Business Model Analysis of Bkash
Analyze the followings:
1) Value proposition
2) Revenue model
3) Market Opportunities
4) Competitive Environment & Advantage
5) Growth Strategy
Answers
bKash, a leading mobile financial service provider in Bangladesh, has a strong business model that encompasses several key aspects. Its value proposition lies in providing convenient and accessible financial services to the unbanked and underbanked population.
The company generates revenue through transaction fees, float income, and value-added services. With a large untapped market and a growing economy, bKash has significant market opportunities for expansion. It faces competition from other mobile financial service providers, but its first-mover advantage, wide agent network, and brand recognition give it a competitive edge. To fuel its growth, bKash focuses on expanding its product offerings, increasing customer adoption, and leveraging partnerships with banks and merchants.
bKash's value proposition centers around providing financial services to individuals who lack access to traditional banking services. Its mobile-based platform enables customers to perform various transactions such as money transfer, bill payments, mobile top-ups, and merchant payments, all from the convenience of their mobile phones. This convenient and accessible solution has resonated well with the target market, addressing their financial needs and empowering them with digital financial inclusion.
In terms of revenue generation, bKash primarily earns through transaction fees charged to customers. Additionally, it earns float income by investing the funds held in customer wallets and generating returns. The company also offers value-added services such as savings accounts, insurance products, and credit services, which further contribute to its revenue stream.
bKash operates in a market with vast opportunities for growth. Bangladesh has a large population with a significant portion still unbanked or underbanked. The country's rapid economic growth, increasing smartphone penetration, and government initiatives to promote digital financial services create a favorable environment for bKash to expand its customer base and market reach. By capitalizing on these opportunities, bKash can solidify its position as a dominant player in the mobile financial service industry.
While bKash faces competition from other mobile financial service providers to business, it enjoys several competitive advantages. As the first-mover in the market, bKash has established a strong brand presence and developed a wide agent network across the country. This extensive agent network, consisting of small retail shops and outlets, enables customers to easily deposit or withdraw cash from their bKash accounts. Furthermore, bKash's partnerships with banks and merchants allow for seamless integration and acceptance of its services, providing an added advantage over competitors.
To sustain its growth, bKash follows a strategic approach. It aims to expand its product offerings beyond basic financial services, introducing more value-added services to meet the diverse needs of its customers. The company also focuses on increasing customer adoption by enhancing user experience, improving the accessibility of its services, and educating the market on the benefits of mobile financial services. Additionally, bKash leverages partnerships with banks and merchants to extend its reach and provide customers with a seamless ecosystem for financial transactions. Through these growth strategies, bKash aims to solidify its market position and continue its trajectory as a leader in the mobile financial service industry.
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Related Questions
2 Assume the following data for a country: total population, 500; population under 16 years of age or institutionalized, 120; not in labor force 150; unemployed, 23; part-time workers looking for full-time jobs, 10. What is the size of the labor force
Answers
Answer:
230 million
Explanation:
The labour force of a country is made up of those that are employed and those that are willing to work (that is looking for employment).
It indicates the total number of people that's willing and able to work in an economy.
In the given scenario total population is 500 million. The people under 16 or institutionalised are not considered part of labour force as legal working age is 18 years.
The number of people not in labour for is 150 million. This is also deducted from total population.
Labour force = 500 - 150 - 120 = 230 million
The opportunity cost of watching a movie will be equal to;
А) The time lost while watching the show
B)The pleasure that could have been enjoyed watching TV instead
С )The pleasure enjoyed by watching the show
D) The amount paid to buy the tickets
Answers
Answer:
А) The time lost while watching the show
Explanation:
Opportunity cost is the value of the next-best alternative when a decision is made; it's what is given up.
A and D seems correct, but the wording on D makes A the better answer.
What is the objective of the Joint Project Planning Session?
Question 5 options:
Produce a detailed Project Plan
Produce Conditions of Satisfaction
Produce a Project Overview Statement
Produce Stakeholder Agreements
Which of the following is NOT a situation requiring team operating rules?
Question 16 options:
Conflict resolution
Problem solving
Project Training
Decision making
Mr. John Smith has been appointed as manager of large installation project. In his new role, Mr. Smith is responsible for managing potentially 300 stakeholders. Which of the following would be the BEST course of action for him to take?
Question 25 options:
Gather the needs
Find an effective way to gather the needs of all stakeholders
Contact the CEO and ask which stakeholders are most important
Eliminate some stakeholders
Answers
Produce a Project Overview Statement. Project Training. Find an effective way to gather the needs of all stakeholders.
