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Sever21 [200]
3 years ago
14

a decline in discpsable incomeAssume a machine that has a useful life of only one year costs $2,000. Assume also that net of suc

h operating costs as power, taxes, and so forth, the additional revenue from the output of this machine is expected to be $2,300. If the firm finds it can borrow funds at an interest rate of 10%, the firm should
Business
1 answer:
Vlad1618 [11]3 years ago
6 0

Answer:

The firm should purchase the machine.

Explanation:

let the expected rate of return be x :

x = 2000 + 20000x% = 2300  

= 300/20

= 15%

Therefore, The expected rate of return (15%) exceeds interest rate (10%) of fund, the firm should purchase the machine.

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In 3-4 sentences describe how economic liberty helps water the "money tree" in a free enterprise.
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Answer:

It helps giving you the ability to choose what you think is best for your business

Explanation:

Vic, using the money tree metaphor is awesome in order to explain. Think about your free enterprise (let’s say… a store that sells trees!).

What you need in order to start and run a business? A place to sell those trees, employees, products, infrastructure, etc., and capital to fund all that. All that business plans and models that you will develop in order to have a successful business will require that you make economic decisions, actions. And, in order to make those decisions, you need economic liberty, which is exactly the ability one has to make economic decisions without political, economic or social blocks.

Imagine that in your region you can only sell trees with red leaves, or your trees are taxed much more than trees coming from overseas, or that employment law requires that no employee gets near a plant (who knows, it could be to prevent allergic season!). That would make super hard to develop your business right?

That’s how economic liberty could help you grow your money tree; into giving you the ability to choose what you think is best for your business.

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4 years ago
Crandle Corp. applies manufacturing overhead costs to products at a budgeted indirectminuscost rate of $ 100 per direct manufact
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Answer:

total product costs  =   $101750

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given data

overhead costs = $ 100

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total product costs  = Direct materials + DML + MOH ..........1

total product costs  = $41,000 + ( 450 × $35 ) + ( 450  × $100 )

total product costs  =  $41,000 + $15750 + $45000

total product costs  =   $101750

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