Answer:
(a) Firms could possibly respond to unions demands for higher wages by hiring fewer workers.
(b) Firms could possibly respond to unions demands for higher wages by substituting capital for labor.
Explanation:
Unions are formed to work toward better working conditions and welfare of staff.
Workers act collectively to negotiate better terms of employment with the employers.
However when unions try to negotiate for increased pay the employer may take different actions that will bad for the employee.
The employer may decide to actually pay the higher wage but hire fewer workers. This is usually the case when higher wages for many employees will result in loss for the employer.
Secondly the employer may substitute capital for labour. For example investing more in use of machines and reducing labour.
From the employer's viewpoint this will result in lower labour cost due to higher wage payment
what is contract theory
Answer:
the study of how people and organizations construct and develop legal agreements. It analyzes how parties with conflicting interests build formal and informal contracts, even tenancy.
Answer:
Contract theory is the study of how people and organizations construct and develop legal agreements. ... Contract theory draws upon principles of financial and economic behavior as different parties have different incentives to perform or not perform particular actions
Explanation:
Social contract theory, nearly as old as philosophy itself, is the view that persons' moral and/or political obligations are dependent upon a contract or agreement among them to form the society in which they live
"What are the results of a contractionary monetary policy, which intends to slow down the economy, and what are not? You are currently in a sorting module. Turn off browse mode or quick nav, Tab to items, Space or Enter to pick up, Tab to move, Space or Enter to drop. Is a result of a contractionary monetary policy (tight money policy) Is not a result of contractionary monetary policy (tight money policy)"
Answer:
Contractionary monetary policy usually results in:
lower money supplyhigher interest rateslower inflation rateslower investment rateslower nominal gross domestic producthigher unemploymentdecrease in consumer spendingaggregate demand curve shifts to the left
Answer: It can decrease inflation.
Explanation:
Medical clinic office: Medical case files of deceased patients. Which transfer method? explain your decision?
Answer: Perpetual
Explanation:
It is best to use the perpetual transfer method because the medical case files on deceased patient should be transferred immediately seeing as the patient is no longer alive.
Using a periodic transfer method would mean that files are only transferred at certain times even though the patient may have been deceased for some time.
TB MC Qu. 08-93 A company has established... A company has established 5 pounds of Material J at $2 per pound as the standard for the material in its Product Z. The company has just produced 1,000 units of this product, using 5,200 pounds of Material J that cost $9,880.The direct materials price variance is: Multiple Choice $520 unfavorable. $400 unfavorable. $120 favorable. $520 favorable. $400 favorable.
Answer:
Direct material price variance= $520 favorable
Explanation:
To calculate the direct material price variance, we need to use the following formula:
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (2 - 1.9)*5,200
Direct material price variance= $520 favorable
Actual price= 9,880 / 5,200= $1.9
During a(n) _____ interview, all applicants will be asked the exact same questions.
structured
open
inquiry
behavioral
Answer:
structured is the correct answer.
Explanation:
on edge.
Coronado Industries reported revenue of $1650000 in its accrual basis income statement for the year ended June 30, 2021. Additional information was as follows: Accounts receivable June 30, 2020 $405000 Accounts receivable June 30, 2021 521000 Uncollectible accounts written off during the fiscal year 16000 Under the cash basis, Coronado should report revenue of
Answer:
$1,518,000
Explanation:
Prepare a Total Accounts Receivable T Account to determine the revenue received in cash, which is the revenue to be reported under the Cash Basis.
Total Accounts Receivable T Account
Debit :
Beginning Balance $405000
Revenue $1650000
Total $2,055,000
Credit :
Cash (Balancing figure) $1,518,000
Uncollectible accounts written off $16000
Ending Balance $521000
Total $2,055,000
Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below:
Standard Quantity or Hours Standard Price or Rate Standard Cost
Direct materials 7.90 pounds $2.10 per pound $16.59
Direct labor 0.50 hours $5.00 per hour $2.50
During the most recent month, the following activity was recorded:
a. 14,850.00 pounds of material were purchased at a cost of $2.00 per pound.
b. All of the material purchased was used to produce 1,500 units of Zoom.
c. 600 hours of direct labor time were recorded at a total labor cost of $4,200.
