cameron corp. started business in 2016 and uses the fifo method. during 2016, it purchased 45,000 units of inventory at €10 each and sold 40,000 units for €20 each. in 2017, it purchased another 50,000 units at €11 each and sold 45,000 units at €22 each. its 2017 ending inventory balance (€ thousands) was closest to:

Answers

Answer 1

Since the beginning inventory of the company in 2016 is €0, its ending inventory balance in 2017 is  €110,000

The formula of Ending Inventory is given by:

Ending Inventory = Beginning Inventory + Net Purchases – COGS

COGS = cost of good sales

FIFO is "first in first out" method which means the first item to be sold is the one that is purchased first.

Information from the problem:

Year 2016.

Beginning Inventory = €0

Purchases = 45,000 units × €10 = €450,000

COGS = 40,000 units × €10 = €400,000

Ending inventory = €450,000 - €400,000 = €50,000

There remaining 5,000 units at the end of 2016.

Year 2017

Beginning Inventory = €50,000

Purchases = 50,000 units × €11 = €550,000

COGS = (5,000 units × €10) +  (40,000 units × €11)  = €490,000

Ending inventory = €50,000 + €550,000 - €490,000 = €110,000

Hence, at the end of 2017 in the inventory, there are remaining 10,000 unit at €11 each and worth for  €110,000

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Related Questions

for the most recent year, triad company had fixed costs of $180,000 and variable costs of 60% of total sales revenue, earned $55,250 of net income after taxes, and an income tax rate of 35%. required:1. determine the before-tax income.2. determine the total contribution margin.3. determine the total sales.4. determine the breakeven point in dollar sales.

Answers

Fixed Cost - $180000, variable cost- 60% of total sales, net income - $55,250, income tax rate - 35%. With this info 1. $85000, 2. $34000, 3. $85000, 4. 5.29

1. Before tax income = Net income after tax / ( 1 - tax rate ), 55250/(1- 0.35) = $85000 2. Total contribution margin = Total Revenue - Variable cost, 85000 - 51000= $34000. 3. Total sales is equal to 85000 4. Break even point is equal to Fixed Cost ÷ Contribution margin = 180000÷ 34000 = 5.29

Revenues less costs, taxes, and interest equal net income (NI).  A financial phrase known as net income after taxes (NIAT) is used to refer to a company's profit following the payment of all taxes.

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After the airline mergers, the four remaining airlines had an increased level of market power. For consumers, this meant that they had to pay.

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After airline mergers, the four remaining airlines had an increased level of market power. For consumers, this meant that they had to pay: a. higher prices, regardless of consumer demand.

On routes with more potent opposition, mergers decrease the frequency more, probably due to a larger impact on the marketplace structure.

Whilst the merging airways manipulate all of the flights, mergers have almost no impact on the frequency. The second set-up makes use of the marketplace shape before the merger.

Competition – M&A within the airline enterprise assists to reduce competition appreciably. This facilitates airways to obtain higher working margins.

Alternatively, passengers may also face better airfares. Passenger advantages -Passengers, who're enlisted for frequent-tour schemes could have higher mileage pints.

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Relational job design focuses on what additional component in the design of jobs?.

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Relational job design focuses on those who are affected by the​ employee's job.

Paintings design (also known as job layout or mission layout) is an area of study and practice inside industrial and organizational psychology and is worried about the "content material and employer of 1's paintings obligations, sports, relationships, and duties" (p. 662). Research has verified that work layout has crucial implications for individual personnel (e.G., worker engagement, process strain, threat of occupational damage), teams (e.G., how successfully companies co-ordinate their activities), groups (e.G., productivity, occupational protection, and health objectives), and society (e.G., making use of the skills of a populace or selling effective aging). The phrases process design and work design are regularly used interchangeably in psychology and human aid control literature, and the difference isn't always constantly properly-defined. An activity is usually described as an aggregation of obligations assigned to the individual.

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you need to choose between making a public offering and arranging a private placement. in each case, the issue involves $10.8 million face value of 10-year debt. you have the following data for each:

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If you must pick between doing a public offering and setting up the net proceeds from a public issuance are $10,348,640. The debt at issue in each case had a face value of $10.8 million and a term of ten years.

The amount the seller obtains after selling an asset, after all fees and expenses are subtracted from the gross revenues, is known as the net proceeds. Depending on the sold asset, the costs may represent a public offering negligible portion of the gross proceeds or a sizable portion of the total proceeds. The net proceeds of a sale, as opposed to the gross proceeds, are what are taxed for capital gains.

