A company estimates that the appropriate discount rate (i.e., the cost of capital) for Project A, Project B, Project C and Project D described below is 10 percent. Assuming that the projects are independent, which project(s) should the company accept?

a. Project A requires an up-front expenditure of $1,000,000 and generates a net present value of $3,200.
b. Project B has an internal rate of return of 9.5 percent.
c. Project C requires an up-front expenditure of $1,000,000 and has a profitability index of 0.85
d. Project D requires an up-front expenditure of $200,000 and generates a net present value of negative $200
e. None of the projects above should be accepted.

Answers

Answer 1

Answer:

a. Project A requires an up-front expenditure of $1,000,000 and generates a net present value of $3,200.

Explanation:

a.

The company should accept project A because it provides a positive net present value of $3,200 that is the highest among all the projects.

b.

When the IRR of a project is lower than the required rate of return of the project, it will generate the negative net present value because at IRR the net present value of the project will be zero and at a higher rate than IRR it will be negative.

c.

The project with a profitability index of less than 1 generates a negative NPV because the present value of future cash flows is less than the initial cash outflow.

d.

Project D also generates a positive net present value but it is lower than project A. So, after comparing the results we will choose the project with higher NPV.


Related Questions

If an organization desires to conduct research with more active control over who participates and has a large budget to pay for research, which combination of research methods would best suit its situation

Answers

Answer: in-person research and mail research

Explanation:

Since the organization desires to conduct research with more active control over who participates and has a large budget to pay for research, then the combination of research methods that would best suit its situation is the in-person research and the mail research.

The in-person research is vital in engaging customers more deeply on the areas of interest and also observe how they interact with the products of the company. This is vital in gaining insights which will help in growing the business. Also, the mail research can be used to ask the customers questions relating to a particular topic.

Your grandparents put $11,100 into an account so that you would have spending money in college. You put the money into an account that will earn an APR of 4.37 percent compounded monthly. If you expect that you will be in college for 5 years, how much can you withdraw each month

Answers

Answer:

Monthly withdraw= $206.28

Explanation:

Giving the following information:

Initial investment (PV)= $11,100

Interest rate (i)= 0.0437/12= 0.003642

Number of periods (n)= 5*12= 60 months

To calculate the monthly withdrawal, we need to use the following formula:

Monthly withdraw= (PV*i) / [1 - (1+i)^(-n)]

Monthly withdraw= (11,100*0.003642) / [1 - (1.003642^-60)]

Monthly withdraw= $206.28

có 3 bi đỏ và 1 bi đen. tính xác xuất lấy phải bi đỏ

Answers

Answer:

3/4

Explanation:

không gian mẫu bằng 3+1

P=3, xác suất = P/omega

A call option on Barry Enterprises stock has a market price of $12. The stock sells for $23 a share, and the option has an exercise price of $17.50. What is the exercise value of the option

Answers

Answer:

the exercise value of the option is $5.50

Explanation:

The computation of the exercise value of the option is given below:

= Sale value of the stock - exercise price of the option

= $23 - $17.50

= $5.50

Hence, the exercise value of the option is $5.50

Simply we deduct the exercise price of the option from the sale value of the option

And, the same should be considered

Place a checkmark next to each argument that supports keeping the Federal Reserve.

1- The Fed favors the interests of the wealthy.
2- The Fed helps prevent bank failures, like those that occurred prior to and during the Great Depression.
3- The Fed helps stabilize the stock markets, particularly during a financial crisis or national emergency.
4- The Fed can offset negative financial impacts from foreign countries.
5- The Fed plays a vital role in maintaining healthy financial and banking systems in the U.S.
6- The Fed is essentially a currency monopoly.

Answers

Answer:

2- The Fed helps prevent bank failures, like those that occurred prior to and during the Great Depression.

3- The Fed helps stabilize the stock markets, particularly during a financial crisis or national emergency.

4- The Fed can offset negative financial impacts from foreign countries.

5- The Fed plays a vital role in maintaining healthy financial and banking systems in the U.S.

Explanation:

The Federal Reserve is a group of federal banks that regulate other banks, maintain monetary policy of a nation, provides banking services and also tries to ensure financial stability.

Therefore, the above selections are arguments that supports keeping the Federal Reserve.

