Suppose a program is implemented to extinguish long-term fires in abandoned underground coal mines, reducing coal burning gas emissions.
The project costs $750 million upfront but provides annual benefits of $50 million for 50 years. Considering a 3% interest rate, we can calculate the levelized cost factor, annual cost factor, and net benefit to determine the project's feasibility. To calculate the levelized cost factor, we use the formula:
LCF = (C × r) / (1 − (1 + r)^(−n))
where C is the upfront cost, r is the interest rate, and n is the project's lifespan. Plugging in the values, we have:
LCF = (750,000,000 × 0.03) / (1 − (1 + 0.03)^(−50))
By evaluating this expression, we can determine the levelized cost factor.
To calculate the annual cost factor, we divide the upfront cost by the lifespan of the project:
ACF = C / n
Using the given values, we find:
ACF = 750,000,000 / 50
Finally, to determine the net benefit, we subtract the annual cost from the annual benefits:
Net Benefit = Annual Benefits - Annual Cost
Substituting the values, we get:
Net Benefit = 50,000,000 - (750,000,000 / 50)
By evaluating this expression, we can determine the net benefit.
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101
d Discuss whether or not gold rings can carry out the functions of money. (8)
Answer:
Money is called any element that works in a given territory as a method of exchange of wealth and as a reserve of value, that is, it can be exchanged between individuals for other goods, and that in turn can be accumulated by each individual to add to your personal wealth. In this context, almost any item that has been commonly accepted as having these characteristics can be considered money. However, there are circumstances in which, either due to their lack of storage practicality, or their high value in itself, certain elements escape this possibility. This is the case of a gold ring, whose excessively high value and the impossibility of its fractionation take away the possibility of being used as a method of exchange.
is turnover initiated by employees who the company would often prefer to keep. Select one: a. Involuntary turnover b. Whistle blowing c. Voluntary turnover d. Interactional justice e. Procedural justice
The term that refers to turnover initiated by employees who the company would often prefer to keep is "c. Voluntary turnover."
Voluntary turnover occurs when employees choose to leave a company, typically due to factors such as better job opportunities, personal reasons, or dissatisfaction with their current workplace.
This type of turnover can be challenging for organizations, as they may lose valuable talent and experience, which can impact productivity and overall performance.
It is essential for companies to address the factors contributing to voluntary turnover, such as offering competitive compensation, fostering a positive work environment, and providing opportunities for growth and development.
Hence, option c. is correct.
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how does feedback help in decision making
Answer:
Feedback increases the identification of stakeholders with the organization and the acceptance of decisions. The more personalized it is the better. This effect should be of interest for each and every decision maker.
please help 15 points if right brainliest
The other forms and methods of startup capital—the ones that don’t use the money of outside investors—are collectively referred to as bootstrapping. False True
The other forms and methods of startup capital—the ones that don't use the money of outside investors—are collectively referred to as bootstrapping. Venture capitalists are ruthless; angel investors are kind-hearted.
Answer:
The other forms and methods of startup capital—the ones that don't use the money of outside investors—are collectively referred to as bootstrapping. True False
✓ true
Explanation:
his lesson starts on time (change into negative)
Answer:
His lesson started late
Explanation:
is 6 ft greater than 72 inches
Chuck has AGI of $71,200 and has made the following payments: State income tax withholding $2,020 State income tax estimated payments $970 Federal income tax withholding $7,220 Social Security tax withheld from wages $4,920 State excise tax on liquor $520 State inheritance tax $1,320 County real estate tax $910 School district tax on realty $630 Calculate the amount of taxes that Chuck can include with his itemized deductions.
Chuck can include several of his payments as itemized deductions on his tax return. These include state income tax withholding, state income tax estimated payments, federal income tax withholding, and Social Security tax withheld from wages.
However, the state excise tax on liquor, state inheritance tax, county real estate tax, and school district tax on realty cannot be included as itemized deductions.
To calculate the total amount of taxes that Chuck can include with his itemized deductions, we add up the eligible payments:
State income tax withholding: $2,020
State income tax estimated payments: $970
Federal income tax withholding: $7,220
Social Security tax withheld from wages: $4,920
Adding these payments together gives us a total of $15,130 that Chuck can include as itemized deductions on his tax return.
Chuck can deduct certain taxes from his income when filing his taxes. These deductions are called itemized deductions and can help reduce his taxable income. In this case, Chuck can include his state income tax withholding, state income tax estimated payments, federal income tax withholding, and Social Security tax withheld from wages as itemized deductions. However, taxes such as state excise tax on liquor, state inheritance tax, county real estate tax, and school district tax on realty cannot be included as itemized deductions.
