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Alexxandr [17]
3 years ago
12

Calculate total GDP for this economy given the following components of supply. Round your answer to the nearest tenth and enter

the value in trillions of dollars (i.e. $xx.x trillion).Components of GDP on the Supply Side(in trillions of dollars)a. Durable goods 3.8
b. Nondurable goods 2.7
c. Services 12.2
d. Structures 2.1 Change in inventories 0 Total ?
Business
1 answer:
Sav [38]3 years ago
8 0

Answer:

<em>The GDP Rounded to the answer to the nearest ten = $21 trillion</em>

Explanation:

What Is GDP?

<em>Gross Domestic Product (GDP) is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period. As a broad measure of overall domestic production, it functions as a comprehensive scorecard of the country’s economic health. </em>

<em>Though GDP is usually calculated on an annual basis, it can be calculated on a quarterly basis as well.</em>

<em></em>

<em>Using the The Expenditure Method - Aggregate Demand (AD) the formula for GDP is: </em>

GDP = C + I + G + (Ex - Im),

where “C” equals spending by consumers,

“I” equals investment by businesses,

“G” equals government spending and

“(Ex - Im)” equals net exports, that is, the value of exports minus imports.

GDP =

C = 3.8 + 2.7 + 12.2 = $18.7 trillion

I = 2.1 + 0

GDP = 18.7 + 2.1 = <em>$20.8 trillion </em>

<em>GDP = $20.8 trillion </em>

<em />

<em>Rounding the answer to the nearest ten = $21 trillion</em>

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A firm with a WACC of 10% is considering the following mutually exclusive projects:
8090 [49]

Answer:

Option e is the correct answer.

As the NPV of project 1 is higher than Project 2's NPV, Project 1 is recommended,

Explanation:

To determine which project to choose, we will calculate the net present value (NPV) of both projects and the project with the higher NPV will be chosen.

NPV is the present value of the future cash flows inflows expected from the project less any initial cost. The formula for NPV is as follows,

NPV = CF1 / (1+WACC)  +  CF2 / (1+WACC)^2  +  ... +  CFn / (1+WACC)^n  -  Initial outlay

Where,

  • CF1, CF2,... is the cash flow in year 1, Year 2 and so on

NPV - Project 1 = 60 / (1+0.1)  +  60 / (1+0.1)^2  +  60 / (1+0.1)^3  +  

220 / (1+0.1)^4   +  220 / (1+0.1)^5  -  200

NPV - Project 1 = $236.076 rounded off to $236.08

NPV - Project 22 = 300 / (1+0.1)  +  300 / (1+0.1)^2  +  100 / (1+0.1)^3  +  

100 / (1+0.1)^4   +  100 / (1+0.1)^5  -  600

NPV - Project 2 = $126.1861 rounded off to $126.19

As the NPV of project 1 is higher than Project 2's NPV, Project 1 is recommended,

8 0
2 years ago
Two new software projects are proposed to a young, start-up company. The Alpha project will cost $530,000 to develop and is expe
Vsevolod [243]

Answer: See Explanation

Explanation:

The payback period for both projects would be calculated as:

Alpha Project

Cost = $530,000

Annual net cash flow = $60,000

Payback period = Cash / Annual net cash flow

= $530,000 / $60,000

= 8.83

Beta Project

Cost = $170,000

Annual net cash flow = $18,000

Payback period = Cash / Annual net cash flow

= $170,000 / $18,000

= 9.4

We can see that Alpha Project is better as the payback period is lesser than Beta project

3 0
3 years ago
Leach Inc. experienced the following events for the first two years of its operations:
11111nata11111 [884]

Answer:

a.1) <u>year 1</u>

Issued $10,000 of common stock for cash.

Dr cash 10,000

    Cr common stock 10,000

Provided $78,000 of services on account.

Dr accounts receivable 78,000

    Cr service revenue 78,000

Provided $36,000 of services and received cash.

