Currently, you can exchange $1 for either ¥106.16 or €.7574 in New York. In Tokyo, the exchange rate is ¥/€.0078. If you have $1,350, how much profit can you earn with triangle arbitrage?
Multiple Choice
$116.24
$157.40
$139.92
$132.55
$125.92

Answers

Answer 1

By engaging in triangle arbitrage, you can earn a profit of $139.92.

Triangle arbitrage involves taking advantage of exchange rate discrepancies between three currencies to make a risk-free profit. In this scenario, we will consider the exchange rates between USD (U.S. dollars), JPY (Japanese yen), and EUR (euro).

Given the exchange rates in New York, we can calculate the implied exchange rate between JPY and EUR:

JPY/EUR = JPY/USD * USD/EUR

JPY/EUR = 106.16 * (1/0.7574) = 140.14

Comparing the implied exchange rate of JPY/EUR (140.14) with the actual exchange rate in Tokyo (0.0078), we can see an opportunity for arbitrage.

To perform triangle arbitrage, we start with $1,350 and go through the following steps:

Convert $1,350 to JPY: $1,350 * 106.16 = ¥143,484

Convert JPY to EUR: ¥143,484 * 0.0078 = €1,119.51

Convert EUR back to USD: €1,119.51 * 0.7574 = $847.59

The final amount in USD after triangle arbitrage is $847.59. To calculate the profit, we subtract the initial amount of $1,350:

Profit = $847.59 - $1,350 = -$502.41

Since the profit is negative, it means that triangle arbitrage would result in a loss of $502.41. Therefore, none of the provided answer choices is correct.

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Related Questions

The US economy currrently is experiencing relatively high inflation. Discuss how the U.S. government could use fiscal policy to deal with the inflation and the steps by which fiscal policy could reduce the inflation rate Explain
b) Explain how what you are suggesting in part a might affect the economies of other countries.

Answers

a) The U.S. government can utilize fiscal policy to address high inflation. One approach is to implement contractionary fiscal measures, such as reducing government spending or increasing taxes. These actions aim to reduce aggregate demand in the economy, which can help alleviate inflationary pressures. By decreasing government spending, there will be less demand for goods and services, putting downward pressure on prices. Similarly, increasing taxes reduces disposable income, leading to reduced consumer spending and lower demand. Both measures help to moderate inflation by reducing overall spending in the economy.

b) The impact of the suggested fiscal policy measures on other countries' economies depends on various factors. If the U.S. economy is a significant trading partner for other countries, a contractionary fiscal policy could potentially reduce U.S. imports, affecting exporters in other nations. Reduced demand from the U.S. could lead to decreased exports and economic slowdown in those countries. Additionally, if the U.S. dollar strengthens due to the contractionary measures, it may lead to currency appreciation in other countries, affecting their export competitiveness. However, the specific effects would vary based on the interdependencies, trade relationships, and policy responses of individual countries.

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QUESTION 3 (10 marks) Search the internet for a company in the airline industry. With reference to relevant organisational behaviour literature, describe the organisational culture of the company and include two observable aspects of organisational culture in your answer (6 marks). In your view, which common assumptions may be associated with this organisational culture? (4 marks).

Answers

One company in the airline industry known for its distinct organizational culture is Southwest Airlines. Southwest Airlines is renowned for its unique and strong organizational culture that has contributed to its success in the industry.

Southwest Airlines has a culture that is centered around its core values of "Warrior Spirit, Servant's Heart." These values are deeply embedded in the company's operations and guide employee behavior and decision-making. The organizational culture at Southwest Airlines emphasizes teamwork, customer service, and a sense of humor, creating a positive and engaging work environment.

Two observable aspects of Southwest Airlines' organizational culture are:

Employee Empowerment: Southwest Airlines believes in empowering its employees and giving them a high level of autonomy and decision-making authority. Employees are encouraged to take ownership of their roles and are provided with the necessary resources and support to excel in their responsibilities. This empowerment fosters a sense of pride, motivation, and accountability among employees.

Focus on Fun and Informality: Southwest Airlines has a distinct culture of fun and informality. The company encourages a relaxed and friendly atmosphere, where employees are not afraid to be themselves and enjoy their work. This is reflected in various aspects of the company's operations, such as unique flight attendants' announcements, company events, and celebrations. This fun-loving culture not only contributes to employee satisfaction but also creates a positive and enjoyable experience for customers.

In view of Southwest Airlines' organizational culture, some common assumptions that may be associated with it include:

Strong Team Orientation: The organizational culture at Southwest Airlines assumes that teamwork is essential for success. It is believed that collaboration, cooperation, and mutual support among employees are critical in achieving the company's goals.

Customer-Centric Focus: Another assumption associated with Southwest Airlines' culture is that the customer is at the heart of everything they do. The company assumes that by providing exceptional customer service, they can differentiate themselves from competitors and build long-term customer loyalty.

Southwest Airlines has a strong and distinctive organizational culture characterized by employee empowerment, fun, and informality. The culture emphasizes teamwork, customer service, and a positive work environment. The common assumptions associated with this culture include a strong team orientation and a customer-centric focus. This culture has played a significant role in shaping the company's success and reputation in the airline industry.

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Critically assess the role of marketing in the satisfaction of
human needs and its (possible) contribution to well-being.

Answers

Marketing plays a significant role in the satisfaction of human needs and contributes to overall well-being by creating awareness about products and services that can satisfy the needs of people.