On a personal or company tax return, income from the sale of stocks, mutual funds, real estate, or other assets is reported. Taxes are paid on public offering capital gains rather than the selling price of the asset.

Net proceeds from public issue=[Gross issue * (1-underwriting spread) ]- other expenses

=>Net proceeds from public issue=[$ 10,800,000 *(1-1.56%) ] - $86,000

=>Net proceeds from public issue=[$ 10,800,000 *(1-0.0156) ] - $86,000

=>Net proceeds from public issue=$ 10,434,640- $86,000

=>Net proceeds from public issue=$ 10,348,640

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PLEASE HELP ACCOUNTING
Question 4 of 10
Which of the following should be included in
any journal entry?

A. A calculation of owner's equity

B. Either a debit or a credit

C. The total debits and credits for
the period

D. Both a debit and a credit

Answers

Answer:

The answer is D.

Explanation:

In a journal entry you are balancing your accounts. You have Debits and Credits. Think of the acronym DEAD when determining which is which. DEAD is Debits = expenses, assets, and dividends. Debits are always balanced out by credits. So for example if you had rent to pay, you would list that as a debit (it is an expense). The credit would be cash (cash is NOT an asset when thinking in terms of accounting).

SO:

10/12/22  Rent Expense    $500

                                                      Cash          $500

For everything, there is a balance. You want to know what counters a given account.

the value of the productive capacity of the assets of an economy, measured by the goods and services it can produce both now and in the future rather than by the money prices of the assets, is called:

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Real wealth is the value of the productive capacity of the assets of an economy. Real wealth can be measured by the goods and services.

In economics concept, Real wealth can be described as an accumulation of valuable economic resources that can be measured in terms of either real goods or money value. To calculate real wealth, we can use net worth, determined by taking the total market value of all physical and intangible assets owned, then subtracting all debts. Real wealth concept generally be used in the scarce economic goods.

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the four key problem-solving steps occurring during the agreement stage: brainstorm as many solutions as possible, develop an action plan, implement the action plan, and evaluate outcomes and the process.

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The agreement stage incorporates four key problem-solving steps. Each is briefly described below:

Brainstorm as many solutions as possible: in the first step, several possible solutions to a problem are analyzed so that the best optimal solution can be considered.Develop an action plan: in this stage, a comprehensive plan is developed in which tasks are assigned to respective individuals with the resources to be used and the required amount of time to complete the tasks. Implement the action plan: this is the execution phase where the actual implementation of tasks is performed based on the requirements mentioned in the action plan.Evaluate outcomes and the process: this is the last step in which generated results and outcomes are evaluated to check if they are implemented as intended.

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eric recently lost his job as a dishwasher. minimum-wage legislation keeps employers from adding more of the low-skill positions for which he qualifies, so he has been unable to find work. ginny is a physician who has decided to relocate to california to be closer to her family. she is currently interviewing with several prestigious hospitals in the san francisco bay area. automobile demand has fallen during a recent recession, and lucia has been laid off from her job on the assembly line.

Answers

Eric's case is of Structural unemployment, Ginny's case is of frictional unemployment and Lucia's case is of  cyclical unemployment.

An annuity due, in which installments are made at the start of each period, is the opposite of a regular annuity. Despite being connected, these two payment schedules are not identical to the financial instrument known as an annuity.

Cyclical unemployment is the amount of overall unemployment that is specifically brought on by periods of economic expansion and contraction. Typically, unemployment rises during recessions and falls during expansions.

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Complete Question:

Name the type of unemployment in the following cases:

Case 1 Eric recently lost his job as a dishwasher. Minimum-wage legislation keeps employers from adding more of the low-skill positions for which he qualifies, so he has been unable to find work.

Case 2 Ginny is a physician who has decided to relocate to California to be closer to her family. She is currently interviewing with several prestigious hospitals in the San Francisco Bay Area

Case 3 Automobile demand has fallen during a recent recession, and Lucia has been laid off from her job on the assembly line.

astro company sold 20,000 units of its only product and reported income of $25,000 for the current year. during a planning session for next year’s activities, the production manager notes that variable costs can be reduced 40% by installing a machine that automates several operations. to obtain these savings, the company must increase its annual fixed costs by $241,000. the selling price per unit will not change. astro company contribution margin income statement for year ended december 31 sales ($50 per unit) $ 1,000,000 variable costs ($40 per unit) 800,000 contribution margin 200,000 fixed costs 175,000 income $ 25,000

Answers

The fixed cost will increase by $241,000 upon installation of the new machine. As a result, the total fixed expense would be ($175,000 + $241,000) = $416,000.

