer 2

The answer states that the new grill's Net Present Value is $37,092.80.

What is Net present value?

A financial calculation known as Net Present worth (NPV) is used to estimate the current worth of an expected stream of cash flows. By discounting future cash flows to the present, one can determine how profitable or appealing an investment is.

Given that the new grill has a positive net present value, Krusty Krab should buy it. The following formula is used to determine the new grill's net present value:

Cost of new grill: $80,000

Less: Salvage value: 0

Net cost: $80,000

Less: Proceeds from sale of existing grill: $30,000

Net cost of new grill: $50,000

EBITDA of new grill: $50,000

Less: EBITDA of existing grill: $35,000

Net increase in EBITDA: $15,000

Present value of net increase in EBITDA:

\(=$15,000\times \frac{(1-0.21)}{(1.12)^8}\)

= $12,907.20

Net present value of new grill: $50,000 - $12,907.20 = $37,092.80

Krusty Krab ought to buy the new grill because its net present value is positive.

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Related Questions

Which of the following decisions is most likely to create a temporary diseconomy of
scale? (Select the best answer.)
A)Buying supplies in bulk
B)Buying an expensive piece of machinery
C)Hiring employees who specialize
D)Using division of labor

Answers

Answer:

Buying an expensive piece of machinery

Explanation:

3) What is the present value of $1000, received at the end of 4 years of investment, with a discount rate of 4%?

3) What is the present value of $1000, received at the end of 4 years of investment, with a discount

Answers

Answer:

$854.81

Explanation:

The formula for calculating the present value is as below

PV = FV/( 1 + r)^n

Where Fv =1000

r = 4% or 0.04

n= 6

PV = $1000/ (1 + 4/100)^4

PV=$1000/(1 + 0.04)^4

PV=$1000/1.16985

PV =$854.81

.

Answer:

3629.9

Explanation:

I just did the test and thats what it told me the correct answer was.

do females like when being proposed? or which way? to make it official.

Answers

Answer:

yes few like few not .

sometimes it's even worst

Why is the Federal Reserve so important? What services do they offer?

Answers

The Federal Reserve is important because it is the central bank of the United States and is responsible for managing the nation's monetary policy.

The Federal Reserve's policies can affect interest rates, inflation, employment, and economic growth. The Fed also serves as a lender of last resort during times of financial crisis, providing liquidity to banks and other financial institutions to help prevent economic collapse. The Fed also maintains the stability of the financial system by supervising and regulating banks and other financial institutions to ensure their safety and soundness.

Finally, the Federal Reserve plays an important role in promoting financial stability and consumer protection through its oversight of consumer lending and its role as a watchdog for systemic risks in the financial system. Overall, the Federal Reserve plays a crucial role in promoting economic growth, stability, and prosperity in the United States.

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Which of the following is something that will not affect your homeowners insurance premium? a. the age of the home b. the size of the home c. the color of the home d. the location of the home

Answers

Answer:

The color of the home.

Explanation:

All other options affect your insurance rates.

The color of the home will not affect your homeowners insurance premium. Option (c) is correct.

What do you mean by Location?

The spot where a specific point or object is found is called its location. Geographically speaking, location is a key concept and is typically regarded as being more specific than "place." A locale is a place where people live, such as a city, town, hamlet, or even an ancient location.

You pay a premium when you purchase an insurance policy. Your recurring payments for many popular insurance products, such as life, car, business, homeowners, and renters, are known as premiums. Your policy could be cancelled if you don't pay your premiums.

The total amount paid to an insurer for insurance is referred to as a premium. A fire service levy, an emergency service levy, and GST might be included. It excludes any amount of duty or a charge paid to an intermediary. When it is received by the insurer, broker, or agent, a premium is considered paid.

Therefore, Option (c) is correct. The color of the home.

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Which of the following is not a step in the marketing research process?
O a. Estimate sales
O b. Interpret the information
O c. Make a preliminary investigation
O d. Gather factual information

Answers

The correct answer is option (a) Estimate sales.

