Entries by Hannah Wangui

price elasticity of demand

Question If the price elasticity of demand for a product is -5, and the income elasticity of demand for the product is 2.5. If a 0.5% decrease in product price as accompanied by a 1% decrease in consumer income, the firm’s total sales will a. increase  b. decrease c. same d. decrease then increase   […]

 

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fixed costs

Question Modern Artifacts can produce keepsakes that will be sold for $280 each. Nondepreciation fixed costs are $4,200 per year, and variable costs are $220 per unit. The initial investment of $12,600 will be depreciated straight-line over its useful life of 6 years to a final value of zero, and the discount rate is 13%. […]

 

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the PV of cash flow

Question Given the following information….how do I calculate the PV of cash flow from operations? />PESSIMISTICINVESTMENT4200000SALES14000000VC% OF SALES0.7FIXED COST2600000SALES18000000VC12420000FC2300000DEPRECIATION$350,000PRE TAX PROFIT$2,930,000.00TAXES$1,172,000.00NET INCOME$1,758,000.00CFFO$2,108,000.00PV OF CFFO   Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code “Newclient”

 

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financial futures

Question The treasurer for Pittsburgh Iron Works wishes to use financial futures to hedge her interest rate exposure. She will sell five Treasury futures contracts at $164,000 per contract. It is July and the contracts must be closed out in December of this year. Long-term interest rates are currently 8.30 percent. If they increase to […]

 

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