Answer:
The sunk costs of purchasing the machines is $3,400,000
Explanation:
The concept of sunk costs refer to costs that have been incurred by the entity which are not recoverable.
From the definition, it is clear since the machines have second-hand values,the portion of the costs not covered by the second-hand value is the sunk cost
Hence sunk costs could be derived by the formula below:
Sunk costs=Initial acquisition cost-Second-hand value
Initial acquisition costs=5*$1000000
Initial costs of acquisition =$5000000
Second-hand value=($500000*2)+($200000*3)
Second-hand value=$1600000
Sunk costs=$5000000-$1600000
Sunk costs=$3400000
the channel tunnel has been very popular with many people in the sentence
Answer: There is no revised estimate the option is still open to be exercise as agreed.
2. A report will be included in the 2019 financial report of the existence of the option.
Explanation:
The conditions attached to the option is the increase in revenue by 2% in five years and since we are in the first year no revision can be made to the option.
The existence of the option has to be mentioned in 2019 Financial report has a way of accounting for it's existence.
An increase in the interest rate should increase the demand for dollars and the value of the dollar, and net exports should decrease.Thus the correct answer is E.
<h3>What is Exports?</h3>
Exports is refers to sending of goods to foreign countries with the purpose of selling. The export help to strengthen the economy as ist brings more foreign currency into the country which boosts up the value of the economy.
An increase in the interest rate should increase the demand for dollars and the value of the dollar, and net exports should decrease. The demand for and value of the domestic currency rises when interest rates are higher because they tend to attract in foreign investment.
Therefore, option E is appropriate.
Learn more about Export, here:
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Your question is incomplete, probably the complete question/missing part is:"
An increase in the interest rate should ________ the demand for dollars and the value of the dollar, and net exports should ________.
increase; not change
decrease; decrease
decrease; increase
increase; increase
increase; decrease
Answer:
$2,000,000
Explanation:
The computation of the firm total corporate value is shown below:
The firm corporate value is
= Free cash flow for next year ÷ (weighted average cost of capital - growth rate)
= $100,000 ÷ (11.5% - 6.5%)
= $2,000,000
We simply applied the above formula to find out the firm corporate value
And ignored the required rate on equity i.e 14.5%