The practice of assessing the viability of a new good or service through interviews with prospective customers is known as market research. With the aid of this technique, businesses and organizations may identify their target market, gather and record customer feedback, and arrive at well-informed conclusions.

In a marketing research process, it includes only the steps involving the study of the market and interpreting information based on that.

In the given question, a market research process always includes the steps like gathering factual information, making a preliminary investigation and interpreting the information that was achieved through the market study. But, in a market research process, there is no work of sale estimation. Sales estimation is an end process and marketing research is a beginning process. Sales value may fluctuate and to derive a correct sales estimation, there needs to be a proper marketing research.

Therefore, estimating sales is not a part of a marketing process, hence, option (a) is the correct answer for this question.

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Bob and carol refinanced their ole reidence valued at 500,000 in 2022 how to do refinancing arrangement they refinance date 300,000 he didn’t need for 400,000 receiving 100,000 in cah that they ued to pay for their daughter wedding. What percent of the entrie they pay all the refinance property are they able to deduct?

Answers

The percentage that is deductible is calculated based on the sum obtained through the refinancing arrangement, which is C. 75%

Refinancing, also referred to as a "refi," is the process of altering the conditions of an existing credit agreement, usually one involving a loan or mortgage. When a person or business decides to refinance a debt, they essentially want to change the interest rate, the repayment schedule, and/or other contract terms in a way that is advantageous to them. If approved, the borrower receives a new contract in place of the original one. Borrowers usually choose to refinancing when the interest rate environment dramatically changes since they may be able to save money on their loan payments under the terms of the new contract.

Question

Bob and carol refinanced their ole residence valued at 500,000 in 2022 how to do refinancing arrangement they refinance date 300,000 he didn’t need for 400,000 receiving 100,000 in cash that they used to pay for their daughter wedding. What percent of the interest they pay on the refinanced property are they able to deduct?

A) 25%

B) 50%

C) 75%

D) 100%

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Which defines room and board?
O housing and meals that are often provided at additional cost
O monetary support that is used to help pay educational costs
O an educational institution or establishment, in particular one providing higher education
O a school that provides training in a specific skill or trade

Answers

Room and board are defined as educational institutions or establishments, particularly ones providing higher education. Thus the correct option is C.

What is the definition?

A definition of any word is a detailed description defining the accurate meaning to the reader in order to gain information and understand the meaning to utilize in vocabulary and used in any sentence.

Education and knowledge are not equivalent. Education is the means by which you acquire knowledge, which is what you already know. Knowledge is any truth or piece of information that you can retain and apply. We discover new things through education.

Therefore, option C is appropriate.

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Personal Finance- Education and Training Costs Quick Check

1. Which defines room and board?

housing and meals that are often provided at additional cost

2. What is the definition of a college?

an educational institution or establishment, in particular one providing higher education

3. Which describes financial aid?

monetary support that is used to help pay educational costs

4. Which defines continuing education?

the formal classes that focus on a specific area of study, not usually taken for credit

5. What is post-secondary education?

the education level that follows the successful completion of high school

4/20/2023

a safety clause provision in a listing agreement means the seller can't avoid liability for the commission simply by waiting until after the listing expires to accept a buyer's offer.T/F

Answers

A safety clause provision in a listing agreement is an important component of the agreement that serves to protect the real estate agent's commission. The safety clause provision ensures that the seller cannot avoid liability for the commission by waiting until after the listing expires to accept a buyer's offer.

Under this provision, the seller agrees that if they receive an offer from a buyer within a specified period after the listing expires, they will still be liable for paying the real estate agent's commission. This provision is meant to protect the agent's interests and ensure that they are compensated for their efforts in finding a buyer for the property.

In essence, the safety clause provision provides a window of protection for the agent, even after the listing agreement has expired. It prevents the seller from circumventing the agreement and avoiding payment of the commission by waiting until after the listing expires to accept an offer.

Overall, the safety clause provision is an important aspect of any listing agreement, as it protects the interests of the real estate agent and ensures that they are fairly compensated for their efforts in finding a buyer for the property.