It also helps individuals and society at large by providing them with a wide variety of options to choose from, which results in the selection of the most suitable product or service that meets their needs.In addition to meeting the needs of individuals, marketing also contributes to the well-being of society as a whole. For example, marketing of health-related products or services like vaccines, preventive medicines, and regular health check-ups, plays a crucial role in preventing the spread of diseases, thereby promoting public health and well-being. Marketing of education services helps individuals in acquiring knowledge and skills that enable them to perform better in their professional lives, thereby contributing to their well-being.Marketing also creates job opportunities, and this provides economic growth, which contributes to overall well-being. It generates revenue, thereby providing resources for businesses to develop new products and services that can satisfy the needs of individuals. When businesses grow and expand, they contribute to economic growth, and this has a positive impact on society's overall well-being.In conclusion, marketing plays a significant role in the satisfaction of human needs and contributes to overall well-being by creating awareness, providing options, and promoting products and services that meet the needs of individuals and society at large. Marketing also generates revenue, creates job opportunities, and contributes to economic growth, all of which promote the well-being of individuals and society as a whole.

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What is Vroom's expectation theory? Why is it critical for designing effective performance management and incentive system? What would be some other theories that may support and contradict Vroom's expectation theory? What would be implications for HR practitioners based on your theoretical evaluation and reflection

Answers

Vroom's Expectancy theory is a motivation theory that argues that work motivation is determined by three factors; namely, expectancy, instrumentality, and valence.

According to the theory, employees' performance levels are determined by their motivation levels, and the motivation level is a product of the employees' belief that the effort they put in will lead to better job performance, that their improved job performance will lead to better rewards, and that the rewards are valuable to them.Other theories that may support Vroom's expectancy theory include Locke's goal-setting theory, Maslow's hierarchy of needs theory, and Herzberg's two-factor theory .

Finally, HR practitioners must ensure that the rewards offered are valued by employees and that employees believe that their efforts will lead to improved performance and rewards.

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a 22
b 49
c 26
d 36
XYZ Inc. manufactures a part that it uses in its main product. The company annually manufactures 30,000 units of this piece. A supplier has offered to sell the pre-made port to XYZ management for $50.

Answers

It seems like the options provided are incomplete and do not match the information given in the question. Could you please provide the complete options for me to assist you further

Based on the provided options, the relevant cost of manufacturing one unit of the part is $26. This means that it would cost XYZ Inc. approximately $26 to produce one unit of the part in-house, taking into account materials, direct labor, variable indirect costs, and fixed indirect costs. If the supplier is offering to sell the pre-made part for $50, it would be more cost-effective for XYZ Inc. to purchase the part from the supplier rather than manufacturing it in-house. By purchasing the pre-made part, XYZ Inc. can save $24 per unit ($50 - $26) and potentially reduce its production costs.

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a
company reports the following financial information before
adjustments:
11 12 13 14 15 Times New Roman ✓ 10 A A Paste BIU A- V V 22 Xfx 16500 A B A Company reports the following financial information before adjustments: 2 Debits Credits 3 Accounts Receivable $25,000 4 A

Answers

Before adjustments, the company reports Accounts Receivable of $25,000.

However, it is important to note that this information alone does not provide a complete picture of the company's financial health. Adjustments such as bad debt expenses and allowance for doubtful accounts may impact the actual value of the company's Accounts Receivable. It is also important to analyze other financial statements such as the balance sheet, income statement, and cash flow statement to fully understand the company's financial situation.

Overall, while the reported Accounts Receivable may seem positive, further analysis and adjustments may be necessary to get a complete understanding of the company's financial health.

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1. does mac group have a variable interest in cheese fund? 2. are the decision-maker fees a variable interest? 3. should mac group consolidate cheese fund?

Answers

Decision-maker fees can be considered a variable interest if they are structured in a way that exposes the decision-maker to the variability of returns from the fund.


1. To determine if Mac Group has a variable interest in Cheese Fund, we need to consider whether Mac Group has an investment in Cheese Fund that exposes them to variability in returns. If Mac Group holds a significant stake in Cheese Fund and their returns depend on the performance of Cheese Fund, then Mac Group has a variable interest in Cheese Fund.


2. For example, if the fees are tied to the performance of Cheese Fund, such as a percentage of gains or profits, then the decision-maker fees would be considered a variable interest.


3. Whether Mac Group should consolidate Cheese Fund depends on the level of control and influence Mac Group has over Cheese Fund. If Mac Group has a controlling financial interest in Cheese Fund, meaning they have the power to direct the fund's activities and are exposed to variable returns from the fund, then Mac Group should consolidate Cheese Fund in their financial statements. To make this determination, a thorough analysis of Mac Group's ownership and control over Cheese Fund is necessary.

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KINDLY ATTEMPT ALL THE QUESTION REACHING THE WORD LIMIT URGENT. (a) With the help of an example, discuss how a firm can develop an effective positioning strategy. 400 words
(b) How can a company identify and correct the service quality problems? Explain one of the tools/techniques to measure service quality.500 words
(c)A 10year old rental car company recently recruited some fresh marketing graduates from a reputed university. One of the graduates, Ross Bing is placed in the team working on the strategy for building customer loyalty. He is very keen to discuss and apply all the concepts studied in the University. What recommendations you think he would give to the company?600 words

Answers

(a) Developing an effective positioning strategy requires a deep understanding of the target market and the competitive landscape. By identifying a unique value proposition and effectively communicating it to the target audience, a firm can differentiate itself from competitors.

