Answer and Explanation:
The computation of the depreciation expense and book value at the end of 2016 is shown below:
But before that first determine the cost of the asset which is
Cost of the asset is
= Purchase price + rear hydraulic lift + sales tax
= $62,000 + $8,000 + $3,000
= $73,000
Now the depreciation expense is
= ($73,000 - $8,000) ÷ (10 years)
= $6,500
ANd, the book value is
= $73,000 - $6,500 × 2
= $60,000
Number of firms -one
Nature of product-a unique product with no close substitute
Entry- completely blocked
Information - complete
Collusion between sellers - irrelevant
Firm's control over the price of product - considerable , but limited by market demand and goal of profit maximisation
Demand curve of the firm's product - equals market demand curve : downward sloping
Long-run economic profit - can be positive
Answer:
$133,800
Explanation:
Calculation for The cash received for interest during 2014
Using this formula
2014 Cash received for interest=Interest revenue-2014 Interest receivable+2013 Interest receivable
Let plug in the formula
2014 Cash received for interest=$137,000-$18,200+ $15,000
2014 Cash received for interest=$133,800
Therefore The cash received for interest during 2014 was:$133,800
Answer:
A)
NuBreed's efforts are an example of the <u>threats of substitute products and services</u> in Porter's model for industry analysis.
Explanation:
Porter's five forces are:
- Threat of New Entrants
- Threat of Substitute Products or Services: a substitute product is an available product from another company that your customers might purchase since they offer similar benefits than your product.
- Bargaining Power of Buyers
- Bargaining Power of Suppliers
- Competitive Rivalry Among Existing Firms
Answer:
NPV = $-3,383.25
Explanation:
The NPV is the difference between the PV of cash inflows and the PV of cash outflows. A positive NPV implies a good investment decision and a negative figure implies the opposite.
NPV of an investment:
NPV = PV of Cash inflows - PV of cash outflow
PV of cash inflow =
$12,500,
× 1.1535^(-1) + 19,700,
× 1.1535^(-2) + 0× 1.1535^(-3) + 10,400.× 1.1535^(-2) = 31,516.7476
Initial,cost = 34,900
NPV = 31,516.7476 - 34,900 = -3,383.25
NPV = $-3,383.25
