Answer: $900,599.04
Explanation:
The present purchasing power equivalent is the present worth of this investment.
The investment will earn 5% for the first 7 years and then 9% for the next 10.
As there are different rates, the present worth calculation will have to reflect that.
At the end of the first 7 years, the present worth of the invested amount given 10 more years of investing at 9%. The Present worth is;
= 3,000,000(Present worth factor, 9%, 10 years)
= 3,000,000 * 0.4224
= $1,267,200
Then what is the Present worth of $1,267,200 in the current year given that it will be invested for 7 years at 5% to get to $1,267,200.
= 1,267,200 (Present worth factor, 5%, 7 years)
= 1,267,200 * 0.7107
= $900,599.04
Answer:
$1,025
Explanation:
Given that,
Initial physical capital per worker = 200 units
Percentage increase in physical capital per year = 10%
Initial output per worker = $1,000
Holding human capital and technology constant,
1% increase in physical capital per worker = 0.25% increase in the output per worker
Hence, if there is a 10% increase in physical capital each year then the increase in output per worker each year is calculated as follows:
= 10 × 0.25%
= 2.5%
Therefore, the estimated output per worker equal after one year:
= Initial output per worker + Increase in output per worker each year
= $1,000 + ($1,000 × 2.5%)
= $1,000 + $25
= $1,025
Answer:
Procurement department is the best suited answer
Explanation:
Emma is following the procedure of procurement here as it is the responsibility of procurement to search the desired product and negotiate it. It is the job of procurement department to issue purchase orders, develops term contracts, and acquires supplies and services. Although it is the higher authorities to have a final say but it is the job of procurement department to enlist and gather all the information for the higher authorities.
Answer: To know the amount of tax the business should pay from reported profit which is different from it's actual tax bill
Explanation:
Income tax expense could be described as what is calculated that the company owes in taxes according to accounting rules. They are reported on the income statement.
While Income tax payable is described as the actual amount the company owes in taxes based on the rules of tax code. They appear on the balance sheet of the company accounting documents until the bills are cleared off or paid.
The reason for understanding the difference is to know the amount of tax the business should pay from reported profit which is different from it's actual tax bill
Answer:
Option (a) is correct.
Explanation:
Given the marginal utility per dollar for the two products as follows:
All the individuals wants to maximize their utility that is obtained from the consumption of goods. We can see that marginal utility per dollar of product A is higher than the marginal utility per dollar of product B which means that this consumer should purchase more quantity of product A and less quantity of product B.
It is going on until the point at which marginal utility per dollar of both the products becomes equal.