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assuming that prices are sticky, for the economy as a whole, a negative demand shock will most likely:

Answers

A negative demand shock refers to a decrease in aggregate demand, which is the total amount of goods and services demanded in the economy at a given price level. This can be caused by a decrease in consumer spending, an increase in taxes, a decrease in business investment, or an increase in the savings rate.

When a negative demand shock occurs, the aggregate demand curve shifts to the left, and the overall price level remains unchanged. This is because prices are sticky, meaning they do not adjust immediately when demand changes. As a result, aggregate output decreases and unemployment increases as firms lay off workers and reduce production due to decreased demand.

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which of the following is true of erp core components?answerunselectedthey support the important internal activities of an organization.unselectedthey focus primarily on customer relationship management.unselectedthey focus on the external relationships of an organization.unselectedthey focus primarily on supply chain management.unselectedi don't know yet

Answers

ERP core components primarily support the important internal activities of an organization. So the correct option is A.

These components typically include modules for financial management, human resources management, materials management, and production planning. By integrating these different functions into a single system, ERP software can help organizations streamline their operations, reduce redundancies, and improve overall efficiency. While some ERP systems may include modules for customer relationship management or supply chain management, these are generally considered to be separate components rather than core components.

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Full Question ;

which of the following is true of erp core components? answer

A unselected they support the important internal activities of an organization.

B unselected they  focus primarily on customer relationship management.

C unselected they  focus on the external relationships of an organization.

D unselected they  focus primarily on supply chain management.

Which of the following is most influential on an individual's ethics?
A. Social trends
B. TV
C. Occupation
D. Peers

Answers

The most influential factor on an individual's ethics among the given options is D. Peers. Peers have a significant impact on a person's ethics because they often share similar values, beliefs, and experiences.

Social interactions with peers provide opportunities for individuals to learn from each other, adopt new perspectives, and refine their ethical understanding. While social trends (A) and TV (B) can influence a person's ethics, their impact is usually less direct and weaker compared to the influence of peers.

Social trends may shape the general culture, but peers are the ones who can directly model behaviors and attitudes in daily life. TV, as a form of media, may expose individuals to different ethical situations and discussions, but it is still a passive and secondary source of influence compared to personal relationships.

Occupation (C) can have some impact on an individual's ethics, particularly if they work in an industry with specific ethical standards or guidelines. However, this influence is usually limited to professional contexts and may not encompass all aspects of a person's ethical development.

In summary, among the options provided, peers have the most significant influence on an individual's ethics due to the direct and consistent nature of their interactions, shared experiences, and values. Hence, D is the correct option.

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Assignment 4 - Stock Valuation - Robert Campbell and Carol Moms are senior vice-presidents of the Mutual of Chicago Insurance Company. They are co directors of the company's pension fund management division A major new client has requested that Mutual of Chicago present an investment seminar to illustrate the stock valuation process. As a result, Campbell and Morris have asked you to analyze the Bon Temps Company, an employment agency that supplies word processor operators and computer programmers to businesses with temporarily heavy workloads. You are to answer the following questions.

Answers

The economic value added (EVA) for Bon Temps is: $50,000, which is computed by subtracting the cost of capital from the net operating profit after taxes (NOPAT).

The economic value added (EVA) for Bon Temps is $50,000, which is computed by subtracting the cost of capital from the net operating profit after taxes (NOPAT). EVA is an indicator of how much value a company creates for its shareholders after accounting for the cost of capital.

A positive EVA indicates that the company is generating more returns than the cost of capital, while a negative EVA means the opposite.

Assuming Bon Temps' P/E ratio is normally 20x, the market price per share can be estimated by multiplying the EPS by the P/E ratio. Thus, the estimated market price per share for Bon Temps' common stock is $40, which is calculated by multiplying the EPS of $2 by the P/E ratio of 20x.

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Complete question:

Stock Valuation Robert Campbell and Carol Moms are senior vice-presidents of the Mutual of Chicago Insurance Company They are co-directors of the company's pension fund management division. A major new client has requested that Mutual of Chicago present an investment seminar to illustrate the stock valuation process. As a result, Campbell and Morris have asked you to analyze the Bon Temps Company, an employment agency that supplies word processor operators and computer programmers to businesses with temporarily heavy workloads.

