Small company Lab Report Example | Topics and Well Written Essays - 1000 words

Small company - Lab Report Example a) Calculate in UK £ how much the company has to invest in each country. For your calculations use the US dollar exchange rates given in the table below. Lay out clearly how you work out each exchange rate. Work to four d.p. Question: To invest the company needs to borrow another  £110,000. There are two banks that are offering a ten year (the term) loan where interest is paid each year and the loan repaid at the end. Bank A is offering to lend the money at an interest rate of 2.1% compounded monthly. Bank B is offering to lend the money at an interest rate of 2.05% compounded weekly. Annual percentage rate (APR) is delineated as an annual rate is charged for borrowing. It is usually expressed as one percentage representing annual cost of funds over the term of a loan for a particular of time. The meaning of the possible negative portion of the graph is that the company can supply a lot to the market than what is demanded. Even with the excess supply there is a particular price tagged to it. As supply surpasses the demand, the prices will go down as the company lowers its production. The firm, should reduce what they produce to the market at this point. (a) Use the inverse demand and supply functions you worked out for task 4 and 5 and your knowledge of simultaneous equations to work out the equilibrium quantity for demand and supply for your company’s good by equating the two functions of P. (d) Plot on one graph with suitable scales etc the inverse supply and demand functions from task 4 and 5 to confirm your answer for the equilibrium demand and supply quantity and the equilibrium price you worked out above. Overall you have projected a 14.87% year on year return in investment for the company. If the company start with an investment of  £132,000 how long will it take the company to at least double its investment? The figures presented shows that the firm has good prospects and has various