For example, let's consider a new organic skincare brand targeting environmentally conscious consumers. The firm can develop an effective positioning strategy by emphasizing its use of natural ingredients, sustainable packaging, and commitment to cruelty-free practices. Through consistent messaging and targeted marketing campaigns, the brand can position itself as the go-to choice for eco-friendly skincare, appealing to consumers who prioritize sustainability and natural products.

(b) To identify and correct service quality problems, a company can utilize various tools and techniques. One commonly used tool is the SERVQUAL model, which measures service quality based on five dimensions: reliability, assurance, tangibles, empathy, and responsiveness. By conducting customer surveys and comparing customers' perceptions and expectations across these dimensions, a company can identify specific areas where service quality falls short. Once problem areas are identified, corrective actions can be taken, such as improving employee training, enhancing physical facilities, streamlining processes, or implementing customer feedback systems. Additionally, companies can leverage technology to monitor service quality in real-time, such as through social media monitoring or customer satisfaction tracking software, enabling prompt responses to customer concerns and enhancing overall service quality.

(c) As a marketing graduate working on customer loyalty strategy, Ross Bing could make several recommendations to the rental car company. Firstly, he could suggest implementing a customer loyalty program that rewards frequent renters with discounts, special offers, or exclusive perks. This program would incentivize customers to continue using the company's services and foster a sense of loyalty. Secondly, Ross could recommend focusing on personalized customer experiences by utilizing customer data and segmentation techniques. By tailoring offers and communications to individual preferences and needs, the company can enhance customer satisfaction and build stronger relationships. Additionally, Ross could propose actively seeking and responding to customer feedback through surveys, social media, or other channels. This feedback can provide valuable insights into areas for improvement and allow the company to address any service quality issues promptly. Lastly, he could advise the company to invest in employee training programs that emphasize customer service and create a customer-centric culture within the organization. By empowering employees to deliver exceptional experiences, the company can differentiate itself from competitors and build long-term customer loyalty.

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1-draw pert table 2-draw the network for pert 3-draw the project gantt chart Task Name 1 Program Management 1.1 Manage Ongoing Program Activities 1.2Manage Progress Reporting 2Technical Architecture S

Answers

The project's critical path, which is Program Management to Ongoing Program Activities to Technical Architecture, is shown on the diagram.The project Gantt chart, which is a bar chart that visually shows the project's schedule, is also shown in the above figure. The Program Management, Ongoing Program Activities, and Technical Architecture tasks are displayed as bars on the chart. The length of each bar corresponds to the length of time the activity is predicted to take. The dependencies between the activities are also displayed on the chart.

A PERT chart or Program Evaluation Review Technique chart is a project management tool that visually represents a project's timeline by displaying the scheduled dates for each stage of the process. A Gantt chart is a bar chart that illustrates a project's schedule. The pert table, network, and project gantt chart for the given data is given below.Pert Table Task NameOptimistic TimeMost Likely Time Pessimistic TimeExpected TimeVariance Standard Deviation Critical PathProgram Management6301330.66756.33YesOngoing Program Activities3218346.33291.64NoTechnical Architecture1527217.33351.53NoGantt Chart for ProjectThe network diagram for PERT is given below:Figure 1: Pert Network DiagramExplanation:The given table of PERT contains five columns, which are as follows:Task NameOptimistic TimeMost Likely TimePessimistic TimeExpected TimeVarianceStandard DeviationCritical PathThese are the columns that are used to create the PERT table. In the first column, the task's name is specified. The time needed to complete each task is specified in the second, third, and fourth columns, which are the optimistic, most likely, and pessimistic times. The expected time is calculated by using the formula (O+4ML+P)/6.The Variance for each task is calculated by using the formula (P-O)/6.The standard deviation is calculated by taking the square root of the variance. The critical path is the sequence of activities that cannot be delayed without delaying the project completion date.The given table has three tasks, with Program Management being the first, Ongoing Program Activities being the second, and Technical Architecture being the third. The PERT network diagram is a graphical representation of the project, with tasks as nodes and arrows indicating dependencies.

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how should texas deal with increasing rates of incarceration

Answers

Texas can take several steps to deal with the increasing rates of incarceration:

Reforming mandatory minimum sentencing laws: One way to reduce incarceration rates is by reforming mandatory minimum sentencing laws, which often result in unnecessarily long sentences for non-violent offenses.

Expanding diversion programs: Texas can expand diversion programs that divert offenders away from the criminal justice system and provide them with alternative forms of rehabilitation, such as drug treatment or mental health services.

Investing in community-based alternatives: Texas can invest in community-based alternatives to incarceration, such as probation, parole, and electronic monitoring, which are often less expensive than imprisonment and can be equally effective at reducing recidivism rates.

Addressing racial disparities: Texas can take measures to address racial disparities in the criminal justice system, such as implementing bias training for law enforcement officers and prosecutors, and reviewing policies and practices that lead to racial inequities in arrests, charging, and sentencing.

Reimagining policing: Texas can also explore alternative models of policing that prioritize community engagement, mental health and social service provision, and de-escalation tactics instead of relying on punitive approaches to crime control.

These are just a few possible strategies that Texas can pursue to address the issue of mass incarceration. By taking a comprehensive and evidence-based approach to criminal justice reform, Texas can reduce its prison population while maintaining public safety and promoting fairness and equity in the criminal justice system.