Suppose during 2014, Cypress Semiconductor Corporation reported net cash provided by operating activities of $89,063,000, cash used in investing of $43,133,000, and cash used in financing of $7,359,000. In addition, cash spent for fixed assets during the period was $25,900,000. Average current liabilities were $257,933,000, and average total liabilities were $280,651,000. No dividends were paid.
Free cash flow equals?

Answers

what’s the question?

PandemicsPlus just paid a dividend of $1.00 per share and they consistently grown dividends at 4% annually. Investors require a return of 12% on the firm's equity. What is the current value of the stock?

Answers

Answer:

$13

Explanation:

The current value of the stock can be determined using the constant growth dividend model

according to the constant dividend growth model

price = d1 / (r - g)

d1 = next dividend to be paid

r = cost of equity

g = growth rate

(1 x 1.04) / (0.12 - 0.04) = 13

The master budget is: a.used for misinformation and coordination. b.broken down into daily budgets. c.typically for a 1-year period corresponding to the fiscal year of the company. d.based on the sales budget. e.All of these choices are correct.

Answers

c! hope this helps i got it right

Rosina purchased one 15-year bond at par value when it was initially issued. This bond has a coupon rate of 7 percent and matures 13 years from now. If the current market rate for this type and quality of bond is 7.5 percent, then Rosina should expect: the bond issuer to increase the amount of all future interest payments. the yield to maturity to remain constant due to the fixed coupon rate. to realize a capital loss if she sold the bond at today's market price. today's market price to exceed the face value of the bond. the current yield today to be less than 7 percent.

Answers

Answer:

to realize a capital loss if she sold the bond at today's market price.

Explanation:

Given that

NPER is 13

RATE is 7.5%

PMT is 7% of $1,000

Future value be $1,000

We need to find out the present value

So,

The current price of the bond is:

=PV(7.5%,13,7%*1000,1000)

=$959.37

Now if she wants to sell the bond now, so the value should be less than the face value due to which there should be the capital loss  

One of the reasons why cash flow analysis is popular is because ________.
a) cash flows are more subjective than net income
b) cash flows are hard to understand
c) it is easy to manipulate, or spin the cash flows
d) it is difficult to manipulate, or spin the cash flows
e) none of these

Answers

Answer:

D

Explanation:

Cash flow is the flow of cash and cash equivalent in and and out of a business.  

there are three types of cash flows:  

1. Investing cash flow - It involves the use of long term cash. it is the cash flow generated from the purchase and sale of fixed asset e.g. Sale of plant assets.  

2. operating cash flow - it shows the net amount of cash generated from a company's normal business operation  

3. financing cash flow - it shows the net amount of funding a company receives over a given period e.g. issuance of common stock  

Reasons why cash flow analysis is popular

Cash flows are less subject to manipulation when compared with net incomeCash flow in often positive when net income is negative or zero

TB MC Qu. 08-104 Marlow Company purchased a point of... Marlow Company purchased a point of sale system on January 1 for $3,400. This system has a useful life of 10 years and a salvage value of $400. What would be the depreciation expense for the first year of its useful life using the double-declining-balance method

Answers

Answer:

$680

Explanation:

Calculation to determine What would be the depreciation expense for the first year of its useful life using the double-declining-balance method

Depreciation expense=3400*(100%/10 * 2)

Depreciation expense=3400*.2

Depreciation expense= 680

Therefore What would be the depreciation expense for the first year of its useful life using the double-declining-balance method is $680

Project managers can identify risks by learning and understanding the cause and effect relationships that bear on risk events. All of the following approaches rely upon an understanding of cause and effect relationships to identify risks EXCEPT:

a. perform a Monte Carlo analysis
b. understand trigger conditions, or circumstances under which a risk strategy or risk action will be invoked
c. conduct a root cause analysis
d. develop a flow chart that shows how people, materials or data flow from one person or location to another

Answers

Answer:

Interviews. Select key stakeholders. ...

Brainstorming. I will not go through the rules of brainstorming here. ...

Checklists. See if your company has a list of the most common risks. ...

Assumption Analysis. ...

Cause and Effect Diagrams. ...

Nominal Group Technique (NGT). ...

Affinity Diagram.

Explanation:

Create a risk register. Create a risk register for your project in a spreadsheet. ...

Identify risks. ...

Identify opportunities. ...

Determine likelihood and impact. ...

Determine the response. ...

Estimation. ...

Assign owners. ...

Regularly review risks.