The objective of the Joint Project Planning Session is to produce a Project training. This statement provides a high-level overview of the project, including its goals, scope, deliverables, and key stakeholders. It serves as a concise summary that helps align the project team and stakeholders on the project's direction and objectives. Project Training is not a situation that requires team operating rules. Team operating rules are typically established to guide and regulate team activities in areas such as conflict resolution, problem solving, and decision making. Project training, on the other hand, focuses on equipping team members with the necessary skills and knowledge to effectively perform their roles and contribute to the project's success.
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Selected financial data regarding current assets and current liabilities for queen's line, a competitor in the cruise line industry, is provided: ($ in millions) current assets: cash and cash equivalents $368 current investments 82 net receivables 218 inventory 118 other current assets 136
total current assets $922 current liabilities: accounts payable $1,135 short-term debt 699
other current liabilities 914 total current liabilities $2,748
required:
calculate the current ratio and the acid-test ratio for queen's line (enter your answers in millions, not in dollars.
Answers
Current ratio is 0.335 times and the acid-test ratio is 0.29 times
What Are Current Liabilities?A company's short-term financial commitments that are due in a year or within a typical operational cycle are known as current liabilities. An organization's operational cycle, also known as the cash conversion cycle, is the period of time it takes to buy inventory and turn that inventory into cash through sales. The sums owing to suppliers in the form of accounts payable are an illustration of a current liability. Commonly, current assets—assets that are depleted within a year—are utilized to settle current liabilities. Cash and accounts receivable, which are sums of money owed by clients for purchases, are examples of current assets. The ability of a business to continue making timely debt payments is largely dependent on the ratio of current assets to current liabilities.
For, current ratio= Total Current assets ÷ total current liabilities
current ratio = $922÷ $2,748
current ratio = 0.335 times
For, acid-test ratio = Quick assets ÷ total current liabilities
where,
Quick assets = Total current assets - inventory
Quick assets = $922 - $118
Quick assets = $804
And the total current liabilities is $2,748
So, the acid-test ratio would be
= $804 ÷ $2,748
= 0.29 times
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a real account and its balance is carried forward each period a nominal account and its balance is carried forward each period a nominal account and its balance is periodically closed a real account and its balance is periodically closed
Answers
Real accounts have their balances carried forward each period, while nominal accounts have their balances periodically closed.
Real accounts are those related to tangible assets, liabilities, or equity, and their balances are carried forward from one accounting period to another. Examples include cash, equipment, and accounts payable. Nominal accounts, on the other hand, are related to revenues, expenses, gains, and losses.
These accounts are temporary in nature, and their balances are periodically closed at the end of each accounting period to transfer the net amount to the retained earnings or owner's equity. This process helps reset the nominal account balances to zero for the next accounting period. Closing entries are made to adjust the balances in nominal accounts, ensuring accurate financial reporting and preparing the accounts for the subsequent period's transactions.
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to be considered an official record the document must be:
Answers
To be considered an official record, the document must be authentic and reliable, and it must be accepted as evidence in a legal or administrative proceeding.
What is an official document?An official document is a document that is issued by a government agency, organization, or other official body and that is used to record or communicate information that is considered to be important or official in nature. Official documents can take many forms, including written documents, electronic records, and physical documents such as certificates, licenses, and diplomas.
They may be used to document a wide range of activities and transactions, including legal proceedings, government policies and regulations, financial transactions, and other official business. In general, official documents are considered to be authentic and reliable sources of information, and they are often accepted as evidence in legal or administrative proceedings.
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A buyer has a 30 year, $750,000 loan with a 5. 75% interest rate. How much is the first monthly payment?
Answers
Explanation: Multiply the principal balance by the interest rate: $750,000 x . 0575 = $43,125;. Then find the monthly rate by dividing $43,125 by 12 to get $3,593.75.
For each of the following situations, find the critical value(s) for z or t. a) H 0
:p=0.7 vs. H A
:p
=0.7 at α=0.01 b) H 0
:p=0.2 vs. H A
:p>0.2 at α=0.05 c) H 0
:μ=10 vs. H A
:μ
=10 at α=0.05;n=34 d) H 0
:p=0.7 vs. H A
:p>0.7 at α=0.10;n=340 e) H 0
:μ=20 vs. H A
:μ<20 at α=0.05;n=1000 a) The critical value(s) is(are) = (Use a comma to separate answers as needed. Round to two decimal plac
Answers
a) For the situation: H 0 : p = 0.7 vs. H A : p ≠ 0.7 at α = 0.01, the critical value is ± 2.58
As given, level of significance (α) = 0.01, and p= 0.7
For a two-tailed test at α = 0.01, we need to find the value of z for which the area to the right is 0.005.