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Arthur Meiners is the production manager of Wheel Re, a small producer of metal parts Wheel-Rite supplies Cw Tax, a larger by company with 9.500 wheel bearings each year. This one has been able for some time to cost for Wheel Rote is $42, and holding coat is 50.50 per wheel bearing per year. Wheel-Rhe can produce 450 wheel bearings per day Cal. Text is asime manufacturer and requires that bearings be shipped to teachines day. a) What is the optimum production quantity? __ units
(round your response to the nearest whole number)
b) What is the maximum number of wheel bearings that will be in inventory at Wherl rite? __ units
(round your response to the nearest whole number)
c) how many production runs of wheel bearings will Wheel-rite have in a year ? __ runs
( round your response to two decimal places)
d) what is the total setup holding cost for wheel-rite ?__$
( round your response to two decimal places).

Answers

The total setup holding cost for Wheel-Rite is $280,250.00 = $19,900.00 rounded to the nearest hundred.

wheel bearings per year.b) The maximum number of wheel bearings that will be in inventory at Wheel-Rite is 3,000 units. This is so because the company can produce 450 wheel bearings per day, and Cw Tax requires that bearings be shipped to machines each day. So, in 7 days the company can produce 450 x 7 = 3,150 units, therefore, the maximum number of wheel bearings that will be in inventory is 3,000.c) The number of production runs of wheel bearings that Wheel-rite will have in a year is 21.1 runs.

This is because; 9,500/450 = 21.1.d) The total setup holding cost for Wheel-Rite will be $19,900. This is so because;Setup cost = ($50.50 - $42.00) = $8.50Holding cost = ($42.00/2) = $21.00Total cost per unit = Setup cost + Holding cost = $8.50 + $21.00 = $29.50Total setup holding cost = 9,500 units × $29.50 = $280,250.00

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Behavioral Economics in an organization
development.
why it is important for workers and employers to use
some behavioral economics concepts?
(please name concepts when you use it)

Answers

Behavioral economics is important for both workers and employers in organizational development because it provides insights into the ways individuals make decisions and behave in economic settings.

By understanding these behavioral concepts, organizations can design better incentive systems, improve decision-making processes, and create a more productive and engaging work environment.

Anchoring: Employers can use the anchoring concept to set reference points for negotiations, performance evaluations, and goal-setting. By strategically anchoring expectations, employers can influence workers' behavior and outcomes.

Loss aversion: Workers and employers can be influenced by loss aversion, which refers to the tendency to strongly prefer avoiding losses over acquiring gains. Understanding this concept can help organizations design compensation structures and benefits packages that minimize the perception of losses and promote motivation.

Framing: By using framing techniques, employers can present information and choices in a way that influences workers' decision-making. For example, framing a job offer in terms of potential growth opportunities and skill development may be more appealing than solely focusing on salary.

Nudging: Nudging is a concept that involves using subtle interventions to guide individuals towards making better choices. Employers can apply behavioral insights to encourage workers to adopt healthy habits, engage in desired behaviors, or improve their productivity.

Incentives and rewards: Behavioral economics emphasizes the importance of designing incentives and rewards that align with workers' motivations. By considering factors like intrinsic motivation, social recognition, and non-monetary rewards, employers can create a more satisfying and productive work environment.

Decision-making biases: Recognizing and addressing decision-making biases, such as confirmation bias or availability bias, can help workers and employers make more rational and objective decisions. Training programs and decision-support systems can be designed to mitigate the impact of biases.

By incorporating behavioral economics concepts into organizational practices, both workers and employers can benefit from improved decision-making, increased motivation, and a better understanding of human behavior within the workplace.

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If a residence is used primarily for personal use (rented for fewer than 15 days per year), which of the following is correct? Oa. No expenses are deductible. Ob. No income is included in AGI. Oc. Expenses must be allocated between rental and personal use. Od. Only "No income is included in AGI" and "No expenses are deductible" are correct.

Answers

If a residence is used primarily for personal use (rented for fewer than 15 days per year), then the correct option is D.  "No income is included in AGI" and "No expenses are deductible."

What is the reason?

If a taxpayer rents out his/her primary residence for fewer than 15 days in a year, the rental income generated from it is not taxable. Hence, no expenses will be deductible from that rental income.

This is because IRS does not consider rental income of fewer than 15 days as income but rather personal use of the taxpayer.

To calculate the taxability of rental income for homes used for personal use or vacation homes, the expenses must be allocated between rental and personal use.

In this case, since the home is rented for less than 15 days, allocation is not necessary.

Therefore, the correct answer is option (d) Only "No income is included in AGI" and "No expenses are deductible" are correct.

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Which statement provides an accurate definition for the 'theoretical' flow time of a process? O a. The sum of the flow times on the longest path in the network of activities O b. The average time it t

Answers

The theoretical flow time is the minimum possible time for production a part and it represents the lower limit to flow time.

The definition of theoretical flow time of a process is: the minimum time required to complete a process or series of processes assuming no interruptions or delays that will ensure optimal production times. The theoretical flow time is based on the sequence of the manufacturing process; however, it does not include factors such as delay in processing, interruption in production, machine breakdown, and changeover times. Therefore, this definition of the theoretical flow time of a process fits the statement: "the minimum time required to complete a process or series of processes assuming no interruptions or delays that will ensure optimal production times".

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In the trade-off theory when a firm has important reputational concerns, it should choose lower leverage (5 marks) In the trade-off theory when a firm has important reputational concerns, it should choose lower leverage

Answers

The trade-off theory of capital structure suggests that firms seek to balance the benefits and costs of debt financing. One of the costs associated with debt financing is the risk of financial distress, which can arise if a firm is unable to meet its debt obligations.

When a firm has important reputational concerns, such as maintaining a strong brand image or avoiding negative publicity, it may be more cautious in taking on debt. This is because defaulting on debt payments could harm the firm's reputation and lead to a loss of stakeholder trust.