If the price of a haircut is $15, the number of haircuts provided is 100. If the price rises to $30 per haircut, barbers will work much longer hours, and the supply of haircuts will increase to 300.
Instructions: Round your answers to two decimal places.
The price elasticity of supply for haircuts between $15 and $30 using the mid-point method is:________.

Answers

Answer:

1.5

Explanation:

Price elasticity of supply measures the responsiveness of quantity supplied to changes in price of the good.

Price elasticity of supply = midpoint change in quantity supplied / midpoint change in price  

Midpoint change in quantity supplied = change in quantity supplied / average of both supply

change in quantity supplied = 300 - 100 = 200

average of both supply = (300 + 100) / 2 = 200

200 / 200 = 1

midpoint change in price = change in price / average of both price

change in price = $30 - $15 = $15

average of both price = ($30 + $15) / 2 = $22.50

15 / 22.5 = 0.67

1 / 0.67 = 1.5

If the absolute value of price elasticity is greater than one, it means supply is elastic. Elastic supply means that quantity supplied is sensitive to price changes.  

Information from the records of the Abel Corporation for July 2018 was as follows: Sales $1,230,000 Selling and administrative expenses 210,000 Direct materials used 264,000 Direct labor 300,000 Factory overhead * 405,000 *variable overhead is $205,000, fixed overhead is $200,000 Inventories July 1, 2018 July 31, 2018 Direct materials $36,000 $42,000 Work in process 75,000 84,000 Finished goods 69,000 57,000
The conversion cost is:_______
a. $1,179,000
b. $705,000
c. $960,000
d. $564,000

Answers

Answer:

b. $705,000

Explanation:

The computation of the conversion cost is shown below:

as we know that

Conversion costs= Direct Labor + Manufacturing Overheads

= $300,000 + $205,000 + $200,000

= $705,000

Hence, the conversion cost is $705,000

Therefore the option b is correct

What is the process of managing costs

Answers

Answer:

Cost management is the process of estimating, allocating, and controlling project costs. The cost management process allows a business to predict future expenses to reduce the chances of budget overrun. Projected costs are calculated during the planning phase of a project and must be approved before work begins.

Explanation:

I know the answer by heart

Spartan Corporation estimates that it will incur $200,000 of total manufacturing overhead cost at an estimated activity level of 10,000 direct labor-hours. What is the amount of manufacturing overhead that would be applied to a job that required 200 direct labor-hours?
a. $2,000.
b. $4,000.
c. $6,000.
d. $10,000.

Answers

Answer:

Spartan Corporation

The amount of manufacturing overhead that would be applied to a job that required 200 direct labor-hours is:

b. $4,000.

Explanation:

a) Data and Calculations:

Estimated manufacturing overhead = $200,000

Estimated activity level = 10,000 direct labor-hours

Predetermined overhead rate = $20 ($200,000/10,000) per direct labor-hour

Applied overhead to a job that required 200 direct labor-hours = $4,000 (200 * $20)

Kinder Enterprises relies heavily on a copier machine to process its paperwork. Recently the copy clerk has not been able to process all the necessary copies within the regular work week. Management is considering updating the copier machine with a faster model.
Current Copier New Model
Original purchase cost $10,000 $20,000
Accumulated depreciation 8,000

Answers

Answer and Explanation:

The computation is shown below:

a.

Particulars        Retain Machine       Replace Machine     Net Income

 Operating costs   $35,000                    $13,000                $22,000

             (7,000 × 5 years)          (2,600 × 5)

New machine cost   0                       20,000               (20,000)

Salvage value            0                        (1,000)                 1,000

Totals                   $35,000                    $32,000             $3,000

b.

The current copier should be replaced. As the incremental analysis represent the net income should be more than $3,000 as compared with replacing one

On January 1, Jorge Inc. issued $3,000,000, 8% bonds for $2,817,000. The market rate of interest for these bonds is 9%. Interest is payable annually on December 31. Jorge uses the effective-interest method of amortizing bond discount. At the end of the first year, Jorge should report unamortized bond discount of:

Answers

Answer: $169470

Explanation: Firstly, we'll calculate the discount on bond which will be:

= Issue Price - Par Value

= $3,000,000 - $2,817,000

= $183,000

Then, the interest payable will be:

= Coupon Rate × Bond ParValue

= $3,000,000 × 8%

= $3,000,000 × 0.08

= $240,000

We will calculate the interest expense as:

= Issue Value × Market Rate

= $2,817,000 × 9%

= $253,530

Then, the amortized amount for Year 1 will be:

