Answer:
(A) True
Explanation:
Differential cost is the difference between the cost to produce Product O and produce Product P; in this case it’s the additional cost of $13 per pound to produce
So the statement “The differential cost of producing Product P is $13 per pound” is true
Answer:
$329,840
Explanation:
Calculation to determine the net note payable to Grant
Net note payable to Grant=$70,000 × 4.712
Net note payable to Grant= $329,840
OR
Net note payable to Grant= ($70,000 × 5.712) – $70,000
Net note payable to Grant= $329,840
Therefore On AGH's December 31, 2017 balance sheet, the net note payable to Grant is:$329,840
Answer:
The NPV from opening the branch office is negative ( -$106668.08). Thus the branch office should not be opened.
Explanation:
The decision to open the branch office will be taken based on the NPV provided by opening of the branch office. If the NPV of a project is positive based on the required rate of return used as a discount rate fro cash flows, the investment is worth undertaking.
The net present value (NPV) for a project can be calculated as,
NPV = CF1 / (1+r) + CF2 / (1+r)² + ... + CFn / (1+r)^n - Initial Outlay
Where,
- r is the appropriate discount rate
- Initial Outlay is the Initial cost of the project
- CF represents cash flows from the project
As the required return is 16%, we will take this as the appropriate discount rate.
NPV = 45000 / (1+0.16) + 120000 / (1+0.16)² + 150000 / (1+0.16)³ +
150000 / (1+0.16)^4 + 150000 / (1+0.16)^5 - 485000
NPV = - $106668.08
As the NPV from project is negative at a required return of 16%, the project should not be under taken and the branch office should not be open.
Answer:
the correct option is c) change in the money wage and other resource prices does not shift the long run aggregate supply
Explanation:
First of all aggregate supply can be defined as the sum total of all the goods and services that are supplied in the economy during a defined period of time.
In the given question the option C is right because it is assumed that in the case of long run aggregate supply , the supply curve tends to remain static because any kind of change in the aggregate demand causes only temporary changes in the total output of the economy and the slope of the curve remains vertical. It is also assumed that the economy is being used at optimal as only factors like labor, capital, and technology can bring in aggregate supply.
Options a) and b) can't be true because if the supply curve is gonna shift , it is first going to shift in short run aggregate supply then long run aggregate supply , not the other way around.
Answer:
You be looking to relocate your business to Delaware
Explanation:
Delaware is one of the 50 states of the United States, in the Mid Atlantic region. The weather condition in Delaware is very conducive in growing a maple tree.