Total fixed cost / Contribution margin ratio=Break even point in dollar

$416,000 / 52% = $800,000

A machine is a physical system that uses power to apply forces, regulate movement, and carry out an action. The phrase is frequently used to refer to both artificial devices that use engines or motors as well as natural biological macromolecules like molecular machines. Machines can be propelled by humans, animals, natural forces like wind and water, chemical, thermal, or electrical energy. They also have a set of mechanisms that shape the actuator input to produce a certain application of output forces and movement. They can also consist of mechanical systems, also known as computers and sensors that track activity and coordinate movement.

The six basic mechanisms that move a weight were named by Renaissance natural philosophers.

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total bundle am owns a home-based embroidery business. he is considering buying a new sewing and embroidery machine. the janome memory craft 14000 sewing and embroidery machine bundle is priced at $6, 500. it will save approximately 60 hours of time (valued at $20 per hour) and will cost $600 to maintain. as an alternative, sam estimates that purchasing the janome mb-4s four needle embroidery machine will save approximately 30 hours of time (valued at $20 per hour), and the machine will cost $500 to maintain. based on the economic value to the consumer, what is he most that sam should be willing to spend on the janome mb-4s?

Answers

MB-4s four needle embroidery machine will save approximately 30 hours of time and the machine will cost $500 to maintain. based on economic value to the consumer Sam should be willing to spend 5900 on MB-4S.

Permit Sam to purchase the MB-4S using X.

Janome Memory Craft 14000 value is calculated as follows: 60*20 - 6500 = 1200 - 6500 = -5300

30*20-X = 600-X is the value of the MB-4S.

Now,

600 - X = -5300

X = 5300+600

X = 5900

Sam needs to have $5,900 available for the MB-4S.

A sewing or embroidery machine is used in the machine embroidery process to embroider patterns onto textiles.

Economic value is the value assigned to a good or service based on consumer preferences and the trade-offs they make in light of their limited resources.

The price a person is willing to pay for a good or service while keeping in mind that the money could be used for other things is the item's economic value. The economic worth, however, may alter if the cost of the commodity or service varies.

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an umbrella policy is designed to cover: group of answer choices expensive personal property. additional buildings on your property. property when traveling away from home. major personal liability claims. flood damage.

Answers

Major personal liability claims are intended to be covered by an umbrella policy.

What is an umbrella policy?

Umbrella insurance is a sort of personal liability insurance that provides coverage for claims that exceed the restrictions of a normal homeowner's, auto, or watercraft policy. Other members of the policyholder's family or household are also protected by umbrella insurance in addition to the policyholder.

How is personal liability addressed in this case?

Personal liability insurance is all about providing you and your loved ones with financial stability. Your homes policy's personal liability coverage offers protection for claims of bodily injury and property damage experienced by third parties for which you or other members of your household who are covered by the policy are legally liable.

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dave had little patience with his team who opposed his ideas. he had a strong need to be right despite the circumstances. what kind of communicator does dave seem to be? question 6 options: a) provisional b) certain c) strategic d) neutral

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Dave seem to be certain communicator. He had little patience with his team who opposed his ideas. He had a strong need to be right despite the circumstances.

Communicators who talk with certainty appear narrow-minded and not willing to listen to other points of view, whereas provisional communication entails recognizing other different points of view and possibilities. Certainty language implies that there is just one solution, and the speaker knows it. He has a strong need to be right despite the circumstances.  The use of provisional language indicates to the listener that the communicator is open to ideas.

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by creating its own direct sales force, a company can multiple choice question. circumvent the need for distributors or dealers. reduce materials handling and shipping costs. outsource certain value chain activities. eliminate middle management.'

Answers

By creating its own direct sales force, a company can circumvent the need for distributors or dealers.

A sales force is required by a business to distribute its products and promote them in the market.

If a business employs its own direct sales force, then it can prove to be a lot more cost-effective than hiring sales officers from a different company.

A direct sales force can help in the management of proper sales of a product and increase the sale of a product. A business will not have to search for different distributors and dealers if they make a direct sales force. Direct sales force can prove to be more cost-effective as well as time effective.

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Why do economists believe that market‑based strategies are more likely to achieve efficient pollution abatement than regulatory agencies?.

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Because the firm will seek low-cost options that will maximize profit and responding to price is less is more likely to lead to an efficient outcome.