Using Normal distribution table, the z-value corresponding to a cumulative area of 0.995 is 2.58. Since it is a two-tailed test, the critical values are ± 2.58
b) For the situation: H 0 : p = 0.2 vs. H A : p > 0.2 at α = 0.05, the critical value is 1.65
As given, level of significance (α) = 0.05, and p = 0.2For a right-tailed test at α = 0.05, we need to find the value of z for which the area to the right is 0.05.
Using Normal distribution table, the z-value corresponding to a cumulative area of 0.95 is 1.65. The critical value is 1.65 since it is a right-tailed test.
c) For the situation: H 0 : μ = 10 vs. H A : μ ≠ 10 at α = 0.05; n = 34, the critical value is ± 2.032
As given, level of significance (α) = 0.05 and sample size n = 34
For a two-tailed test with α = 0.05, the critical value can be obtained using t-distribution table for n-1 degrees of freedom (df = n-1).
Since n = 34, degrees of freedom = 34-1 = 33.
The critical values for the two-tailed test at α = 0.05 are ± 2.032.
d) For the situation: H 0 : p = 0.7 vs. H A : p > 0.7 at α = 0.10; n = 340, the critical value is 1.28
As given, level of significance (α) = 0.10 and n = 340.For a right-tailed test with α = 0.10, the critical value can be obtained using Normal distribution table, since n > 30.The critical value for the right-tailed test at α = 0.10 is 1.28.
e) For the situation: H 0 : μ = 20 vs. H A : μ < 20 at α = 0.05; n = 1000, the critical value is -1.645
As given, level of significance (α) = 0.05 and sample size n = 1000For a left-tailed test with α = 0.05, the critical value can be obtained using z-distribution table, since n > 30.T
he critical value for the left-tailed test at α = 0.05 is -1.645.
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Martinez co. Borrowed $50,000 on march 1 of the current year by signing a 60-day, 9%, interest-bearing note. Assuming a 360-day year, when the note is paid on april 30, the entry to record the payment should include a?.
Answers
The record of the payment should include an entry of $750
A method for calculating how much interest was paid on a sum of money during a certain time period at a specific rate is called simple interest.
Simple interest is a straightforward and easy way to calculate financial interest since it has a single principal amount.
Interest = Principle x Rate x Time
Interest = $50,000 x 0.09 x 60 / 360 ( As per values given)
= $750
Thus, it will be debited to Interest Expense for $750
Therefore, in order to know the charge of the debt that has occurred throughout the 60 days, one must debit the Interest Expenditure, which is the typical side of an expense account.
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If you are trying to establish a credit history, would you use credit to make a purchase even if you could pay cash? Why?
Answers
Answer:
By using credit, you're building up your overall score. Cash purchases go unnoticed by companies and your bank.
Explanation:
during reccesion, why high specialized is less likely to survive than diversified firm
Answers
Answer: mostly diversified companies should presumably survive in them. Given the ... dominance of specialized firms vs. diversifiers across a large set of industries. ... may even become less efficient than specialized firms, we expect than specialized firms ... we are more likely to observe vertical integration.
Explanation:
Allied In. bought a two-year insurance policy on August 1st for $3,600. What's the adjusting journal entry on December 31st?
Answers
Answer:
1. Debit Insurance Expense- $500 Credit Prepaid Insurance $500
2. $160 Beginning...
Who heads each of the branches of federal reserve banks and looks after their functioning?
Answers
Answer: The chair of the board, governors of the federal reserve system is the chief of the federal reserve which is the central banking system of the United States.
Answer:
Board of Governors
Explanation:
2. Happy Selling Company's salaries to sales agents amounted to Php 10,000. Salaries of accountants
amounted to Php 20,000. No other expenses were incurred. How much is the company's general and
administrative expense?
Answer:
Answers
Answer:
Please one time
Mark brainliest
How does the Ricardian model benefit the import and export of
products from given countries? Are there risks in following the
Ricardian model? Provide examples.
Answers
The Ricardian model is an economic theory that explains how countries can benefit from trade based on comparative advantage. According to this model, countries should specialize in producing goods that they can produce at a lower opportunity cost than other countries.