= Interest Expense - Interest Payable

= $253,530 - $240,000

= $13,530

Therefore, the unamoritzed amount of bond discount will be:

= $183,000 - $13,530

= $169,470

Doanh nghiệp được trích trước tiền lương nghỉ phép của toàn bộ người lao động trong công ty. Đung hay sai

Answers

Answer:

sai

Explanation:

Answer:

Explanation:

Đúng

A partial list of Waterways' accounts and their balances for the month of November 2016 follows:
Accounts Receivable $ 275,000
Advertising Expenses 54,000
Cash 260,000
Depreciation-Factory Equipment 16,800
Depreciation-Office Equipment 2,400
Direct Labor 42,000
Factory Supplies Used 16,800
Factory Utilities 10,200
Finished Goods Inventory, November 30 68,800
Finished Goods Inventory, October 31 72,550
Indirect Labor 48,000
Office Supplies Expense 1,600
Other Administrative Expenses 72,000
Prepaid Expenses 41,250
Raw Materials Inventory, November 30 52,700
Raw Materials Inventory, October 31 38,000
Raw Materials Purchases 184,500
Rent Factory Equipment 47,000
Repairs-Factory Equipment 4,500
Salaries 325,000
A list of accounts and their values are given above. From this information, prepare a partial balance sheet for Waterways Corporation for the month of November. (List Current Assets in order of liquidity.)

Answers

Answer:

Total current assets = $697,750

Explanation:

The partial balance sheet is as follows:

Waterways Corporation

Balance Sheet (Partial)

For the month of November 2016

Details                                                                $                         $          

Current Assets

Cash                                                           260,000

Accounts Receivable                                 275,000

Finished Goods Inventory, November       68,800

Raw Materials Inventory, November          52,700

Prepaid Expenses                                        41,250  

Total current assets                                                              697,750

Note:

Cash is the most liquid of assets.

Accounts receivable which should be collected within 30 to 60 days are less liquid than cash, but more liquid than inventory.

Finished Goods Inventory which is expected to be sold and converted to cash within one year, and Raw Materials Inventory which is expected to be converted to finished good within one year are more liquid than Prepaid expense.

Therefore, the least liquid among current assets’ item above is the Prepaid Expense as it is cash paid for services not yet received..

Antoine transfers property with a tax basis of $535 and a fair market value of $652 to a corporation in exchange for stock with a fair market value of $555 in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $97 on the property transferred. What is Antoine's tax basis in the stock received in the exchange

Answers

Answer: $438

Explanation:

Antoine's tax basis in the stock received in the exchange will be gotten as the adjusted basis of asset exchanged which will then be decreased by the liability assumed on the property that's transfered. This will be:

= $535 - $97

= $438

Therefore, Antoine's tax basis in the stock received in the exchange is $438.

MC Qu. 93 A company has established... A company has established 5 pounds of Material J at $3 per pound as the standard for the material in its Product Z. The company has just produced 1,500 units of this product, using 7,700 pounds of Material J that cost $21,780.The direct materials price variance is:

Answers

Answer:

$255 Favorable

Explanation:

Direct material price variance = (Actual price - Budgeted price) * Actual quantity

Direct material price variance = ($21,780/7,700 - $3) * 7,700

Direct material price variance = ($2.83 - $3) * 1,500

Direct material price variance = $0.17 * 1,500

Direct material price variance = $255 Favorable

Answer the following questions based on the tables below.

Buyer Willingness to Pay for One Unit
A $35
B 33
C 27
D 22
E 21
F 13
G 13
H 12
I 6

Seller Willingness to Sell One Unit
A $4
B 9
C 12
D 14
E 15
F 21
G 23
H 30
I 51

a. The quantity demanded at a price of $10 is: _______________.
b. The quantity demanded at a price of $25 is: ___________

Answers

Answer:

8

3

Explanation:

Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.

Consumer surplus = willingness to pay – price of the good

A consumer would demand for a product as long as he can earn a positive consumer surplus

When price is 10, there is a consumer surplus for buyers A to H. buyer I, would earn a negative consumer surplus if he purchases the product. Thus, the quantity demand at that price would be 8

When price is $25, there is a consumer surplus for buyers A to C. From buyer D, buyers would have a negative consumer surplus so they would not purchase the product

Read the opening story about Dunkin Donuts and identify at least three types of marketing research that Dunkin used. Fully explain if it is qualitative or quantitative research?

