Answer:
$392,000
Explanation:
Double-declining-balance method is (2/useful life) x cost -accumulated depreciation)
cost = purchase price - residual value
2/5 x( 1000000-20000)
= $392,000
<span>This is a price cap regulation. Because the firm cannot go over a certain price, the price is said to be capped. Regulations like this prevent firms from overcharging their customers, and promote good business ethics. It may slow the growth of the firm, but the cost comes at the benefit of the customer.</span>
Answer:
if they have a high variable cost, the business will make no money and would probably start to loose money, to the point where they go out of business. So they have to keep the variable cost low, manufacture their products with a low price, and sell their products high to make money and keep the business going.
Answer:
the expected yield to maturity for bond C in 1 year :
1.0799³ = 1.06 x (1 + r)²
1.188 = (1 + r)²
√1.188 = √(1 + r)²
1.08999 = 1 + r
r = 0.08999 = 9%
the yield to maturity of zero-coupon bonds = (future value / present value)¹/ⁿ - 1
0.09 + 1 = ($1,000 / value in 1 year)¹/²
1.09 = ($1,000 / value in 1 year)¹/²
1.09² = $1,000 / value in 1 year
value in 1 year = $1,000 / 1.09² = $1,000 / 1.1881 = $841.68 ≈ $842