Two all equity financed companies, Simba Ltd and Yanga Ltd are planning to pursue different investment projects that will last for 4 years. Simba Ltd's investment requires TZS 1billion and will yield cash inflows of TZS 800 million in each of the years 1 to year 4. Yanga Ltds' investment on the other hand requires an initial outlay of TZS 5 billion and will produce cash inflows of TZS 1 billion in each of the years 1 to 4. The cost of capital for the investments to be made by Simba Ltd and Yanga Ltd are 15% and 20% respectively. Assume the economic depreciation is at the same as accounting depreciation following straight
line.
Required
i. Calculate the Values of NPV of the projects by both companies
ii. Determine the market value added by both companies and comment on the results.

Answers

Answer 1

i. To calculate the NPV of the projects for both companies, you need to subtract the initial outlay from the total cash inflows discounted by their respective cost of capital. For Simba Ltd's investment, this works out to be:


NPV = TZS 800 million x (1/(1 + 0.15)1) + TZS 800 million x (1/(1 + 0.15)2) + TZS 800 million x (1/(1 + 0.15)3) + TZS 800 million x (1/(1 + 0.15)4) - TZS 1 billion


= TZS 2,355,700,000



For Yanga Ltd's investment, this works out to be:


NPV = TZS 1 billion x (1/(1 + 0.20)1) + TZS 1 billion x (1/(1 + 0.20)2) + TZS 1 billion x (1/(1 + 0.20)3) + TZS 1 billion x (1/(1 + 0.20)4) - TZS 5 billion


= TZS 836,491,020



ii. The market value added (MVA) of a company is the increase in the company’s market value due to the implementation of the investment project. The MVA of both Simba Ltd and Yanga Ltd can be calculated as:


MVA = NPV - Depreciation


For Simba Ltd:


MVA = TZS 2,355,700,000 - TZS 1 billion


= TZS 1,355,700,000



For Yanga Ltd:


MVA = TZS 836,491,020 - TZS 5 billion


= -TZS 4,163,508,980



From the results, we can see that Simba Ltd has a positive MVA of TZS 1.3 billion whereas Yanga Ltd has a negative MVA of TZS 4.2 billion. This suggests that Simba Ltd’s investment project is more beneficial to the company than Yanga Ltd’s investment project.

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Related Questions

Which of these statements about income distribution in the United States is correct?
a) People often move up and down the income ladder
b) The poorest fifth of households account for 3 percent of total income
c) the richest fifth of households account for 51 percent of total income
d) All the choices are correct

Answers

The correct statement about income distribution in the United States is that people often move up and down the income ladder. Option A is correct.

In the United States, income mobility is common, with people frequently moving up and down the income ladder throughout their lives. However, income inequality is also a significant issue, with the top fifth of households accounting for more than half of the country's total income and the bottom fifth accounting for a much smaller percentage.

The statement that the poorest fifth of households account for only 3 percent of total income is incorrect, as they actually account for around 3.1 percent. Therefore, the correct statement is that people often move up and down the income ladder.

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Can you help me solve this economic problem?

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Scarcity and Opportunity Costs: The problem of scarcity refers to the fact that resources are limited while our wants and needs are unlimited. This means that we have to make choices about how to allocate resources. Opportunity cost is the value of the next best alternative that we have to give up when we make a choice.

2. Supply, Demand, and Price: Supply refers to the amount of a good or service that producers are willing and able to offer for sale at a given price. Demand refers to the amount of a good or service that consumers are willing and able to buy at a given price. Price is determined by the interaction of supply and demand in the market.

3. Economic Systems and the Three Basic Questions: Economic systems are the institutional arrangements that societies use to allocate resources and coordinate economic activity. The three basic economic questions are: what to produce, how to produce it, and for whom to produce it. Different economic systems answer these questions in different ways, such as through market economies, command economies, or mixed economies.

What is scarcity  about?

The problem of scarcity refers to the limited availability of resources in relation to the unlimited wants and needs of people. This means that people have to make choices about how to allocate resources to fulfill their most pressing needs and wants, which involves an opportunity cost.

Therefore, Supply and demand are two key factors that determine the price of goods and services in a market economy. Supply refers to the amount of a product that producers are willing and able to offer for sale at a given price, while demand refers to the amount of a product that consumers are willing and able to buy at a given price

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See text below



Economics Final 2020 Concept Understanding and Mastery

1. Explain the problem of scarcity and how all decisions involve opportunity costs. 2. Explain the relationship between supply, demand, and price.

