Answer:
that means the firm is very large
<span>Price elasticity of demand is
-1.25 = Ed</span>
Price elasticity of supply =
Es
Share of tax by consumers =
0.80 = Es / (Ed + Es) = Es / Es + 1.25
0.8 Es + 1 = Es
1 / 0.2 = Es = 5
Therefore, the price elasticity of supply is 5
<span> </span>
Answer:
($65,118)
Explanation:
The computation of net present value is shown below:-
Machine cost = $320,000
Savings yearly = $62,000
Periods yearly = 6
PVIFA for 12% and 6 years = 4.111
Present value of cash inflows = Savings yearly × PVIFA for 12% and 6 years
= $62,000 × 4.111
= $254,882
Net present value = Present value of cash inflows - Investment
= $254,882 - $320,000
= ($65,118)