30. From the information given below find Laspeyres' and Paasche's price index number for year 11 with year 1 as base: Commodity (in kg.) Commodity Price/Unit (i Year 1 Total Value (in $ Year 11 Year 1 Year 11 A 24.09 12 184.5 20.66 10 8 122.04 18.6 16 16 295.56 9.45 10 25 189
Q: Cost Reimbursement contract and explain the ad anta c and dicad vani oach
A: FIXED PRICE CONTRACT With a fixed-value contract, the whole expense of the structure is settled…
Q: 13. What effect does inflation have on the purchasing power of a dollar? Inflation reduces the…
A: Inflation increases the cost of labor and products after some time, viably diminishing the quantity…
Q: The table below lists the prices from last year and the base year for a college-related basket of…
A: Inflation is a continuous change in the price of a basket of goods and services. Inflation can be…
Q: 5a. Consider the data in the table below. The inflation rate is 6% and the before-tax market…
A: Formula for the present value is given as: P = F(1+R)tP : present value F : Future value t : total…
Q: Given the information in the table below, what is country A's real aggregate product in B$ at…
A: The aggregate product function represents the total output for an economy to the total amount of…
Q: SA inflation eases slightly in January Inflation eased to 5.7% in January, down from 5.9% the month…
A: 3. The correct option is (d) The Slowdown phase From the above extract, the South African economy is…
Q: Galvanized Products is considering purchasing a new computer system for their enterprise data…
A: The purchase price of Galvanized products is $100,000 and borrowed 1/4 of the purchase price i.e.,…
Q: to two decimal places. (a). The CPI (times 100) is 100 at the time that Frank makes the loan. It is…
A: Nominal rate of interest is the rate of interest where inflation has not been adjusted and real rate…
Q: Part B.) If you put $50,000 into the S & P 500 and your stocks are worth $200,000 after 3 years.…
A: The nominal return refers to the increase in the nominal value of money over the years. The real…
Q: Year Units of Output Price Per Unit 1 20 $ 4 2 25 4 3 30 6 Assume an economy that is producing…
A: CPI is measured using fixed basket of goods.
Q: A friend is celebrating her birthday and wants to start saving for her anticipated retirement. She…
A: Given , Years until retirement: 30Amount to withdraw each year:$120,000Years to withdraw in…
Q: Calculate the net value added at factor cost if :- Value of output = $800 Purchase of raw material…
A: The given information is as follows:- Value of output = $800 Purchase of raw material = 400…
Q: The table below lists the prices from last year and the base year for a college-related basket of…
A: Inflation is an economic term that describes the increase in the general price level of goods and…
Q: Determine the firm's 2021 tax liability. Tax liability Determine the firm's 2021 net income. Net…
A: The net income of the firm is the amount of accounting profit from which all the liabilities of the…
Q: Table 9-14 Nominal Average CPI (1982- Year Hourly Earnings 1984 = 100) 1965 $2.65 32 22.59 219 2010…
A: The CPI is a very powerful statistical measure as it reflects the average change in goods and…
Q: Bike Washer car TV…
A: Consumer price index (CPI) refers to the measurement of weighted average price of the consumption of…
Q: In 1974, one could buy a theater for $1.25. Today the same theater ticket costs $6.50. Which pair of…
A: Note: Since there is no information on the options for the pair of CPIs, with the given information,…
Q: Based on chart 2: identify the type of business cycle for the share market in Malaysia. Provide one…
A: Stock market is declining. Therefore economic activity is low.
Q: From the following data relating to a form call Mark calculate net value added at FC. Subsidy = 40…
A: Given the following values: Subsidy = 40 million Sales = 800 Depreciation = 30 Export = 100…
Q: The values of consumer price index (CPI) for 2005 and 2018 are 78.8 and 272.6 respectively while the…
A: Consumer price index shows the cost of living of population . There is inverse relationship with CPI…
Q: Harmony is a South African mining company that exports 21 ounces of gold to the US. Gold is priced…
A: The expected value of one currency compared to another at a given point in the future is referred to…
Q: Firm XYZ sells calculators. It operates in a plant worth $1500000 and maintains production…
A: To calculate the capital stock of Firm XYZ, we consider all the firm's assets, including plant,…
Q: Using 2016 as the base year, calculate the Laspeyre’s Price Index for 2021. A 135.60 B 66.73…
A: Ice cream flavor Price in 2016 (Po) Price in 2021 (P1) Quantity in 2016 (Qo) P1Qo PoQo Vanilla 130…
Q: 5a. Consider the data in the table below. The inflation rate is 6% and the before-tax market…
A: Actual Dollars:The cash money which is in circulation in the economy and these dollars are inflated…
Q: On January 1, 2011, Maria invested $1,000 at 6 percent interest per year for three years (with…
A: Real Interest Rates The interest rate that takes inflation into account is called a real interest…