3. Explain different economic systems and how they answer the three basic economic questions.

First Question: How long does this have to be? Long enough for you to DEMONSTRATE MASTERY.

vilsen

Use and draw images from various sources and create a coherent presentation or story for me. Use frames, slogans, voice and thought bubbles. Whatever it takes to be clear and show me that you understand one of the above learning targets.

The presentation or activity you chose can be a combination of notes, newspaper articles, drawings, and other media that demonstrates that you have mastered your chosen learning target. Please read the RUBRIC BELOW to see what you need to do get the desired score on the project.

PLEASE ASK IF YOU HAVE ANY QUESTIONS!

fill in the blank. although it is often an inexpensive source,___are sometimes not adequate to meet the needs of the researcher since they were acquired for some purpose other than the research question at hand.

Answers

Although it is often an inexpensive source, secondary data are sometimes not adequate to meet the needs of the researcher since they were acquired for some purpose other than the research question at hand.

Secondary data are data that were originally collected by someone other than the researcher. The researcher gathers the data from someone else's study or research, instead of collecting data themselves. In many cases, secondary data may be the only available source of data, or it may be far more convenient to obtain secondary data than to gather primary data.

Primary data refers to the original data gathered by a researcher for a particular research purpose. Primary data collection requires researchers to be present in the field, laboratory, or other places where the data is gathered. The primary benefit of secondary data is that it is frequently considerably less expensive to obtain.

However, although it is often an inexpensive source, secondary data are sometimes not adequate to meet the needs of the researcher since they were acquired for some purpose other than the research question at hand. Therefore, the researcher should be cautious when using secondary data in their research.

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by 1890, populations in the biggest urban areasresponsesexperienced massive growth even where there was little immigration.experienced massive growth even where there was little immigration.consisted mostly of foreign-born immigrants and their children.consisted mostly of foreign-born immigrants and their children.soared as the rates of infant mortality and disease significantly declined.soared as the rates of infant mortality and disease significantly declined.rose as the number of children born into urban families doubled.

Answers

By 1890, populations in the biggest urban areas experienced massive growth even where there was little immigration. This was due to a variety of factors, including industrialization, which led to an increase in job opportunities in urban areas, and improved transportation, which made it easier for people to move to cities.

Additionally, urban populations soared as the rates of infant mortality and disease significantly declined, leading to longer life expectancies and larger families. As a result, the number of children born into urban families doubled, further contributing to the growth of urban populations.

Overall, the period from 1890 to 1920 saw a significant shift in the demographics of the United States, with more and more people moving to urban areas and contributing to the growth of cities.

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Consider the model for a SOE, in which agents allocate consumption intertemporally based on their initial NFA (B0) and the current and future endowments/output (Q1,Q2), given an initial interest rate (r0). Are the following statements true, false or uncertain? Justify your answer. 1. An anticipated (future) improvement in output leads to a trade deficit today. 2. Countries X and Y are identical in all respects, except that the initial NFA of country X is greater than that of country Y. (a) Consumption in country X is higher than consumption in country Y both currently and in the future. (b) The current trade balance of country X is greater than that of country Y. (c) None of the above is true. 3. A country populated by impatient households (i.e., a country with lower β) will consume more in period 1.

Answers

The statements: 1. An anticipated (future) improvement in output leads to a trade deficit today' is false. 2. (a) Consumption in country X is higher than consumption in country Y both currently and in the future is false. (b) The The current trade balance of country X is greater than that of country Y is true. 3. A country populated by impatient households (i.e., a country with lower β) will consume more in period 1 is true.

Consider the model for a SOE, in which agents allocate consumption intertemporally based on their initial NFA (B0) and the current and future endowments/output (Q1,Q2), given an initial interest rate (r0). Whether statements are true or false is given below:

1. An anticipated (future) improvement in output to a trade deficit today. The given statement is false. An anticipated (future) improvement in output leads to an increase in consumption today, which in turn leads to a trade surplus.

2. (a) Consumption in country X is higher than consumption in country Y both currently and in the future. The given statement is false. The model doesn't account for the size of NFA and consumption.

(b) The The current trade balance of country X is greater than that of country Y. The given statement is true. The initial NFA of country X is greater than that of country Y. It indicates that the current trade balance of country X is greater than that of country Y.

3. A country populated by impatient households (i.e., a country with lower β) will consume more in period 1. The given statement is true. A country populated by impatient households (i.e., a country with lower β) will consume more in period 1 because the model does not account for the size of NFA and consumption.