To calculate the amount of taxes that Chuck can include with his itemized deductions, we simply add up the eligible payments. In this case, the total amount is $15,130. Chuck can then subtract this amount from his taxable income, reducing the amount of tax he owes.
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Specialty Products Company has a high turnover rate among its employees, especially those
who are young parents. Solution to this problem
The company has to first investigate the reason why young parents are leaving the company. This is the first step towards resolving the issues of high turnover.
If it is because of the inability to care for their kids while at work, then the company can solve this problem by:
Turnover in human resources refers to the act of replacing one employee with a new employee. Termination, retirement, death, interagency transfers, and resignations are examples of separations between organizations and personnel.
Turnover in human resources refers to the act of replacing one employee with a new employee. Termination, retirement, death, interagency transfers, and resignations are examples of separations between organizations and personnel.
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Imagine that you have no money and you have to leave home and live by yourself. Make a list of the ten most important things that you would take with you and explain why.
Answer:
food clothes water
Explanation:
their the basic needs of an individual
the marketing concept holds that delivering unmatched value to customers is the only effective way to achieve long-term profitability. group of answer choices true false
true the marketing concept holds that delivering unmatched value to customers is the only effective way to achieve long-term profitability.
Which statement in the marketing idea quizlet is true?The marketing idea holds that companies should evaluate customer wants before making decisions that will best satisfy them. the quality of being beneficial, profitable, or useful.
What exactly is a marketing concept? Why is it so important?The marketing notion holds that a company should work to meet customers' requirements while also pursuing its own objectives through planned operations. It's crucial because businesses need to understand customers want before creating products that will satisfy their demands and wishes.
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A credit card had an Apr of 12.87% all of last year and compounded interest daily. What was the credit card's effective interest rate last year?
Answer:
13.73%
Explanation:
Effective annual rate = (1 + APR / m ) ^m - 1
M = number of compounding = 365
\((1 + \frac{0.1287}{365} )^{365} - 1\)
\((1.000353)^{365} - 1\) = 0.1373 = 13.73%
when a specific point in time, or level of production, is chosen and costs are developed for the various logistics cost centers, it is called:
When a specific point in time, or level of production, is chosen and costs are developed for the various logistics cost centers, it is called activity-based costing (ABC).
ABC is a cost accounting method that allocates costs based on the activities that drive them. In logistics, this can include activities such as transportation, warehousing, inventory management, and order processing.
Rather than simply assigning costs based on overall production volume or a general allocation formula, ABC breaks down costs to specific activities and then assigns those costs to products, customers, or other cost objects based on their usage of those activities.
ABC is a more accurate way to allocate costs because it takes into account the actual activities that drive costs, rather than just general assumptions.
By assigning costs more accurately, companies can make better decisions about pricing, product mix, and cost reductions. For example, by identifying which activities are driving the most costs, a company can focus on reducing or eliminating those activities to improve profitability.
Overall, activity-based costing is a powerful tool for logistics managers and others involved in cost accounting. It allows for more accurate cost allocation, better decision making, and ultimately, improved profitability.
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How does consumption benefit consumers if the marginal cost just equals the marginal benefit?.
Consumers benefit because the marginal cost is not equal to the marginal benefit for each unit consumed. The marginal benefit is equivalent to the marginal cost: Quantity is effective.
Buyers differentiate between value and price. The buyer receives value. The Consumers pays the price. Marginal benefit, on the other hand, is calculated by dividing the change in total benefit by the change in quantity. The marginal cost and marginal product are inversely related: when one increases, the other decreases accordingly, and vice versa. The law of diminishing returns can be used to explain the relationship between marginal cost and marginal product.
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which of these transactions types increase how much you owe the credit card company
Answer:
hope it is helpful to you
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Milton friedman argued that the federal reserve should adopt a ________ to reduce fluctuations in real gdp, employment, and inflation.
A. restrictive fiscal policy
B. monetary growth rule
C. contractionary lending practices policy
D. fixed interest rate policy
Milton Friedman argued that the federal reserve should adopt a monetary growth rule to reduce fluctuations in real GDP, employment, and inflation.
Monetary growth is Increased money supply in the economy: Money supply growth has been high in the last two years, boosted by high exports.
Monetary definition refers to money or currency. A system that pays with dollar bills and other banknotes is an example of a monetary system. Of national currencies or coins, or related to them.
