Answer:
No the conclusion is not justified
Explanation:
The decision is not justified and this because , Aramco stage in business ( High-growth stage ) will most likely be different from that of the petroleum firms in the US. This might be due to tax advantage of debt for firms in US which might be absent in Saudi Arabia. also the cost of finding Oil in the US might be higher when compared to the cost of finding Oil in Saudi Arabia
Hence the decision is not justified
Answer:
DR. CR.
Inventory Premium $6,880
Cash $
6,880
Cash $
339,200
Sales $
339,200
Premium Expense $3,464
Inventory Premium $3,464
Premium Expense $1,624
Premium Liability $1,624
Explanation:
Inventory Premium = 8,600 x $0.80 = $6,880
Sales = 106,000 unit x $3.20 = $339,200
Premium Expense = (43,300/10) x $0.8 = $3,464
Premium Liability = (((106,000 x 60%) - 43,300) / 10) x $0.8 = $1,624
Answer:
a. $66,889.63
b. $107,726.42
Explanation:
We use the Present value function that is to be reflected on the attachment
a. In the first case
Data provided in the question
Future value = $450,000
Rate of interest = 10%
NPER = 20 years
PMT = $0
The formula is shown below:
= PV(Rate;NPER;PMT;FV;type)
So, after solving this, the present value is $66,889.63
b. In the second case
Data provided in the question
Future value = $450,000
Rate of interest = 10%
NPER = 20 years
PMT = $0
The formula is shown below:
= PV(Rate;NPER;PMT;FV;type)
So, after solving this, the present value is $107,726.42
Answer:
Given that,
P = 200,000 – 2 Q
Q = number of cars sold per year
P is in $/car
Selling price = $ 75,000
Subsidy = $ 5,000
Equating the demand curve to the price,
200,000 - 2Q = 75,000
2Q = 200,000 - 75,000
2Q = 125,000
Q = 62,500
Without subsidy,
Price = $ 75,000
Quantity demanded = 62,500.
When a subsidy of $ 5,000 is paid then the price paid by buyers will be equal to $ 70,000.
200,000 - 2Q = 70,000
2Q = 130,000
Q* = 65,000
Consumer surplus (without subsidy)
= 0.5 × 125,000 × 62,500
= $ 3,906,250,000
Consumer surplus(with subsidy)
= 0.5 × (200,000 - 70,000) × 65,000
= $ 4,225,000,000
Change in consumer surplus = Consumer surplus(with subsidy) - Consumer surplus (without subsidy)
= 4,225,000,000 - 3,906,250,000
= - $ 318,750,000