Answer:
The correct answer is Double-declining-balance. The highest net income in year 2 is 6000.
This higher net income don´t mean the machine was used more efficiently under this depreciation method.
Explanation:
In the file attached you will find a depreciation schedule for each of the alternative methods.
Each method need different calculus.
Straight-line
depreciation expense=(Original Value -Residual Value)/Useful life=
depreciation expense=4400
Units-of-production
estimated productive life 10000
Units of Production Rate=(Original Value -Residual Value)/estimated productive life=2,2
Double-declining-balance.
Depreciation rate = 1/useful life *100= 20,00%
Answer:
the after-tax cost of debt is 13.24
Explanation:
The after-tax cost of debt is the initial cost of debt as a result of the incremental income tax rate.
The after-tax cost of debt is dependent on the incremental tax rate of a business. If profits are low, a business would pay low tax rate, which means that the after-tax cost of debt will increase. Also, if the business profits increase, they would pay higher tax rate, so its after-tax cost of debt will decline.
Given that:
Required return (r) = 11.50% = 0.0115
The yield on a 20-year treasury bond (y) = 5.50% = 0.055
beta (b) = 1.29
rs = y + (r -y) x b
after-tax cost of debt = 5.50% + (11.50% - 5.50%) x 1.29
after-tax cost of debt = 13.24%
Answer:
0.22 and substitutes goods
Explanation:
The computation of the cross-price elasticity of demand using mid point formula is shown below:
= (change in quantity demanded ÷ average of quantity demanded) ÷ (percentage change in price ÷ average of price)
where,
Change in quantity demanded is
= Q2 - Q1
= 180,603 - 194,108
= -13,505
And, the average of quantity demanded is
= (180,603 + 194,108) ÷ 2
= 187,356
Change in price is
= P2 - P1
= $2.43 - $3.36
= -$0.93
And, the average of price is
= ($2.43 + $3.36) ÷ 2
= 2.895
So, after solving this, the cross - price elasticity is 0.22
Since the cross - price elasticity is positive that reflect the goods are substitutes to each other
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
D
Explanation:
its is D because why not ight