Required:
1. Compute the materials price and quantity variances for the month.
2. Compute the labor rate and efficiency variances for the month.
Answer:
Results are below.
Explanation:
To calculate the direct material price and quantity variance, we need to use the following formulas:
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (2.1 - 2)*14,850
Direct material price variance= $1,485 favorable
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Direct material quantity variance= (7.9*1,500 - 14,850)*2.1
Direct material quantity variance= $6,300 unfavorable
To calculate the direct labor efficiency and rate variance, we need to use the following formulas:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor time (efficiency) variance= (1,500*0.5 - 600)*5
Direct labor time (efficiency) variance= $750 favorable
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Direct labor rate variance= (5 - 7)*600
Direct labor rate variance= $1,200 unfavorable
Actual rate= 4,200/600= $7
Supler Corporation produces a part used in the manufacture of one of its products. The unit product cost is $21, computed as follows: Direct materials $ 7 Direct labor 6 Variable manufacturing overhead 3 Fixed manufacturing overhead 5 Unit product cost $ 21 An outside supplier has offered to provide the annual requirement of 2,900 of the parts for only $13 each. The company estimates that 60% of the fixed manufacturing overhead cost above could be eliminated if the parts are purchased from the outside supplier. Assume that direct labor is an avoidable cost in this decision. Based on these data, the financial advantage (disadvantage) of purchasing the parts from the outside supplier would be: Multiple Choice ($3) per unit on average $3 per unit on average $6 per unit on average ($8) per unit on average
Answer: $6 per unit on average
Explanation:
Since 60% of the fixed manufacturing overhead can be eliminated when the parts are bought from an outside supplier, therefore (100% - 60%) = 40% are unavoidable when when it buys from suppliers outside.
Therefore, the unit product cost when the parts are bought will be:
= Purchase cost + Unavoidable fixed manufacturing overhead
= $13 + ( 40% * $5 )
= $15
Then, the financial advantage (disadvantage) will be:
= $21 - $15
= $6
Therefore, the correct option is $6 per Unit on average.
In a two-player, one-shot simultaneous-move game each player can choose strategy A or strategy B. If both players choose strategy A, each earns a payoff of $400. If both players choose strategy B, each earns a payoff of $200. If player 1 chooses strategy A and player 2 chooses strategy B, then player 1 earns $100 and player 2 earns $600. If player 1 chooses strategy B and player 2 chooses strategy A, then player 1 earns $600 and player 2 earns $100.
Required:
a. Write the above game in normal form.
b. Find each player’s dominant strategy, if it exists.
c. Find the Nash equilibrium (or equilibria) of this game.
d. Rank strategy pairs by aggregate payoff (highest to lowest).
e. Can the outcome with the highest aggregate payoff be sustained in equilibrium? Why or why not?
Answer:
a) attached below
b) Player 1 dominant strategy = when he chooses strategy B
Player 2 dominant strategy = when he chooses strategy B
c) Strategy A is the Nash equilibrium
d) AA = $800
AB , BA = $700
BB = $400
e) Yes
Explanation:
A) The Game written in Normal form
attached below
B) Determine each player dominant strategy
Player 1 dominant strategy = when he chooses strategy B
Player 2 dominant strategy = when he chooses strategy B
C) The Nash Equilibrium of the game is when Both players choose strategy A because when they both choose Strategy they both earn $400 each
D) Ranking strategy pairs from Highest to lowest
AA = $800
AB , BA = $700
BB = $400
E) The outcome can be sustained
because The Nash equilibrium is the same as the highest ranking strategy pair ( i.e. AA = $800 )
An airline knows that there are two types of travelers: business travelers and vacationers. For a particular flight, there are 100 business travelers who will pay $600 for a ticket while there are 50 vacationers who will pay $300 for a ticket. There are 150 seats available on the plane. Suppose the cost to the airline of providing the flight is $20,000, which includes the cost of the pilots, flight attendants, fuel, etc.
Required:
a. How much profit will the airline earn if it sets the price of each ticket at $600?
b. How much additional profit can the airline earn by charging each customer their willingness to pay relative to charging a flat price of $600 per ticket?
