The amount of the salvage may be calculated using various equations. We are given that the sound tracker is retired about some time and this was initially bought at $41,000. However, we are given that the accumulated depreciation is also equal to $41,000.
Since the initial payment is similar to the accumulated depreciation hence, the salvage value is zero.
Answer:
$24.86
Explanation:
The estimated stock of Zephyrl is $50
This is for a period of 5 years
The rate of return is 15%
Therefore the price that will be paid for this stock can be calculated as foloes
50= x (15/100^5)
50= x (0.15+1^5)
50= x (1.15^5)
50= 2.0113x
Divide both sides by the coefficient of x
= 50/2.0113
= 24.86
Hence the price that will be paid for the stock is $24.86
Answer:
A). equal to marginal revenue.
Explanation:
A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
Price = marginal revenue = average revenue
Answer:
S.S.S. should not purchase the shopping center because its NPV is negative, i.e. -$1,952,890.30
Explanation:
Note: See the attached file to see how the net present value is calculated.
From the file, it can seen that the project will result in a negative NPV of $1,952,890.30. Therefore, S.S.S. should not purchase the Shopping center.
Answer:
b. $311,600
Explanation:
For the computation of total contribution margin first we need to find out the contribution margin per unit which is shown below:-
Contribution Margin per Unit = Contribution Margin ÷ Units Sold
= 319,200 ÷ 8,400
= $38
Total Contribution Margin = Contribution Margin per Unit × Units Sold
= $38 × 8,200
= $311,600
Therefore for computing the total contribution margin we simply applied the above formula.
