Answer:
790,000, i.e. $79 x 10,000= 790,000
. Yes, the manufacturer should change the design. 666,667 (when it goes from 1/10,000 to 1/15,000). It is 500,000 (when it goes from 1/10,000 but 1/20,000)
. No, the benevolent social planner would not agree with the manufacturer's decision.
Explanation:
In the estimates provided by the manufacturer, the total cost of the design is equivalent to $79 x 10,000= 790,000. There should be an alteration in the design to remove the necessary precautions. If the probability is different from the estimate provided by the manufacturer, the planner will disagree with the decision made by the manufacturer. For example, a change to 1/15000 will make the total cost to be approximately $666,667.
Answer:
= $53,463
Explanation:
To calculate the cash flow:
= (Interest paid over the past year + long-term debt paid ) + ( Cash paid in dividends - Equity Issued)
Cash flow from assets = ($29,193 + 21,490) + ($28,130 − 25,350)
= $50,683 + 2,780
= $53,463
Answer:
Julie purchased the acres 16 year ago
Explanation:
Imagine you are Julie at year cero about to purchase eleven acres of land. The seller tells you that in X amount of years it will value $34686 because it increases 5% each year. He also tells you that according to the Present Value formula, the eleven acres are worth today $15890.
The formula is:
PV=Ct/[(1+r)^n]
Ct= cash flow at t time
r= rate
n= period of time
To calculate how many years it will be worth $34686 you need to isolate n from the PV formula
<u>n=[ln(Ct/PV)]/ln(1+r)</u>
<u />
n=ln(34686/15890)/ln(1+0,05)
n=16
Answer:
Income statement using absorption costing.
Sales $756,000
Less Cost of Goods Sold
Opening Stock $0
Total Manufacturing Costs $655,000
Less Closing Stock ($104,800) ($550,200)
Gross Profit $205,800
Less Operating Expenses
Selling and administrative expenses:
Variable $35,000
Fixed $10,500 ($45,500)
Net Income $160,300
Explanation:
The Product cost is the to total of all manufacturing costs.
Answer:
The correct answer is option D.
Explanation:
A reduction in consumer confidence will cause the IS curve to move leftwards. The IS curve is short for the investment savings curve. It shows the equilibrium in the goods market. It shows different combinations of interest rates and income where the goods market is in equilibrium.
A change in consumer spending causes a shift in the IS curve. A reduction in consumer confidence will cause consumers to spend less. This reduction in consumer spending will further cause the IS curve to shift to the left.