Answer:
e. $89,337.60
Explanation:
Given that
The cost of the asset = $108,000
And, the MACRS rate is .2, .32, .192, .1152, .1152, and .0576 for years 1 to 6
So the accumulated depreciation at the end of the year 4 is
= ($108,000) × (0.2 + 0.32 + 0.192 + 0.1152)
= $108,000 × 0.8272
= $89,337.60
By multiplying the cost of the asset with the MACRS rate upto fourth year we can get the accumulated depreciation
Answer:
Monthly rent of $345 would maximize revenue
Explanation:
Revenue = Price * Quantity
Quantity depends on price. We need to work out the relationship between price and quantity (that is, the demand function)
When the rent is $420, quantity demanded is 90 units:
When P = 420 we have Q = 90
Let x be the change in price. For every 3 dollar increase (decrease) in price demanded quantity will decrease (increase) 1 unit:
P = 420 + x (a) we have Q = 90 - x/3 (b)
To find the relationship between P and Q we seek to eliminate x.
Multiply both sides of (b) with 3 we have: 3Q = 270 - x (b')
From (a) and (b') we have: P + 3Q = 420 + x + 270 - x
=> P = 690 - 3Q
Revenue R = P * Q = (690 - 3Q) * Q = 690Q - 3Q^2
To find maximum set derivative of R to 0:
dR = 690 - 6Q = 0
=> Q = 690/6 = 115
To lease 115 the price should be P = 690 - 3Q = 690 - 3*115 = 345
Answer:
The indicators may be an important factor will be the unemployment rate in the area
Explanation:
The federal tax rate in the that area, may no different that in other area and it can be pay if you have job, the other indicator could be is the producer price index but it can't tell you the economy as well just the productions and finally the CMI consume marginal index tell you more about life style in the zone, so that's why the indicator that is higgher influence is the unemployment rate because that determinate how many people around can pay and be able to grow economy way in the area, so t you can get return on investment