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4. For the following list of items, indicate if they are in M1, M2, or neither:
A.Your $5,000 line of credit on your Bank of America card
B.$50 dollars’ worth of traveler’s checks you have not used yet
C.$1 in quarters in your pocket
D. $1200 in your checking account
E.$2000 you have in a money market account

ECON Qustion

Answers

B $5,000 line of credit on your Bank of America card

What is the meaning of laptop in France

Answers

Answer:

un portable

A laptop = “un portable”. It can be confusing though because many French people use the word “un portable” for their smartphone as well. It should be “un mobile” for the phone, but we use “un portable” as well.

which statement is true about temperament? it has only been a topic of study in the last decade; before this, psychologists thought that infants were similar in emotionality. it has only been assessed using cross-sectional methods. it is considered to have a biological basis. it has been defined by the same dimensions and measured the same way by various researchers.

Answers

The statement that is true about temperament is that it is considered to have a biological basis.

Temperament refers to the personality traits that are relatively stable across the lifespan, and it is believed to have a biological basis.

Temperament is considered to be an inherent characteristic of an individual, which is not determined by environmental factors alone. Temperament is believed to have a biological basis, and it can be traced back to an individual's genetic makeup.

Temperament is characterized by four dimensions, which include:

1. Activity level - the level of physical activity that an individual engages in

2. Rhythmicity - the regularity of biological functions such as sleeping and eating

3. Sociability - the level of an individual's interaction with others

4. Emotionality - the individual's response to different emotional stimuli, such as anger or fear

Thus, the statement that is true about temperament is that it is considered to have a biological basis.

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The statement that is true about temperament is "it is considered to have a biological basis."Temperament refers to a person's characteristic behavior patterns, emotional reactions, and attention span that are relatively stable across situations and over time.

It is considered to have a biological basis. Temperament is an inherited personality characteristic that varies among individuals. Temperament can be defined as an individual's natural way of thinking, feeling, and behaving that affects their responses to different environments, people, and events. Temperament is often thought to be innate or genetically determined rather than a learned trait.In the past decade, temperament has been an essential topic of study by psychologists. Before that, psychologists believed that infants had similar emotions. Researchers have defined temperament using various dimensions, and they have measured it differently from one another. Cross-sectional methods are not the only approach used to assess temperament. Temperament can be measured using various methods, including observational and self-report measures.

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You are a hotel manager and you are considering four projects that yield different payoffs, depending upon whether there is an economic boom or a recession. The potential payoffs and corresponding payoffs are summarized in the following table.
Project Boom
(50%)
Recession
(50%)
A $20 -$10
B -$10 $20
C $30 -$30
D $50 $50
Which projects have the greatest variance? Please show work.
A. B
B. A
C. D
D. A and B
E. None of the above

Answers

Option C. D is the correct answer. Variance refers to the degree of spread of possible results of a set of data. For a hotel manager who is considering four projects that yield different payoffs depending on whether there is an economic boom or a recession.

Which projects have the greatest variance?

As mentioned in the question above, the potential payoffs and corresponding payoffs are summarized in the following table:

Project Boom (50%)Recession (50%)A $20 -$10B -$10 $20C $30 -$30D $50 $50

To calculate variance, we must first calculate the expected value of each project. The expected value of a project is determined by the following formula: Expected Value = Probability of Boom * Payoff in Boom + Probability of Recession * Payoff in Recession. For instance, the expected value for Project A is calculated as follows:

Expected Value of Project A = 0.5* $20 + 0.5* -$10 = $5

The expected value for each project is given below:

Expected Value of Project A = $5

Expected Value of Project B = $5

Expected Value of Project C = $0

Expected Value of Project D = $50

To determine the variance, we must determine the difference between the expected value of each project and the payoff in each boom and recession. Then we will square each difference and sum them up to obtain the variance.The variance for each project is given below:

Variance of Project A = (0.5*($20-$5)^2) + (0.5*($-10-$5)^2) = $12.50

Variance of Project B = (0.5*($-10-$5)^2) + (0.5*($20-$5)^2) = $12.50

Variance of Project C = (0.5*($30-$0)^2) + (0.5*($-30-$0)^2) = $900

Variance of Project D = (0.5*($50-$50)^2) + (0.5*($50-$50)^2) = $0

Therefore, projects A and B have the greatest variance with a variance of $12.50, while Project C has a variance of $900, and Project D has a variance of $0. Since the question asks for the projects with the highest variance, the answer is C. D.

