<span>Saving decreases a firm's capital stock and investment increases its capital stock.
When a company isn't giving out many shares or allowing a person to invest in the companies shares, there is a decrease in the firm's capital stock. In this case, the firm is saving the amount of shares they are allowing to be purchased. When investors are able to invest in the company, there is an increase in capital stock.
</span>
Answer:
Payback =1.53 years
Explanation:
The annual cash-flow figure that is to be used in this calculation should not include depreciation as depreciation is a non-cash item. Net operating income from the project is $115,000 and to get to annual cash-flows, depreciation should be added back.
Annual cash-flows for each of the 6 years would therefore be:
The scrap value would be expected at the end of the project i.e end of year 6.
Year Cash-flow Balance
0 (225,000) (225,000)
1 147,000 (78,000)
2 147,000 69,000
By end of year 2, the company has already recovered the $225,000 initial investment as seen through the positive cumulative balance
Payback = Years With Negative Cumulative Cash-flow Balance + 
Answer:
January cost allocated 9,900
February cost allocated 11,790
Explanation:
We will allocate the representative cost over the expected customer complaints during 2018:
$ 15,975 per month x 12 months / 21,300 complaints per year = $9 per complain solved
January processing customer complaints expense:
1,100 customers x $9 = $ 9,900
February processing customer complaints expense:
1,310 customers x $9 = $ 11,790
Answer:
d. None of the above are correct.
Explanation:
In a centrally planned environment, the government make decisions on production.
In a market economy, market forces make production decisions.
Society relies more upon prices to allocate resources when the economy is centrally planned than a market economy.
The self-interest of households is reflected more fully in the outcome of a market planned economy than in the outcome of a centrally planned economy
Government plays a larger role in the economic affairs of a centrally planned economy than in the economic affairs of a market planned economy.
I hope my answer helps you