You are to answer the following questions. k. Assume that Bon Temps' earings and dividends are expected to decline by a constant 6% per year- that is, 9 = 26%. Why might someone be willing to buy such a stock, and at what price should it sell? What would be the dividend yield and capital gains yield in each year?

I. Bon Temps' financial statements show the following information Average cost of funds 10.0 % EBIT $ 500,000 Total capital $1,250,000 EPS $2.00 Shares outstanding 150,000 Marginal tax rate 30.0%

(1) Compute the company's economic value added (EVA)

(2) Interpret the value you computed in part 1(1). m.

Suppose that normally Bon Temps' P/E ratio is 20x. Using the information given in part (1), estimate the market price per share for Bon Temps' common stock

Label the parts of the Transactional Model. ​

Label the parts of the Transactional Model.

Answers

Answer:

HOPE THIS HELP..PLZ MARK ME BRILLIENT

Explanation:

Label the parts of the Transactional Model.

What was the purpose of the pandemic influenza Strategic Plan?

Answers

These strategies attempted to halt, restrict, or otherwise limit the spread of a pandemic to the United States, while also limiting domestic spread, minimizing sickness, misery, and mortality, and sustaining infrastructure and neutralizing the consequences on the economy and society as a whole.

What is the most prevalent cause of influenza?

The flu causes severe damage to the lungs, nose, and throat. The most vulnerable include young children, the elderly, pregnant women, and those suffering from chronic conditions or with compromised immune systems. Symptoms include fever, muscle discomfort, cough, congestion, headaches, and fatigue. Rest and water are common flu remedies because they allow the body to combat the sickness on its own. Anti-inflammatory pain medicines sold over-the-counter may aid with symptoms. A annual flu vaccination can aid in both prevention and treatment of the flu. The flu is caused by influenza viruses infiltrating the nose, throat, and lungs. When people with the flu cough, sneeze, or talk, virus droplets are released into the air and perhaps into the mouths or noses of others around them.

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To have a more positive metaverse experience, it's important to __________________________.
A. check in with yourself to find the right balance
B. interact with everyone in the same experience
C. exit before someone starts connecting with you
D. continue as long as possible without taking a break

Answers

Interacting with everyone in a similar experience is crucial for a more fulfilling metaverse experience. As a result, choice (B) is the proper response.

What is metaverse?

In science fiction and futuristic literature, the metaverse is a fictitious version of the Internet that is a single, all-encompassing virtual environment made possible by the usage of virtual reality (VR) and augmented reality (AR) devices. A metaverse is a collection of 3D virtual environments that are mostly utilized for social interaction.

The words "meta" and "universe" were combined to create the phrase "metaverse," which first appeared in the science fiction book Snow Crash in 1992.

Hence, option (B) is accurate.

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What effect, considered related to the secondary effect of advertisement, occurs as an advertisement begins to lose its impact when it gots old?

The (blank) makes the advertisement lose its impact after it gets old.

Answers

Advertisement Rot - After a certain period from the conclusion of a product's advertisement campaign, the ad's viability starts to decay.

Advertisement Rot alludes to the diminish in consumers' penchant to purchase a specific item over a period after the promoting closes.

What is the impact of publicizing to a product?

Advertising makes a difference to create buyers mindful of a item and points to construct inclination for that item over its competitors. In case promoting succeeds in those two assignments, buyers will select the promoted item when they make their another buy.

What is an viable advertisement?

Effective publicizing comes to potential clients and advises them of your items or administrations. In a perfect world, publicizing ought to capture the planned clients considerations consideration and lure them to utilize your item.

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a professor is expected to cover 16 chapters in an operations management text each semester. the class is scheduled to meet for one hour three times a week for 15 weeks. one semester the professor cancels the friday class for the 5 big home games but is still able to cover 14 chapters. what is the professor's labor productivity?

