1. Suppose you borrow money at a nominal interest rate of 14%. At the time you borrow the money, you expect inflation to be 8%. The real interest rate you expect to pay on your loan is%. 2. Suppose that when you pay back the loan, inflation turned out to be 9%. The real interest rate you actually pay back is.
3. Suppose that when you pay back the loan, inflation turned out to be 5%. The real interest rate you actually pay back is.
4. Think about the case where inflation turned out to be higher than expected. You initially thought inflation was going to be 3%, but it turned out to be 9%. Since the inflation rate turned out to be higher thanexpected, then than you both expected.

Cardinal company is considering a project that would require a $2,725,000 investment in equipment with a useful life of five years. at the end of five years, the project would terminate and the equipment would be sold for its salvage value of $400,000. the company’s discount rate is 14%. the project would provide net operating income each year as follows: sales $2,867,000 variable expenses 1,125,000 contribution margin 1,742,000 fixed expenses: advertising, salaries, and other fixed out-of-pocket costs $706,000 depreciation 465,000 total fixed expenses 1,171,000 net operating income $571,000 1. which item(s) in the income statement shown above will not affect cash flows? (you may select more than one answer. single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. any boxes left with a question mark will be automatically graded as incorrect.) (a)sales (b)variable expenses (c) advertising, salaries, and other fixed out-of-pocket costs expenses (d) depreciation expense 2. what are the project’s annual net cash inflows? 3.what is the present value of the project’s annual net cash inflows? (use the appropriate table to determine the discount factor(s) and final answer to the nearest dollar amount.) 4.what is the present value of the equipment’s salvage value at the end of five years? (use the appropriate table to determine the discount factor(s) and final answer to the nearest dollar amount.) 5.what is the project’s net present value? (use the appropriate table to determine the discount factor(s) and final answer to the nearest dollar amount.)

If big macs were a durable good that could be costlessly transported between countries, which of the following would present an arbitrage opportunity? check all that apply. exporting big macs from argentina to the united states. exporting big macs from the united kingdom to poland. exporting big macs from switzerland to china

Using an organization with which you are familiar, identify its corporate culture and the elements of its observable culture. what do you think would need change in order to facilitate innovation? what role would organizational development play in overcoming resistance to change?