Answer:
$1,025
Explanation:
Given that,
Initial physical capital per worker = 200 units
Percentage increase in physical capital per year = 10%
Initial output per worker = $1,000
Holding human capital and technology constant,
1% increase in physical capital per worker = 0.25% increase in the output per worker
Hence, if there is a 10% increase in physical capital each year then the increase in output per worker each year is calculated as follows:
= 10 × 0.25%
= 2.5%
Therefore, the estimated output per worker equal after one year:
= Initial output per worker + Increase in output per worker each year
= $1,000 + ($1,000 × 2.5%)
= $1,000 + $25
= $1,025
Answer:
It will take 6 years and 183 days to cover for the investment.
Explanation:
Giving the following information:
Cash flow:
Cf1 trough 3= 100
Cf4 trough 8= 75
Initial investment= 475
<u>The payback period is the time required to recover the initial investment.</u>
Year 1= 100 - 475= -375
Year 2= 100 - 375= -275
Year 3= 100 - 275= -175
Year 4= 75 - 175= -100
Year 5= 75 - 100= -25
Year 6= 75 - 25= 50
To be more accurate:
(25/50)*365= 183
It will take 6 years and 183 days to cover for the investment.
Answer:
C. increase by about 6 percent.
Explanation:
Since,
Sales = $ 120,
Original expenses = $ 65
Thus, contribution margin ratio = 
New expenses = $ 58,
Thus, contribution margin ratio = 
∵ 52 - 46 = 6,
Hence, the CMR is increased by 6%.
OPTION C is correct.
Answer:
6.875%
Explanation:
In order to compute the real return, first, we have to determine the after-tax return which is shown below:
After-tax return = Pre-tax return - tax rate of Pre-tax return
= 14.5% - 25% × 14.5%
= 14.5% - 3.625%
= 10.875%
And, the inflation rate is 4%
So, the real return would be
= 10.875% - 4%
= 6.875%
