Answer:
a) Present value of the investment: $198,936
b) if the present worth of the investment which are discounted at MARR rate is positive, the investment is worth investing, while if the present value of the investment is negative, Investor should not invest.
c) As calculated in (a), present value of the investment is $198,936, Bailey should buy the gang punch
Explanation:
Please find detailed of calculation in (a) which is shown as below:
Present value = Present value of saving in raw material - Present value of increase in labor cost - Initial investment = [ (12,250/ 5%) x (1-1.05^-15)] - [ (3,200/ 5%) x (1-1.05^-15)] - 105,000 = $198,936.
Answer:
Channel incentives are a behavioral modification tool that influence channel partners – such as dealers, contractors, resellers, and vendors – to align their behaviors with overarching business goals. These behaviors could include: Increasing overall sales volume. Increasing sales for high margin products
Explanation:
Based on economic theory, scarcity is limitation of a resource which cannot be replenished. Shortage is used to indicate a market condition.
When applying this definition to your question, A is your answer.
Answer:
These statements are true:
A) The Federal Reserve does not set the Federal funds rate, but it influences it through the use of open market operations:
For example, at the very moment the Fed funds rate is 1.75%. If the Fed wanted to raise it to 2%, it would have to do so through the use of open market operations (in this case, because it wants to raise the rate, it would have to sell securities in order to reduce the money supply).
C) The Federal Reserve sets the target for the Federal funds rate, and then uses the reserve ratio to push banks toward that target.
Reserve requirements are perhaps the most powerful, and least often used, monetary policy tool that the Fed has at its disposal. It is very powerful because it directly increases or decreases the money supply.
For example, if the Fed wants to increase the fed funds rate, it can raise the reserve ratio so that banks keep more money in reserves, have less money to loan, and in consequence, create less money, causing the money supply to shrink and the fed funds rate to rise accordingly.
D) The Federal Reserve sets the Federal funds rate.
Correct. More specifically, the Federal Open Market Committee, which meets eight times a year to set the target for the fed funds rate.
Well the quantity theory is "The hypothesis that changes in prices correspond to changes in the monetary supply" so when inflation happens the price will increase but when that happens the purchases and the value of money will decrease so will its demand. That's the speculation that the prices will not correspond to the monetary supply