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bogdanovich [222]
2 years ago
6

Wilson is offered a job in Kansas City that pays $50,000 and a job in Dallas that pays $60,000. Which pair of CPIs would ensure

that the two salaries have the same purchasing power?a. 100 in Kansas City and 124.5 in Dallas b. 80 in Kansas City and 100 in Dallas c. 125 in Kansas City and 150 in Dallas 0 d. 100 in Kansas City and 140 in Dallas
Business
1 answer:
Svetradugi [14.3K]2 years ago
4 0

Answer:

option C is correct CPI in Kansas City is 125 and in Dallas is 150.

Explanation:

given data

Kansas City pays = $50,000

Dallas that pays = $60,000

solution

we know that CPI base year is always  = 100

first we get here real salary value in Kansas City that is express as

Real Value = Salary in Kansas City × (CPI base year ÷ CPI current year) ..........1

put her value we get

Real Value = $50,000 × \frac{100}{125}

Real Value =  $40000

and now we get here real salary value in Dallas that is express as

Real Value = Salary in Dallas City × (CPI base year ÷ CPI current year) ..........2

put her value we get

Real Value = $60,000 × \frac{100}{150}

Real Value =  $40000

so now we can see that both value is same in both city with CPI Kansas City = 125 and CPI Dallas = 150

so here correct option is c. 125 in Kansas City and 150 in Dallas  

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Consider a company that provides two services using the same basic process. Service A is relatively complex, and has 15 opportun
patriot [66]

Answer:

The answer is: Total DPMO of the overall process is = 4,733.33

Explanation:

To calculate the defects per million opportunities (DPMO) we use the following formula:

       DPMO = (D/(U*O))*1,000,000

  • Defects = D
  • Unit = U
  • Opportunity to have a defect = O

We are given the following data:

<u>Service A:</u>                                           <u>Service B:</u>

D = 10                                                  D = 17

U = 500                                              U = 1,000

O = 15                                                  O = 5

DPMO Service A = [10 / (500 x 15)] x 1,000,000 = 1,333.33

DPMO Service B = [17 / (1,000 x 5)] x 1,000,000 = 3,400

Total DPMO = 4,733.33

4 0
2 years ago
There is a bond that has a quoted price of 98.613 and a par value of $2,000. The coupon rate is 6.66 percent and the bond mature
Mashutka [201]

Answer:

The Yield to Maturity of the Bond (YTM) is 113.86 %

Explanation:

The Yield to Maturity of the Bond (YTM) can be determined using a Financial Calculator as follows :

Pv = -$98.613

Fv = $2,000

p/yr = 2

n = 18 × 2

Pmt = ($2,000 × 6.60%) ÷ 2 = $66

r = ?

Using a Financial Calculator r is 113.86 %.

7 0
2 years ago
Mrs. Jones always wanted a white picket fence in front of her house. Mr. Jones, her husband, wants a fence around the entire hou
Kazeer [188]

Answer:

The dimensions for the entire area will give the cheapest cost for the entire fence are 40 feet in front, 100 feet on each side, and 40 feet on bottom.

Explanation:

Since Mrs. Jones always wanted a white picket fence in front of her house, and Mr. Jones, her husband, wants a fence around the entire house including a decently-sized lawn in the front and a garden in the back, and the fence border should look like a rectangle, and I have calculated that he would need to fence off an area of ​​4,000 square feet in order to fit all these things, and he wants to appease his wife and at least build the white picket fence in front of the house, and he plans to build the rest of the fence with chain link, a cheaper material, given that a white picket fence costs $ 7 per foot and a chain link fence costs $ 4 per foot, to determine what dimensions for the entire area will give the cheapest cost for the entire fence, the following calculation should be performed:

Area of ​​a rectangle = base times height = Z x Y = 4,000

80 x 50 = 4,000

40 x 100 = 4,000

20 x 200 = 4,000

20 x 7 x 2 + 200 x 4 x 2 = X = 280 + 1600 = 1880

40 x 7 x 2 + 100 x 4 x 2 = X = 560 + 800 = 1360

80 x 7 x 2 + 50 x 4 x 2 = X = 1120 + 400 = 1520

Therefore, the dimensions for the entire area will give the cheapest cost for the entire fence are 40 feet in front, 100 feet on each side, and 40 feet on bottom.

8 0
2 years ago
You are trying to decide between a par value corporate bond carrying a coupon rate of 6.25% per year and a par value municipal b
FinnZ [79.3K]

Answer:

D.

Municipal bond because the equivalent taxable yield is 6.6%

Explanation:

we should make the important difference that municipal bonds are tax free while corporate bonds don't.

Therefore we should solve for the after tax rate fo the corporate bond:

pretax (1-t) = after tax -rate\\0.0625(1-0.28) = 0.0625(0.72) = 0.045

The corporate bond as a yield of 4.5% after taxes which is lower than the municipal bond. This make it more attractive

We can also solve for the pre-tax rate of the municipal bond:

pretax(1-t) = after tax - rate\\pretax (1-0.28) = 0.0475\\pretax = 0.0475/0.72 = 0,065972 = 0.066

the municipal bonds would be equivalent to a 6.6% corporate bonds.

This makes option D correct.

6 0
2 years ago
In 2017, Eraser Corp had Revenue of $200 million, Cost of Goods Sold of $100 million (this includes Depreciation of $50 million)
trapecia [35]

Answer:

The after-tax cash flow generated by Eraser Corp in 2017 should be $89.5 million

Explanation:

Net income before tax = Revenue - Cost of Goods Sold - Sales General and Admin Expenses = $200 million - $100 million - $50 million  = $50 million

Eraser Corp faced a tax rate of 21%,

Tax paid  = 21% x $50 million = $10.5 million

No money was spent on Capital Expenditures or on additional Net Working Capital.

The after-tax cash flow generated by Eraser Corp in 2017 = Net income before tax + Depreciation expense - Tax = $50 million + $50 million - $10.5 million = $89.5 million

Note: Depreciation expense is Non-Cash Expenses, so it does not include in Cash Flow.

6 0
2 years ago
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