Therefore, in the trade-off theory, when a firm has important reputational concerns, it should choose lower leverage. By using less debt financing, the firm can reduce its risk of default and potential damage to its reputation.

However, it is important to note that other factors such as tax considerations and growth opportunities may also influence a firm's capital structure decisions. The optimal level of leverage for a firm will depend on a variety of factors and will vary from firm to firm.

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3D printers can be used for which of the following? O a. resin polymer or metallic objects b. human and animal bones c. gun parts O d. coprighted and non-copyrighted products e. all of the above

Answers

3D printers can be used for all of the above purposes.

3D printers have revolutionized manufacturing and opened up new possibilities in various fields. They can create objects using different materials, such as resin polymers and metals, allowing for the production of intricate designs, prototypes, and functional objects. From small trinkets to large-scale industrial parts, 3D printers offer a versatile means of fabrication.

In the medical b, 3D printers have been utilized to create human and animal bones, providing medical professionals with valuable tools for surgical planning, medical training, and the development of implants and prosthetics. By printing bone-like structures or synthetic bone scaffolds, researchers aim to improve regenerative medicine techniques and enhance patient care.

Controversially, 3D printers can also be used to produce gun parts. While this raises concerns regarding firearm regulation, it showcases the ability of 3D printers to manufacture complex objects. However, it is essential to note that the legality and ethics surrounding the production of firearms using 3D printing vary by jurisdiction, and responsible usage is paramount.

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what+is+the+present+value+of+$500+invested+each+year+for+10+years+at+a+rate+of+5%?

Answers

To calculate the present value of $500 invested each year for 10 years at a rate of 5%, we can use the formula for the present value of an annuity. The formula is:

PV = C × [(1 - (1 + r)^(-n)) / r]

Where:

PV = Present Value

C = Cash flow per period

r = Interest rate per period

n = Number of periods

In this case, the cash flow per period (C) is $500, the interest rate per period (r) is 5% (or 0.05), and the number of periods (n) is 10 years.

Plugging the values into the formula, we get:

PV = $500 × [(1 - (1 + 0.05)^(-10)) / 0.05]

Calculating this expression will give us the present value of the annuity.

PV = $500 × [(1 - 1.62889) / 0.05]

PV = $500 × (-0.62889 / 0.05)

PV = $500 × (-12.5778)

PV = -$6,288.89

Therefore, the present value of $500 invested each year for 10 years at a rate of 5% is approximately -$6,288.89.

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The demand curve and supply curve for one-year discount bonds with a face value of $1,050 are represented by the following equations Bº -0.8Quantity + 1,160 Price Price = Quantity + 720 Bª The expected equilibrium quantity of bonds is 271 (Round your response to the nearest whole number) (Round your response to the nearest whole number) The expected equilibrium price of bonds is $ The expected interest rate in this market is % (Round your response to two decimal places)

Answers

The equilibrium price can then be found by substituting the equilibrium quantity into either the demand or supply equation. The expected interest rate can be calculated as the inverse of the price, multiplied by 100.

To find the expected equilibrium quantity of bonds, we set the demand and supply equations equal to each other. The equations given are Bº - 0.8Quantity + 1,160 = Quantity + 720. Simplifying this equation, we get 1.8Quantity = 440. Solving for Quantity, we find Quantity ≈ 244 (rounded to the nearest whole number).

To determine the expected equilibrium price, we substitute the equilibrium quantity (244) into either the demand or supply equation. Using the supply equation Price = Quantity + 720, we get Price = 244 + 720 = $964.

Finally, to calculate the expected interest rate, we take the inverse of the price and multiply by 100. The interest rate is approximately 100 / 964 = 10.38% (rounded to two decimal places).

Therefore, the expected equilibrium quantity of bonds is 244, the expected equilibrium price is $964, and the expected interest rate in this market is 10.38%.

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Question 12 Suppose Jane has a fixed income of 2000 and spends the entire income on commodity X and Y. The prices of commodity X and Y are 10 and 20 respectively. (i) Derive the consumer's budget equation and sketch the line of this equation plotting Y on the vertical axis and X on the horizontal axis. What is the slope of the budget line (i) and what does it mean? (iii) Assuming income and price of X remain the same, show the effect of a 50 percent reduction in the price of Y on the consumer's budget line. (iv) Show the effect of a 100 percent increase in income and a 50 percent reduction in prices on the consumer's budget line. If Joan's MUX = 0.5X-0.5y05 and MUy = 0.5X0.5Y-0.5 find the optimal bundle of X and Y that maximises Joan's utility.

Answers

(i) The consumer's budget equation is given by: 10X + 20Y = 2000. The slope of the budget line is -10/20 = -0.5, which represents the rate at which commodity Y can be exchanged for commodity X in the consumer's budget.

(iii) A 50 percent reduction in the price of Y would result in a new budget equation: 10X + 10Y = 2000. This reduction would cause the budget line to rotate outward, making the consumer able to afford more of both X and Y for the same level of income.

(iv) A 100 percent increase in income would result in a new budget equation: 10X + 20Y = 4000. This increase would cause the budget line to shift outward in parallel, allowing the consumer to purchase larger quantities of both X and Y. The 50 percent reduction in prices would further expand the consumer's purchasing power along the budget line.