Answer: it would be 100 business travlers who will pay 600$ for a ticket
Explanation: well if you do the math 600×100=60,00 and that would pay for the airline expenses and extra the other option wouldnt be enough because it would only add up to 15,000 300×50=15,00 so it would be enough
advantages and disadvantages of proxemics
Answer:
Advantages of non-verbal communication are a compliment, substitute, attraction, express, helps physically challenged
Replenishing the Petty Cash Fund
illustration: On March 15 Zhu Ltd's petty cash custodian
requests a check for NT$2,610. The fund contains NT$390
cash and petty cash receipts for postage NT$1,320, freight-out
NT$1,140, and miscellaneous expenses NT$150. The journal
entry is:
Answer:
Explanation:
Postage expense. 1320
freight out. 1140
miscellaneous exp. 150
Cash. 2610
to replenish petty cash account
note that pettty cash is only debited or credited when you are increasing Or decreasing the petty cash fund. This entry appears to be only replenishing the petty cash account.
Swifty Company manufactures and sells three products. Relevant per unit data concerning each product are given below. Product A B C Selling price $9 $14 $18 Variable costs and expenses $6 $12 $15 Machine hours to produce 2 1 2 Compute the contribution margin per unit of limited resource (machine hours) for each product. (Round contribution margin per unit to 2 decimal places, e.g. 1.50.) Product A Product B Product C Contribution margin per unit of limited resource $ $ $ Assuming 3,000 additional machine hours are available, which product should be manufactured
Answer:
Product A = 1.50
Product B = 2
Product C = 1.50
Explanation:
Contribution margin = (price - variable cost) / total number of hours
Product A = ($9 - $6) / 2 = 1.50
Product B = ($14 - $12) / 1 = 2
Product C = ($18 - $15) / 2 = 1.50
Product B would be produced because its contribution margin is the highest
Stahl Company was incorporated as a new business on January 1, 2019. The company is authorized to issue 600,000 shares of $2 par value common stock and 80,000 shares of 6%, $20 par value, cumulative preferred stock. On January 1, 2019, the company issued 75,000 shares of common stock for $15 per share and 5,000 shares of preferred stock for $25 per share. Net income for the year ended December 31, 2019, was $500,000.
Required:
Prepare the stockholders’ equity section of the balance sheet for Stahl Company.
Answer:
Stahl Company
Stockholders' Equity section of the balance sheet
As of December 31, 2019
Authorized shares:
Common Stock, 600,000 at $2 par value
6%, Preferred Stock, 80,000 at $20 par value
Issued shares:
Common stock, 75,000 at $2 par value $150,000
6% Preferred stock, 5,000 at $20 par value 100,000
Additional Paid-in Capital, Common stock 975,000
Additional Paid-in Capital, 6% Preferred stock 25,000
Retained earnings, December 31, 2019 500,000
Total equity $1,750,000
Explanation:
a) Data and Calculations:
Authorized shares:
Common Stock, 600,000 at $2 par value
6%, Preferred Stock, 80,000 at $20 par value
Issued shares:
Cash $1,125,000 Common stock $150,000 Additional Paid-in Capital, Common stock (75,000 * $13) $975,000
Cash $125,000 6% Preferred stock, $100,000 Additional Paid-in Capital, 6% Preferred stock $25,000 ($5 * 5,000)
Retained earnings, December 31, 2019 = $500,000
Dinkins Inc. is considering disposing of a machine with a book value of $50,000 and an estimated remaining life of five years. The old machine can be sold for $15,000. A new machine with a purchase price of $150,000 is being considered as a replacement. It will have a useful life of five years and no residual value. It is estimated that variable manufacturing costs will be reduced from $70,000 to $45,000 if the new machine is purchased.
Determine the net differential increase or decrease in cost for the entire five years for the new equipment.
Answer:
$10,000 increase
Explanation:
The computation of the net differential increase or decrease in cost for the entire five years for the new equipment is as follows:
Particulars Keep the Replace the Effect on Cost
old mach. new mach.
Cost of 5 years 350,000 225000 -125000.00
Investment in new machine 0 150000.00 150000.00
Salvage value of old machine 0 -15000.00 -15000.00
Increase in cost 350,000 360000.00 10000.00
Why do governments usually support and regulate natural monopolies?