In terms of import and export, the Ricardian model suggests that countries should focus on exporting goods that they can produce efficiently, while importing goods that other countries can produce more efficiently.
This specialization allows countries to maximize their production and consumption possibilities.
For example, let's consider two countries, Country A and Country B. Country A can produce cars more efficiently than Country B, while Country B can produce computers more efficiently than Country A.
According to the Ricardian model, Country A should export cars and import computers, while Country B should export computers and import cars. This allows both countries to benefit from trade by focusing on their comparative advantages.
However, there are risks associated with following the Ricardian model. One risk is that a country may become too dependent on imported goods, making it vulnerable to disruptions in international trade.
Additionally, if a country fails to adapt and improve its production capabilities, it may lose its comparative advantage over time.
In conclusion, the Ricardian model can benefit the import and export of products from given countries by promoting specialization based on comparative advantage.
However, there are risks involved, such as dependency on imported goods and the need for continuous improvement to maintain a competitive edge in the long run.
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influences of Business environment,
Answers
Factors that Influence the business environment are :
Economic environmentSocial environmentTechnological environmentPolitical environmentLegal environment
The business environment means the total of all the individuals, and institutions that could affect the working of the business firm.
Importance of business environment:
Business environments help the firm to prepare itself for every possible obstruction or hindrance that can affect the functioning of the firm.It also helps the firm to adjust to frequent changes.The economic environment is all the things that create an economic impact on the firm.
The social environment is all the traditions and customs of the society that creates an impact on the firm.
The technological environment is all the impact on the firm caused due to new technology and upgradations.
The political environment is the conditions and behavior that the elected representatives hold toward the business
The legal environment is entirely based on the rules and legislation of the authorities.
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Which of the following is not a basic right of ownership include in " bundle of rights"?
Answers
Which of the following would be a good candidate for a leading indicator? O 1) A change in inventories O 2) New orders for consumer goods 3) Building permits for private housing 4) All of the above. Save Question 12 (5 points) While surfing 'Woodrow, the Internet site of the Federal Reserve Bank of Minneapolis, an economics student was looking for the components of GDP for 4th quarter 1995. She found that government expenditures were $1,363.5 billion, personal consumption was $4,992.3 billion, net exports were-$79.3 billion and GDP was $7,340.4 billion She was just about to look up investment expenditures when a fellow student tripped and accidentally unplugged the computer. Luckily she was able to find an answer without turning the computer back on. Investment spending for 4th quarter 1995 was O 1) $905.3 bil. O2) $2,348.1 bil. 3) $984.6 bil 4) $6,276.5 bil. 5) $1,063.9 bil. Save Question 13 (5 points) f the CPI is currently 296.3 and the base year is 2013, how much was the CPI in 2013?
Answers
New orders for consumer goods would be a good candidate for a leading indicator. The correct answer is option 2
The leading indicator that would be a good candidate among the given options would be new orders for consumer goods. Leading indicators are used to predict future changes in the economy. They are called leading indicators because they usually change before the economy changes. By monitoring the changing trends in leading indicators, businesses and governments can make important decisions about their economic plans. Among the given options, new orders for consumer goods would be a good candidate for a leading indicator as it is an indication of the increased demand for consumer goods which ultimately results in increased sales and economic growth. Hence, option 2) New orders for consumer goods would be a good candidate for a leading indicator. Leading indicators are used to predict the future changes in the economy. It is called a leading indicator because they usually change before the economy changes. By monitoring the changing trends in leading indicators, businesses and governments can make important decisions about their economic plans. Among the given options, new orders for consumer goods would be a good candidate for a leading indicator as it is an indication of the increased demand for consumer goods which ultimately results in increased sales and economic growth. With a growing demand for consumer goods, it is essential to produce more goods. This, in turn, leads to increased employment and income, resulting in higher consumer spending. The higher consumer spending, the higher the economic growth. Therefore, it is an essential indicator to predict future economic growth. It is also essential to note that, among the given options, building permits for private housing is a lagging indicator as it indicates past economic growth.
Thus, new orders for consumer goods are considered a leading indicator and would be a good candidate among the given options.
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High-profile accounting scandals and the global financial crisis are examples of ___.
Answers
High-profile accounting scandals and the global financial crisis are examples of companies and industries that did not conform to business ethics.
What is business ethics?The rules for ethically correct and wrong behavior in company are referred to as business ethics. However, "legal" and "ethical" are not always identical. Law in part defines behavior. By defining permissible practices outside of the purview of the state, business ethics strengthen the law.