Answers

One semester, despite skipping the Friday session to attend the five important home games, the lecturer still managed to cover 14 chapters. The professor's labor productivity is 87.5%.

How would you characterize labor productivity?

The quantity of output generated for each unit of labor input, such as each worker, is referred to as "labour productivity." For each new employee hired, a company with increased productivity will produce more. Because it plays a substantial role in setting long-term living conditions, productivity is important.

How do economists rate the workforce's productivity?

One of the most popular productivity indicators is Gross Domestic Product (GDP) per hour worked. This statistic more accurately reflects the use of labor inputs than productivity per employee.

expected cover = 16 chapters

able to cover = 14 chapters

When a professor works at 100% efficiency, they accomplish 16 chapters in a semester, however in this case, they only completed 14. So, to determine the professor's efficiency, we know that 16 chapters must be done in a semester for 100%.

100% = 16 chapter

and for x% = 14 chapters

so from above both equation we get x %

x%= \(\frac{14}{16}\) X100

x= 87.5%

The efficiency of the professor is therefore 87.5%.

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Individual A sells a rental building, its office equipment, furniture and fixtures, and its land to Individual B. Individual A realizes a gain on the sale of the building, equipment, furniture and fixtures, and land. Individual A rented the building to commercial tenants. What is the character of the gain realized?

Answers

Answer:

Recognized gain

Explanation:

The character of the gain is Recognized gain. A recognized gain is a gain/profit that is gotten from the sale of one's asset when the asset is sold above the price that was initially paid for the assets. Therefore individual A after selling the Rental buildings, office equipment, Furniture and Land to Individual B, still rents the Building to commercial tenants in other to realize the remaining gain, from the sale of the assets.

people remember comments accompanied by gestures more than those made with words alone.
a. true
b. false

Answers

TRUE, people remember comments accompanied by gestures more than those made with words alone.

A gesture is a shape of non-verbal communique or non-vocal communique in which seen bodily moves communicate particular messages, both in area of, or along with, speech. Gestures encompass movement of the hands, face, or different components of the body.

A gesture is a motion of the hand, arms, or other body element that is supposed to suggest or emphasize some thing, regularly while talking. In other words, gestures are frame movements that express some thing. as an example, a wave of the hand is a common gesture used to mention hey to a person.

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magma math: given a spherical magma body with a radius of 5.8 meters and a cubical magma body with sides of length 9.35 meters, in which body of magma is the magma likely to cool more quickly
Choose one:
A. The magma will cool at the same rate for both magma bodies.
B. There is not enough information provided to answer the question.
C. The magma will cool more quickly in the cubical magma body.
D. The magma will cool more quickly in the spherical magma body.

Answers

A spherical magma body with a radius of 5.8 meters and a cubical magma body with sides of length 9.35 meters, in which body of magma is the magma likely to cool more quickly .The magma will cool more quickly in the cubical magma body.

This is because the surface area-to-volume ratio of the cubical magma body is larger than that of the spherical magma body. The rate of cooling depends on the surface area available for heat loss, and since the surface area of the cubical magma body is greater than that of the spherical magma body, the cubical magma body will cool more quickly.

Additionally, the corners of the cubical magma body provide even more surface area for heat loss compared to the smooth surface of the spherical magma body.

The rate of cooling of a body of magma (or any object, for that matter) depends on several factors, including its surface area, its volume, and its thermal conductivity. The greater the surface area, the more heat can be lost to the surrounding environment, and the faster the body will cool. Similarly, the greater the volume, the more heat the body contains, and the longer it will take to cool. Finally, the thermal conductivity of the material also plays a role, as some materials are better at conducting heat than others.

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Harold wants to find all order numbers in his database that begin with “01” and replace them with “02.” He places his cursor in the “OrderNumber” field and opens the “Find Dialog” box. Which steps would most quickly accomplish this task?

On the Find tab, enter “01” for “Find What,” go to Replace tab, enter “02,” and click “Replace.” Continue to the next record and repeat.

