Answer:
$51,000
Explanation:
The computation of the new equipment cost is shown below:
= Fair market value + loss recorded
where,
Fair market value is $50,000
And, the loss is computed by taking the difference between the cost and accumulated depreciation. And, after that deduct it from the trade in allowance
In mathematically,
Book value = Cost - accumulated depreciation
= $41,000 - $36,000
= 5,000
Now, the loss would be
= Trade in allowance - book value
= $4,000 - $5,000
= ($1,000)
Now put these values to the above formula
So, the value would be equal to
= $50,000 + $1,000
= $51,000
Answer:
A perfectly competitive firm will minimize its losses by shutting down when: P < TFC at the profit-maximizing level of output. P < MC at the profit-maximizing level of output.
Explanation:
A firm will choose to implement a production shutdown when the revenue received from the sale of the goods or services produced cannot cover the variable costs of production. In this situation, a firm will lose more money when it produces goods than if it does not produce goods at all. Producing a lower output would only add to the financial losses, so a complete shutdown is required. If a firm decreased production it would still acquire variable costs not covered by revenue as well as fixed costs (costs inevitably incurred). By stopping production the firm only loses the fixed costs.
Answer:
Year Cashflow [email protected]% PV
$ $
1 150 0.8929 134
2 150 0.7972 120
3 150 0.7118 107
4 250 0.6355 159
5 300 0.5674 170 6 600 0.5066 <u>304 </u>
<u> 994</u>
Explanation:
In this case, we will discount the cashflow for each year at 12% per annum. The discount factor can be obtained by using the formula (1 + r)-n. Then, we will multiply the cashflows by the discount factors in order to obtain the present values. All the present values will be added up.
Answer:
- They are related to Brokerage firms
- Brokerage firms issuing stocks will always encourage investors to buy rather than sell off their stocks.
Explanation:
Sell-side analysts mostly work for various brokerage firms hence the reason why they are too optimistic in their recommendations to buy stocks while they are also too slow to recommend sells .
And Brokerage firms will always encourage investors to buy their shares or stocks ( buy-side) instead of selling off their shares or stocks
