Answer:
We will consider positive interest rate which is i=0.21 or i=21%
Explanation:
The formula for Future value is:
The present value will become:
where:
n is the number of years
Since the condition is same present value,so the given data form the equation:
Divide above equation by 
Let 
. Above equation will become:
Rearranging above equation:
Solving the quadratic equation:
z=1.1, z=0.9
Let will become:
For z=1.1
For z=0.9
we will consider positive interest rate which is i=0.21 or i=21%
Answer:
C. the market demand curve understates the relative importance of the product and resources are therefore underallocated to its production.
Explanation:
Positive external benefits refer to third party positive side effects, above & beyond private marginal benefit to the concerned consumer.
Eg : Education - Its consumption not only affects the concerned person, but the positive trickle down to the people & society around.
Personal consumption decisions are based on : equalisation - of private marginal benefit (demand) curve & private marginal cost curve. However, goods having positive external benefits have real marginal benefit curve increased over private benefit curve, by the extent of extra marginal social benefit.
So, market demand (based on private marginal benefit) curve understates the importance of product, and resources are therefore underallocated to its production (due to undervaluation of demand).
Answer: B) economic responsibilities toward its shareholders
Explanation:
The primary purpose of a company is to maximize shareholder wealth. This means that it is to pursue strategy that would ensure the maximum return to its shareholders. This is also known as its economic responsibility towards shareholders.
Producing xylene-free paints reduces the dividends that are going to shareholders so it would seem that shareholder wealth is not being maximized and they are not getting the maximum return they could get so the company is violating its economic responsibilities towards shareholders. It is for a good cause though.
Answer:
Product costs= $259,700
Explanation:
Giving the following information:
Direct materials $ 168,800
Direct labor $ 90,900
<u>The product costs are all expenses directly involved in the production. It generally involves the prime costs (direct material and direct labor).</u>
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Product costs= direct material + direct labor
Product costs= 168,800 + 90,900
Product costs= $259,700
Answer:
Explanation:
Stockholder's Equity
Paid in Capital:
Common Stock $48,000,000
Paid in Capital in excess of Par - Common Stock $6,400,000
Paid in Capital from sale of Treasury Stock $4,500,000
[58,900,000]
Total Paid in Capital $58,900,000
Retained earnings $63,680,000
Total Paid in Capital & Retained Earnings $122,580,000
Deduct: Treasury Stock $5,200,000
Total Stockholder's Equity $117,380,000
