Answer: Machine B because it has the lower Present Value
Explanation:
<h2>
Machine A</h2>
= Present Value of income - Present Value of Costs
Present value of Income;
Sold for $5,000 after 10 years.
= 5,000/ (1 + 8%)^10
= $2,315.97
Present Value of Costs;
Purchased for $48,000.
Maintenance of $1,000 per year for years.
Present value of maintenance= 1,000 * Present value factor of annuity, 10 years, 8%
= 1,000 * 6.7101
= $6,710.10
Machine A Present Value
= 2,315.97 - 6,710.10 - 48,000
= -$52,394
<h2>
Machine B</h2>
No salvage value.
Present Value of costs
Purchased for $40,000.
Present value of maintenance = (4,000 / (1 + 8%)^3) + (5,000 / ( 1 + 8)^6) + (6,000 / ( 1 + 8%)^8)
= -$9,567.79
Present Value = -40,000 - 9,567.79
= -$49,568
Answer:
<u>A) private-sector entrepreneurs can expropriate the profits generated by the efforts of private and public entities.</u>
Explanation:
- As there exist four basic structures of the market economy in the form of perfect competition, imperfect competition, oligopoly, and monopoly.
- Thus without any legal system of trade in the market economy, the profits that are generated by the public and private sectors can be taken away by these entities as a large number of small firms tends to compete in the market against each other with there homogenous products.
- Thus under such circumstances, the market economy would deprive all the profits made by the other forms in the market and put barriers to entry for others. Buyers thus will be deprived of the quality products.
Answer:
Consider the following calculations
Explanation:
A. Dividend per Share = Dividend Payout Ratio * Earnings Per Share
Putting the values given to calculate dividend per share we get,
Stages DPS = Payout Ratio * EPS DPS
Stage 1 =0.00*$0.30 $0
Stage 2 = 0.13*1.95 $0.25
Stage 3 =0.31 * $ 2.80 $0.868
Stage 4 = 0.56*$3.40 $1.90
b. Calculation of Investors After Tax Income from Cash Dividend:-
Cash Dividend = Number of Shares * DPS in Stage IV
= 290 * $ 1.90
= $552.16
After Tax Income = DIvidend ( 1 - Tax Rate)
= $ 552.16 ( 1- 0.15)
= $ 469.34
C:- In Stage II and Stage III for Growth & Expansion respectively, the firm is likely to utilise stock dividend or stock split.
Answer:
Explanation:
Ultimately, the onus is on the state government to balance the checkbook, so the state has to decide the benefits maximum amount, duration, and eligibility to receive the benefits. For this reason, you notice that unemployment benefits largely vary by state. Some states like Massachusetts could pay as high as $1,220 depending on the eligibility criteria.
Answer:
Inventory balance will be of 73,318
Explanation:
Inventory 75,400
Account payable 75,400
to record goods received
Account payable 1,300
Inventory 1,300
to record return of goods
Inventory 700
Cash 700
to record payment of freight
Account Payable 74,100
Inventory 1,482
Cash 72,618
to record payment of invoice within discount period
75,400 - 1,300 = 74,100
74,100 x 2% = 1,482
Inventory balance:
<em> DEBIT CREDIT</em>
75,400
1,300
700
1,482
<u><em>balance: </em></u>
73,318