Answers

Answer:

Dunkin Donuts has always tried to maintain its currents customers and attract potential customer through their marketing strategies. Since the company has limited products to offer it has to be very keen on their marketing strategies to make their product successful. The company uses undifferentiated target marketing strategies so that its simple menu is available globally.

Explanation:

The old name of Dunkin Donuts was Open kettle. The company mainly focused on Donuts and Coffee. It has simple yet attractive menu since it specializes in Donuts and none of the competitors have been successful till date to offer Donuts with exact taste like Dunkin Donuts. The company struggles to promote its brand globally. The company has been successful to serve its customers in 40+ countries.

our Company will open a new store on January 1. Based on experience from its other retail outlets, Entertainment Inc. is making the following sales predictions: Cash Sales Credit Sales January $80,000 $160,000 February $50,000 $170,000 March $60,000 $190,000 April $50,000 $210,000 You estimate that the pattern of collection of credit sales will be 45% in the month of sale and 40% in the month following the sale; 8% in the third month, the remaining 7% is uncollectable. Based on this data calculate the estimated total cash collections for March

Answers

Answer:

Entertainment Inc.

The estimated total cash collections for March are:

= $226,300.

Explanation:

a) Data and Calculations:

                  Cash Sales       Credit Sales

January         $80,000         $160,000

February       $50,000         $170,000

March           $60,000         $190,000

April              $50,000        $210,000

                                January    February     March       April

Credit Sales         $160,000   $170,000    $190,000  $210,000

Cash collections:

45% sales month $72,000     $76,500      $85,500  $94,500

40% ffg sales                             64,000        68,000     76,000

8% third month                                               12,800      13,600

7% uncollectible

Total cash collections for March              $166,300

Cash sales            80,000        50,000       60,000     50,000

Total cash collected for March               $226,300

Which of the following statements is false about the order in which management determines the sequencing of support department allocations under the sequential method of allocating support department costs to production departments?

a. Departments with more employees are allocated earlier.
b. Departments serving a large number of support departments are allocated earlier.
c. Departments with higher costs are allocated earlier.
d. Departments with more accurate cost drivers are allocated earlier.

Answers

Answer: A. Departments with more employees are allocated earlier.

Explanation:

In the sequential method, it should be noted that a company allocates the service costs one department at a time. Once the service department cost is allocated by the accountants, the department won't get any other costs from the other service departments.

The statement that is false about the order in which management determines the sequencing of support department allocations under the sequential method of allocating support department costs to production departments is that the departments with more employees are allocated earlier.

Under the sequential method, the department costs that are allocated earlier include having an accurate cost drivers, having a higher cost, or having a large number of support.

Your company is considering a project that will cost $100. The project will generate after-tax cash flows of $37.50 per year for five years. The WACC is 10 percent and the firm's D/A ratio is 0.70. The flotation cost for equity is 6 percent, the flotation cost for debt is 3 percent, and your firm does not plan on issuing any preferred stock within its capital structure. If your firm follows the practice of incorporating flotation costs into the project's initial investment, what is the weighted average flotation cost for the firm

Answers

Answer:

3.9%

Explanation:

Calculation to determine the weighted-average flotation cost for the firm

Using this formula

Weighted-average flotation cost =D/A ratio(Flotation cost for debt)+ Flotation cost for debt(Flotation cost for equity)

Let plug in the formula

Weighted-average flotation cost=.7(3%) + .3(6%)

Weighted-average flotation cost=.0021+.0018

Weighted-average flotation cost=.0039*100

Weighted-average flotation cost= 3.9%

Therefore the weighted-average flotation cost for the firm is 3.9%

Susans Consulting Company (SCC) has been in business for ten years and has experienced a significant turnover in the project management group, which has prompted senior leadership to investigate.
A preliminary review by senior leadership has determined that Project Managers are frustrated with the amount of required project management documentation, which has impacted their ability to manage projects successfully.
A recent review of the project management process has determined that SCC has spent between 30-40% of its total project budget on projects' overhead costs to include project management costs. A review of industry standards is between 5-15% higher than most companies. In addition, senior leaders found that projects are being delivered between 25% and 50% over budget and late 95% of the time.
Note: Project Management overhead includes the PM's time managing the project, attending meetings, and developing the required documentation.
SCC Request: SCC has reached out to your team because you are experts in defining project management processes and delivering projects on time. The SCC request includes the following:
. The development of a new project management process which at a minimum should include the following:
· The ability to track issues, risks, changes
· The ability to view project activities consists of a view of what has been completed and what activities the team is working on over the next reporting period
· The company must have a view into total life cycle project costs to include what has been spent to date, baseline budget, any changes to the budget, remaining budget, and cost of the project at completion
· In addition, to the new process request, SCC has a new project they need to complete by the end of the year with a limited budget and no project management staff.
1. Using your defined project management process outlined above, describe the life cycle model for this project
2. Create a WBS for the project. Remember your WBS is a deliverable base, so there should be a section of your WBS which outlines our project management deliverables
3. Using your defined prioritization process, prioritize each application.
4. Using the defined organizational structure, create a pictorial and narrative description of the organizational structure for the project.