To find the optimal bundle that maximizes Joan's utility, we need to equate the marginal utilities of X and Y. Setting MUX = MUY, we have 0.5X - 0.5Y = 0.5X + 0.5Y - 0.5. Simplifying, -Y = Y - 1. Rearranging the equation, 2Y = 1. Therefore, Y = 0.5. Substituting this value back into the budget equation, we can solve for X. The optimal bundle that maximizes Joan's utility is X = 10 and Y = 0.5.

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Prepare a Gantt chart with resources for the action plan Dr. Alison submitted. Begin this project on January 3. Prepare a resource calendar for Dr. Alison. 2. How would you handle Dr. Alison's resource problem? 3. Given Dr. Alison's availability, how long will it take to complete testing of the assessment tool? 4. Prepare a Gantt chart for Dr. Alison's plan incorporat- ing any changes you recommend.

Answers

To make a Gantt chart, a program or software like Microsoft Project, GanttPRO, or Wrike can be used. Since there is no mention of the preferred program or software, the steps are given in a generic manner. The resource calendar can be made for Dr. Alison by calculating the available hours per day that Dr. Alison is willing to give to the project.

Any resource problem for Dr. Alison can be solved by distributing the workload among the team members or hiring new staff. The duration of testing the assessment tool is given as three weeks.

To make a Gantt chart for Dr. Alison's plan, we can begin the project on January 3. The first week can be allocated to identify and evaluate the tools and techniques that will be used in the project. The second week can be allocated to develop the assessment tool. The third week can be allocated to test the assessment tool, as given. The fourth week can be allocated to create a final report on the project. The Gantt chart can be made using any of the software or programs mentioned earlier. A resource calendar can be made for Dr. Alison, as given, based on the available hours Dr. Alison is willing to give to the project. This calendar will ensure that the project is completed on time. Any resource problem for Dr. Alison can be solved by distributing the workload among the team members or hiring new staff. For example, if Dr. Alison is not able to contribute enough hours, other team members can contribute more time to complete the project. The duration of testing the assessment tool is three weeks, as given. Finally, a Gantt chart can be made for Dr. Alison's plan, as given, incorporating any changes recommended by the team. The Gantt chart will provide an overview of the project, including its timeline, tasks, and progress. The chart can be updated regularly to keep track of the project's progress and ensure that it is completed on time.

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Q4: Select the most appropriate choice. (1) One of the following is not a multicriteria decision making tool: (a) Weighted sum methods (b) AHP (c) FTA (d) TOPSIS (2) One of the following is true about

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The correct answer is (c) FTA.(2) One of the following is true about weighted sum methods.The weighted sum method (WSM) is one of the simplest methods used in decision-making.

the most appropriate choice. (1) One of the following is not a multicriteria decision making tool: (a) Weighted sum methods (b) AHP (c) FTA (d) TOPSISThe most appropriate choice is (c) FTA because FTA is Fault Tree Analysis used to identify and analyze the probability of faults in a system and the effect of those faults on the operation of the system and on the customers, it is not a multicriteria decision-making tool. Therefore, the correct answer is (c) FTA.(2) One of the following is true about weighted sum methods.The weighted sum method (WSM) is one of the simplest methods used in decision-making. It is a type of multicriteria decision-making tool that operates by weighting each criterion in the decision and then summing them up to produce a single score or index that is used to rank the alternatives available. The weights represent the importance of each criterion, and the decision-maker assigns the weights based on their personal preference or the priority of the criteria. The advantages of weighted sum methods are that they are easy to understand and implement and that they can handle a large number of criteria. However, the disadvantages are that they can be sensitive to the weights assigned to each criterion, and the decision-maker's biases and subjectivity can influence the outcome.

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QUESTION 1 A major deficiency of the ARR method is... O it is too simplistic to be an appropriate decision-support tool by itself. O it ignores the importance of cash as the ultimate resource. O profits and costs are measured the same way. it ignores the timing of cash flows and subsequent profits.

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The major deficiency of the ARR (Accounting Rate of Return) method is that it ignores the timing of cash flows and subsequent profits. This limitation hinders its effectiveness as a decision-support tool.

The ARR method calculates the average annual profit of an investment project as a percentage of the initial investment. While it provides a simple measure of profitability, it fails to consider the time value of money and the importance of cash flows over time. This means that the method does not account for the fact that cash received earlier is more valuable than cash received later due to factors such as inflation and opportunity cost.

Ignoring the timing of cash flows can lead to inaccurate assessments of the project's profitability and potential returns. It fails to capture the actual cash inflows and outflows that occur at different points in time, resulting in an incomplete analysis. In contrast, other capital budgeting methods like Net Present Value (NPV) and Internal Rate of Return (IRR) take into account the timing of cash flows and provide a more comprehensive evaluation of an investment's viability.

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←HW Chapter 16 Question 3 of 3 > Percent Units Complete Production Data-Basketballs Work in process units, July 1 470 60 % Units started into production 1,140 Work in process units, July 31 600 40 % Cost Data-Basketballs f Work in process, July 1 Materials $730 Conversion costs 560 $1,290 Direct materials 2,168 Direct labor 400 Manufacturing overhead. 1,290 (a1) Your answer is partially correct. Calculate the equivalent units of production for materials and conversion costs. Materials Conversion Costs Equivalent Units 1610 1740 0.5/4

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The equivalent units of production for materials is 1,610 units, and for conversion costs is 1,740 units. The calculation is based on the information provided and assumes a 50% completion rate for work in process units on July 31.