What is the business ethics tenet?The field includes loyalty, fairness, respect, trustworthiness, and technological ethics. It also includes corporate responsibility, personal responsibility, and social responsibility. It places a strong emphasis on employee retention, brand image, and consumer loyalty.
How can business ethics be improved?Engage, talk to, and educate your staff. Utilize effective and educational communication to involve employees as well as other stakeholders, including suppliers, investors, regulators, and customer groups. An ethical culture will be ingrained thanks to effective, consistent, and regular communication and training.
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How much interest would a person pay to borrow $700 for 9 months at 10 percent?
Answers
The principal is Rs 10,000, the interest rate is 10%, and the loan term is six years. The simple interest can be calculated as follows: A = 10,000 (1+0.1*6) = Rs. 16,000. Interest is 16000 divided by 10,000, or Rs. 6,000.
What is interest rate?The amount of interest due each period expressed as a percentage of the amount lent, deposited, or borrowed is known as an interest rate.
The total interest on a loaned or borrowed sum is determined by the principal amount, the interest rate, the frequency of compounding, and the period of time the loan, deposit, or borrowing took place.
The interest rate over a year is known as the annual interest rate. Other interest rates are applicable over shorter time frames, such a day or a month, but they are typically annualized.
An index of the preference for a dollar of present over a dollar of future has been used to describe the interest rate.
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answer the above questions
don't spam
Answers
Answer:
Explanation:
B) current liability
A bank can offer which of the following
Checking Account and a Savings Account
Tax Bills
Checking Account
Checking Account, Savings Account, Safety Deposit Box
Answers
Answer:
Checking Account, Savings Account, Safety Deposit Box
Explanation:
Banks are financial institutions that provide a wide variety of financial services to their customers. They accept customer deposits and issue loans. Commercial banks act as intermediaries between the supply side and demand side of credit.
Commercial banks are also known as deposit-taking institutions. Deposits facilities offered by banks include
Checking accounts, Savings accounts, Safety Deposit BoxMoney Markets accountsCertificated of Deposits accountsAnswer:
Checking Account, Savings Account, Safety Deposit Box
Explanation:
The person above was correct.
Would Bakugou consider dating Todoroki i mean like its a hella cute ship sooo lemmme know what yall think
Answers
Answer:
bakugou and deku is better than.... that
Explanation:
its called the power of smartness
The ASX guidelines for company directors and the code of ethics for accountants both require the following: consideration of the public interest. minimum technical and professional standards. O need f
Answers
The ASX guidelines for company directors and the code of ethics for accountants both require the following: consideration of the public interest, minimum technical and professional standards.
What is ASX?
ASX stands for Australian Securities Exchange. The guidelines for company directors are designed to assist directors in understanding their roles and responsibilities. The guidelines establish broad principles of good corporate governance and provide specific guidance on governance issues. Some of the important principles of ASX are:Recognition of the importance of shareholder rights and accountability to shareholders for the performance of the company.Consideration of the interests of all stakeholders (including employees, customers, suppliers and the wider community) who are affected by the company's actions.Maintaining high standards of integrity and ethical behaviour.Code of Ethics for AccountantsAccountants' Code of Ethics is a set of principles and rules governing the behaviour of accountants who belong to the accounting professional body. Its purpose is to ensure that accountants are ethical in their professional conduct, comply with applicable accounting standards, and serve the public interest. Some of the essential principles of the Code are:IntegrityObjectivityProfessional competence and due careConfidentialityProfessional behaviourThese two codes both require consideration of the public interest and minimum technical and professional standards.
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linda saved enough tip money from working at a restaurant to place $110,000.00 in a saving account generating 12.40% compounded monthly. she wants to collect a monthly income of $1,797 at the end of each month, for as long as the money lasts. approximately, how long will linda have this income coming to him? group of answer choices 6.41 years 8.12 years 7.14 years 8.36 years 7.38 years
Answers
Therefore, approximately, Linda will have this income coming to her for about 7.27 years. Among the given answer choices, the closest option is 7.38 years.
To determine approximately how long Linda will have the monthly income of $1,797 coming to her, we need to calculate the number of months it will take for her initial savings of $110,000 to be depleted.