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Congress passed the federal-aid highway act in 1956, which funded more than miles of interstate highways across the country

Answers

26, 1956. It provided for a 65,000-km national system of interstate and defense highways to be built over 13 years. The federal share would be 90 percent or $24.8 billion. Increased funding would be provided for the other federal-aid highway systems as well.

advertisement push up the cost of an dash - grade 7

Answers

Answer:

the question is not very clear but I suppose the answer is product

Mention the reasons of rapid population growth in the terai region??​

Answers

Answer:

Following are the reasons of rapid population growth in terai region.

1.Better Facility

2.Fertile soil

3.A large number of industries.

4.Oppurtunity of Job.

5.Good connection of road

listen to exam instructionswhich technology was developed to help improve the efficiency and reliability of checking the validity status of certificates in large, complex environments?

Answers

The technology developed to help improve the efficiency and reliability of checking the validity status of certificates in large, complex environments is Online Certificate Status Protocol (OCSP).

Online Certificate Status Protocol (OCSP) is the technology developed to help improve the efficiency and reliability of checking the validity status of certificates in large, complex environments. It is a protocol used for checking the revocation status of an X.509 digital certificate in real-time.OCSP was developed to address the limitations of the CRLs (Certificate Revocation Lists). A CRL is a list of certificates that have been revoked, and it's used to verify if a certificate is still valid.

However, CRLs can be huge and complex, and they can take a long time to download and process.OCSP, on the other hand, is faster and more efficient than CRLs because it verifies the status of a certificate in real-time. Instead of downloading a long list of revoked certificates, the OCSP responder provides a response to the client that contains the status of the requested certificate. This allows the client to quickly determine if the certificate is still valid or not.

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the extent to which one uses a stereotype to judge a member of the stereotyped group, is called ?

Answers

The extent to which one uses a stereotype to judge a member of the stereotyped group is called stereotyping.

Stereotype refers to the act of judging people based on them being a member of a certain group or culture, based on their traits or characteristics. Stereotyping can be positive or negative and can take various forms. This can include gender, nationality, ethnicity, culture, race, and many more.

Stereotyping has a detrimental impact on the people who are stereotyped. It undermines the diversity of cultures and limits people's opportunities. Stereotyping can be harmful and may cause prejudice and discrimination. For instance, a person who is stereotyped may feel stigmatized, marginalized, and discriminated against.

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In order to calculate pressure exerted on a surface. What quantity is divided by the surface area?

Answers

Answer:

64

Explanation:

look it up

Most economists advocate letting individuals make their own judgments if they are sufficiently informed in the case where a community has members with various risk preferences. 
Why may this be the most widely held belief in the industry? 
How should the bar for being knowledgeable enough be set?
Provide an example of a dangerous good or activity that only directly exposes participants to risk and one that results in an externality that exposes participants to risk. 
Describe how the risk analysis assessment could be completed for at least one of these products, and give a case for or against the risk assessment changing due to the presence of an externality.

Answers

The risk analysis assessment is an important tool for economists who advocate letting individuals make their own judgments, particularly when there are various risk preferences among community members.

The assessment allows for the identification of potential risks and the evaluation of their relative severity. It is typically done by considering potential losses, costs, and liabilities associated with a product.

To do a risk analysis assessment for one of these products, it is important to consider all of the potential risks associated with it. This includes the financial risks, such as the costs associated with liability, as well as non-financial risks, such as potential reputational damage.

The risk analysis should also factor in externalities, which are the impacts that the product may have on external parties or on the environment. After considering all of the potential risks associated with the product, the risk assessment should then be evaluated to determine the overall risk.

The presence of externalities can be an important factor when it comes to the risk assessment. If there are externalities associated with the product, the risk assessment should be adjusted to take them into account. For example, if a product causes air pollution, then this should be factored into the risk assessment.

This can help to ensure that the risk assessment is more accurate and that it takes into account any potential externalities.

In conclusion, the risk analysis assessment is an important tool for economists who advocate letting individuals make their own judgments in the presence of various risk preferences. When completing a risk analysis assessment for one of these products, all potential risks should be considered, including externalities.

Doing so can help to ensure that the risk assessment is more accurate and that it takes into account any potential externalities.

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8) In the Solow model, if f(k) = 2k^0.5, s = 0.3, n = 0.05, and d = 0.15. The capital stock changes according to the following accumulation function: kt+1 – kt = sf(kt) – (n + d)kt. What is the value of k at equilibrium? A) 1 B) 3 C) 6 D) 9

Answers

According to the question the value of k at equilibrium is 6.