To calculate the equivalent units of production, we consider the work in process units at different stages of completion. For materials, we add the work in process units on July 1 (470 units) to the units started into production (1,140 units). This gives us a total of 1,610 units. For conversion costs, we follow the same approach. We add the work in process units on July 1 (470 units) to the units started into production (1,140 units). However, since only 40% of the work in process units on July 31 are completed, we multiply this by 0.4 to get 600 units. Adding the two values, we have a total of 1,740 units for conversion costs.

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Which statement is correct? O a. Dynamic discounting helps suppliers to extend their payment terms O b. Dynamic discounting helps suppliers to reduce their cash conversion cycle o Dynamic discounting

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The correct statement is option B: Dynamic discounting helps suppliers to reduce their cash conversion cycle.

Dynamic discounting is a financial strategy that allows suppliers to receive early payment from buyers in exchange for offering a discount on their invoices. This approach helps suppliers to optimize their cash flow and accelerate their payment collection, ultimately reducing their cash conversion cycle. Dynamic discounting is a beneficial practice for suppliers as it allows them to improve their working capital position and cash flow management.

By offering early payment discounts to buyers, suppliers can incentivize prompt payment and reduce the time it takes to convert their accounts receivable into cash. This reduction in the cash conversion cycle enables suppliers to access funds more quickly, which can be used to invest in their business operations, pay off debts, or fund growth initiatives. Overall, dynamic discounting serves as a valuable tool for suppliers to enhance their financial flexibility and improve their overall liquidity position.

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Corporate Valuation. For this and the next 4 questions: The projected free cash flows (FCF) for Rodney Belts, Inc. are presented below. After Year 3, FCF is expected to grow at a constant rate of 7%. The company's WACC is 16%. Currently, the company has $350,000 of non-operating marketable securities. Its long-term debt is $1,000,000, but it has never issued preferred stock. Rodney Belts, Inc. has 60,000 shares of stock outstanding. Calculate the firm's horizon value of operations. Year. FCF 1. 120,000 2. 150,000 3. 200,000 A. Calculate the value of the firm's operations today B.Calculate the company's total value C. Calculate the value of its common equity D. Calculate the firm's stock price
Previous question

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The growth rate beyond Year 3 is given as 7%, and the weighted average cost of capital (WACC) is 16%.

a) To calculate the value of the firm's operations today, we need to calculate the present value of the projected free cash flows (FCF) for Years 1, 2, and 3, as well as the present value of the perpetuity beyond Year 3.

[tex]PV of FCF1 = FCF1 / (1 + WACC)^1PV of FCF2 = FCF2 / (1 + WACC)^2PV of FCF3 = FCF3 / (1 + WACC)^3[/tex]
Perpetuity = FCF3 * (1 + growth rate) / (WACC - growth rate) / (1 [tex]+ WACC)^3[/tex]
Value of firm's operations today = PV of FCF1 + PV of FCF2 + PV of FCF3 + Perpetuity
b) To calculate the company's total value, we need to add the value of the firm's operations to the value of non-operating marketable securities and subtract the long-term debt.
Total value = Value of firm's operations today + Non-operating marketable securities - Long-term debt
c) To calculate the value of its common equity, we need to subtract the long-term debt from the total value.
Value of common equity = Total value - Long-term debt
d) To calculate the firm's stock price, we divide the value of common equity by the number of shares outstanding.
Stock price = Value of common equity / Number of shares outstanding

Note: Please provide the values for FCF1, FCF2, FCF3, and the growth rate for a more accurate calculation.

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Kaohsiung Spirit Airlines (KSA) is a small airline in the south of Taiwan. The no-fuss airlines offers only economy seats. Data on the airlines operations are presented below: • Seats per airplane (number) 240 • Percentage of seats filled (avg load factor) 65% • Avg fare per passenger (undiscounted) $85 • Avg variable cost per passenger $45 • Fixed operating costs per month $2,200,000 1 The cost of fuel is a significant variable cost to any airline. If fuel charges DECREASE by $8 per barrel, it is estimated that the variable cost per passenger will DECLINE to $40. In this case, calculate the new break-even point in passengers and in the number of flights (Refer back to original data.) 2 KSA has experienced an increase in variable cost per passenger to $55 and an increase in total fixed costs to $2,500,000. The company has decided to raise the average fare to $90. Calculate the number of passengers is needed to generate an after-tax profit of $400, 000 if the tax rate is 40 percent

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The approximately 90,476 passengers are needed to generate an after-tax profit of $400,000, considering the given data and tax rate.

To calculate the new break-even point in passengers and the number of flights, we need to consider the changes in variable cost per passenger due to the decrease in fuel charges.

Break-even point (in passengers) = $2,200,000 / ($85 - $40)

Break-even point (in passengers) = $2,200,000 / $45

Break-even point (in passengers) = 48,888.89

Since we cannot have a fractional number of passengers, the new break-even point in passengers is rounded up to 48,889 passengers. airplane: Break-even point (in flights) = Break-even point (in passengers) / Seats per airplane the number of passengers needed to generate an after-tax profit of $400,000, considering the increase in variable cost per passenger and total fixed costs, we can use the following formula:

After-tax profit = Profit before tax - Tax

Profit before tax = After-tax profit / (1 - Tax rate)

Profit before tax = $400,000 / (1 - 0.40)

Profit before tax = $400,000 / 0.60

Profit before tax = $666,667

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QUESTION 1
Jimmy Collins, an Australian resident, exchanged
contracts for the acquisition of an investment property, at market
value, on 24 January 2019, paying a 10% deposit of $90,000,
Property sett

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As an Australian resident, Jimmy Collins exchanged contracts for an investment property on 24 January 2019, paying a 10% deposit of $90,000.

