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3 years ago

What does the production possibility frontier show?

Business

2 answers:

Brrunno [24]3 years ago

8 0

Answer:

Show the maximum possible outcomes.

Explanation:

The production possibility curve depicts the maximum possible output that is a combination of two or more goods and services of the economy and are achieved when all resources are fully and efficiently used. Such as the availability of the technology and resources. The PPF works on the concept of scarcity, choice, and trade-offs.

inna [77]3 years ago

3 0

It shows the max possible output combinations of two goods or services an economy can get when all the resources are efficiently and fully used.

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Samuel, Inc. has Accounts Receivable of $110,000 and an Allowance for Doubtful Accounts of $17,000. If it writes-off a customer

Allushta [10]

Answer:

the net account receivable is d. $93,000

Explanation:

The computation of the net account receivable is shown below:

= (Account receivable - written off amount) - (Allowance for doubtful accounts - written off amount)

= ($110,000 - $1,700) - ($17,000 - $1,700)

= $108,300 - $15,300

= $93,000

Hence, the net account receivable is $93,000

We simply applied the above formula so that the correct value could come

And, the same is to be considered

7 0

3 years ago

When a firm produces 50,000 units of output, its total cost equals $6.5 million. When it increases its production to 70,000 unit

Komok [63]

Answer:

The marginal cost of an additional unit of output is $145

Explanation:

The computation of marginal cost of an additional unit of output is shown below:

= Change in total cost ÷ change in production level

where,

Change in total cost = Increased cost - previous cost

= $9.4 million - $6.5 million

= $2.9 million

Thus, change in total cost is $2.9 million

And, change in production level = New production level - existing production level

= 70,000 - 50,000

=20,000

Thus, change in production level is 20,000

Now,

Apply the above values in the formula which is equals to

= $2.9 million ÷ 20,000

= $145

Hence, the marginal cost of an additional unit of output is $145

8 0

3 years ago

A company has the opportunity to take over a redevelopment project in an industrial area of a city. No immediate investment is r

Ganezh [65]

Answer:

1-a. The are multiple IRRs stated as follows:

The first IRR value = 4.09%

Second IRR value = 31.82%

1-b. Rate of return = 7.58%

2. This is NOT a good investment because the NPV is negative.

Explanation:

Note: The estimated Net Cash Flow for the 4th year in the data is erroneously stated in the question as a positive value instead as a negative value since it is a cost.

The estimated net cash flows correctly before answering the question as follows:

Year End Net Cash Flow

1 $500,000

2 $300,000

3 $100,000

4 –$2,400,000

5 $150,000

6 $200,000

7 $250,000

8 $300,000

9 $350,000

10 $400,000

The explanation of the answers is now given as follows:

1-a. Tabulate the PW versus the interest rate and determine whether multiple IRRs exist.

Note: See Part 1-a of the attached excel file for the tabulation of the PW versus the interest rate.

From Part 1-a of the attached excel file, it can be observed that multiple IRRs exist. This is because there two IRRs stated as follows:

The first IRR value = 4.09%

Second IRR value = 31.82%

1-b. If so, use the ERR method when e 8% per year to determine a rate of return.

Note: See Part 1-a of the attached excel file for the calculation of total future value of income when e = 8% per year.

In the attached excel file, note that year 4 has a cost not income. Therefore,

From attached excel, we have:

Total Future Value of Income = $3,661,508.81

In the attached excel file, note that year 4 has a cost (not income) of $2,400,000. Therefore, it future value is not calculated. However, the present of the cost can be calculated as follows:

Present value of cost in year 4 = $2,400,000 / (100% + e)^4 = $2,400,000 / (100% + 8%)^4 = $1,764,071.65

The rate of return can now be calculated as follows:

Rate of return = ((Total Future Value of Income / Present value of cost in year 4)^(1/Number of period)) - 1 = (($3,661,508.81 / $1,764,071.65)^(1/10)) - 1 = 0.0758, or 7.58%

2. Use the PW method and a MARR of 18% to determine whether this is a good investment.

Note: See Part 2 of the attached excel file for the calculation of net present value (NPV).

From part 2 of the attached excel file, we have:

Net present value = –$21,043.15

Since the net present value is negative, this implies that this is NOT a good investment.

Download xlsx

5 0

2 years ago

What is one way investment consultants protect their clients’ money during periodic performance reviews?

mixas84 [53]

Answer:

Investment consultants check that the portfolio manager's performance was based on skill investing in the agreed-upon stocks or sectors

Explanation:

because it is

6 0

3 years ago

After the death of her husband, Gina Baker, 35, received a check for $350,000 from a life insurance company. Gina has two small

Tju [1.3M]

Answer: Safety

Explanation:

According to the given question, Gina is using the safety investment factor as it is one of the important factor in the investment program after her husband death and she is using the safety investment process for the purpose of securing her and the children's future.

The safety is basically stand for the simple agreement for the future equities and the secondary purpose of the investment program is to earn some interest money. The investment program is one of the type of monetary assets which is basically provide some profit in the future for example the mutual funds.

In the same way, the life insurance is one of the program in which the person makes the payment on some regular basis to the insurance company and after the persons; death the company give money to their family.

Therefore, Safety is the correct answer.

4 0

3 years ago