Answer:
They must deposit $5,113,636.36.
Explanation:
Giving the following information:
Cash flow= $225,000
Interest rate= 4.4 percent
To determine the amount to be deposited today, we need to use the perpetual annuity formula:
PV= Cf/i
Cf= cash flow
PV= 225,000/0.044
PV= $5,113,636.36
They must deposit $5,113,636.36.
A. Which Firm will have Higher Profits in a Recession Period ?
During a recession period trade and industries are unsuccessful and there is allot of unemployment. During the period supply in the market and level of output in the company are likely to be low. Robotic automated process seems to be relatively cheap under high production output in a firm. Also the cost of maintenance of machinery is quite high which the firm can`t cater for during the period. In this period human workers are more recommended as the cost of production will be accounted for due to small numbers of employees where the cost of wages and salaries is quite low.
B. Which Firm will have a Higher Profit During a Boom?
During a boom the industry experiences a period of economic success as demand in the market is high. Automated robotics process are machines and carry out their work with allot of efficiency. Compared to human beings they are relatively faster and more efficient. This will will help the industry meet its high level of production target. They also reduce the cost of production as their maintenance cost is low under large scale production. Human workers seem expensive during this period because cost of wages and salaries is subject per-head.
The Firm with a Higher Beta.
The automated robotics firm will have a higher beta this is because the output will be high leading to increased supply and sale for better profitability. The robots will also function as an asset to the firm increasing the net worth to the company.
Answer:
Instructions are below.
Explanation:
Giving the following information:
According to the standard cost card, each helmet should require 0.55 kilograms of plastic, for $7.00 per kilogram.
First, we need to calculate the standard quantity of plastic to make 3,600 units.
Standard quantity= standard direct material required per unit* numbers of units
Standard quantity= 0.55*3,600= 1,980 kg
Now, we can determine the standard cost:
Standard cost= 1,980kg* $7= $13,860
Answer:
58,333.33
Explanation:
Opportunity cost is the value of the next best alternative. It is the forgone benefits as a result of choosing one option over the others. Opportunity cost occurs due to the scarcity of resources that forces people to make choices. The value of the sacrificed option is the opportunity cost.
If the cost of constructing a new home is 120,000, the opportunity cost of one house equals the next best alternative of spending the 120,000. With a budget of 7 billion, the opportunity cost of spending 7 billion will be 7 billion divided by 120,000.
=7,000,000,000/120,000
=58,333.33
