The net present value of the proposed project is closest to -$80,822.
Since the project saves $80,000 in costs each year, we treat these savings income for the next 4 years. We then calculate the Present value Interest Factor of an annuity using the formula :
PVIF of an annuity = { [ 1 - [ (1+r)⁻ⁿ ] } ÷ r
PVIF of an annuity = { [ 1 - [ (1.09)⁻⁴ ] } ÷ 0.09
PVIF of an annuity = 3.240 (rounded to three decimals)
PV of the cost savings = (3.240*80000) = $2,59,178 (rounded to nearest $)
NPV = PV of cost savings - Value of investment
NPV = 2,59,178
- 3,40,000
Answer:
The income tax expense for 2021 income statement is $101 million as computed in the explanation section below.
Explanation:
The income tax expense in the year 2021 is the income taxes payable while adding the reduction in deferred tax asset or deducting the increase in deferred tax asset plus the portion of the current deferred tax asset not realizable using the applicable tax rate as found below:
Income tax payable $90 million
deduct;increase in deferred tax asset($170-$130) ($40 million)
Add;unrealized deferred tax asset($170*30%) $51 million
Income tax expense for 2021 income statement $101 million
Answer:
B) a monopolist's demand curve is the same as the market demand curve
Explanation:
The demand curve is downward sloping for both monopolies and competitive markets. Rational consumers will always buy larger quantities of products or services when their prices are lower, and inversely will buy less when the price if higher. This applies to all types of markets except monopsonies (a lot of suppliers and only one consumer).
Answer:
The accounting cost and the economic cost associated with Joe's computer software business is $75,00 and the $165,000 respectively.
Explanation:
The computation of the accounting cost and the economic cost is shown below:
Accounting cost = Other Expenses + Salary paid to himself
= $35000 + $40,000
= $75,000
Economic cost = Accounting cost + Salary expense + Rent expenses
= $75,000 + $65,000 + $25,000
= $165,000
Answer:
<em>Provide clear statements</em>
<em>The government can pay for projects to create work</em>
Explanation:
