Sydney to phoenlx. terry lamoreaux owns homes in sydney, australia, and phoenix, united states. he travels betweenthe two cities at least twice a year. because of his frequent trips, he wants to buy some new high-quality luggage. he hasdone his research and has decided to purchase a briggs and riley three-piece luggage set. there are retail stores inphoenix and sydney. terry was a finance major and wants to use purchasing power parity to determine if he is paying thesame price regardless of where he makes his purchase. a. if the price of the three- piece luggage set m phoenix is $850 and the price of the same three- piece set in sydney isas930, using purchasing power parity, is the price of the luggage truly equal if the spot rate is aslo941/s‘? b. if the price of the luggage remains the same in phoenix one year from now, determine the price of the luggage insydney in one year’s time if ppp holds true. the us. inflation rate is 1.15% and the australian inflation rate is 3.13%.

This problem has been solved! see the answerwhich of the following statements is correct? the consumer price index is a measure of the overall level of prices, whereas the gdp deflator is not a measure of the overall level of prices. if, in the year 2011, the consumer price index has a value of 123.50, then the inflation rate for 2011 must be 23.50 percent. compared to the gdp deflator, the consumer price index is the more common gauge of inflation. the consumer price index and the gdp deflator reflect the goods and services bought by consumers equally well.

One of the benefits of a well designed ergonomic work environment is low operating costs is true or false

The gilbert instrument corporation is considering replacing the wood steamer it currently uses to shape guitar sides. the steamer has 6 years of remaining life. if kept, the steamer will have depreciaiton expenses of $650 for five years and $325 for the sixthyear. its current book value is $3,575, and it can be sold on an internet auction site for$4,150 at this time. if the old steamer is not replaced, it can be sold for $800 at the endof its useful life. gilbert is considering purchasing the side steamer 3000, a higher-end steamer, whichcosts $12,000 and has an estimated useful life of 6 years with an estimated salvage value of$1,500. this steamer falls into the macrs 5-year class, so the applicable depreciationrates are 20.00%, 32.00%, 19.20%, 11.52%, 11.52%, and 5.76%. the new steamer is fasterand allows for an output expansion, so sales would rise by $2,000 per year; the newmachine's much greater efficiency would reduce operating expenses by $1,900 per year. to support the greater sales, the new machine would require that inventories increase by$2,900, but accounts payable would simultaneously increase by $700. gilbert's marginalfederal-plus-state tax rate is 40%, and its wacc is 15%.a. should it replace the old steamer? b. npv of replace = $2,083.51