In the financial idea, earnings are the excess earned above the normal go back on capital. earnings turn out to be the more of general revenue over the opportunity rate of manufacturing the coolest. thus, a business enterprise incomes zero economic income is still incomes a normal or aggressive go-back.

Profit is an absolute extensive variety decided with the resource of the number of profits or sales above and beyond the costs or expenses a business enterprise incurs. it is calculated as overall sales minus general charges and looks at an enterprise's earnings announcement.

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strategic recruiting decisions include all of the following except: a. make or buy b. technology vs. people c. which applicant should be interviewed d. promote from within or look outside

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Strategic recruiting decisions include all of the following except c. which applicant should be interviewed.

In the field of business, strategic recruiting is referred to as formulating ways through which the best candidates can be hired.

These decisions include whether technology will be better or people for a certain task. Strategic recruiting decisions also include the thinking process of whether it will be feasible to promote people for a job or to hire a new person for it.

However, which application is to be interviewed does not come under strategic recruiting decisions.

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What type of function does a project management tool have that a task management tool does not?.

Answers

Project control gear are a fixed of software program designed to assist venture groups to plot a venture, track & control the initiatives to reap the described venture desires in the time. Task control can assist both man or woman reap desires, or agencies of people collaborate and percentage information for the accomplishment of collective desires.

The required details for venture control tool   in given paragraph

A venture control tool affords you the capacity to effortlessly set up a hierarchy of responsibilities for powerful and green completion. It additionally helps you to suggest which steps are sequential and which responsibilities are depending on one another. In turn, this makes it less complicated for the group to do their work. Project control gear are a fixed of software program designed to assist venture groups to plot a venture, track & control the initiatives to reap the described venture desires in the time.

It additionally facilitates group individuals to collaborate efficiently and boost up the initiatives to fulfill the desired constraints.

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Which of the following financial institutions does not take customer
deposits?
A. Investment bank
B. Credit union
C. Commercial bank
D. Savings bank

Answers

Option (A) Investment bank is correct.

Investment bank does not take customer deposits.

What meant by Investment bank?

Investment banks are financial institutions that sell their services and act as a middleman in complex transactions like mergers or a startup's initial public offering (IPO). They are also capable of acting as brokers or financial advisers for significant institutional clients like pension funds.

Investment banks do not accept deposits; rather, they help individuals, groups, and governments raise money by issuing securities. Investment companies, often known as mutual fund companies, pool money from institutional and ordinary investors to offer them access to a greater variety of assets. While some financial institutions take deposits, others only offer particular banking services. These non-depository financial institutions include brokerage houses, finance companies, insurance companies, and pension funds. They provide services to both people and companies.

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puggle, inc. has two categories of overhead: maintenance and inspection. costs expected for these categories for the coming year are as follows: maintenance $400,000 inspection 200,000 the following data have been assembled for use in developing a bid for a proposed job: direct materials $3,000 direct labor $8,000 machine-hours 200 number of inspections 2 direct labor-hours 400 the practical capacity of machine-hours for all jobs during the year is 12,500, and for inspections is 400. these are the cost drivers for maintenance and inspection costs, respectively. using the appropriate cost drivers, the total cost of the potential job is: select one: a. $18,400 b. $16,300 c. $36,800 d. $11,000

Answers

If  these are the cost drivers for maintenance and inspection costs, respectively. The total cost of the potential job is: a. $18,400.

Total cost

Maintenance:

Estimated manufacturing overhead rate= 400,000/12,500

Estimated manufacturing overhead rate = $32 per machine -hour

Inspections:

Estimated manufacturing overhead rate= 200,000/400

Estimated manufacturing overhead rate= $500 per inspection

Total cost:

Total Cost=  Direct material + Direct labor + Allocated overhead

Total Cost= $3,000 + $8,000 + $6,400 + $1,000

Total cost= 3,000 + 8,000 + [($32×200) + ($500×2)]

Total Cost= $18,400

Therefore the correct option is A.

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the recording of direct labor will result in a: multiple choice question. debit to work in process inventory and credit factory wages payable debit to factory wages payable and a credit to work in process inventory debit to work in process inventory and a credit factory overhead debit to factory overhead and a credit work in process inventory

Answers

Direct labour recording will result in a credit for Factory Wages Payable and a debit for Work in Process Inventory.

In any production round, items that are partially finished are referred to as "work in process" (WIP) inventory. The entire cost of unfinished goods currently being produced is referred to as work in process in manufacturing and supply chain management.

