The answer is Ricardian Equivalence Theorem. It is an economic theory holding that customers are advancing looking and so adopt the government's budget restraint when making their consumption choices. People do ahead that a larger shortfall today will mean higher levies in the upcoming andregulate their expenditure as a result.
The choices are;
<span>a.57,000
b.60,000
c.75,000
d.63,000
Question
</span><span>How many units must Burlington produce
Given
12000 units on hand
</span><span>60,000 units expected production for the year
</span><span>15,000 units more for the year
</span>
Solution
N=is the number of units that Burlington has to produce. Subtract the already made units from the expected Burlington units for the year then add the additional units to be produced.
N = (6000-12000) +15000
N = 48000+15000
N= 63000 Answer
Sales = 19,630
Costs = 9,400
Gross Profit = 10,230
Depreciation = 2,070
Interest expense = 1,560
Earnings before tax = 6,600
Taxes at 30% = 1,980
Net Income = 4,620
Add back Depreciation = 2,070 (as it is an non cash expense)
Operating cash flow (OCF) = $ 6,690
Answer:
The correct answer would be, Customer's life time Value.
Explanation:
Subaru is an automobile company who is famous for its boxer engines in the cars above 1500 cc. Subaru is a division of Japanese transportation conglomerate.
A representative of Subaru has solid relationship with a customer, Phil. Phil is such a satisfied customer that he only wants Subaru every time he goes for a new purchase. Also he refers a lot of people to Subaru. The representative determines that if Phil continue to do so, his total value to the company would be $350,000. This figure includes Phil purchases as well as the purchases made by the people which he referred to Subaru. So this means, the representative has calculated the Phil's Lifetime Value.
$-9.48
Explanation:
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Cash flow = (revenue - cost - depreciation) (1 - tax rate) + depreciation
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
(400 - 0) / 5 = 80
(200 - 90- 80) x (1 - 0.32) + 80 = $100.40
Cash flow in year 0 = $-400
Cash flow each year from year 1 to 5 = $100.40
I = 9%
NPV = $-9.48
To find the NPV 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 NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