A two or more firms are cost-prohibitive
B competition makes prices lower in a natural monopoly
C owners of natural monopolies do not know how to manage them efficiently
D itis difficult to keep up with advancing technology
Answer:
c
Explanation:
A monopoly is when there is only one firm operating in an industry. there are usually high barriers to entry of firms. the demand curve is downward sloping. it sets the price for its goods and services.
An example of a monopoly is a utility company
A natural monopoly occurs due to the high start-up costs or a large economies of scale.
Natural monopolies are usually the only company providing a service in a particular region. there is no competition in a natural monopoly so prices tend to be high. government intervenes in a monopoly to ensure that customers are treated fairly
Suppose we want to estimate the effects of alcohol consumption (alcohol) on college grade point average (cGPA). In addition to collecting information on grade point averages and alcohol usage, we also obtain attendance information (say, percentage of lectures attended, called attend). A standardized test score (say, SAT) and high school GPA (hsGPA) are also available
(i) Should we include attend along with alcohol as explanatory variables in a multiple regression model? (Think about how you would interpret beta-alcohol.)
(ii) Should SAT and hsGPA be included as explanatory variables? Explain.
Answer: See explanation
Explanation:
(i) Should we include attend along with alcohol as explanatory variables in a multiple regression model? (Think about how you would interpret beta-alcohol.)
No. We should not include attend along with alcohol as explanatory variables in a multiple regression model. This is due to the fact that a high degree of negative correlation exists between attend along with alcohol and including both of them will bring about multi collinearity.
(ii) Should SAT and hsGPA be included as explanatory variables? Explain.
Yes. SAT and hsGPA should be included as explanatory variables. This is important to overcome bias of the model.
(i) So according to me, my answer will be No. We should not include Attend along with alcohol as explanatory variables in multiple factors of the regression model. This is due to the fact that is a high degree of negative correlation exists between the attend also, along with alcohol, and including both of them will bring about multicollinearity.
(ii) When the variables of SAT AND hsGPA my answer will be Yes. SAT and HSDPA should be included as explanatory variables. This is most important to overcome the bias of the model.
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The information in the table is from the statement of cash flows for a company at four different points in time (M, N, O, and P). Negative values are presented in parentheses.
For each point in time, state whether the company is most likely in the introductory phase, growth phase, maturity phase, or decline phase.
Point in Time
M N O P
Net cash provided by
operating activities $(60,000) $30,000 $120,000 $(10,000)
Cash provided by
investing activities (100,000) 25,000 30,000 (40,000)
Cash provided by
financing activities 70,000 (90,000) (50,000) 120,000
Net income (38,000) 10,000 100,000 (5,000)
Answer: m-introductory phase
n-decline phase
o-maturity phase
p-growth phase
Explanation:
For M, based on the values given, the company is in the introductory phase. This is the product's cycle first stage where a particular product is being launched into the market.
For N, based on the values given, the company is in the decline phase. This is the phase where there's reduction in sales and profits stop.
For O, based on the values given, the company is in the maturity phase. This is the stage of whereby the growth of the sales has started to reduce.
For P, based on the values given, the company is in the growth phase. This is the stage whereby the product gains acceptance among the consumers, and the public as a whole. There'll also be an increase in the sales and revenue.
Waterways has discovered that a small fitting it now manufactures at a cost of $1.00 per unit could be bought elsewhere for $0.83 per unit. Waterways has fixed costs of $0.20 per unit that cannot be eliminated by buying this unit. Waterways needs 474,000 of these units each year. If Waterways decides to buy rather than produce the small fitting, it can devote the machinery and labor to making a timing unit it now buys from another company. Waterways uses approximately 500 of these units each year. The cost of the unit is $13.26. To aid in the production of this unit, Waterways would need to purchase a new machine at a cost of $2,369, and the cost of producing the units would be $10.00 a unit. Without considering the possibility of making the timing unit, evaluate whether Waterways should buy or continue to make the small fitting. The company should (buy/Make) the fitting. Incremental cost / (savings) will be ____________$
Answer:
Particulars Make Buy Incremental cost
Manufacturing cost $474,000 $474,000
Purchase $393,420 ($393,420)
(474,000*$0.83)
Fixed Cost $94,800 ($94,800)
(474,000*$0.20)
Total relevant cost $474,000 $488,220 ($14,220)
Conclusion: The company should make the fitting and the incremental savings will be $14,220
Jeff, a 52% owner of an S corporation, has a stock basis of zero at the beginning of the year. Jeff's basis in a $10,000 loan made to the corporation and evidenced by a corporate note has been reduced to zero by pass-through losses. During the year, his net share of the corporate taxable income is $11,000. At the end of the year, Jeff receives a $15,000 cash distribution.