Due to the difficulty of exchanging goods and services, barter systems have been an obstacle to the division of labor and specialization between individuals, which are important factors in increasing productivity and economic growth.
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Fresh fruit costs more in winter. This is January. Therefore these fresh strawberries will cost more.
It is a common observation that fresh fruit tends to cost more during the winter season. As we enter January, this trend is likely to continue, and as a result, fresh strawberries are expected to be priced higher.
There are several factors contributing to this increase in cost. Firstly, winter brings colder temperatures in many regions, which hinders the growth and availability of certain fruits, including strawberries. The limited supply leads to higher demand and subsequently drives up prices. Additionally, transporting fresh produce becomes more challenging during the winter months, as adverse weather conditions can impact transportation logistics and increase costs. Therefore, considering these factors, it is reasonable to expect that fresh strawberries will cost more in January due to the season's influence on supply and demand dynamics.
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Which of the following are supertrends that are currently affecting the future of business? (Choose every correct answer.)
a)Competitive advantage is coming b)increasingly from knowledge, not from information.
c)The way we work is being impacted by offshore suppliers.
The way we work is being impacted by offshore suppliers: As globalization continues to expand, businesses are relying more and more on offshore suppliers.
The rise of mobile technology: The rise of mobile technology has had a significant impact on the way we do business. Mobile devices have made it easier for people to stay connected and work from anywhere.
The importance of sustainability: Sustainability has become an increasingly important issue in the business world. Businesses that are able to effectively incorporate sustainable practices into their operations are more likely to succeed in the future.
The following are the super trends that are currently affecting the future of business:
Competitive advantage is coming increasingly from knowledge, not from information: For a long time, businesses relied on information to gain a competitive advantage. However, with the rise of technology, information is no longer as valuable as knowledge. Knowledge can be gained by analyzing information and using it to make informed decisions. As a result, businesses that are able to effectively use knowledge to their advantage are more likely to succeed in today’s market.
The way we work is being impacted by offshore suppliers: As globalization continues to expand, businesses are relying more and more on offshore suppliers. This has had a significant impact on the way we work. Many businesses are now using a global workforce to reduce costs and increase efficiency. This trend is likely to continue in the future as businesses look for ways to remain competitive in a global marketplace.
The rise of mobile technology: The rise of mobile technology has had a significant impact on the way we do business. Mobile devices have made it easier for people to stay connected and work from anywhere. This has led to a rise in remote work and telecommuting. Businesses that are able to effectively use mobile technology to their advantage are more likely to succeed in today’s market.
The importance of sustainability: Sustainability has become an increasingly important issue in the business world. Businesses that are able to effectively incorporate sustainable practices into their operations are more likely to succeed in the future. This includes reducing waste, using renewable energy sources, and reducing the carbon footprint of the business.
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Respond with Social media accounts
Ask the question more specifically, and I will edit this answer and give you the answer.
BET SAY LESS nrg_samfortnite or
XxSheLuvMeXx
Costs associated with field failures, company’s goodwill/reputation, maintenance costs, and warranty costs can be classified as
Costs associated with field failures, company's goodwill/reputation, maintenance costs, and warranty costs can be classified as post-purchase costs.
Post-purchase costs are costs that are incurred after a product has been purchased by the customer. These costs are typically associated with repairs, replacements, and maintenance of the product. Post-purchase costs can also include costs related to the company's reputation and goodwill, as these can be affected by product failures and defects. Warranty costs are also included in post-purchase costs, as these are costs that the company incurs to honor the warranty on their products.
In summary, post-purchase costs are an important consideration for companies, as they can have a significant impact on the company's bottom line and reputation.
