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3 years ago

When the government decreases spending or increases taxes to slow economic expansion, the government is conducting:?

1 answer:

6 0

Contractionary Fiscal Policy
There are two methods used to control the economy one which is a monetary policy which has to do with the federal reserve and then there is a fiscal policy which certain parts of government have control of. So since the question states government is the one responsible we know that it has to be a type of fiscal policy. Because the economy is moving too fast and they may want to slow it down to prevent inflation or a future recession, they will use contractionary fiscal policy to slow down growth by increasing taxes or decreasing spending.

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Broadway Inc. is considering a new musical. The initial investment required is $880,000. Every year, the free cash flow from the

masya89 [10]

Answer:

Broadway Inc.

a. NPV of the project:

= $120,000 ($1,000,000 - 880,000)

b. Expected NPV of the project if the company cannot abandon the project:

= $120,000 ($1,000,000 - 880,000)

c. True NPV if the company can abandon the project after the first year:

= NPV = $74,080 - $880,000

= -$805,920

d. Value of the option to abandon:

= NPV = $74,080 - $880,000

= -$805,920

Explanation:

a) Data and Calculations:

Initial investment cost = $880,000

Assumed cost of capital = 8%

Expected annual free cash inflow = $80,000 in perpetuity

NPV = PV of Cash inflows minus PV of Cash outflows

PV of a perpetuity = Expected Annual Cash Inflows divided by cost of capital

= $80,000/0.08

= $1,000,000

$80,000 * 0.926 = $74,080

NPV = $74,080 - $880,000

= -$805,920

b) Broadway's Present Value of its perpetual annual cash inflow is calculated by dividing the cash inflow by the rate of interest, which is the cost of capital.

3 0

4 years ago

A partial listing of costs incurred at archut corporation during september appears below: direct materials $ 113,000 utilities,

Murrr4er [49]

Calculation of Total Manufacturing Overhead Costs:

Manufacturing overhead costs are indirect costs incurred in relation to the production.

From the given information manufacturing overhead costs shall include factory Utilities $5,000, Indirect labor $ 25,000, depreciation of production equipment $ 20,000

Hence the Total Manufacturing Overhead Costs shall be (5000+25000+20000)=<u>$50,000</u>

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3 years ago

Which economic policy was most successful during the Great Depression? A. raising taxes B. bilateral trade pacts C. establishing

charle [14.2K]

The answer is either d or a

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3 years ago

6. A listing broker should:

irina [24]

A listing broker should c. suggest a listing price based on comparable market data.

What does the term "listing broker" mean?

Listing brokers and listing agents are normally paid only if the sale is successful. A listing broker, often known as a seller's agent, is in charge of representing the interests of those wishing to sell a property. Historically, a commission for selling a house has typically been in the range of 6% of the selling price. The listing broker or agent and the buyer's or selling agent each receive an equal share of the commission. The most frequent type of listing agreement is an exclusive right to sell listing. For a predetermined amount of time, the broker has the sole authority to market the property under the terms of this agreement.

To know more about broker click on the link below:

brainly.com/question/17011472

#SPJ1

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1 year ago

Having an absolute disadvantage in all products means that a country:

aksik [14]

In one unit of time, that country cannot produce more of any product than the competing country.

Let Country 1 (C1) produce either 1 of product X or 1 of product Y in 1 day.
Let Country 2 (C2) produce either 2 or product X or 2 of product Y in 1 day.

C1 has the absolute disadvantage in both products because it cannot produce more than C2 in either product at the end of the day.

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3 years ago