Dr cash 36,000

    Cr service revenue 36,000

Collected $69,000 cash from accounts receivable.

Dr cash 69,000

    Cr accounts receivable 69,000

Paid $38,000 of salaries expense for the year.

Dr wages expense 38,000

    Cr cash 38,000

Adjusted the accounting records to reflect uncollectible accounts expense for the year.  Leach estimates that 5 percent of the ending accounts receivable balance will be uncollectible.

Dr bad debt expense 450

    Cr accounts receivable 450

Closed the revenue account. Closed the expense account.

Dr service revenue 114,000

    Cr income summary 114,000

Dr income summary 38,450

    Cr wages expense 38,000

    Cr bad debt expense 450

Dr income summary 75,550

    Cr retained earnings 75,550

<h2>b.1) income statement year 1</h2>

Service revenue           $114,000

Expenses:

  • Wages $38,000
  • Bad debt $450    <u>($38,450)</u>

Net income                   $75,550

<h2>balance sheet year 1</h2>

Assets:

Cash $77,000

Accounts receivable $8,550

total assets                                           $85,550

Equity:

Common stock $10,000

Retained earnings $75,550

total equity                                            $85,550

<h2>statement of cash flows year 1</h2>

Cash flows form operating activities:

Net income                                      $75,550

adjustments:

Increase in accounts receivable     <u>($8,550)</u>

net cash from operating activities  $67,000

Cash flow from financing activities:

Common stocks issued                   <u>$10,000</u>

Net cash increase                           $77,000

beginning cash balance                <u>          $0</u>

Ending cash balance                      $87,000

a.2) <u>Year 2:</u>

Wrote off an uncollectible account for $650.

Dr bad debt expense 650

    Cr accounts receivable 650

Provided $88,000 of services on account.

Dr accounts receivable 88,000

    Cr service revenue 88,000

Provided $32,000 of services and collected cash.

Dr cash 32,000

    Cr service revenue 32,000

Collected $81,000 cash from accounts receivable.

Dr cash 81,000

    Cr accounts receivable 81,000

Paid $65,000 of salaries expense for the year.

Dr wages expense 65,000

    Cr cash 65,000

Adjusted the accounts to reflect uncollectible accounts expense for the year.  Leach estimates that 5 percent of the ending accounts receivable balance will be uncollectible.

Dr bad debt expense 745

    Cr accounts receivable 745

<h2>b.2) income statement year 2</h2>

Service revenue             $120,000

Expenses:

  • Wages $65,000
  • Bad debt $1,395    <u>($38,450)</u>

Net income                      $53,605

<h2>balance sheet year 2</h2>

Assets:

Cash $125,000

Accounts receivable $14,155

total assets                                           $139,155

Equity:

Common stock $10,000

Retained earnings $129,155

total equity                                            $139,155

<h2>statement of cash flows year 2</h2>

Cash flows form operating activities:

Net income                                      $53,605

adjustments:

Increase in accounts receivable     <u>($5,605)</u>

net cash from operating activities  $48,000

Net cash increase                           $48,000

beginning cash balance                <u> $77,000</u>

Ending cash balance                    $125,000

c) net realizable value of accounts receivable at year 1 = $8,550

net realizable value of accounts receivable at year 2 = $14,155

7 0
3 years ago
Not to sure abt my ans.. i need some confirmation lol
koban [17]

Answer:

your answer is correct

Explanation:

4 0
3 years ago
Approximately how much should be accumulated by the beginning of retirement to provide a $2,500 monthly check that will last for
makkiz [27]

Answer:

B. $323,900.00

Explanation:

Nper = 300 periods

Rate = 8%/12

FV = 0    

PMT = $2500  

Amount to be Accumulated = PV(Rate,Nper,PMT,FV)

                                               = PV(8%/12,300,2500,0)

                                               = $323911.31

Therefore, The amount to be accumulated by the beginning of retirement to provide a $2,500 monthly check that will last for 25 years is $323,900 .

7 0
3 years ago
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