On the Replace tab, enter “01” to search, “02” to replace, and click “Replace All” to change all the order numbers that start with “01.”

On the Find tab, enter “01” for “Find What,” go to Edit tab, enter “02,” and click “Edit.” Continue to the next record and repeat.

On the Replace tab, enter “01” to search, “02” to replace, and click “Change All” to change all the order numbers that start with “01.”

Answers

Answer:

D.

Explanation:

examples of 4 macro strategies for developing customer value

Answers

Four macro strategies for developing customer value include; cost leadership strategy, differentiation strategy, focused differentiation strategy, and focused cost leadership strategy.

Cost Leadership Strategy This strategy is geared towards creating a low-cost advantage in the market. The cost leadership strategy focuses on reducing costs to achieve a lower price and to sustain profits, relative to its competitors. Firms achieve cost leadership through economies of scale, access to cheaper materials or labour, and efficient processes. Companies that use this strategy to develop customer value include Walmart and Amazon.

Differentiation Strategy Differentiation strategy focuses on making a company's product stand out in the market through distinctive product design, exceptional quality, and customer service. A company that uses this strategy wants to be recognized as a leader in a particular industry or niche. Differentiation strategy is effective in capturing value because customers are willing to pay more for products that offer greater value and benefits. Apple and Tesla are companies that have achieved customer value through differentiation.

Focused Differentiation Strategy This strategy is focused on serving a specific customer niche with distinctive products or services. Focused differentiation strategy is also referred to as niche strategy and seeks to achieve high profits in a small but well-defined market segment. The strategy targets the needs and preferences of customers and develops value for these customers. A company that uses this strategy includes Rolls-Royce and Rolex.

Focused Cost Leadership Strategy This strategy focuses on reducing costs to a select group of customers within an industry. The approach seeks to provide a low-cost offering to a narrow market segment. Companies that use this strategy may offer products or services that meet specific needs of a market segment, such as budget-conscious customers. Companies that use this strategy include Southwest Airlines and Walmart.

In conclusion, the four macro strategies for developing customer value include cost leadership strategy, differentiation strategy, focused differentiation strategy, and focused cost leadership strategy.

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What is the ratio of purple flowers to white flowers ?: 1?

Answers

Purple flowers to white blossoms are split in a ratio of 3:1.

The alpha factor (), which is the ratio of a transistor's collector and emitter currents, is always less than one (between 0.5 and 1).  Current gain (= Ic/Ib), often known as the ratio of its collector and base currents, is always larger than 1. An alternate formula for calculating the factor is = /(+1) = 0.996/ 0.992=1 = /(+1).=1/1+1=1/2=0.5. A proportion also exists when two ratios are equivalent. A ratio in mathematics displays how often one number occurs in another. In a fruit plate, for instance,  the ratio of oranges to lemons would be eight to six . This demonstrates that the tweet is being criticized and that some people believe its content to be inappropriate

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Imagine you buy five burgers, two books, and a pair of jeans each period. In period 1,
burgers are $5, books are $12, and jeans are $30. In period 2, burgers are $6, books are
$14, and jeans are $28. What is the CPI based on your consumption?

Answers

Answer:

To find the answer, we use the Consumer Price Index (CPI) formula:

CPI = ( Cost of Market Basket in a Given Year / Cost of Market Basket in Base Year ) * 100

In this case, we will assume that the base year is period 1, and the given year is obviously period two.

Now, we simply plug the amounts into the formula:

CPI = ( 6 + 14 + 28 / 5 + 12 + 30 ) * 100

CPI = ( 48 / 47 ) * 100

CPI = 102.13

In other words, the inflation rate for this CPI was 2.13%

EPA is part of how to avoid this type of risk?
compliance
operational
strategic
financial

Answers

Answer:

A.compliance

Explanation:

PLZ HELP ECON ?!!!!!

PLZ HELP ECON ?!!!!!

Answers

Answer:

Explanation:

you have to decresase it

Answer:

pick b, decreased.

Explanation:

what is the price of three-year, 8% coupon bond (semi-annual coupon payments) with a face value of $1,000 and a required rate of 10%?

