Since it says “Double” it means you’re multiplying by 2 each time. So the answer is 8,000.
(17-18) 1,000x2=2,000
(18-19) 2,000x2=4,000
(19-20) 4,000x2=8,000
Answer:
d. where price is equal to average fixed cost.
Explanation:
Firms involved in a perfectly competitive market face the same cost, <em>they will theoretically make zero profit on the long run.</em> This happen at the point where price is equal to average fixed cost.
Answer:
Using break-even analysis in your feed and grain business can help you understand and examine the profit drivers of your business. It is a very useful tool that can help you understand how much you need to sell to cover your costs and how pricing, cost, and volume changes impact these needed sales.
Answer:
the company should buy and install the press because the NPV of the project is positive ($73,133.75)
Explanation:
the MACRS 5 year depreciation:
- $375,000 x 20% = $75,000
- $375,000 x 32% = $120,000
- $375,000 x 19.2% = $72,000
- $375,000 x 11.52% = $43,200
- $19,800, since salvage value at year 5 is $45,000
- $0 x 5.76% = $0
salvage value $45,000
total initial investment = $375,000, discount rate = 11%
- cash flow year 1 = {($142,000 - $15,000 - $75,000) x (1 - 34%)} + $75,000 = $109,320
- cash flow year 2 = {($142,000 - $2,000 - $120,000) x (1 - 34%)} + $120,000 = $133,200
- cash flow year 3 = {($142,000 - $2,000 - $72,000) x (1 - 34%)} + $72,000 = $116,880
- cash flow year 4 = {($142,000 - $2,000 - $43,200) x (1 - 34%)} + $43,200 = $107,088
- cash flow year 5 = {($142,000 - $2,000 - $19,800) x (1 - 34%)} + $19,800 + $45,000 = $144,132
the NPV of the project = -$375,000 + $109,320/1.11 + $133,200/1.11² + $116,880/1.11³ + $107,088/1.11⁴ + $144,132/1.11⁵ = $73,133.75
Explanation:
*Free fuel
*One of the cleanest form of energy
*Advance of technology
*Reduce our dependence of fossil fuel
*Doesn't disrupt farmland operations