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Performance Assessment Task
Jrotc
This performance assessment task gives you an opportunity to document your achievement of the lesson’s competency: Demonstrate proper etiquette in social settings For this performance assessment task, you will complete the Dining-Out scenario. For this assessment you will: Read the following scenario and individually complete the information below. Be prepared to share your answers in class. The same criteria in the scoring guide below can be used to evaluate your performance of proper etiquette and manners at the annual Cadet Ball. Scenario: The annual Dining-Out is in five months. You have been asked to be a member of the Dining-Out committee. The committee plans all aspects of the Dining-Out. Complete this assignment as if you are preparing for the meeting and event. The committee will discuss invitations, table settings, receiving line protocol (guest speaker and other dignitaries), proper dress, protocol for honoring the nation, and thank you notes. 1. Invitations: Create the text for the invitation. Include all pertinent information including dress code and RSVP: Table Setting: On the back of this page, draw a picture of the appropriate table setting for the following menu: Fresh Garden Salad with Dressing Dinner Roll Tomato Soup Beef Tenderloin or Grilled Salmon New York Style Cheesecake with strawberries Iced Tea and water 2. Receiving line and other protocol: a. Who belongs on the line? b. What order should the guests stand in? c. Address the appropriate protocol for honoring the nation. d. Describe how you will greet the guest of honor(s): e. What attire should you wear? 3. Thank you notes: Create a sample thank you note to send to the guest speaker: 4. Explain your role in the annual Cadet Ball as a Year 1 Cadet: 5. Use the attached scoring guide criteria for what you need to do to complete this task. 6. Submit your completed performance assessment task and scoring guide to your instructor for evaluation and a grade.
The invitation should include the date, time, location, the dress code, RSVP deadline, and any other important relevant information such as the theme of the event.
The invitation text will be like this: You are cordially invited to attend the Annual Dining-Out hosted by the JROTC program. The event will take place on [date] at [time] at [location]. Dress code for the evening is formal attire, which includes a dress uniform or civilian formal wear.
Please RSVP by [RSVP deadline] to [contact information]. We look forward to your presence at this event.
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Removing workplace barriers for women and accommodating employees who are physically challenged are ways a business can contribute to (a)environmental protection (b) job safety © workplace diversity (d) employee wellness
Answer:
workplace diversity
Explanation:
Workplace diversity is the term used to describe a workplace whose employees are composed of varying characteristics, such as gender, age-group, race, ethnicity, sexual orientation, and other attributes. Workplace diversity is achieved through the employer’s deliberate actions to incorporate people from diverse backgrounds.
Workplace diversity improves a company’s reputation and brings on board various perspectives in decision making. It also adds creativity and problem-solving skills to the company.
General Dynamics (an aerospace and defense corporation with its headquarter located in Fairfax County) makes communication devices for military contracts . The company just completed two contracts (with the same type of device ). The navy contract was 4, 300 devices and took 20 workers two weeks to complete . The army contract was for 8,300 devices that were produced by 25 workers in three weeks . Assume 40 working hours per week per worker . On which contract were the workers more productive?
Answer:
The army contract
Explanation:
Productivity can be measured by output per hour. i.e.
dividing the total output by hours worked.
productivity = output/hours worked
The navy contract
output =4,300
the hours worked = 20 workers working for two weeks, each week has 40 hours
Each worker worked 40 x 2 hours = 80 hours
20 workers worked for
80 hrs x 20
= 1600 hours
Productivity = 4,300/1600
=2.6875
For the military contract
output = 8300
hours worked
= 25 workers in three weeks, each week 40 hours
each worker worked, 40 x 3 hours = 120 hours
Twenty-five workers:
=25 x 120 hours
= 3000 hours
Productivity = 8300/3000
=2.766
The productivity for the military contract (2.766) was higher than for the navy contrac t(2.6875).
Mary's company trained her to perform managerial functions, formulate innovative strategies, and also solve technical issues. Given this information, it is likely that Mary's company provided her _____. a. diversity training b. decision-making training c. interpersonal skills training d. cross-training
Answer:
b. decision-making training
Explanation:
Analyzing the information above, it is likely that Maria's company provided training for decision making.
It is possible to make this statement, since management functions are those responsible for formulating innovative strategies and also solving technical problems. Therefore, the appropriate training is that oriented to decision making.
A leader is one who formulates strategies that will help an organization achieve its objectives and goals, as well as assist the organization to use the means and actions necessary for these achievements, which is accomplished through strategic and favorable decisions for success organization.
An asset costs $174000 and is expected to have a $58000 salvage value at the end of its 10-year life. Straight-line depreciation will be used. The asset is expected to generates net cash inflows of $58000 each year. The cash payback period for the asset is2 years.3 years.4 years.1 years.
The cash payback period for the asset is 3 years.
Payback period = Cost of Investment ÷ annual cash inflow
=174,000 / 58,000
= 3 years
What is cost of investment in accounting?
Certain investments are recorded using the cost method of accounting in a company's financial statements. When an investor holds an investment that it has little or no control over—typically described as owning less than 20% of the company—they employ this strategy.
What is yearly cash flow?
Cash circulation in and out of a business over a fiscal year is referred to as "annual cash flow" in finance.
How do you calculate annual cash flow?