Discuss the tax effects of the distribution.
Answer:
See below
Explanation:
In order to restore any reduction in loan basis, only the net increase is applied in line with section 1367(b)(Adjustment to basis of stocks of shareholders).
What this means is that there is no net increase regarding the information given above I.e ($11,000 - $15,000).
We can safely conclude that there is $11,000 tax free income since the stock basis has been increased by $11,000. There is also a $4,000 capital gain.
EllaJane Corporation was organized several years ago and was authorized to issue 4,000,000 shares of $50 par value 4% preferred stock. It is also authorized to issue 1,750,000 shares of $1 par value common stock. In its fifth year, the corporation has the following transactions: Mar. 1 Purchased 2,500 shares of its own common stock at $14 per share.
Apr. 10 Reissued 1,250 shares of its common stock held in the treasury for $18 per share.
Jun. 12 Reissued 1,250 shares of common stock at $12 per share.
Journalize the transactions.
Answer:
Ellajane Corporation - Journal Entries
Date Particulars Debit Credit
1-Mar Treasury Stock $35,000
To Cash $35,000
(Being 2500 shares of treasury stock purchased at $14 per share)
10-Apr Cash A/c (1250*$18) $22,500
To Treasury Stock (1250*14) $17,500
To Additional Paid in Capital $5,000
(Being 1250 shares of treasury stock sold at $18 per share)
12-Jun Cash A/c (1250*12) $15,000
Additional Paid in Capital A/c $2,500
To Treasury Stock (1250*14) $17,500
(Being 1250 shares of treasury stock sold at $12 per share)
_____ Web sites are dedicated to employment opportunities with a given city, state, or country.
Education
Industry
Government
Corporate
Answer:
the answer is government
Lunar coast Incorporated issued BBB bonds two years ago that provided a yield to maturity of 12.5
percent. Long-term risk-free government bonds were yielding 8.5 percent at that time. The current
risk premium on BBB bonds versus government bonds is half of what it was two years ago. If the riskfree long-term government bonds are currently yielding 7.8 percent, then at what rate should Lunar
coast expect to issue new bonds
Answer:
"9.80%" is the appropriate solution.
Explanation:
The given values are:
Yield to maturity,
= 12.5%
Risk free gov. bond,
= 8.5%
Long terms gov. bond,
= 7.8%
Now,
The current speed between bonds such as BBB as well as government will be:
= [tex]\frac{12.5-8.5}{2}[/tex]
= [tex]\frac{4}{2}[/tex]
= [tex]2.00 \ percent[/tex]
hence,
The expected rate will be:
= [tex]7.8+2.00[/tex]
= [tex]9.80 \ percent[/tex]
Assume that Jones Co. will need to purchase 100,000 Singapore dollars (S$) in 180 days. Today's spot rate of the S$ is $.50, and the 180-day forward rate is $.53. A call option on S$ exists, with an exercise price of $.52, a premium of $.02, and a 180-day expiration date. A put option on S$ exists, with an exercise price of $.51, a premium of $.02, and a 180-day expiration date. Jones has developed the following probability distribution for the spot rate in 180 days: The probability that the forward hedge will result in a higher payment than the options hedge is ____ (include the amount paid for the premium when estimating the U.S. dollars required for the options hedge).
Answer:
10%
Explanation:
Based on the information given The PROBABILITY that the FORWARD HEDGE will tend to result in a higher payment than the OPTIONS HEDGE is 10% which indicate or means that Jones will pay the amount of $48,000 calculated as ( $.48 *$100,000) which is lower or lesser than the amount of $58,000 calculated as ( $.53 *$100,000) that was been paid with the forward hedge.