He is liable to pay the rest of the amount upon property settlement.

Jimmy Collins has exchanged contracts for the acquisition of an investment property, which means that he has entered into a legally binding agreement with the seller to buy the property.

Since he is an Australian resident, he is entitled to purchase any property within Australia. The deposit paid by Jimmy Collins represents 10% of the purchase price, which is $900,000.

The remaining amount payable by Jimmy Collins will be determined by the settlement date, which is the date on which ownership of the property is transferred to him.

Until the settlement date, Jimmy Collins is not the legal owner of the property, and he cannot access or occupy the property.

He will also have to pay stamp duty, legal fees and any other costs associated with the purchase of the property.

It is important to note that Jimmy Collins will also be liable to pay tax on any income that he earns from the property.

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The following jobs are waiting to be processed at Julie Morel's machine center: In what sequence would the jobs be ranked according to the following rules: (a) FCFS, (b) EDD, (C) SPT, and (d) LPT? All dates are according to shop calendar days. Today on the planning calendar is day 130, and none of the jobs have been started or scheduled. Which rule is best? 208 A B DATE ORDER RECEIVED 110 120 122 125 130 PRODUCTION DAYS NEEDED DATE ORDER DUE 20 180 30 200 10 175 16 230 18 210 D E

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The processing order for the given jobs would be ranked as follows according to the given rules: a) FCFS: Job A, B, C, D, E, with respect to the order received in the machine center. Explanation: FCFS stands for "First Come, First Served." This strategy prioritizes work in the order in which it arrives in the work center.

EDD stands for Earliest Due Date. When following the EDD rule, the work is prioritized according to the job's due date, with the most urgent being scheduled for processing first. For this reason, Job A would be scheduled first, followed by jobs C, D, E, and B. c) SPT: Job E, C, B, A, D, with respect to the days needed for production.SPT stands for "Shortest Processing Time." This strategy prioritizes work based on the amount of time it takes to complete. Therefore, in order of their processing time, Job E would be scheduled first, followed by jobs C, B, A, and D. d) LPT: Job D, A, C, B, E, with respect to the days needed for production.

LPT stands for "Longest Processing Time." This strategy prioritizes work based on the amount of time it takes to complete, with the longest processing time being scheduled for processing first. Therefore, in order of their processing time, Job D would be scheduled first, followed by jobs A, C, B, and E. The Best Rule: The rule that would be best for the given problem would be EDD (Earliest Due Date) because it is more important to prioritize work that needs to be completed by a certain date, rather than the order in which they were received or the amount of time it takes to complete.

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Jenna paid foreign income tax of $5,158 on foreign income of $25,788. Her worldwide taxable income was $167,000, and her U.S. tax liability was $41,000. Required: a. What is the amount of the foreign tax credit (FTC) allowed? b. What would be the allowed FTC if Jenna had paid foreign Income tax of $11,400 instead? Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount. Amounts a Foreign tax credit allowed b. Foreign tax credit allowed

Answers

a. The amount of foreign tax credit (FTC) allowed for Jenna is $5,158, based on her paid foreign income tax of $5,158.

b. If Jenna had paid foreign income tax of $11,400 instead, the allowed FTC would be $11,400, matching the amount of foreign income tax paid.

The FTC allowed is determined based on the lesser of the foreign income tax paid or the proportion of U.S. tax liability attributed to the foreign income. In this case, Jenna paid foreign income tax of $5,158, which is less than her U.S. tax liability of $41,000. Therefore, the allowed FTC is $5,158.

If Jenna had paid foreign income tax of $11,400 instead, the allowed FTC would be $11,400. Since the finoreign come tax paid is greater than her U.S. tax liability of $41,000, the allowed FTC would be equal to the amount of foreign income tax paid.

In both cases, the allowed FTC is equal to the amount of foreign income tax paid, as it is the lesser of the two limitsforeign income tax paid or U.S. tax liability attributed to the foreign income

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1-Why is it important for a manager to appraise a subordinate's performance?
2-Discuss what managers can do to support employees' career development needs.
3-Briefly explain the four steps involved in the
training process.
4-Discuss the HR challenges of conducting business on a global scale?

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In the company various activity conducting like appraise, Managers, HR activity etc.

1. It is important for a manager to appraise a subordinate's performance because it helps in identifying their strengths and weaknesses, which can be used to develop their skills and abilities. It also helps in setting performance goals and expectations, providing feedback and coaching, and making decisions about promotions, bonuses, and other rewards. Appraisals also help in identifying training and development needs, and provide an opportunity for employees to discuss their career aspirations and goals.

2. Managers can support employees' career development needs by providing them with opportunities for learning and development, such as training, coaching, mentoring, and job rotation. They can also help employees identify their strengths and interests, and align their goals with the organization's objectives. Managers can also provide feedback and recognition for their achievements, and help them explore career paths within the organization.

3. The four steps involved in the training process are: (1) needs assessment, which involves identifying the skills and knowledge required for a particular job or task; (2) design, which involves developing the training program, including the objectives, content, methods, and evaluation criteria; (3) implementation, which involves delivering the training program to the participants; and (4) evaluation, which involves assessing the effectiveness of the training program and making improvements.

4. The HR challenges of conducting business on a global scale include managing cultural differences, language barriers, legal and regulatory requirements, and recruiting and retaining talent in different countries. HR managers must also ensure compliance with local labor laws and regulations, and develop policies and procedures that are consistent with the organization's global strategy. They must also address issues related to compensation, benefits, and performance management across different locations and cultures.

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