Economics Answers

Effective Yield 0.05
NPER 50
Coupon 31.25
FV 1000
what formula use and calculate 657.70

what are the two things that both increase money supply

Assuming the approval of 2020 appropriate bill in Nigeria part of the budget for fiscal year was to be distributed among the state.
A) How much will each state get ?
B) How much will the fifth state get?

Suppose the market of carpets is competitive. The demand for and the supply of carpets in the market have been estimated as follows: Demand: Qd = 6500 – 100P Supply: Qs = 1200P
A typical firm producing carpets has a total cost function of C = 100 +

Orange Inc. is considering two mutually exclusive projects (i.e., can choose either one but not both),Alpha in Country A, and Beta in Country B. Project Alpha requests an initial investment of $300,000 and has projected annual cash flows of $20,000, $50,000, $50,000 and $350,000 over 4 years. Project Beta requests an initial investment of $88,000 and has projected cash flows of $12,000 for the first year, and then the cash flows are projected to grow at a constant rate of 5 percent per year forever. Based on the project characteristics, the company requires an 15 percent return for Project Alpha but requires an 17 percent for Project Beta. You require a 15 percent return on your investment and a payback period of 3 years.

If you apply the NPV criterion, which investment will you choose? Why? (5 marks)
Based on your answer in (a) and (b), which project will you finally choose? Why? (3 marks)

WHAT ARE THE IMPACT OF SUSIDIES ON THE GAS MARKET IN MALAYSIA

Assuming the quick ratio for a competitor of Queen Company for 2018 is 1.90, comment on
Queen Company’s quick ratio.

Eason plans to open a do-it-yourself dog bathing center in Petland. The bathing equipment will cost $50,000. Eason expects the after-tax cash inflows to be $15,000 annually for 8 years, after which he plans to scrap the equipment.
a. Find the project’s payback period.
b. What is the project’s discounted payback period if the required rate of return is 10%?
c. What is the project’s net present value (NPV) if the required rate of return is 10%?
d. What is the project’s Profitability Index (PI) if the required rate of return is 20%? Should the project be accepted according to the rule of PI?

3. In Country X, GDP is $400B below the full-employment level of output. Government officials have measured the marginal propensity to consume at 0.75.
b. Say that, for a variety of reasons, the government shows it is not up to the task of conducting fiscal policy. The central bank steps up and does something about it. If a 1% decrease in interest rates leads to an increase in investment of $50B, how should the central bank's interest rate targets change?