The internal rate of return for this investment is 12%
Option C
Solution:
PV of Cash Outlay = PV of Cash Inflow
109332 = 36000*PVIFA (Rate,4)
PVIFA(rate,4) = 109332/36000
PVIFA(rate,4) = 3.037
The present value factors for an annuity of $1 for 4 years at interest of 12% is 3.037
So IRR = 12%
Answer:
b. The U.S. has an absolute advantage in computer chips manufacturing.
Explanation:
South Korea's opportunity cost of producing 1 bed linen = 100/50 = 2 computer chips. Where, US' opportunity cost of producing 1 bed linen = 150/100 = 1.5 computer chips.
As US' opportunity cost of producing 1 bed linen is less than that of South Korea's , Therefore, US has comparative advantage in production of bed linen and south korea will have comparative advantage in production of the other good i.e. computer chips.
Now looking at the absolute advantage, US has absolute advantage in production of both goods i.e. Bed linen and computer chips, because using same one hour of labor input, US can produce more bed linen and computer chips than South korea does.
Hello!
The answer to your question is "price elasticity".
:)
Answer:
Equivalent units of production= 68,000 units
Explanation:
Giving the following information:
Units started and completed= 80,000 - 20,000= 60,000
Units in ending inventory= 20,000 nits that were 40% complete in the ending work in process inventory at the end of January.
<u>To calculate the equivalent units for conversion costs, we need to use the following formula:</u>
Units completed in the period + Equivalent units in ending inventory WIP (units*%completion) = Equivalent units of production
Equivalent units of production= 60,000 + (20,000*0.4)
Equivalent units of production= 68,000 units
Answer:
This is true.
Explanation:
ASC 740 requires a valuation allowance to be made when there is a more than 50% probability that the deferred asset may not be utilized
due to non-availability of sufficient future taxable income. Valuation allowance, which is a contra-account to the deferred tax asset account, is just like a provision for doubtful debts and offsets a portion of the deferred tax asset.
