Answer: (B) on the downward-sloping portion of its long-run average total cost curve.
Explanation:
The downward-sloping portion of a company's Long Run Average Total Cost(LRATC) curve is the part where increasing returns to scale is witnessed.
This is because the costs that are incurred by the company leads to higher proportional output thereby reducing the average cost and pulling the LRATC down.
In this scenario, the inputs doubled and the firm's level of production more than doubled which means that with outputs increasing more than costs, the Average cost is reducing and the slope is downward sloping.
Answer:
Net cash flow from investing activities is $47.2 million -$58.6 million =-11.4 million.
Explanation:
Draft Cashflow Statement.
Operating Activities; $0.0 million
Investing Activties;
Cash Inflows;
Sales of ; investment $32.0 million,plus sales of Land $15.2 million =$47.2 million.
Cash outflows; Purchase of ; treasury stock -$21.2, plus equipment -$25.2 million, plus patent -$12.2 million =-$58.6 million
Net cash flow from investing activities is $47.2 million less $58.6 million=-11.4 million.
Financing Activities;
Issues of common stock $40.4
Note that sales of own common stock is a financing activity
Answer:
Calculate PV of a 10-year annuity discounted at 6% interest rate; PV = $11,040.13.
Explanation:
Answer:
c. 2.50 years
Explanation:
In the payback, we analyze in how many years the invested amount is recovered. The computation is shown below:
In year 0 = $500
In year 1 = $150
In year 2 = $200
In year 3 = $300
If we sum the first 2 year cash inflows than it would be $350
Now we deduct the $350 from the $500 , so the amount would be $150 as if we added the fourth year cash inflow so the total amount exceed to the initial investment. So, we deduct it
And, the next year cash inflow is $300
So, the payback period equal to
= 2 years + ($150 ÷ $300)
= 2.50 years
In 2.50 yeas, the invested amount is recovered.