On October 1, 2021, the Allegheny Corporation purchased equipment for $148,000. The estimated service life of the equipment is 10 years and the estimated residual value is $5,000. The equipment is expected to produce 260,000 units during its life.Required:Calculate depreciation for 2021 and 2022 using each of the following methods. Partial-year depreciation is calculated based on the number of months the asset is in service.
Answer:
Missing word: "1. Straight line. 2. Double-declining balance. Depreciation rate(20%)"
1. Straight line depreciation
Annual Depreciation = Cost - Salvage / Estimated Useful Life (years)
Annual Depreciation = $143,000 / 10
Annual Depreciation = $14,300
Depreciation Expenses = Annual Depreciation * Fraction of Year
2021: Depreciation Expenses = 14300 * 3/12
Depreciation Expenses = $3575
2022: Depreciation Expenses = 14300 * 12/12
Depreciation Expenses = $14,300
2. Double-declining balance
Depreciation Expense = Beginning of period Book value * Depreciation rate(%) * Fraction of Year
2021: Depreciation Expense = $148000 * 20% 3/12
Depreciation Expense = $7400
Book Value = Beginning of period Book value - Accumulated Depreciation
Book Value = $148000 - $7400
Book Value = $140,600
2022: Depreciation Expense = $140,600 * 20% * 12/12
Depreciation Expense = $35,520
Book Value = Beginning of period Book value - Accumulated Depreciation
Book Value = $140,600 - $35,520
Book Value = $105,080
The stockholders’ equity section of Velcro World is presented here.
VELCRO WORLD
Balance Sheet (partial)
($ and shares in thousands)
Stockholders' equity:
Preferred stock, $1 par value $ 5,800
Common stock, $1 par value 28,000
Additional paid-in capital 1,028,600
Total paid-in capital 1,062,400
Retained earnings 286,000
Treasury stock, 12,000
Common shares (360,000)
Total stockholders' equity $ 988,400
Based on the stockholders' equity section of Velcro World, answer the following questions. Remember that all amounts are presented in thousands.
1. How many shares of preferred stock have been issued? (Enter you answer in total number of shares, not in thousands.)
2. How many shares of common stock have been issued? (Enter you answer in total number of shares, not in thousands.)
3. If the common shares were issued at $30 per share, at what average price per share were the preferred shares issued?
4. If retained earnings at the beginning of the period was $250 million and $30 million was paid in dividends during the year, what was the net income for the year? (Enter your answer in million (i.e., 5,000,000 should be entered as 5).)
5. What was the average cost per share of the treasury stock acquired?
Answer:
Velcro World
1. Prefered stock issued = 5,800,000
2. Common stock issued = 28,000,000
3. Average price of preferred stock = $38
4. Net income for the year = $66
5. Average cost per share of the treasury stock acquired = $30
Explanation:
a) Data and Calculations:
VELCRO WORLD
Balance Sheet (partial)
($ and shares in thousands)
Stockholders' equity:
Preferred stock, $1 par value $ 5,800
Common stock, $1 par value 28,000
Additional paid-in capital 1,028,600
Total paid-in capital 1,062,400
Retained earnings 286,000
Treasury stock, 12,000 (360,000)
Total stockholders' equity $ 988,400
1. Prefered stock issued = 5,800,000
2. Common stock issued = 28,000,000
3. Additional paid in capital = 1,028,600,000
less common stock (part) 812,000,000 ($29 * 28,000,000)
Preferred stock (part) 216,600,000
add Preferred stock 5,800,000
Total preferred stock value 222,400,000
Average price = 222,400,000/5,800,000 = $38
4. Retained earnings at the end = $286,000,000
add dividends paid during the year 30,000,000
Retained earnings at the beginning = $250,000,000
Net income for the year = $66,000,000
$66
5. Average cost per share of the treasury stock acquired = $360,000,000/12,000,000 = $30
You got asked to analyze a 5 year project for your firm. The project produces an annual revenue of $28,500, but requires an annual labor and materials cost of $5,000. To initiate the project your firm must invest $20,000. The salvage value of the project is $5,000 and has a 5 year useful life.
Use straight line depreciation and a 40% income tax rate to compute the after tax cash flows and the IRR for the ATCF of this project.