What is equilibrium?

Equilibrium is a state of balance in which all competing influences are equal and in opposition to each other. It occurs when opposing forces are balanced and in stable equilibrium, with no external influences or forces acting upon them. This state of balance is often used in economic and financial contexts, as it allows individuals and organizations to make decisions based on the current market situation without any outside interference. Equilibrium is also important in physics, chemistry, and biology, where it is used to describe the balance between two or more different forces.

At equilibrium, the change is zero,so the accumulation equation can be rearranged,
k: kt+1 – kt = 0=> 0 = 0.3(2k0.5) – (0.05 + 0.15)k => 2k = (0.2k)2=>k = (0.5k)0.5 => k = 6.

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how can we improve the condition of human rights in nepal​

Answers

Answer:

Strengthen the legal framework: Nepal should enact and enforce laws that protect human rights and hold perpetrators of human rights abuses accountable.

Promote civic education: Education about human rights and civic responsibility can help citizens understand their rights and hold the government accountable for protecting them.

Combat discrimination: Nepal should take steps to combat discrimination against marginalized groups, including women, children, people with disabilities, and ethnic and religious minorities.

Empower civil society: Civil society organizations play a critical role in promoting human rights and holding the government accountable. Nepal should support and empower these organizations to advocate for human rights and provide services

Explanation:

identify the theory that explains human movement as the result of the interaction between three systems: the individual or the organism, the environment, and the task.

Answers

The theory that explains human movement as the result of the interaction between three systems: the individual or the organism, the environment, and the task is known as the Ecological Systems Theory.

This theory, developed by Urie Bronfenbrenner, suggests that human development and behaviour are influenced by the complex interactions between these three systems.

The individual or organism includes factors such as genetics, personality, and physiological processes. The environment includes the physical and social environments in which the individual lives and interacts.

The task includes the specific goals and objectives that the individual is trying to achieve.

By considering the interactions between these three systems, the Ecological Systems Theory provides a comprehensive framework for understanding human movement and behaviour.

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If shrimp and lobster are substitute goods
A an increase in the market price of shrimp can be expected to shift the demand for a lobster to the right and increase the equilibrium price of lobster
B and increase in the market price of shrimp can be expected to shift the demand for lobster to the right and decrease the equilibrium price of lobster
C an increase in the market price of shrimp can be expected to shift the demand for lobster to the left and increase the equalibrium price of lobster
D An increase in the market price of shrimp can be expected to shift the demand for lobster to the left and decrease the equal limbbriam price of lobster

Answers

An increase in the market price of shrimp can be expected to shift the demand for a lobster to the right and increase the equilibrium price of lobster. The correct answer is A.

When shrimp and lobster are substitute goods, an increase in the market price of shrimp can be expected to shift the demand for a lobster to the right and increase the equilibrium price of lobster.

Shrimp and lobster are considered substitute goods because both are seafood and people can choose to buy either of them in place of the other. The increase in the market price of shrimp would mean that consumers would look for cheaper alternatives, including lobster.

Therefore, there will be an increase in demand for lobster leading to a shift to the right of the demand curve. The equilibrium price of lobster will increase because of the increase in demand for lobster. The inverse relationship between the price and quantity of goods demanded is the law of demand.

The increase in the price of a good reduces the quantity demanded, while a decrease in the price of the good increases the quantity demanded. The higher the price, the lower the quantity demanded, and vice versa.

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Settlement patterns
Ecological factors
Agriculture remains the mainstay of Asia, though the proportion of the population engaged in agriculture is steadily declining. Although marginal lands in many parts of South and East Asia have been brought under cultivation, and many former pastoral ranges in Southwest and Central Asia are now irrigated, the broad ecological factors touched upon above have continued to give rise to geographic variations in population and economic activity. Parts of South and East Asia can support dense populations. Moister regions in the southwest—for example, in Turkey and northern Iran—support large populations.

Answers

Ecological considerations had, and continue to have, a significant impact on the economic development and settlement patterns of Asia.

Is income a factor in the economy?

The way we do and how long we live may be greatly influenced by economic and social variables, including money, education, work, neighborhood safety, and social supports. These elements have an impact on our capacity to make healthy decisions, pay for housing and healthcare, control stress, and other things.

What geographical examples from the economy?

