Answer:
At the rate of return of 18%, the purchase of the new machine is not convenient.
Explanation:
Giving the following information:
Simone Company is considering the purchase of a new machine costing $50,000. It is expected to save $9,000 cash per year for 10 years, has an estimated useful life of 10 years, and no salvage value. Management will not make any investment unless at least an 18% rate of return can be earned.
We need to find the net present value using the following formula:
NPV= -Io + ∑[Cf/(1+i)^n]
Cf= cash flow
NPV= -50,000 + 9,000/1.18 + 9,000/1.18^2 + 9,000/1.18^3 + ... + 9,000/1.18^10
NPV= -9,553
At the rate of return of 18%, the purchase of the new machine is not convenient. It will produce a loss in value.
Explanation:
There are no deficits or surpluses in terms of output, no obstacles to the entry or exit of businesses on the market, and the number of customers is so high that it is only the economic demand that decides the value of the products in the market. Thus, the reality is that the market is completely open. All producers earn normal profit and both manufacturers and consumers accept the commodity price.
In comparison, a monopoly market competition can be defined as a business environment where one entity or group of companies dominates the supply market and thus controls output factors. In this case, the monopolist decides the price of the goods on the market, as the competition is always strong. Free entry or departure from companies is not allowed in a monopolistic competitive market.
The short-term and long-term production or profitability are the same in the case of a fully competitive market. Since the production factors are often under control and fully meet the demand and supply of the market. In the shorter term and that in the long run, a perfect competition business will see stable and strong economic growth. In the case of a business or corporation which is fully competitive, there is no distinction between the competitors ' profit margins and all companies have the same rate of profit.
Answer:
being robbed
Explanation:
dont laugh i know you are lol
Diplomacy best describes Jeremy’s ability to interact with his co-workers.
Answer:
$13,593,750
Explanation:
For computing the value of the firm, first, we have to determine the price per share which is shown below:
Price per share = Borrowing amount ÷ Number of repurchase shares
= $750,000 ÷ 8,000 shares
= $93.75
Now the value of the firm would be
= Outstanding shares × Price per share
= 145,000 shares × $93.75
= $13,593,750
