In a market economy, the factors of production are allocated by PRODUCERS AND CONSUMERS.
A market economy is a type of economy in which investment decisions about production and distribution of goods and services are based on the interplay of the forces of supply and demand which determine the prices of goods and services.
Answer:
T-note described in this problem is selling at a price of $876,205.93
Explanation:
The price of the bond can be computed using pv formula in excel as stated thus:
=-pv(rate,nper,pmt,fv)
rate is the semiannual yield which is the annual yield of 7.70% divided by 2
nper is the number of coupons payable by the bond over its three years' tenure given that coupon is paid twice a year i.e 3*2=6
pmt is the semiannual coupon payment=$1,000,000*3%*6/12=$15000
fv is the face value of $1,000,000
=-pv(7.70%/2,6,15000,1000000)=$876,205.93
Machinery repairs, property taxes, salaries for workers variable: number of workers, what crop is being produced, gas for machinery.
Answer: Impairment loss of $145,100
Explanation:
First find the Net book value:
= Cost - Accumulated Depreciation
Depreciation = (791,000 - 75,000) / 20
= $35,800
Net Book value = 791,000 - (35,800 * 10.5 years)
= $415,100
Find Net Realizable Value which is the lower amount between the future net cash flows and fair value.
= $270,000
Impairment loss = Net realizable value - Book value
= 270,000 - 415,100
= ($145,100)