No it is not’ people say it’s real but no don’t believe that
The answer is a.True
The cost of the fixed asset is already excluded from the net income. In this case, the rate of return can be computed by the total net income divided by the cost of the fixed asset. So that would be $200,000/$400,000. The rate of return would be 50%
Although
relative factor costs may make a country look attractive as a location
for performing a manufacturing activity, the firm must also look at the
political economy, where, for example, <span>regulations prohibiting foreign direct investment
may eliminate this option.
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Polieymakers have periodically raised concerns pertaining to foreign investment in industries which affect national security or an essential na-tional interest.
The cost to produce today = 74000
At a discount of 12%, the future value of costs in 5 years = PV*(1+r)^n where PV = 74000, r= 12% = 0.12 and n = 5 years = 5
The value of costs in 5 years = 74000*(1+0.12)^5
The value of costs in 5 years = 74000*1.12^5
The value of costs in 5 years 130,413.28
Price in 5 years = 138,000
Profit = 138,000-130,413.28 = 7,586.72
The profit the firm will make on this asset (considering time value of money) = $7,586.72
Answer:
According to the information provided is possible to conclude that in both options the indicators are understated
Explanation:
(a) Rent revenue (or revenues) will be understated. Net income will be understated.
(b) Retained earnings at the end of the period will be understated. Unearned rent (or liabilities) will be overstated.