Answers

Answer:

was assigned with this problem (the reference text is attached):

Which of the following, if included in a student's paper, would NOT be an example of plagiarism?

1. In the game of baseball, which is rather boring, the batter stands on home base (Hughes 1).

2. Baseball is rather surprisingly known as "America's Favorite Pastime."

3. Baseball is "a rather boring sport played between two teams of nine players" (Hughes 1).

4. All of these are plagiarism.

The answer tells that only the third choice is NOT a plagiarism. My question is, why is the first choice a plagiarismwas assigned with this problem (the reference text is attached):

Which of the following, if included in a student's paper, would NOT be an example of plagiarism?

1. In the game of baseball, which is rather boring, the batter stands on home base (Hughes 1).

2. Baseball is rather surprisingly known as "America's Favorite Pastime."

3. Baseball is "a rather boring sport played between two teams of nine players" (Hughes 1).

4. All of these are plagiarism.

The answer tells that only the third choice is NOT a plagiarism. My question is, why is the first choice a plagiarismwas assigned with this problem (the reference text is attached):

Which of the following, if included in a student's paper, would NOT be an example of plagiarism?

1. In the game of baseball, which is rather boring, the batter stands on home base (Hughes 1).

2. Baseball is rather surprisingly known as "America's Favorite Pastime."

3. Baseball is "a rather boring sport played between two teams of nine players" (Hughes 1).

4. All of these are plagiarism.

The answer tells that only the third choice is NOT a plagiarism. My question is, why is the first choice a plagiarism

1.sing your defined project management process outlined above, describe the life cycle model for this project.

What is (SCC) ?

Susans Consulting Company (SCC) has been in business for ten years and has experienced a significant turnover in the project management group, which has prompted senior leadership to investigate.

A preliminary review by senior leadership has determined that Project Managers are frustrated with the amount of required project management documentation, which has impacted their ability to manage projects successfully.

A recent review of the project management process has determined that SCC has spent between 30-40% of its total project budget on projects' overhead costs to include project management costs. A review of industry standards is between 5-15% higher than most companies. In addition, senior leaders found that projects are being delivered between 25% and 50% over budget and late 95% of the time.

Note: Project Management overhead includes the PM's time managing the project, attending meetings, and developing the required documentation.

SCC Request: SCC has reached out to your team because you are experts in defining project management processes and delivering projects on time. The SCC request includes the following:

.The development of a new project management process which at a minimum should include the following:

The ability to track issues, risks, changes

The ability to view project activities consists of a view of what has been completed and what activities the team is working on over the next reporting period

The company must have a view into total life cycle project costs to include what has been spent to date, baseline budget, any changes to the budget, remaining budget, and cost of the project at completion.

Learn more about busines

https://brainly.com/question/24448358

#SPJ2

A price-cutting tactic may backfire if

Answers

Need answer choices

Third National Bank has reserves of $20,000 and checkable deposits of $100,000. The reserve ratio is 20 percent. Households deposit $5,000 in currency into the bank, and the bank adds that currency to its reserves. What amount of excess reserves does the bank now have

Answers

Answer:

$4000

Explanation:

Fractional banking is a banking system where a portion of customer's deposits is kept as reserves while remaining portion is lent out. The amount kept as reserves is determined by the required reserve ratio set by the Central bank.