Answer:
15,300
72.70%
Explanation:
After tax cash flow = (revenue - cost - depreciation) (1 - tax rate) + depreciation
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
($20,000 - $5,000) / 5 = $3,000
($28,500 - $5,000 - $3000) x (1 - 0.4) + $3000 = $15,300
Terminal year cash flow = after tax cash flow + salvage value
$15,300 + $5,000 = $20,300
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
IRR can be calculated with a financial calculator
Cash flow in year 0 = $20,000.
Cash flow in year 1 - 4= $15,300
Cash flow in year 5 = $20,300
IRR = 72.70%
To find the IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
Communication starts with
sender
is answer..
........
An investment firm recommends that a client invest in bonds rated AAA, A, and B. The average yield on AAA bonds is %, on A bonds %, and on B bonds %. The client wants to invest twice as much in AAA bonds as in B bonds. How much should be invested in each type of bond if the total investment is $, and the investor wants an annual return of $ on the three investments.
Answer:
The investor should invest $4,000 in AAA bonds, $3,000 in A bonds, and $2,000 in B bonds.
Explanation:
Note: This question is not complete as all the data in it are omitted. The complete question with the omitted is therefore presented before answering the question as follows:
An investment firm recommends that a client invest in bonds rated AAA, A, and B. The average yield on AAA bonds is 5%, on A bonds 6%, and on B bonds 9%. The client wants to invest twice as much in AAA bonds as in B bonds. How much should be invested in each type of bond under the following conditions? How much should be invested in each type of bond if the total investment is $9,000, and the investor wants an annual return of $560 on the three investments.
The explanation of the answer is now given as follows:
From the question, we have:
AAA = 2B
Total investment is therefore as follows:
2B + A + B = $9,000
3B + A = $9,000 …………………………. (1)
Annual return is also as follows:
(5% * 2B) + (6% * A) + (9% * B) = $560
0.1B + 0.06A + 0.09B = $560
0.1B + 0.09B + 0.06A = $560
0.19B + 0.06A = $560 …………………. (2)
From equation (1), we have:
A = $9,000 – 3B …………………………. (3)
Substituting A from equation (3) into equation (2), we have:
0.19B + 0.06($9,000 – 3B) = $560
0.19B + 540 – 0.18B = $560
0.19B – 0.18B = $560 - $540
0.01B = $20
B = $20 / 0.01
B = $2,000
Since:
AAA = 2B
Therefore, we have:
AAA = 2 * $2,000
AAA = $4,000
Substituting B = $2,000 into equation (3), we have:
A = $9,000 – (3 * $2,000)
A = $9,000 - $6,000
A = $3,000
By implication, we have total investment as follows:
AAA + A + B = $4,000 + $3,000 + $2,000 = $9,000
Therefore, the investor should invest $4,000 in AAA bonds, $3,000 in A bonds, and $2,000 in B bonds.
The following graph compares the greenhouse gas emissions from different forms of electricity production.
A bar graph of C O 2 equivalent emissions for full energy chain in grams per kilowatt hour lists the minimum and maximum values for the following sources: Coal, 860, 1290; Oil; 689, 890; Gas, 460, 1234; Hydro, 16, 410; Nuclear, 9, 30; wind, 11, 75; Solar P V, 30, 279; and Biomass, 37, 116.
Which conclusion is supported by the information in the graph?
Nuclear power releases less greenhouse gases than other forms of power.
Nuclear power releases an average amount of greenhouse gases.
Nuclear power releases no greenhouse gases.
Nuclear power releases more greenhouse gases than other forms of power.
Answer:
A.Nuclear power releases less greenhouse gases than other forms of power.
Explanation:
correct on edge
Nuclear power releases fewer greenhouse gases than other forms of power is supported by the information in the graph. Thus, option A is correct.
What is electricity production?The oxidation-reduction reactions in MFCs produce electrical energy as the consequence of the release, movement, and reception of electrons from biological processes. comparable emissions across the entire energy chain
The cheapest and greatest values are shown in a graph with bars of the C O 2 comparable emissions for the entire energy chain in grams per kilowatt hour.
That's because nuclear reactors harness fission, an anatomical procedure that separates uranium atoms and produces heat, to make tremendous quantities of energy. Compared to other kinds of energy, nuclear power emits fewer greenhouse emissions.
Therefore, option A is correct.
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