Answers

The price of a three-year, 8% coupon bond with semi-annual coupon payments is Price = $80 * (1 - (1 + 0.05)^-6) / 0.05 + $1,000 / (1 + 0.05)^6

The price of a three-year, 8% coupon bond with semi-annual coupon payments can be calculated using the formula for the present value of a bond. The formula is:

Price = C * (1 - (1 + r)^-n) / r + F / (1 + r)^n

where C is the coupon payment, r is the required rate of return per period, n is the number of periods, and F is the face value of the bond.

In this case, the coupon payment is 8% of $1,000, which is $80. The required rate of return per period is 10% divided by 2, since there are two coupon payments per year, resulting in a rate of 5% per period. The number of periods is 3 years times 2, since there are two coupon payments per year, resulting in 6 periods. The face value of the bond is $1,000.

Plugging these values into the formula:

Price = $80 * (1 - (1 + 0.05)^-6) / 0.05 + $1,000 / (1 + 0.05)^6

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The price of a three-year, 8% coupon bond with semi-annual coupon payments, a face value of $1,000, and a required rate of 10% can be calculated using the formula for the present value of a bond.

To find the price, we need to calculate the present value of each coupon payment and the present value of the face value, and then sum them up.

Stepwise explanation:

1. Calculate the coupon payment: The coupon rate is 8% of the face value, so the coupon payment is 8% * $1,000 = $80 per year. Since coupon payments are made semi-annually, the coupon payment for each period is $80/2 = $40.

2. Calculate the number of periods: Since the bond has a maturity of three years and semi-annual payments, the number of periods is 3 * 2 = 6.

3. Determine the discount rate: The required rate of return is given as 10%, which is the discount rate we will use in this calculation.

4. Calculate the present value of each coupon payment: Using the formula for present value, we can calculate the present value of each coupon payment using the discount rate and the number of periods. In this case, the present value of each coupon payment is $40/(1+0.10)^1 + $40/(1+0.10)^2 + ... + $40/(1+0.10)^6.

5. Calculate the present value of the face value: The face value of the bond is $1,000, which will be received at the end of the bond's maturity. To calculate the present value of the face value, we use the formula: $1,000/(1+0.10)^6.

6. Sum up the present values: Add up the present values of the coupon payments and the present value of the face value to find the price of the bond.

In conclusion, by following the above explanation stepwise, the price of the three-year, 8% coupon bond with semi-annual coupon payments, a face value of $1,000, and a required rate of 10% can be calculated. The calculation involves finding the present value of each coupon payment and the present value of the face value, and then summing them up. This detailed calculation helps in determining the accurate price of the bond.

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which of the following question types of specific values to determine the importance of a particular item?

force choice

open ended

rank order

rating scale​

Answers

Answer:

I think Its C: Rank order

Explanation:

if $10000 is invested today in an account that earns interest at a rate of 10%, what is the value of the equal withdrawals that can be taken out of the account at the end of each of the next five years if the investor plans to deplete the account at the end of time period? $2638. $2890. $3132. $3561.

Answers

The answer is option B, $2890 concluded with the calculation of the present value.

To calculate the value of the equal withdrawals that can be taken out of the account at the end of each of the next five years, we can use the present value of an annuity formula, which is:

\(PV = C x [(1 - (1 + r)^-n) / r]\\\)

where PV is the present value of the annuity, C is the equal withdrawal amount, r is the interest rate, and n is the number of periods.

Using the information given in the question, we can plug in the values and solve for C:

PV = $10,000

r = 10%

n = 5

\($10,000 = C x [(1 - (1 + 0.10)^-5) / 0.10]\)

Solving for C, we get:

C = $2,890.23

Therefore, the value of the equal withdrawals that can be taken out of the account at the end of each of the next five years is $2,890.23.

The equal withdrawals that can be taken out of an account at the end of each of the next 5 years if $10,000 is invested today in an account that earns interest at a rate of 10% and the investor plans to deplete the account at the end of the time period are $2,890, concluded with present value.

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