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3 years ago

In two to three sentences, explain how a tariff on cars can reduce the demand for imported cars.

1 answer:

3 0

A tariff by definition is a tax to be paid on a particular class of imports or exports. so if people had to start paying extra for imported cars the demand for imported cars would be reduced and the demand for more domestic vehicles would rise.

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Machida Inc. is considering a project that is expected to produce cash inflows of $3,200 per year in years 1-4, with a final cas

PolarNik [594]

Answer:

The NPV = $1578.185602 rounded off to $1578.19

As the NPV is positive, the project should be accepted.

Explanation:

The Net Present Value or NPV is a tool used to evaluate projects. It is used with various other tools to decide whether to undertake a project or not. To calculate the Net Present Value or NPV, we take the present value of the cash inflows provided by the project and deduct the initial cost of the project. If the NPV is positive, we should proceed with the project and vice versa.

NPV = CF1 / (1+r) + CF2 / (1+r)^2 + ... + CFn / (1+r)^n - Initial Cost

Where,

CF1, CF2, ... represents cash flow in Year 1, Year 2 and so on.

r is the required rate of return

NPV = 3200 / (1+0.17) + 3200 (1+0.17)^2 + 3200 (1+0.17)^3 +

3200 (1+0.17)^4 + 5700 (1+0.17)^5 - 9800

NPV = $1578.185602 rounded off to $1578.19

4 0

3 years ago

Assume that three weeks before you and Lester are supposed to close your deal for the sale a twenty-acre tract of land, Lester c

Margaret [11]

Answer:

The answer is C

Explanation:

8 0

3 years ago

During the year, Sheldon Company had net credit sales of $ 47 comma 000. At the end of the year, before adjusting entries, th

Maru [420]

Answer:

The balance of allowance for doubtful accounts is $ 1,880

Explanation:

Computation of balance in Allowance for Bad Debts

Total credit sales $ 47 comma 000

Estimated bad debts as a % of sales 4 %

Balance of Allowance for Doubtful accounts $ 1,880

The balance is based on a % to credit sales basis. The bad debts expense for the year considers the balance in the allowance for doubtful accounts and the accounting entry is an adjustment amount.

4 0

4 years ago

James Corporation is planning to issue bonds with a face value of $502,500 and a coupon rate of 6 percent. The bonds mature in 7

sweet-ann [11.9K]

Answer:

Bond Price = $563,333.90007 rounded off to $563,333.90

Bond Price = $502500

Bond Price = $437232.16025 rounded off to $437232.16

Explanation:

To calculate the quote/price of the bond today, which is the present value of the bond, we will use the formula for the price of the bond. As the bond is a semi annual bond, we will use the semi annual coupon payment, semi annual number of periods and semi annual YTM. The formula to calculate the price of the bonds today is attached.

a. Case A: Market interest rate (annual): 4 percent

Coupon Payment (C) = 502500 * 0.06 * 6/12 = $15075

Total periods remaining (n) = 7 * 2 = 14

r or YTM = 4% * 6/12 = 0.02 or 2%

Bond Price = 15075 * [( 1 - (1+0.02)^-14) / 0.02] + 502500 / (1+0.02)^14

Bond Price = $563,333.90007 rounded off to $563,333.90

b. Case B: Market interest rate (annual): 6 percent

Coupon Payment (C) = 502500 * 0.06 * 6/12 = $15075

Total periods remaining (n) = 7 * 2 = 14

r or YTM = 6% * 6/12 = 0.03 or 3%

Bond Price = 15075 * [( 1 - (1+0.03)^-14) / 0.03] + 502500 / (1+0.03)^14

Bond Price = $502500

c. Case C: Market interest rate (annual): 8.5 percent.

Coupon Payment (C) = 502500 * 0.06 * 6/12 = $15075

Total periods remaining (n) = 7 * 2 = 14

r or YTM = 8.5% * 6/12 = 0.0425 or 4.25%

Bond Price = 15075 * [( 1 - (1+0.0425)^-14) / 0.0425] + 502500/(1+0.0425)^14

Bond Price = $437232.16025 rounded off to $437232.16

7 0

3 years ago

A __________ is an example of an external user of financial information.

Alchen [17]

<span>External users are people outside the business entity (organization) who use accounting information. Examples of external users are suppliers, banks, customers, investors, potential investors, and tax authorities.</span>

7 0

3 years ago