To calculate your yearly cash flow, subtract your total cash inflows from your total cash outflows. If the result is positive, it indicates positive cash flow; if it is negative, it indicates negative cash flow. Using the same example, take $175,000 out and subtract $139,000 to generate $36,000 in positive annual cash flow.
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The Berlin airlift operation, nicknamed "Operation Vittles," provided food, fuel, and basic supplies for Allied forces stationed in Berlin during World War II.
True
False
Answer:
False.
Explanation:
After the end of World War II, Germany was separated into four sectors, according to the nations controlling it. The nation was divided into four parts- Soviet, American, British, and French-controlled zones. This division was further taken in the case of Berlin, the capital city, dividing it among the four nations.
And the Soviets, in an attempt to drive the other three nations away from the capital city, blocked all forms of road access. The plan was to stop any flow of resources and necessities and it will result in France, Britain, and America abandoning their sections of Berlin.
But, taking advantage of the free airspace, the three nations began using their aircraft to drop basic supplies to the people living in their parts of Berlin. This operation was codenamed "Operation Vittles".
Thus, the correct answer is false. For, the airlift operation was to provide the basic necessities to the people, not the Allied forces station in Berlin.
A local bank’s advertising reads: "Give us $50,000 today, and we’ll pay you $800 every year forever." If you plan to live forever, what annual interest rate will you earn on your deposit?1.92%1.60%2.56%2.24%
Answer:
The correct response is Option b (1.60%).
Explanation:
According to the question,
Initial investment,
= $50,000
Perpetual annual cash flows,
= $800
Now,
The interest rate will be:
= \(\frac{Perpetual \ annul \ cash \ flows}{Initial \ investment}\)
On substituting the given values, we get
= \(\frac{800}{50,000}\)
= \(0.016\)
i.e.,
= \(1.60 \ percent\)
The following are the trial balance ind the other information related to Perez Consulting Engineers. Perez Consulting Engineers Trial Balance December 31, 2020 Debit Credit Cash $29,500 Accounts Receivable 49,600 Allowance for Doubtful Accounts $750 Supplies 1,960 Prepaid Insurance 1,100 Equipment 25,000 Accumulated Depreciation-Equipment 6,250 Notes Payable 7,200 Common Stock 10,000 Retained Earnings 25,010 Service Revenue Rent Expense 9,750 Salaries and Wages Expense 30,500 Utilities Expenses 1,080 Office Expense 720 $149,210 $149. 210 1. Fees received in advance from clients $6,000, which were recorded as revenue. 2. Services performed for clients that were not recorded by December 31, $4,900. 3. Bad debt expense for the year is $1,430. 4. Insurance expired during the year $480. 5. Equipment is being depreciated at 10% per year. 6. Perez gave the bank a 90-day, 10% note for $7,200 on December 1, 2020. 7. Rent of the building is $750 per month. The rent for 2020 has been paid, as has that for January 2021, and recorded as Rent Expense. 8. Office salaries and wages earned but unpaid December 31, 2020, $2,510. Instructions:A. From the trial balance and other information given, prepare annual adjusting entries as of December 31, 2020. (Omit explanations). B. Prepare an income statement for 2020, a retained earnings statement, and a classified balance sheet. Perez paid a $17,000 cash dividend during the year (recorded in Retained Earnings)
The adjusting entries for Perez Consulting Engineers as of December 31, 2020, are as follows: Total Liabilities and Equity $102,880
1. To recognize unearned revenue:
Debit: Unearned Revenue $6,000
Credit: Service Revenue $6,000
2. To recognize services performed but not recorded:
Debit: Accounts Receivable $4,900
Credit: Service Revenue $4,900
3. To record bad debt expense:
Debit: Bad Debt Expense $1,430
Credit: Allowance for Doubtful Accounts $1,430
4. To recognize expired insurance:
Debit: Insurance Expense $480
Credit: Prepaid Insurance $480
5. To record depreciation expense:
Debit: Depreciation Expense - Equipment $2,500
Credit: Accumulated Depreciation - Equipment $2,500
(Calculation: $25,000 * 10% = $2,500)
6. To record the note payable:
Debit: Notes Payable $7,200
Credit: Cash $7,200
7. To recognize accrued rent expense:
Debit: Rent Expense $750
Credit: Accrued Rent Payable $750
8. To recognize accrued salaries and wages:
Debit: Salaries and Wages Expense $2,510
Credit: Salaries and Wages Payable $2,510
B. Financial Statements:
