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3 years ago

When firms purchase new capital we call this _____

Business

2 answers:

tatuchka [14]3 years ago

6 0

Answer:

Business fixed investment

Explanation:

The purchase by firms of new capital goods such as machinery, factories, and office buildings. (Remember that for the purposes of calculating GDP, long-lived capital goods are treated as final goods rather than as intermediate goods.) Firms buy capital goods to increase their capacity to produce.

aleksandrvk [35]3 years ago

6 0

When firms purchase new capital we call this Business fixed investment.

Business Fixed investment is the purchase of new capital goods by firms which include building, installations, vehicles, technology, etc. Firms buy capital goods to improve or increase future productions which can be very vital to the growth of the firm.

<h2>Further Explanation</h2>

Capital goods are also classified as tangible assets and are also referred to as intermediate goods or economic capital.

Generally, investment is when a person spends some money to expand or start a new project or to acquire assets to create incomes and increase value over time.

Investment can be used to describe any mechanisms that are put in place to generate income which could include the purchase of bonds, real estate property, and many others. Machines, buildings and other facilities important in the process of production are also classified as an investment.

The productions of goods and services that others can purchase to produce goods and services may also be categorized as an investment.

Firms purchase new capital goods (factories, office building) to grow or expand their businesses, which in turn increases production and brings more profit.

Therefore, when firms purchase new capital we call this Business fixed investment.

LEARN MORE:

Which current asset financing policies/approaches asserts that all of a firm's fixed assets brainly.com/question/13916170
CAPM is the abbreviation of brainly.com/question/1213208

KEYWORDS:

new capital
capital goods
firms
office building
machinery

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Suppose you borrow $10,000 right now to start a business. If the terms of the loan require you to pay back $16,000 in 5 years, w

Alexxandr [17]

Answer:

r = 9.86%

Explanation:

The formula for calculating the future value of an invested amount yielding a compound interest is given by:

$FV=PV(1+\frac{r}{n})^{nt}$

where:

FV = future value = $16,000

PV = present value = $10,000

r = interest rate = ?

n = number of compounding period per year = 1

t = time in years = 5

∴ $16000=10000(1+\frac{r}{1})^{5}$

dividing both sides by 10,000

$\frac{16000}{10000} =\frac{10000(1+\frac{r}{1})^{5}}{10000}$

$1.6 = (1 + r)^{5}$

to remove the power of 5, we have to take the 5th root of both sides:

$(1.6)^{1/5} = (1 + r )^{5 * 1/5}$

Using your calculator:

1.09856 = 1 + r

∴ r = 1.09856 - 1 = 0.09856

r = 0.0986 = 9.86%

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3 years ago

Schneider, Inc., had the following information relating to Year 1: Budgeted factory overhead: $74,800 Actual factory overhead: $

astraxan [27]

Answer:

The actual direct labor hours are 45,000.

The overhead rate for Year 2 is $1.74.

Explanation:

Compute the actual direct labor hours:

$\begin{aligned}\text{Actual direct labor hours}&=\dfrac{\text{Applied overheads}}{\text{Overhead rate}}\\&=\dfrac{\$76,500}{1.7}\\&=45,000\end{aligned}$

Therefore, the actual direct labor hours are 45,000.

Compute the overhead rate for Year 2:

$\begin{aligned}\text{Overhead rate}&=\dfrac{\text{Actual overheads}}{\text{Actual direct labor hours}}\\&=\dfrac{\$78,300}{45,000}\\&=1.74\end{aligned}$

Therefore, the overhead rate for Year 2 is $1.74.

Working note:

Calculate the overhead rate for Year 1:

$\begin{aligned}\text{Overhead rate}&=\dfrac{\text{Budgeted overheads}}{\text{Estimated direct labor hours}}\\&=\dfrac{\$74,800}{44,000}\\&=1.7\end{aligned}$

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3 years ago

Stephanie works 40 hours a week at a wage rate of $25. This, her total weekly income is $1000. On this income, she pays tot

telo118 [61]

Stephanie's marginal tax rate is 15%.

Explanation:

The Average tax rate is 8%

she pays $3.75 as the tax on $25 which makes tax rate at this point =3.75/25

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For instance, if tax rate until $1-$1000 is 10%

and for $1000 and above is 20%.

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3 years ago

The markdown could be a dollar amount or a

BabaBlast [244]

Answer:

Percentage of the selling price

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