We can use the formula for the future value of an ordinary annuity to calculate the time period. The formula is:
N = (ln(A/r)) / ln(1 + r)
Where:
N = Number of periods (in this case, the number of months)
A = Desired monthly income ($1,797)
r = Monthly interest rate (12.40% / 12)
Plugging in the values, we have:
N = (ln(1797/(110000 * 0.1240/12))) / ln(1 + 0.1240/12)
Calculating this expression, we find:
N ≈ 87.25 months
Since we are looking for the approximate number of years, we divide the number of months by 12:
N ≈ 87.25 / 12 ≈ 7.27 years
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A source of money that allows individuals to pay for goods and services later is called cashconsumer creditcurrency. An advantage of this source of money is it can be used for shopping onlinethere are no interest chargesit leads to good financial habits. A disadvantage of this source of money is it is used for mobile phone plansit does not add to purchasing powerit requires you to carry cash
Answers
An advantages of this source of money stopping it can be used for online shopping without any interest rate and instant payment also there is no delay and funfund proof.
Why do people still use cash to pay?According to Rossman, cash is useful for two reasons: privacy and anonymity. Furthermore, cash transactions are critical for the estimated 5.4% of unbanked families, he observed. According to Rossman, the majority of individuals prefer to pay with credit or debt cards. Carrying cash eliminates the possibility that credit and debit card payments will be unavailable. Inclusion: Notes and coins are essential for preventing exclusion of vulnerable populations such as the elderly or low-income households who may have limited access to digital payment methods.
You may use a credit card for regular purchases to build credit and gain incentives for your existing spending. However, keep in mind that you should only use a credit card for emergencies.
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what's the difference between Utility and Marginal Unility?
Answers
Answer:
One is large the other is small
Explanation:
What are the costs of “freebie” items?
Answers
Answer:
The costs of a “freebie” item includes resources to make, a person's labor, and the cost to the store to offer it to us as free.
Explanation:
Answer:theres no cost its a freebie
Explanation:
What does it mean if a good is inelastic in economics?
Answers
It means if a good is inelastic in economics refers to increase in price regardless you care for revenue or profit.
Inelastic in economics refers to the static quality of a good or service when its price changes. The demand of inelastic means that when the prices goes up then consumers buying habits stay same even with the price goes down.
Inelastic in economics, inelastic goods are those commodities whose demand does not change with the price variations. An increase or decrease in the product's price level does not effect its demand. Even though there will be a slight variation in demand, it will be insignificant compared to the change in price.
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A multinational security software company is planning an overseas expansion that will cost $47 million of today’s dollars 3 years from now. Due to a robust economy in Europe, the cost is expected to increase by 17% per year in each of the next 3 years. Assuming the inflation rate is 4% per year, determine the required annual deposit into a fund that earns the market rate of 9% per year to ensure that the amount needed in 3 years will be available.
The required annual deposit is $ .
Answers
The required annual deposit to ensure $47 million in 3 years is $12,154.67. It takes into account the expected increase in cost, inflation rate, and market rate of return.
To calculate the required annual deposit, we need to consider the cost of the overseas expansion in three years, the expected increase in cost due to the robust economy in Europe, the inflation rate, and the market rate of return.
Calculate the future cost of the overseas expansion:
The cost of $47 million in three years is estimated to increase by 17% per year. Using compound interest formula, we can calculate the future cost as follows:
Future Cost = Present Cost * (1 + Growth Rate)^Number of Years
Future Cost = $47 million * (1 + 0.17)^3
Future Cost = $47 million * 1.17^3
Future Cost = $67,485,819.95
Adjust the future cost for inflation:
Since the inflation rate is 4% per year, we need to adjust the future cost to account for inflation. We can do this by dividing the future cost by the inflation factor:
Adjusted Future Cost = Future Cost / (1 + Inflation Rate)^Number of Years
Adjusted Future Cost = $67,485,819.95 / (1 + 0.04)^3
Adjusted Future Cost = $67,485,819.95 / 1.124864
Adjusted Future Cost = $59,960,611.34
Calculate the required annual deposit:
To ensure that the adjusted future cost is available in three years, we need to calculate the annual deposit required. We can use the present value of an annuity formula to do this:
Annual Deposit = Adjusted Future Cost * (Discount Rate - Growth Rate) / ((1 + Discount Rate)^\()^N^u^m^b^e^r ^o^f ^Y^e^a^r^s\)- 1)
Annual Deposit = $59,960,611.34 * (0.09 - 0.04) / ((1 + 0.09)³ - 1)
Annual Deposit = $59,960,611.34 * 0.05 / (1.295029 - 1)
Annual Deposit = $2,998,030.57 / 0.295029
Annual Deposit = $12,154.67
Therefore, the required annual deposit to ensure that the amount needed for the overseas expansion will be available in three years is $12,154.67.
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