Higher WIP inventory levels are favourable since they can accommodate an increase in demand and shorten cycle times due to the additional manufacturing material. If demand is lower than anticipated, this could result in waste as well as higher storage costs and obsolescence risk.

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the congressional legislation that extended an array of benefits, including unemployment pay, educational scholarships, low-cost mortgage loans, pensions, and job training, to millions of returning veterans beginning in 1944 was called

Answers

The Servicemen's Readjustment Act, also known as the GI Bill of Rights, was a piece of congressional legislation that began providing a variety of benefits to millions of returning veterans in 1944, including unemployment compensation, educational scholarships, low-cost mortgage loans, pensions, and job training.

What is unemployment?
According to OECD (Organisation of Economic Co-operation as well as Development), unemployment is defined as people over a certain age (typically 15) who are not currently employed or self-employed but are nonetheless currently available for employment during the time frame. The number of unemployed people as a percentage of the labour force serves as a proxy for unemployment, which is expressed as the unemployment rate. A nation can affect unemployment and the state of the economy, for instance, through its fiscal policy. Furthermore, a nation's central bank or other monetary authority can affect the cost and availability of money by enacting monetary policy.

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a company has the opportunity to invest in one of two mutually exclusive projects. project a has an initial cost of $1.2 million and cash flows with a present value of $4.5 million. project b has an initial cost of $2 million and cash flows with a present value of $5 million. which project should the firm choose to invest in? multiple choice question.

Answers

Project A because it has a higher Net Present Value For project A, NPV=initial investment + PV of cash flows= -$1.2 million + 4.5 million = $3.3 million. For project B, NPV=initial investment + PV of cash flows= -$2 million + 5 million = $3 million.

A sequence of free cash flow that take place at various points in time are covered by the net present value. The timeframe between now and a cash flow determines the present value of that cash flow. The discount rate is another factor.

To evaluate the profitability of a proposed investment or project, NPV is employed in capital budgeting and investment planning. The outcome of computations to determine the current value of a stream of payments in the future is NPV.

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unite labor union and three-strikes labor union are the labor unions of an airline company. unite labor union represents the interests of the flight crew, whereas three-strikes labor union represents the interests of the ground staff. when three-strikes labor union went on a strike to negotiate better pay, unite labor union went on a strike to support three-strikes labor union, even though unite labor union did not have any dispute with the company. the given scenario illustrates a(n)

Answers

The given scenario illustrates a sympathy strike where, unite labor even though they do not have any dispute with company they went on strike to support the three-strikes labor union.

When one labor union engages in a strike in support of some other that is engaged in a disagreement, even if the first union seems to have no problems with the company, this is recognized as a sympathy strike. Employees in one company began the strike, and employees in another, related industry ended up joining them in their activities.

A no-strike provision in an employment agreement is not infringed, according to certain courts, when there is a sympathy strike or general strike. Also, when one labor group simply refuse to work when another labor union is in conflict with the company or on strike can also be termed as sympathy strike.

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Omega company has sales of $300,000 and cost of goods sold of $200,000. The cost of goods sold is a variable cost. The company incurred $20,000 of fixed operating expenses and $40,000 of variable operating expenses. Based on this information.

Answers

Based on the information above, the company's gross margin is $100,000, while its contribution margin is $60,000.

Under the gross margin, the net income would be

= Sales - cost of goods sold

= $300,000 - $200,000

= $100,000

Under the contribution margin, the net income would be

= Sales - cost of goods sold - variable operating expenses

= $300,000 - $200,000 - $40,000

= $60,000

Gross margin can be defined as the difference between revenue and cost of goods sold, divided by revenue, it is usually expressed as a percentage. Contribution margin, or dollar contribution per unit,can be defined as the selling price per unit minus the variable cost per unit.

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a fitness electronics company is a first-mover in wearable fitness trackers. its innovative everyday activity and exercise bracelet has created a monopoly for its product. executives are apprehensive about the company's ability to maintain its competitive advantage because they know that rival companies have competent research and development skills and access to marketing, sales knowhow, and manufacturing capabilities. these rivals are considered:

Answers

The rivals that have competent research and development skills and access to marketing, sales know-how, and manufacturing capabilities will be considered as d. capable competitors.

In the field of business, capable competitors can be described as competitors that have the potential in them to do better and produce more outcomes.

In the scenario above, the fitness electronic company has an idea that its competitors in the market are capable competitors because they have competent research and development skills, access to marketing, and knowledge about sales and manufacturing. Hence, the fitness electronic company works hard to innovate everyday activities to have a competitive advantage as the first mover in wearable fitness trackers so that it can remain better than the capable competitors.