Manufacturing and processing sectors are included in this stage of the production process. Examples include the manufacturing of steel from a mixture of minerals, milk from pastoral farming, textiles from cotton cultivation, furniture from logging, etc.

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Title: Boston Tea Party Eyewitness Account: Joshua Wyeth.
How did the author organize the ideas presented in the text? Answer and give 2 details please.

Answers

The Sons of Liberty staged the Boston Tea Party, an American political and commercial protest, on December 16, 1773, in Boston, Massachusetts.

What is Boston Tea Party?

Joshua Wyeth's comments served as the basis for the first participant's account of the Boston Tea Party to be published. He joined other patriots in boarding the tea ships in Boston Harbor when he was barely sixteen years old. Mr. Wyeth, who spent his latter years in Cincinnati, told a journalist his tale. 53 years after the occurrence of the incident, in 1826, the report was published.

Demonstrators jumped on board the ships and dumped the tea chests into Boston Harbor. The demonstration was viewed as treason by the British authorities, who reacted violently. When the incident developed into the American Revolution, it rose to prominence in American history. Since then, several political movements, like the Tea Party movement, have identified to themselves as the Boston protest of 1773's historical heirs.

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Focuses on how individuals interact with one another in society

Answers

The field of study that focuses on how individuals interact with one another in society is sociology.

The field of study that focuses on how individuals interaction with one another in society is sociology. Sociology is the scientific study of human social behavior, relationships, and institutions. It seeks to understand how society is organized, how social institutions function, and how people interact with one another within social structures.

Sociologists study various aspects of society, such as culture, gender, race, social class, inequality, and social change. They use a variety of research methods, including surveys, interviews, observations, and experiments, to gather data and analyze social patterns and behaviors.

Overall, sociology helps us better understand our place in society and how we relate to others, which can be useful for solving social problems and improving people's lives.

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The complete question is :

Which field of study focuses on how individuals interact with one another in society ?

Consider the impact on the market for U.S. Treasury bonds when there is uncertainty about
returns in the US stock market. What changes in the market for U.S. Treasury bonds? What
happens to the equilibrium, price, quantity, and interest rate on U.S. Treasury bonds?
**Select ALL that apply. **
a. Demand for U.S. Treasury bonds rises
b. Demand for U.S. Treasury bonds falls
c. Demand for U.S. Treasury bonds does not change
d. Supply of U.S. Treasury bonds does not change
e. Supply of U.S. Treasury bonds rises
f. Supply of U.S. Treasury bonds falls
g. price increases
h. price decreases
i. interest rate increases
j. interest rate decreases
k. quantity increases
l. quantity decreases

Answers

The options A, G, J and L are the correct answers. When there is uncertainty about returns in the US stock market, demand for U.S. Treasury bonds rises.

This increase in demand shifts the demand curve for US Treasury bonds to the right. The shift in demand curve causes an increase in the equilibrium price of US Treasury bonds and a decrease in the equilibrium quantity of US Treasury bonds. The interest rate on US Treasury bonds decreases due to an increase in demand.

The impact on the market for US Treasury bonds when there is uncertainty about returns in the US stock market are as follows: Demand for U.S. Treasury bonds rises Price increases Quantity decreases Interest rate decreasesTherefore, options A, G, J and L are the correct answers.

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Consider a two-period endowment economy populated by identical households with preferences defined over consumption in period 1, C1 and consumption in period 2, C2, and described by the utility functionlnC1 +ElnC2where C1 denotes consumption in period 1, C2 denotes consumption in period 2, and E denotes the expected value operator. Each period, the economy receives an endowment of 10 units of food. Households start period 1 carrying no assets or debts from the past (B0 = 0). Financial markets are incomplete. There is a single internationally traded bond that pays the interest rate r∗ = 0.a) Compute consumption, the trade balance, the current account, and national saving in period 1.b) Assume now that the endowment in period 1 continues to be 10, but that the economy is prone to severe natural disasters in period 2. Suppose that these negative events are very rare, but have catastrophic effects on the country’s output. Specifically, assume that with probability 0.01 the economy suffers an earthquake in period 2 that causes the endowment to drop by 90 percent with respect to period 1. With probability 0.99, the endowment in period 2 is 111/11. What is the expected endowment in period 2? How does it compare to that of period 1?c) What percent of period 1 endowment will the country export? Compare this answer to what happens under certainty and provide intuition.d) Suppose that the probability of the catastrophic event increases to 0.02, all other things equal. Compute the mean and standard deviation of the endowment in period 2. Is the change in probability mean preserving?e) Calculate the equilibrium levels of consumption and the trade balance in period 1.

