Answer:
3,400,000 accumulated depreciation, 36,600,000 book value
Explanation:
Cost - salvage = amount to be depreciated
40,000,000-6,000,000=34,000,000 amount to be deprecated
34,000,000/20 years =1,700,000 depreciation per year
1,700,000x2-3,400,000 accumulated depreciation after 2 years
40,000,000-3,400,000=36,600,000 book value
Discounted cash flow methods do not consider the present value of the cash flows after the recovery of the initial investment.
<h3>What is
cash flow?</h3>
A cash flow is a physical or virtual movement of money: a cash flow in its most limited sense is a payment, particularly from one central bank account to another.
A cash flow statement is divided into three sections: operating activities, investments, and financial activities.
Cash flow from assets is the sum of all cash flows related to a company's assets. This data is used to calculate the net amount of cash generated by or used in the operations of a business.
Companies should track and analyze three types of cash flows to determine the liquidity and solvency of their business: cash flow from operating activities, cash flow from investing activities, and cash flow from financing activities.
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Marginal revenue refers to the additional revenue gained from selling one more unit. It is simply the added revenue that will be produced by selling a product by one more unit. It is calculated by dividing the change in the revenue with the change in the total output of units.
Answer:
$38,400
Explanation:
<em>1. Cash Purchases:</em>
The total purchases in the month of March is of $35,000.
It is given that 70% of Purchases are for cash.
Hence, 70% of $35,000 would be;
$39,000 x 0.70
$27,300
<em>2. Credit Purchases:
</em>
Remaining Balance of Purchases from the month of February:
For the month of February Cash Purchases can be calculated as follows;
$37,000 x 0.70
$25,900
Remaining Balance to be paid in March for the month of February can be calculated as follows;
$37,000 - $25,900
$11,100
<em>3. CASH PAYMENT for PURCHASES in MARCH:</em>
Cash Purchases = $27,300
Credit Purchases = $11,100
Hence;
<em>Cash Payment for purchases in March = Cash Purchases + Credit Purchases
</em>
Cash Payment for purchases in March = $27,300 + $11,100
Cash Payment for purchases in March = $38,400
Answer:
The correct answer is C
Explanation:
Market failure is the situation of economic which is described as the inefficient distribution of the goods and services in the free market. Under this the incentives of the individual for rational behavior does not lead to the rational outcomes for the group of people.
The market failure occurs because of negative as well as positive externalities, lack of public goods, abuse of the monopoly power, environmental concerns, under provision of merit goods and over provision of demerit goods.
So, from the above options, the cause of the market failure involve the market power and the externalities.
