Answer:
a) True
Explanation:
Sales = Opening + Production - Closing
$200,000 = $22,000 + Production - $24,000
Production = 202,000 Units
Hence, the answer is a. True
Answer:
Grew by 2%
Explanation:
Given: nominal GDP =12% positive value cause it grew by 12% during these years.
Population grew by 4%
GDP deflator = 6% positive value cause it also grew by 6%
Question says we must find real GDP per person for the 4 year term that the president has served for so we will use the formula to calculate GDP Deflator to actually solve for Real GDP as we know the formula is GDP Deflator= (nominal GDP per person%)/(Real GDP per person%)x100
So we already have the nominal GDP and the GDP deflator therefore we substitute to the above formula:
6% = (12%)/ (Real GDP per person percentage) x100, and now we solve for Real GDP per person%
Therefore we multiply both sides with Real GDP percentage and get:
Real GDP per person %( 6%) = 12% and then we divide both sides with 6%,
Therefore Real GDP is 2% so we also see that real GDP has actual grown by 2% because the GDP deflator grew instead of decreasing where nominal GDP is also positive so if we have a fraction where an answer is positive we know both fraction values must be positive pus if the GDP deflator increases both nominal and Real GDP increase and that’s the relationship they have.
Answer:
$29,050
Explanation:
The computation of the residual income is shown below:
Residual income = Net operating income - Minimum required income
= $83,000 - $53,950
= $29,050
Here
Minimum required income = Average operating assets × Minimum required rate of return
= $415,000 × 13%
= $53,950
This should be the answer and the options provided are wrong
Answer:
The value of the project today is $75,866
Explanation:
Net present value is the Net value all cash inflows and outflows in present value term. All the cash flows are discounted using a required rate of return.
Years 1 2 3
Cash Flows $32200 $41800 $22,900
Discount Factor 14% 0.8772 0.7695 0.6750
Present Values $28,245.61 $32,163.74 $15,456.85
Net present value = $75,866.20
