Answer:
Present Value= $14,285.71
Explanation:
Giving the following information:
You are thinking of building a new machine that will save you $1,000 in the first year.
The machine will then begin to wear out so that the savings decline at a rate of 2 % per year forever.
Interest rate= 5%
We need to use the formula of a perpetual annuity. Because of the wear out, we need to sum it to the interest rate the 2%
PV= Cf/(i-wear put)
PV= 1,000 / (0.05 + 0.02)= $14,285.71
Research determined that the campaign was very successful
Answer:
$83,000
Explanation:
The computation of the actual manufacturing overhead cost is shown below:
= Indirect labor + depreciation on plant + machinery repair + plant supplies + plant utilities
= $11,000 + $48,000 + $11,000 + $6,000 + $7,000
= $83,000
Only these five items would be considered as a actual manufacturing cost. The rest of the items would be ignored
Answer:
The private savings as a share of the GDP must have declined.
Explanation:
according to the twin deficit hypothesis:
budget deficit = savings + trade deficit - investments
the government deficit as a share of GDP declined and investment as a share of GDP remained constant that means that the savings should decline.
If inc. jones reported net income of $60,000 during the period. rex will report its 30% of the earnings with a <u>credit</u> to earnings from equity method investment in the amount of <u>$18,000</u>.
<h3>
Equity method investment</h3>
Since rex. co hold 30 percent of the shares of stock in jones inc which in turn means that jones will report 30% of the earning (net income) which is $18,000 calculated as (30%×$60,000).
The amount of the earnings which is $18,000 will be credited to earning from equity method investment.
Equity method investment=30%×$60,000
Equity method investment=$18,000 (credited)
Therefore If inc. jones reported net income of $60,000 during the period. rex will report its 30% of the earnings with a <u>credit</u> to earnings from equity method investment in the amount of <u>$18,000</u>.
Learn more about Equity method investment here:brainly.com/question/18187746
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