Answer:
Explanation: A. Shadow price has not changed because Shadow price show value of a commodity without considering final cost.
B. Change in value 180 - 150/180 X 100 = 16.7
C. The optimal solution didn't change because the product price went from it highest profit 180 to it's least cost 150
Answer:
A. $52,020
B. $0
C. $208,080
Explanation:
a. Computation of Rafael's realized gain on the exchange
Using this formula
Realized gain=Fair market value -Adjusted basis
Let plug in the formula
Realized gain= $190,740-$138,720
Realized gain=$52,020
Therefore a. Rafael's realized gain on the exchange is $52,020
b. Based on the information given Rafael's recognized $1031 gain is $0 reason been that
NO BOOT WAS RECEIVED
c. Computation for Rafael's $1245 depreciation recapture Amount
Using this formula
Depreciation recapture Amount=Equipment originally cost -Adjusted basis
Let plug in the formula
Depreciation recapture=$346,800-$138,720
Depreciation recapture=$208,080
Therefore Rafael's $1245 depreciation recapture of $208,080 is carried over to the replacement property
Answer:
It might lead to over-optimistic projections
Explanation:
In simple words, the problem with using profitability index as the index criteria lies with the procedure of estimating it. In order to consider the business situation, the organisational finance group requires to settle with the corporation supervisors.
Leadership may be too enthusiastic about their assignment, so forecasts for cash flow may be too substantial. Consequently, in predicting the profitability index, there may be an uptrend prejudice.
Answer:
- 8,000: $30
- 13,000: $32.50
- 17,000: $42.50
Explanation:
<u>8,000</u>
This amount is below the quantity for which additional charges accrue. The base charge applies: $30.
<u>13,000</u>
This is 1000 gallons more than you get for $30, so costs an additional $2.50. The total water cost is ...
$30 +2.50 = $32.50
<u>17,000</u>
This is 5,000 gallons more than you get for $30, so costs an additional 5×$2.50 = $12.50. The total water cost is ...
$30 +12.50 = $42.50
_____
<em>Comment on the water charges</em>
$30 is the same as the cost of 12,000 gallons at $2.50 per thousand. So, the total bill can be figured at $2.50 per thousand, with a $30 minimum.
8 × $2.50 = $20, so the charge is the minimum, $30
13 × $2.50 = $32.50
17 × $2.50 = $42.50
Three ways to improve human capital are education and training, monitoring performance, and hiring qualified people.
