The price of wheatwould be â$nothingper bushelif there was no price support. In order to maintain the priceâ support, the govern
ment will have to purchase nothingbushelsof wheat.
1 answer:
Answer:
$5, 200 bushels of wheat
Explanation:
From the diagram the price support was at $6 per bushel, however if the government removes the price support or if there was no price support, then the price of the wheat will be $5 for a bushel. And in order to maintain the price support, from the diagram below, it is expected that the government would have to purchase 200 bushels of wheat.
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Answer:
The answer is $86,167.57 (to 2 decimal places)
Explanation:
In this question, we are to calculate the present value of a certain amount that is compounded semiannually, and after 10 years, yields a future value of $200,000. To calculate this, we will use the formula for calculating present value as follows:
PV = FV ÷
where:
PV = present value = ???
FV = future value = $200,000
r = interest rate in decimal = 8.6% = 0.086
n = compounding period pr year = semiannually = 2
t = time of compounding in years = 10
Therefore,
PV = 200,000 ÷
PV = 200,000 ÷ = $86,167.57
Answer:
Turk should purchase Machine B
Explanation:
<u>Our first step</u> will be to multiply each cashflow by the factor.
Then we will add them to get the present value of the cash flow
Then we subtract the machine cost:
8,685.8 - 9,000 = -314.2 This Machine has a negative value. It is not convinient to purchase this machine.
9,605.5 - 9,000 = 605.5 This machine NPV is positive it is convient.