Although a part of your question is missing you might be referring to this question:

A fitness electronics company is a first-mover in wearable fitness trackers. its innovative everyday activity and exercise bracelet has created a monopoly for its product. executives are apprehensive about the company's ability to maintain its competitive advantage because they know that rival companies have competent research and development skills and access to marketing, sales know-how, and manufacturing capabilities. these rivals are considered:

a. complementary assets.

b. barriers to imitation.

c. first-movers.

d. capable competitors.

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what is the principle of orientation​

Answers

clarify purpose! and develop strategy

How will retirement affect us today If your parents are not prepared for retirement?

Please answer as soon as possible. Thanks

Answers

Answer:

They would not have the money to raise you and retire, so being ready for retirement is a must.

Explanation:

ricardo started a web design company while still in college. he sold the company after graduation, and opened a computer repair shop. most recently, ricardo has started a marketing firm that specializes in social media. ricardo is an example of a(n):

Answers

While considering his previous entrepreneurship exploits, as he (Ricardo) has also started a marketing firm that specializes in social media. Then, he is an example of a lifestyle entrepreneur.

Who is a lifestyle entrepreneur?

Basically, a lifestyle entrepreneur means a person that creates a business for the purpose of changing their lifestyle, rather than for making profits. They usually wants to create any business because they are passionate about it and believe that it will be personally rewarding for them.

While it is very possible that such business that the individual creates will eventually become successful, also, because of how passionate they are, the success will bot be brought about because of a focus on obtaining profits.

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ari is a manager of a manufacturing company. he’s not very popular with his employees. after he hears employees gossiping about him, he tries to stop the chatter by enacting rules against spreading rumors, gossip, and discussions about the company. your managerial savvy tells you that ari’s efforts will .

Answers

Since Ari is a manager of a manufacturing company and after he hears employees gossiping about him, he tries to stop the chatter by enacting rules against spreading rumors, Note that your managerial savvy tells you that Ari’s efforts will most likely fail.

What it means to be a manager?

A manager is someone who is in charge of monitoring and inspiring workers as well as guiding the development of an organization. The person in charge of customer service, who handles client complaints, and who manages and supervises customer service personnel is an example of a manager.

Note that the word "gossip" has several different connotations. Depending on who you ask, gossip can refer to anything that is said about someone without their knowledge, whether it be harmful or actionable. Some people think it solely refers to incorrect rumors, while others say it can also apply to honest comments.

Note that Ari stopping the gossip that way will likely fail because he is using the wrong method.

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A basic test of the usefulness of the market segmentation process is whether it leads to tangible marketing actions that can.

Answers

A basic test of the usefulness of the market segmentation process is whether it leads to tangible marketing actions that can.  increase sales and profitability

What's market segmentation illustration?

Common exemplifications of market segmentation include geographic, demographic, psychographic, and behavioral. Companies that understand market parts can prove themselves to be effective marketers while earning a lesser return on their investments. The three main types of market  segmentation are demographic, psychographic, and behavioral. Demographic segmentation divides people grounded on their age, income, education position, and occupation. Some exemplifications of companies that use demographic segmentation include insurance providers, healthcare companies, and banks.

What's tangible marketing?

Tangible marketing consists of all types of print media. exemplifications include books, magazines, journals, leaflets, direct mailers, bills, promotional particulars, business cards and more.Tangible marketing is the use of promotional particulars to contribute to brand recognition and client fidelity. Gifts and gifts should be approached with a defined strategy in order to produce the loftiest impact for your marketing bones.

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an 8-year investment provides 10% irr per year. assuming you will actually receive all cash flows as promised, would you really earn 10% rate of return per year? why or why not?

Answers

The true return will change, even though the nominal return stays the same. If the inflation rate is positive under normal economic circumstances, even if the nominal return is 10%, the real return will fall below 10%.

What changes in nominal and real interest rates result from rising inflation?

The real interest rate, according to the Fisher Effect, is equal to the nominal interest rate less the anticipated inflation rate. Therefore, unless nominal interest rates rise at the same rate as inflation, real interest rates decrease as inflation rises.

Real return: Does it fall short of nominal return?

After deducting taxes and inflation, an investment's real return is what was made. Real returns are less favorable than nominal returns, which do not account for inflation or taxes.

Why does inflation affect the nominal interest rate favorably?

Because it takes into account the interest rate before inflation, inflation has a positive impact on the nominal interest rate. Without taking into account any fees or interests, it considers the loan interest rates.

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