Answer:
It is more profitable to sell the units as-is.
Explanation:
Giving the following information:
Number of units= 12,600
Varto has two alternatives for these items:
(1) they can be sold to a wholesaler for $13 each
(2) they can be processed further for $272,300 and then sold for $34 each.
The first cost of $31 is a sunk cost, it will remain no matter which option is chosen. We will not take it into account for the decision making process.
Option 1:
Effect on income= 12,600*13= $163,800
Option 2:
Effect on income= 12,600*34 - 272,300= $156,100
It is more profitable to sell the units as-is.
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Answer: investment Income
Explanation: By Carrying the Investment at fair Value or by using equity method would ensure that the investment income is spread adequately across the Corporation over the years be it two years or three years. This would also help the corporation to make proper planning around their budget and finances as regards to units in the corporation.
Answer:
You need to deposit $58,481.53 today.
Explanation:
a) Data and Calculations:
Future value expected = $125,000
Period of investment = 7 years
Interest rate = 11% compounded quarterly
The amount of deposit needed today to earn $125,000 in 7 years at annual interest rate of 11% is calculated as follows:
N (# of periods) 28
I/Y (Interest per year) 11
PMT (Periodic Payment) 0
FV (Future Value) 125000
Results
PV = $58,481.53
Total Interest $66,518.47
Answer:
A. $1.5 trillion and $2.5 trillion, respectively
Explanation:
Given that
GDP = 11 Trillion
Tax = 2.5trillion
C = 7 trillion
Recall that
Private Savings = Disposable Income - Consumption
Disposable income = GDP - Tax
= 11 - 2.5
= 8.5
Private savings = 8.5 - 7
= 1.5 trillion.
National Savings = Private Savings + Budget balance
Given that
Budget balance = 1 trillion
Therefore,
National Savings = 1.5 + 1
= 2.5 trillion.