Answers


a) In period 1, the households will consume all of the endowment, 10 units of food. This means that the trade balance and the current account will be zero, and the national saving will also be zero.


b) The expected endowment in period 2 is 10.9 units of food. This is slightly lower than the endowment in period 1, which is 10 units of food.

c) Since the households consume the entire endowment in period 1, 100% of the period 1 endowment will be exported. This is different than what happens under certainty, where the households consume part of the endowment in period 1 and export the remainder.

d) With a probability of 0.02 of a catastrophic event, the mean endowment in period 2 is 10.816 units of food, and the standard deviation is 0.083. The change in probability is not mean preserving since the expected endowment decreased.

e) In the equilibrium, the households consume 10 units of food in period 1. The trade balance and the current account will be zero, and the national saving will also be zero.

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You are considering buying a candy-manufacturing machine. The first cost is expected to be
$310,940
, with estimated net revenues of
$40,000
per year over a 15 -year life. After 15 years, the machine will be sold for its salvage value. You speak with the accounting department, and they tell you that the historical average straight-line depreciation rate for that type of equipment is
$20,000
per year. From that information you know that you can calculate the salvage value and the declining balance depreciation rate. If the company's after-tax MARR is
6.5%
and its corporate tax rate is
45%
, what is the annual worth of this project?

Answers

Given that the first cost is expected to be $310,940, estimated net revenues of $40,000 per year over a 15-year life. The company's after-tax MARR is 6.5% and its corporate tax rate is 45%.

The declining balance depreciation rate is given by the formula : Depreciation = Depreciation rate x Beginning book value. At the beginning of the first year, the beginning book value of the equipment is $310,940. So, the depreciation for the first year is $20,000. Depreciation rate= $20,000/$310,940= 0.064314812or 6.43%.

Since the machine will be sold for its salvage value, we can obtain the salvage value by using straight-line depreciation. The annual straight-line depreciation rate is given by: Depreciation Rate= (Purchase Price - Salvage Value)/Useful life.

Given that Useful life is 15 years, Purchase price is $310,940, Historical straight-line depreciation rate is $20,000. Hence, Salvage value = Purchase Price - (Depreciation Rate x Useful life). Salvage value = $310,940 - ($20,000 x 15) = $10,940.

Net revenue = $40,000, Tax rate = 45%, After-tax revenue = (1-Tax rate) * Net revenue= (1-0.45)*$40,000= $22,000. Annual Worth = (P/A, i%, n) = (22,000/A, 6.5%, 15). Annual worth = 22,000/9.2698 = $2371.93.                                 Therefore, the annual worth of this project is $2,371.93.

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Read the extract below and answer the questions that follow. TRANSITION BETWEEN SCHOOL AND POST SCHOOL DESTINATION Siki is a first year student at a TVET college. He is involved in a number of social activities such as being a member of a youth organisation executive committee in his community. He is a well-known soccer player. Mondays, Tuesdays and Thursdays he trains with a local soccer club from 15:00 to 18:00. Wednesdays and Fridays he chairs the meeting of the youth club at the campus. Weekend nights Siki is always with friends out to gigs. Students who want to know about the festivals and other vibes ask him for updates on dates, times and celebrities. Siki is always on social media chatting with friends. More often than not, he will not be in class due to fatigue, more especially on Mondays. As a religious person, Siki attends church service every Sunday from 11:00 to 15:00. He cannot be absent from the service because he is the organist of the church youth choir. [Source: Anonymous]

1. Explain how Siki can adapt his lifestyle to spend more time on his studies. (2x2)

2. advise siki and others on how they can use their time effectively for their studies (3x2)​

Answers

Answer:

1.) Siki can adapt his lifestyle to spend more time on his studies by prioritizing his academic responsibilities. He can limit his involvement in social activities to specific days of the week, such as weekends, and reduce the time spent on social media. He can also consider rescheduling his soccer practice sessions to weekends or alternate days when he has fewer academic commitments. By creating a structured schedule and prioritizing his academic responsibilities, Siki can create more time for studying.

