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Degger [83]
3 years ago
6

swift Oil Company is considering investing in a new oil well. It is expected that the oil well will increase annual revenues by

$134,000 and will increase annual expenses by $76,000 including depreciation. The oil well will cost $449,000 and will have a $11,000 salvage value at the end of its 10-year useful life. Calculate the annual rate of return.
Business
1 answer:
lianna [129]3 years ago
4 0

Answer: 25.22%

Explanation:

Given that,

Annual revenue = $134,000

Annual expenses = $76,000

Oil well cost = $449,000

Salvage value = $11,000

Annual net income = Annual revenue - Annual expenses

= $134,000 - $76,000

= $58000

Average Investment = \frac{449000 + 11000}{2}

= $230000

Annual rate of return =  \frac{58000}{230000}\times100

= 25.22%

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El Salvador has a population density of about 620 people per square mile and neighboring Honduras a population density of about
BaLLatris [955]

Answer:

have a higher labor-to-land ratio than its imports from Honduras

Explanation:

The factor proportions theory  (or Heckscher-Ohlin model) of trade states that countries will export the goods which they can produce using their abundant factors of production. For example, countries like Japan that have abundance of labor force and capital, but very little land, will produce and export industrial goods that require a lot of labor and capital. On the other hand, countries like Argentina which have abundant labor and land, will export agricultural products.

in this case, El Salvador compared to Honduras has abundant labor, so the products that El Salvador exports to Honduras will have a higher labor-to-land due to the abundance of labor.

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3 years ago
York’s outstanding stock consists of 80,000 shares of noncumulative 7.5% preferred stock with a $5 par value and also 200,000 sh
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Answer:

total non-cumulative preferred stock dividends per year = 80,000 x 7.5% x $5 = $30,000

since the bonds are non-cumulative, if the dividends are not paid during one year, they are basically lost since they will not be paid in the future.

year

2015: $20,000 distributed to preferred stockholders

  • $0.25 per preferred stock
  • $0 to common stockholders

2016: $28,000 distributed to preferred stockholders

  • $0.35 per preferred stock
  • $0 to common stockholders

2017: $30,000 distributed to preferred stockholders, $170,000 distributed to common stockholders

  • $0.375 per preferred stock
  • $0.85 per common stock

2018: $30,000 distributed to preferred stockholders, $320,000 distributed to common stockholders

  • $0.375 per preferred stock
  • $1.60 per common stock

 

Dividends paid during the 4 year period:

Preferred stockholders received $108,000 in total

  • $1.35 per preferred stock

Common stockholders received $490,000 in total

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3 years ago
The most common definition that monetary policymakers use for price stability is
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Answer:

A central feature of monetary policy strategies in all countries is the use of a nominal variable that monetary policymakers use as an intermediate target to achieve an ultimate goal such as price stability. Such a variable is called a nominal

Explanation:

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8 0
2 years ago
Merchants Credit Union has decided that tellers must rotate through a new weekend shift on Saturday afternoons because several o
HACTEHA [7]

Answer:

Innovative change

Explanation:

Innovation means change, hopefully a change for better. When a company decides to innovate its processes it means that it is trying to improve existing processes to make them more effective and more productive. In this particular case by starting to work weekend shifts they are trying to offer a better service.

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3 years ago
A change in the relative price of one good versus another will cause a change in marginal product and the allocation of labor re
kakasveta [241]

Answer:

The correct answer is: increase relative to Industry B.

Explanation:

The marginal revenue product measures the conribution of each additional unit of input employed in the production process. It is calculated as the product of price of product and marginal product of input.

The profit maximizing level of wage is when the marginal revenue product of labor is equal to wages.

Suppose there are two goods, A and B respectively.

When the price of good A increases relative to good B, the marginal revenue product of labor employed in production of good B will increase as well.

This will cause the wage rate of those workers to increase in comparison to workers in industry B.

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3 years ago
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