Answer:
The answer would be PRICE SIGNALING
Explanation:
Price signaling may occur when consumers have imperfect information about product quality. To infer quality, consumers may rely on previous experience or may use some of the product’s observable characteristics, such as the product’s price. We examine the scenario whereby the firm can endogenously change consumers’ beliefs about the product’s quality by altering both the price and quality of its product. Our main findings are that, in this type of setting, price signaling causes the firm to raise its price, lower its quality, and dampen the degree to which it responds to cost shocks. If the cost of adjusting quality is sufficiently high, the dampening effect is pronounced in the downward direction, meaning that price signaling causes prices to respond less to cost decreases than cost increases.
Answer:
Present value = $21,804 (approx)
Explanation:
Given:
Periodic payment = $3,200
Number of period = 12
Interest rate = 10% = 10/100 = 0.1
Present value = ?
Computation of Present value:
![Present\ value = PMT[\frac{1-(1+r)^{-n}}{r} ]\\\\Present\ value = 3,200[\frac{1-(1+0.1)^{-12}}{0.1} ]\\\\Present\ value = 3,200[\frac{1-(1.1)^{-12}}{0.1} ]\\\\Present\ value = 3,200[\frac{1-0.318630818}{0.1} ]\\\\Present\ value = 3,200[\frac{0.681369182}{0.1} ]\\\\Present\ value = 21,803.6188](https://tex.z-dn.net/?f=Present%5C%20value%20%3D%20PMT%5B%5Cfrac%7B1-%281%2Br%29%5E%7B-n%7D%7D%7Br%7D%20%5D%5C%5C%5C%5CPresent%5C%20value%20%3D%203%2C200%5B%5Cfrac%7B1-%281%2B0.1%29%5E%7B-12%7D%7D%7B0.1%7D%20%5D%5C%5C%5C%5CPresent%5C%20value%20%3D%203%2C200%5B%5Cfrac%7B1-%281.1%29%5E%7B-12%7D%7D%7B0.1%7D%20%5D%5C%5C%5C%5CPresent%5C%20value%20%3D%203%2C200%5B%5Cfrac%7B1-0.318630818%7D%7B0.1%7D%20%5D%5C%5C%5C%5CPresent%5C%20value%20%3D%203%2C200%5B%5Cfrac%7B0.681369182%7D%7B0.1%7D%20%5D%5C%5C%5C%5CPresent%5C%20value%20%3D%2021%2C803.6188)
Present value = $21,804 (approx)
Answer:
Since there is not enough room here, I prepared the general ledger, the accounts receivable ledger and the schedule of accounts receivable in an excel spreadsheet (attached).
Explanation:
Answer:
The depreciation is $52,500
Explanation:
The formula to compute the depreciation under the straight-line method is shown below:
= 
= 
= $52,500
Under the straight-line method, the depreciation expense should be the same for the remaining useful life. Life of the equipment or machine should always be expressed in years, not in hours.
So, these usage of hours should be ignored.