Answer:
Book Value at end of year 6 = $100,000
Explanation:
An Asset is depreciated to salvage value therefore when depreciation is complete the book value equals salvage value or zero.
Salvage value is an estimated value of what the company expects to earn after using the asset maybe when selling off the asset.
Answer and Explanation:
The computation of the payback period for each investment is shown below;
For Option 1
= Initial Investment ÷ Annual Cash Flow
= $280,000 ÷ $134,569
= 2.081 Year
Here Annual cash inflow is
= Net income + Depreciation
= $80,769 + (($280,000 - $11,000) ÷ 5)
= $134,569
For Option-2
= Initial Investment ÷ Annual Cash Flow
= $200,000 ÷ $70,429
= 2.84 Year
Here Annual cash inflow is
= Net income + Depreciation
= $44,000 + (($200,000 - $15,000) ÷ 7)
= $70,429
Answer:
The correct answer is 999%
Explanation:
We will use the Quantity Theory of Money to solve this simple question.
The Quantity Theory of Money equation is equal to:
ΔM X V = ΔP X ΔY
Where:
- ΔM = Change in Money supply
- V = Velocity, which does not change, because it is assumed to be constant
- ΔP = Change in prices, or inflation
- ΔY = Change in output or GDP
According to this theory, inflation is equal to:
ΔP = ΔM + V - ΔY
Replacing...
ΔP = 1010% + 0 - 11%
ΔP = 999%
So the price change, or inflation rate is 999%.
Answer:
B
Explanation:
When we talk of a decreasing cost industry, we refer to an industry in which the expansion of the industry will lead to a decrease in the unit production cost.
So with respect to the question at hand , the correct answer is that the input prices will fall as industry expands
The case of a a technological improvement is expected to drive a decrease in the input prices for production in the expanding industry