Income Statement for 2020:
Revenue:
Service Revenue $10,900 ([$6,000 + $4,900] - $1,430)
Expenses:
Rent Expense $9,750
Salaries and Wages Expense $30,500
Utilities Expenses $1,080
Office Expense $720
Depreciation Expense - Equipment $2,500
Insurance Expense $480
Bad Debt Expense $1,430
Total Expenses $46,460
Net Income $10,900 - $46,460 = (-$35,560) (Loss)
Retained Earnings Statement:
Retained Earnings, January 1, 2020 $25,010
Net Loss ($35,560)
Dividends ($17,000)
Retained Earnings, December 31, 2020 ($27,550)
Classified Balance Sheet (December 31, 2020):
Assets:
Cash $29,500
Accounts Receivable $54,500 ($49,600 + $4,900)
Less: Allowance for Doubtful Accounts ($750)
Supplies $1,960
Prepaid Insurance $620 ($1,100 - $480)
Equipment $25,000
Less: Accumulated Depreciation - Equipment ($8,750 [$6,250 + $2,500])
Total Assets $102,880
Liabilities:
Notes Payable $7,200
Accrued Rent Payable $750
Salaries and Wages Payable $2,510
Total Liabilities $10,460
Equity:
Common Stock $10,000
Retained Earnings ($27,550)
Total Equity ($17,550)
Total Liabilities and Equity $102,880
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Outside of Hollywood, under-developed film industries found that low-budget, avant grade films were the most productive way to impact on international film culture. Group of answer choices True False
Outside of Hollywood, under-developed film industries found that low-budget, avant grade films were the most productive way to impact on international film culture. The statement is true .
The above statement is true because the audience can challenge and examine their perceptions of what they see by watching avant-garde movies.
The movies usually don't have a clear purpose. The movies investigate temporal, spatial, dream, fantastical, and perceptual themes. The majority of the movies are creative, odd, distinctive, and even a little terrifying. Many of the movies are upsetting, startling, and in poor taste.
The experience of viewing a movie entails more than just passively taking everything in. The films' significant departure from tradition presents a challenge to the viewer.
What are the characteristics of avant-garde movies?These qualities can be found in almost all of these movies:
A low-budget experimental movie, usually made with their own moneyNon-traditional, usually non-linear narratives that are told from the point of view of the director without any overt messages.Usually an experimental film that makes deliberate use of the medium to produce bizarre, dream-like scenes.respects politics, culture, and art. Lyrical or poeticaccentuate studies of surrealism, abstraction, and impressionismKnow more about avant-garde https://brainly.com/question/4534902
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What are scarce resources
Answer:
Scarce resources are resources that are in limited availability.
Explanation:
Hope this helped:)
Answer:
Limited Goods or goods that are running out
Explanation:
Economic Definition of scarce resource. Defined. Scarce goods are also termed economic goods. Scarce resources are used to produce scarce goods. Like the more general society-wide condition of scarcity, a given resource is scarce because it has a limited availability in combination with a greater productive use.
AB Builders, Inc. , has 23-year bonds outstanding with a par value of $2,000 and a quoted price of 96. 849. The bonds pay interest semiannually and have a yield to maturity of 6. 89 percent. What is the coupon rate
The coupon rate of the bond is 58.02% if bonds pay interest semi-annually and have a yield to maturity of 6. 89 percent.
The given data is as follows:
Bond time = 23 years
Par value = $2,000
Quoted price = 96. 849.
Yield to maturity = 6. 89 percent
The actual price is calculated by using the formula,
The Actual price = Quoted price x Par value
The Actual price = 0.96849 x $2,000
The Actual price = $1,936.98
The Bond's present value is calculated by using the formula,
Present Value = C x [1 - 1/(1 + r/2)^(2n)] / (r/2) + F/(1 + r/2)^(2n)
Here, C is the coupon payment.
Substituting the given values in the question, we get,
$1,936.98 = C x [1 - 1/(1 + 0.0689/2)^(2 x 23)] / (0.0689/2) + $2,000 / (1 + 0.0689/2)^(2 x 23)
C = ($2,000 / (1 + 0.0689/2)^(2 x 23)) - ($1,936.98 x 0.03445) / (1 - 1/(1 + 0.0689/2)^(2 x 23))
C = $1,160.48
The annual coupon payment is $1,160.48
Coupon rate = coupon payment / Par value
Coupon rate = $1,160.48 / $2,000
Coupon rate = 0.58024 or 58.02%
Therefore we can conclude that the coupon rate of the bond is 58.02%.
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