Reserve ratio is the percentage of deposits that is required of commercial banks to keep as reserves

Total deposits = $100,000 + $5,000 = $105,000

Required reserves = 0.2 x 105000 = 21,000

total reserves = $20,000 + 5000 = 25,000

excess reserves = 25,000 - 21,000 = 4000

Other Questions
1. Write the polynomial function that models the given situation.A rectangle has a length of 12 units and a width of 11 units. Squares of x by x units are cut out of each corner, and then the sides are folded up to create an open box. Express the volume V of the box as a polynomial function in terms of x.2. Write the polynomial function that models the given situation. A square has sides of 24 units. Squares x + 1 by x + 1 units are cut out of each corner, and then the sides are folded up to create an open box. Express the volume V of the box as a function in terms of x.3. Write the polynomial function that models the given situation. A cylinder has a radius of x + 6 units and a height 3 units more than the radius. Express the volume V of the cylinder as a polynomial function in terms of x. cho t gic ABCD. Gi M,N,P,Q l trung im ca cc cnh AB, CD, AD, BC. Chng minh rng vecto MP = vecto QN, vecto MQ = vecto PN multiply12/1810/18lesson name fraction.find me out this question for answer write dialogue about planning a birthday party for your grandfather Kamal was told by his mother to pour water through a thin cloth into another container to further purify the water.a) What do you think will happen to the mud and sand when pouring the water? b)Do you think the water filtered by Kamal is safe to drink? You can use a photo to complete this project, or you can create your own, just be creative. Use the words that you know to write about your friend. You must use at least eight of the vocabulary words dealing with parts of the body, but whatever else you say is up to you. Remember, you can talk about your friend's personality, likes, dislikes, hobbies, family, or anything that you know how to say about it, him or her. The goal is to have fun and be creative, and use what you know in Spanish! What components does the chemical level include Midyear on July 31st, the Digby Corporation's balance sheet reported: Total Assets of $210.761 million Total Common Stock of $6.350 million Cash of $10.050 million Retained Earnings of $47.491 million. What were the Digby Corporation's total liabilities \HURRY PLZevaluate k divided (-11) for k=33 1a.calculate the relative formula mass of magnesium oxide when the relative atomic masses are O=16 Mg=241b.calculate the percentage by mass of magnesium in magnesium oxide PLEASE HELP! If 2580 people watched one show and 2920 people watched another show. How many people need to watch the third show for there to be a 3000 people average attendance per show? What is the measure of The American Management Association is studying the income of store managers in the retail industry. A random sample of 49 managers reveals a sample mean of $45,420. The standard deviation of the population is known to be $2,050. a). Compute a 95% confidence interval, as well as the margin of error. b). Interpret the confidence interval you have computed. I. Rewrite the following sentences, keeping the meaning unchanged.1. How long is it since you came here? ->When... 2.When did your mother watch that play? ->How long..3.How long is it since you met each other?->when have.... 4. When did John buy the car?->how long is it... 5. How long is it since Tom left school?->when... 6. When did you read that novel?->how... 7. How long has she done that exercise?->when did... 8. When did you phone her?->how long9. How long have his parents visted him ?->how long ago... 10. How long has your aunt lived in that city? ->How long ago... 11. When did you first know him? How.... 12. When did you start the project? ->How long... 13. How long have you learnt French? How long ago.. 15. How long has your sister worked for this company? ->How long ago.16. I haven't seen her for a long time.-> I didn't.. 17. We haven't written to each other since 2001.->We didn't.18. I last wrote to my uncle in July. ->I haven't... 19. I haven't heard him since August. ->The last time...20. Lan hasn't written to Maryam for two months.-> Lan didn't..21. The last time I went to that restaurant was 4 days ago.. I last22. Minh last wrote to Nga five months ago.Minh has.... 23. His parents haven't visited that place since they were students. ->the last time.24. The last time I went to Japan was 4 days ago..-> I last 25. I haven't heard this story for a long time. ->The last time.. 26. Maryam hasn't written to Lan since their first meeting. ->Maryam last..27.I haven't seen his sister since last month. ->I didn't... Van Mieu was a place to memorialize the most brilliant scholars of the nation.A. honorB. keep in mindC. learn by heartD. gradually forget Alexis seems charming and vivacious when you first meet her, but you soon discover that she is extremely moody, jealous, and possessive; terrified of being alone; and prone to self-destructive behavior. This behavior is most likely to be diagnosed as a symptom of psychological disorder if it is: Project about enviroment We know that water is purified before it is supplied to our houses. Then why do we have filters installed in our houses? What do they serve? What is measurement Lectins often bind their ligands via multiple weak interactions. bind their ligands with relatively low specificity. prevent viruses from binding to their target cells. are carbohydrates that bind to receptor proteins.