answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
PilotLPTM [1.2K]
2 years ago
15

Casey has ​$1 comma 000 to invest in a certificate of deposit. Her local bank offers her 2.50​% on a​ twelve-month FDIC-insured

CD. A nonfinancial institution offers her 5.20​% on a​ 1twelve-month CD. What is the risk​ premium? What else must Casey consider in choosing between the two​ CDs?
Business
1 answer:
frutty [35]2 years ago
6 0

Answer:

the risk premium = return of the deposit - risk free deposit return

risk premium = 5.2% - 2.5% = 2.7% or $27 for a $1,000 CD

Besides the investment risk, Casey must also consider the inflation rate and taxes. The inflation rate lowers the real interest earned by Casey: real interest rate = nominal interest rate - inflation rate. And she must also find out how the return from the non-financial institution is taxed, if it can be taxed as capital gains or regular income.

You might be interested in
Donald discovers major flaws in the packaging department. He consults the production manager and formulates control measures to
Zolol [24]

Answer:

The most suitable answer here is D. Concurrent Control.

Explanation:

Concurrent control is also known as preventive controls and steering controls where the aim of the control procedure is to identify the possible flaws of a process and to prevent them before occurring.

Furthermore, in this scenario as you can see, Donald consults production manager and formulates measures as the process is ongoing. This makes it more of a "concurrent control" as well.

So Why did we not use any of the other options?

Option A, reactive controls is incorrect in this case, because reactive measures are completely spontaneous actions that respond to an accident.

Option B is incorrect too, because feedback controls are done after a process has been completed and through identification of falls happened.

Option C, feed forward controls are not correct in this scenario as well. Although it is a type of preventive control, in this scenario it is not entirely preventive. They are formulating measures even as the process is ongoing.

5 0
2 years ago
Which answer best fills in the blank in this sentence?
Levart [38]

Answer:

Less

Explanation:

The answer is Less.

7 0
1 year ago
If the substitution effect of the real interest rate on saving is larger than the income effect of the real interest rate on sav
Kay [80]

Answer:

rise, fall

Explanation:

In the case when the subsitution effect with respect to the real rate of interest should be saved and more than the income effect on the real rate of interest so if there is an increased in the real rate of interest so there is an increase in the consumption also there is the fall in the savings

Also, if there is a more income effect, the consumption should rise and the savings would decline

Therefore the rise and fall should be considered to fill the blanks

3 0
2 years ago
A heat integration project results in saving 5 MM Btu/h of heating utility and 14 MM Btu/h of cooling utility. The prices of hea
guapka [62]

Answer:

9.24 yr

Explanation:

The payback period refers to the amount of time it takes to recover the cost of an investment. In order to find a payback period we need to go through some calculations first  

Annual savings =  5 MM Btu/hr x 8,000 hr/yr x $4/MM Btu x 14 MM Btu/hr x  8,000 hr/yr x $7/MMBtu

Annual savings = $0.944 MM/yr

TCI = \frac{4.0 MM}{0.85}

TCI = $4.7 MM

Depreciation - Annualized fixed cost = \frac{[4.0 - 0] }{10}

Depreciation - Annualized fixed cost = $0.4 MM/yr

Total cost annualized = Annualized fixed cost + Annual operating cost

Total cost annualized = 0.4 + 0.5

Total cost annualized= 0.9 MM/yr

Annual net (after-tax) profit = Annual income - Total cost annualized x (1-Tax rate + Depreciation

Annual net (after-tax) profit = $0.944 MM/yr - $0.9 MM/yr x  1 -0.25 + $0.4 MM/yr

Annual net (after-tax) profit = 0.433MM/yr

Payback period = \frac{4.0}{0.433MM/yr}

Payback period = 9.24 yr

5 0
1 year ago
Randy, the production manager at a computer hardware manufacturing company, is never satisfied with the productivity of his work
Rus_ich [418]

The given scenario clearly illustrates Negative leniency .

Option C

<u>Explanation: </u>

The performance appraisal is a routine analysis of the results of an individual and of a company's total commitment. A performance appraisal, also defined as an «yearly review», "performance review," or "individual appraisal," assesses the ability, success and progress of an employee or its lack of it.

The manager who is neither tough nor easy with rating employees is committed to negative and positive leniency misconceptions. In the performance evaluation process, the employee's unjustified expectations for increases, promotions or tough jobs can be increased by positive leniency.

The worker may be sick of hitting the head against a wall with excessive slowness or toughness/strictness because the manager can not be pleased despite how hard the person tries.

3 0
1 year ago
Read 2 more answers
Other questions:
  • What will most likely happen if a toy supplier sets a price too low for a product?
    8·2 answers
  • Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives.
    8·1 answer
  • Managers are constantly seeking out new tools to meet new challenges. Indicate whether today’s manager’s are more or less aware
    8·1 answer
  • Canton Corp. produces a part using an expensive proprietary machine that can only be leased. The leasing company offers two cont
    8·1 answer
  • Internet recruiting can limit the fairness in hiring because: a. individuals from lower socioeconomic groups mostly have limited
    6·1 answer
  • 1)If the firm's advertising budget is $32,000 (instead of $40,000) and the firm allocates it optimally over the four quarters, t
    13·1 answer
  • A new tax business, Taxes Done Right, will purchase a copying machine. After speaking with their financial advisor, they find th
    8·1 answer
  • 6. Suppose that the returns on the stock fund presented in Spreadsheet 6.1 were 240%, 214%, 17%, and 33% in the four scenarios.
    14·1 answer
  • You are considering purchasing stock in Canyon Echo. You feel the company will increase its dividend at 3.6 percent indefinitely
    10·1 answer
  • Use the following information to answer the next two questions. Downey Company bought a delivery truck for $62,000 on January 1,
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!