Considering that labor is the only variable input and an
additional input increases from 72 to 80 units with the product costs of $6 per
unit in a purely competitive market, then the mrp of the additional worker is
$48.
Solution: (80 x $6) – (72 x $6) = $48
When consumers and businesses have greater confidence that they will be able to repay in the future, <u>the quantity demanded of financial capital at any given interest rate will shift to the right.</u>
Answer:
$51,164
Explanation:
The project's terminal cash flow is basically the cash flow of the project's last year.
depreciable value = $80,000 + $6,000 - $23,031 = $62,969
depreciation expense per year = $62,969 / 5 = $12,593.80 per year
net cash flow year 5 = [(savings - depreciation expense) x (1 - tax rate)] + depreciation expense + salvage value + recovery of net working capital = [($28,000 - $12,593.80) x (1 - 35%)] + $12,593.80 + $23,031 + $5,525 = $51,163.83 ≈ $51,164