Q: Table 10.2: Price Data Base-Year Current Year Soda Price Soda Price 1 (base $0.54 $0.54 Year) $0.54…
A: The formula is: PI =(Current year basket cost / base year basket cost )*100
Q: ▼ Cash Flow Present Discounted Value Interest Rate is based on the notion that a dollar paid…
A: The objective of the question is to calculate the present value of a loan that is to be paid in the…
Q: SA inflation eases slightly in January Inflation eased to 5.7% in January, down from 5.9% the month…
A: In the given situation, it is said that inflation eased to 5.7% down from 5.9% the month prior. This…
Q: Problem 11: Hick's Furniture Company (not a real company) sells industrial furniture for office…
A: Given Cost of goods sold = 1650000 $ Beginning inventory = 2750000 $ Closing inventory = 3825000 $
Q: 5. The accompanying table shows a utility company's cost to supply a fixed amount of power to a new…
A: Inflation is Calculated as:-Inflation = Costt - Costt-1Costt
Q: A recent college graduate has received the annual salaries shown in the following table over the…
A: The Consumer Price Index calculates the overall rise in rates paid by customers for a package of…
Q: Year Units of Output Price per unit 8 1 2 3 4 5 If year 2 is the base year, what is the consumer…
A: CPI is the consumer price index. CPI is calculated by dividing the cost of market basket in base…
Q: How much money can the Eastman Land and Cattle Company afford to spend now for a tractor trailer in…
A: Given: Future value = $65,000 Time = 3 years Interest rate = 13% Inflation rate = 7% Present value =…
Q: Inflation
A: Inflation: It refers to the increase in the prices of goods and services in the market. The more…
Q: Add header Question 3 The following table represents the real prices of TXR skateboards and the…
A: In a competitive market, the equilibrium price and quantity of the good are determined by the market…
Q: The CPI values calculated during 2021 were as follows: Month 1 2 3 4 5 6 7 8 9 10 11 12 ICP 0.25…
A: The Consumer Price Index (CPI) is a gauge of how prices for a market basket of consumer goods and…
Q: gle Chrome…
A: The number of movie tickets purchased with the initial amount of $2,000 is 100 because the price of…
Q: to calculate the inflation rate since the previous period. (Round to two decimals. List the answers…
A: Inflation rate is the rate at which the price level increases over the period of time. Inflation…
Q: . Assume that the inflation rate will be 4% for all future years, and the interest rate is 7%. How…
A: The purchasing power of a dollar after n years can be calculated as follow Yn = [1 / (1 + i)]n Yn =…
Q: Shea is pricing materials (wood, wire, pipe, etc.) for new home construction on a “per unit” basis.…
A: The present worth of a project or an investment refers to its value at the time of investment in…
Q: Suppose that the inflation rate during a year is 5 per cent. During that year, you deposited $500 in…
A: Present value is the value of investment in today's dollar. Future value is the value of investment…
Q: SA inflation eases slightly in January Inflation eased to 5.7% in January, down from 5.9% the month…
A: Inflation: Inflation is a term used in economics to describe an increase in the overall price level…
Step by step
Solved in 2 steps
- The following table shows the end of the year account entries of a small company Item Amount ($) Total Revenue 560,000.00 Wages and Salaries 420,000.00 Ingredients and Materials 50,000.00 Interest paid 10,000.00 Other Payments 10,000.00 Forgone Salary 60,000.00 Forgone rent 12,000.00 Forgone interest 4,500.00 a. According to the above information calculate the following: I. Implicit and explicit cost II. Economic profit and normal profit/loss b. Briefly explain the following economic concepts with appropriate examples I. Economies of scale and diseconomies of scale II. Law of diminishing marginal returns and increasing marginal returnsDanube Company pays Salim a straight commission of 25% on the net sales. In June, Salim had net sales of OMR 56,000. The company gave Salim an OMR 678 draw in May. Calculate Salim’s gross pay. a. 13322 b. 13567 c. 12422 d. 12322Mr.Abdullah specializes on Arbitrage trading. He has got the following quotes regarding 3 currencies GBP 0.739541 / USD AUD 1.3081 / USD GBP 0.563789 / AUD Now he wants to use USD 1000000 and make a profit. Answer the following questions based on the data given above. After converting from USD to GBP and from GBP to AUD, How much will he get in converting AUD to USD in the above process? a. 1715879 b. 1002777.804 c. 739541 d. All the options are wrong e. 1311733.645 After converting from USD to GBP, How much will he get in converting GBP to AUD? a. 739541 b. 1002777.804 c. 416945 d. None e. 1311733.645 How much will he get in converting USD 1000000 to GBP? a. 1311733.645 b. 1002777.804 c. None d. 739541 e. 1352190 Which cross rate should he calculate and compare with actual quotes to make sure that he will get profit a. GBP/AUD b. USD/AUD c.…
