Solve 2x + 0.03x = 255

Dafna11 [192]

The money multiplier can be used as an expansionary and also an expansionary tool by a given government.

<h3>What is an expansionary tool?</h3>

As an expansionary tool, the money multiplier may be used to increase the amount of money supply that is in an economy. This would cause the interest rates to be low so that people would not have much benefits from saving their money.

<h3>As a contractionary tool</h3>

The money multiplier can be used to reduce the amount of money that is in circulation in a given economy. This would make people want to save more money in the bank because the interest rate is going to be raised.

Read more on the money multiplier here: brainly.com/question/13923879

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5 0

2 years ago

Capitalizing costs that should be expensed: a. is a practice mostly found in large, well-established companies. b. is a healthy

EleoNora [17]

Answer:

Option D. Has the effect of increasing net income by the same amount of the capitalized costs.

Explanation:

The reason is that the capitalized costs are the invesments in any assets whose useful life is more than one year and must be depreciated over useful life of the assets. If a expense nature cost is capitalized which must not be capitalized according to IAS 16 Porperty, Plant & Equipment then the expenses are understated which means that the profits are overstated. This means that presenting expenses as assets will increase the profits as costs will be fewer in amount presented in the financial statements.

8 0

3 years ago

A firm purchased $120,000 worth of light general-purpose trucks. The operations of the trucks lead to annual income of $60,000 f

Setler [38]

The before-tax IRR is 37.93%

The after-tax IRR is 19.32%

The internal rate of return (IRR) is defined as the return rate on a project investment project over a periodic lifespan.

It is also referred to as the net present value of an investment project which is zero. It can be expressed by using the formula:

$\mathbf{0= NPV \sum \limits ^{T}_{t=1} \dfrac{C_t}{(1+1RR)^t}- C_o}$

where;

$\mathbf{C_t}$ = net cash inflow for a time period (t)
$\mathbf{C_o=}$ Total initial investment cost

For the before-tax IRR:

The cash outflow = $120000

Cash Inflow for the first three years = $60000

Cash inflow for the fourth year = $60000 + $20000 = $80000

∴

Using the above formula, we have:

$\mathbf{0 = \dfrac{60000}{(1+r)^1}+ \dfrac{60000}{(1+r)^2}+ \dfrac{60000}{(1+r)^3}+ \dfrac{80000}{(1+r)^4}}$

By solving the above equation:

r = 37.93%

For the after-tax IRR:

The cash outflow = $120000

Recall that:

Cash Inflow = Cash inflow × Tax rate

∴

For the first three years; the cash inflow is:

$\mathbf{=60000 -(60000\times 0.3) } \\ \\ \mathbf{ = 60000 -18000} \\ \\ \mathbf{ = 42000}$

For the fourth year, the cash inflow is

$\mathbf{=80000 -(60000\times 0.3) } \\ \\ \mathbf{ = 80000 -18000} \\ \\ \mathbf{ = 62000}$

Using the above IRR formula:

$\mathbf{0 = \dfrac{42000}{(1+r)^1}+ \dfrac{42000}{(1+r)^2}+ \dfrac{42000}{(1+r)^3}+ \dfrac{62000}{(1+r)^4}}$

By solving the above equation:

r = 19.32%

Learn more about the internal rate of return (IRR) here:

brainly.com/question/24301559

5 0

2 years ago

If a factory produces 100 TV sets per year, each TV will be quite expensive to make. However, if a factory produces 20,000 TV se

ser-zykov [4K]

Answer:

The correct answer is D: economies of scale

Explanation:

Economies of scale are the diminished cost by companies when production becomes efficient. Companies can achieve economies of scale by increasing production and lowering costs. <u>This happens because fixed costs are spread over a larger number of goods.</u> There are implications in variable costs as well (for example in obtaining discounts by large purchases from suppliers). In general, the larger the scale, the more cost savings.

The cost per unit depends on how much the company produces. Larger companies can produce more by spreading the cost of production over a larger amount of goods. Specialization of labor and more integrated technology boost production volumes. Lower per-unit costs can come from bulk orders from suppliers, larger advertising buys, or lower cost of capital. Spreading internal function (for ex: accounting, information technology, and marketing) costs across more units produced and sold helps to reduce costs.

5 0

3 years ago

Direct labor and overhead costs incurred to change raw materials into finished products are known as

san4es73 [151]

Answer:

conversion costs

Explanation:

5 0

2 years ago

Solve 2x + 0.03x = 255​

Solve 2x + 0.03x = 255