2.) To use their time effectively for their studies, Siki and others can:

Create a study schedule and stick to itMinimize distractions such as social media, games, and television during study timeAttend all lectures, take notes, and ask questions to clarify any uncertaintiesForm study groups with classmates to review class material and prepare for examsSet achievable goals and work towards achieving themPractice time management and prioritize academic responsibilities over social activitiesTake breaks in between study sessions to prevent burnout and fatigue

Olivia has $3,000 of annual nonlabour income and 4,160 available hours per year. She used to work 2,600 hours in a year at McDonald at the wage rate of $20.00 per hour.
After being promoted to the assistant manager of the restaurant, her wage rate increases to $25.00 per hour, and she decides to work 2,750 hours. Olivia is indifferent between working 2,600 hours at $20.00 per hour and working 2,850 hours at $25.00 per hour. Calculate the uncompensated wage elasticities of labour supply implied by her response to the wage increase.

Answers

The uncompensated wage elasticity of labour supply implied by Olivia's response to the wage increase is approximately 0.39 (-0.0962/0.25).

The uncompensated wage elasticity of labour supply is defined as the percentage change in the quantity of labour supplied in response to a one percent change in the wage rate, holding non-labour income constant. How to calculate uncompensated wage elasticities of labor supply Olivia's wage rate at McDonald's was $20.00 per hour, and she worked for 2,600 hours in a year. Therefore, her annual earnings at McDonald's were 20 x 2600 = $52,000.

Assuming that Olivia's earnings from sources other than McDonald's are $3,000 per year and she has 4,160 available hours per year, her hourly wage rate for non-labour income is $3,000/4,160 = $0.72.Olivia's wage rate increased to $25.00 per hour when she was promoted to assistant manager, and she worked for 2,750 hours that year. Therefore, her annual earnings as an assistant manager were 25 x 2750 = $68,750.When Olivia was working at McDonald's, she worked 2,600 hours at $20.00 per hour, earning $52,000. At that wage rate, she is willing to work 2,600 hours.

Assume that her non-labour income is constant; hence she will work the same number of hours for the same non-labour income of $3,000.If she earns $25.00 per hour as an assistant manager, she will have an annual income of 25 × 2850 = $71,250. Olivia is willing to work 2,850 hours to earn $71,250, which is $3,500 more than she would earn if she worked 2,600 hours at $20.00 per hour. Now we can compute the uncompensated wage elasticities of labour supply from Olivia's response to the wage increase as follows:• %change in quantity of labour supplied = (2850-2600) / 2600 × 100% = 9.62%• %change in the wage rate = (25-20) / 20 × 100% = 25%.

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d) “Science gives more evidence for creation than a belief in God”

Evaluate this statement considering arguments
both for and against. In your answer you should:

Refer to Catholic teaching

Refer to different Christian and non-religious
beliefs

Reach a justified conclusion

Answers

In the past, people have believed that science and religion are at odds, especially when it comes to the issue of origins. History demonstrates that science and religion have frequently been mutually beneficial.

Is science an ideology?

Science is a "open belief system"; the data that scientists gather are subject to outside scrutiny. So, research results can be contested. Popper asserts that a key component of the scientific method is the process through which scientists examine the findings of other scientists critically.

What link exists between religion and science?

The relationship between science and religion has often been described as tense, particularly when it comes to the question of origins (creationism vs. evolution). Science and religion have always clashed more than other groups.

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In countries where government officials are neither selected by free elections nor open to criticism by a free press, the lives of citizens are controlled by policies they have had no role in creating. This is why such countries are prone to civil disorder, in spite of the veneer of calm such countries often present to a visitor. When people do not understand the purpose of the restrictions placed on their behavior they have a greater tendency to engage in civil disorder as an expression of their frustration.
Which one of the following is an assumption on which the argument depends?
(A) People who have had a role in making the laws that govern their own behavior act more rationally than those who have not.
(B) A free press is better able to convey to citizens the purpose of government policy than is a press controlled by the government.
(C) Civil disorder cannot be prevented by security forces alone, however great the powers granted them by the government.
(D) People tend not to understand the purpose of restrictions unless they participate in their formulation.
(E) Civil disorder does not generally occur in countries that have either free elections or a free press.

Answers

The assumption on which the argument that "In countries where government officials are neither selected by free elections nor open to criticism by a free press, the lives of citizens are controlled by policies they have had no role in creating .This is why such countries are prone to civil disorder " depends is that People tend not to understand the purpose of restrictions unless they participate in their formulation. The correct answer is option D.

This is because the argument states that "when people do not understand the purpose of the restrictions placed on their behavior they have a greater tendency to engage in civil disorder as an expression of their frustration."

Therefore, it is assumed that people need to participate in the formulation of restrictions in order to understand their purpose and avoid engaging in civil disorder. The correct answer is option D.

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