- 4) Mitsven Surfboard Inc. is a company in San Diego that shapes and sells surfboards. In 2018 their accounts were as follows: total revenues $150,000; cost of inputs $75,000; wages paid to employees $35,000; profits to owner $25,000, taxes paid by company $5,000. The building and the equipment used for production are property of the company, and no new building or new equipment was purchased in 2018. The value added produced by Mitsven Surfboard Inc. in 2018 was A. $150,000 B. $75,000 C. $65,000 D. $10,000 Answer: 5) Consider the accounts of Mitsven Surfboard Inc. described in question 4). Applying the income approach to GDP that we have studied in class, the depreciation (or consumption) of fixed capital for the company in 2018 was A. Zero. B. $10,000 C. $65,000. D. $75,000 Answer:Year 2018 2019-base 2020 None of the above. 0100 Cost of Market Basket 3,000 Taking 2019 to be the base year, the price index for 2019 = 01 $2.500 3.500 4,000SA inflation eases slightly in January Inflation eased to 5.7% in January, down from 5.9% the month prior — which was a hair’s breadth away from the ceiling of the South African Reserve Bank’s target range of 3% to 6%, it was announced on Wednesday. According to Statistics South Africa, the main contributors to the 5.7% annual inflation rate were food and non-alcoholic beverages, housing and utilities, transport and miscellaneous goods and services. The 5.9% annual increase in December was the highest since March 2017, when the rate was 6.1%. The January slowdown in inflation was helped by lower fuel prices. South Africa’s inflation numbers come as advanced economies post record figures, which have served as further proof that elevated prices are a stubborn feature of the recovery from the Covid-induced economic slump… Elevated inflation, which central banks have said will be transitory, is the result of Covid-related supply bottlenecks. Which of the following presents the view of…
- U.S. / U.K. Foreign Exchange Rate, U.S. Dollars to One British Pound (n = 60 days) Date Rate 1-Nov 1.2950 4-Nov 1.2906 5-Nov 1.2870 6-Nov 1.2872 7-Nov 1.2829 8-Nov 1.2790 12-Nov 1.2855 13-Nov 1.2840 14-Nov 1.2879 15-Nov 1.2901 18-Nov 1.2965 19-Nov 1.2926 20-Nov 1.2918 21-Nov 1.2915 22-Nov 1.2829 25-Nov 1.2885 26-Nov 1.2850 27-Nov 1.2881 29-Nov 1.2939 2-Dec 1.2936 3-Dec 1.3002 4-Dec 1.3095 5-Dec 1.3165 6-Dec 1.3127 9-Dec 1.3157…The following price index is available for a product: Year Price index 1 (base year) 100 2 106.4 3 109.5 4 116.3 5 120.5 If the price was £872 in Year 2, what is the price of the product in Year 5 (to 2 decimal places)? a. 769.97 b. 959.60 c. 844.46 d. 987.56Beth bought some residential development property for 200,000 five years ago. She sold the property this year for $1,200,000 and spent $250,000 for infrastructure development in year 5, the year in which the property was sold. If the inflation rate for the past 5 years has been steady at 5% annually, compute the after-tax real rate of return on this investment. Assume a capital gain tax of 15%. Group of answer choices 33.17% 28.13% 26.83% 31.84%
- Use discriminant analysis to classify the accompanying new records using only Credit Score and Years of Credit History as input variables. Click here to view the credit approval data. Click here to view the new records. Complete the following table. (Round to four decimal places as needed.) Homeowner Credit Score Years of Credit History Revolving Balance Revolving Utilization Discriminant Score Decision Y 548 5 N 662 4 Y 724 12 N 14 N Y 704 592 684 New Records 9 15 $21,000 $4,000 $8,500 $16,300 $2,500 $16,700 N Y N N Y 548 662 724 704 592 684 5 4 15% 90% 25% 70% 90% 18% Homeowner Credit Score Years of Credit History Revolving Balance Revolving Utilization Decision t Y 12 14 9 15 Print $21,000 $4,000 $8,500 $16,300 $2,500 $16,700 000000 Done PEPPE Y 15% 90% 25% 70% 90% 18% YThe value of land in Manhattan was around $150 billion in 2008. Imagine that it is 1626 and you are the economic advisor to the Dutch when they are considering whether to buy Manhattan from the Manhasset Indians. Further,assume that the relevant interest rate for calculating the present value is 4%per year. Would you advice the Dutch that a purchase price of $24 is a good deal or not? How would your answer change if the interest rate were 6%? And 8%? (Hint: for each interest rate,calculate the present value in 1626 of the land value as of 2008. Then compare that with the purchase price in 1626. For example, simplify by assuming that the owners collect no rents on the land. As an advanced further question,assume that the rent equals 2% of the value of the land each year.)Item18 Time Remaining 1 hour 51 minutes 2 seconds 01:51:02 Item 18 Time Remaining 1 hour 51 minutes 2 seconds 01:51:02 Mr. Z, a calendar year taxpayer, opened a new car wash. Prior to the car wash’s grand opening on October 8, Mr. Z incurred various start-up expenditures (rent, utilities, employee salaries, supplies, and so on). In each of the following cases, compute Mr. Z’s first-year deduction with respect to these expenditures. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) Required: The start-up expenditures totaled $4,760. The start-up expenditures totaled $27,680. The start-up expenditures totaled $53,100. The start-up expenditures totaled $88,740.