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miskamm [114]
3 years ago
10

Short Company purchased land by paying $10,000 cash on the purchase date and agreeing to pay $10,000 for each of the next ten ye

ars beginning one-year from the purchase date. Short's incremental borrowing rate is 10%. The land reported on the balance sheet is closest to:
(A) $100,000
(B) $38,550
(C) $61,446
(D) $71,446
Business
1 answer:
romanna [79]3 years ago
6 0

Answer:

(D) $71,446

Explanation:

we will calcualte the present value for an 11 payments  annuity-due (there is eleven payment of 10,000 if we count the one at purchase date) which couta is 10,000 discounted at 10%

C \times \frac{1-(1+r)^{-time} }{rate} (1 +r ) = PV\\

C 10,000

time 11

rate 0.1

10000 \times \frac{1-(1+0.1)^{-11} }{0.1} (1 + 0.10) = PV\\

PV $71,445.6711

rounding to the nearest dollars: 71,446

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India specializes in business process outsourcing and does this more efficiently than any other country. It buys agricultural co
uysha [10]

Answer:

Ricardo’s Theory of Comparative Advantage

Explanation:

Comparative advantage is the term used to define the ability of an individual, firm or country to produce a particular good or service at a lower opportunity cost than that if it’s competitors or trade partners. Opportunity cost is the benefit lost from the second best alternative.

When a country can produce a product more efficiently (i.e maximum output using minimum resources) than that of its trade partners, it is known as that it has absolute advantage in that product. India tends to have absolute advantage in both business processes outsourcing as well as producing agricultural commodities as it is mentioned that it can produce both of these more efficiently than the United States.

However, although it has absolute advantage in both, it is still less efficient in producing agricultural commodities when compared to business process outsourcing. In other words, if it attempts to produce agricultural commodities in-house, the benefit lost from the second best alternative: business process outsourcing is high. The opportunity cost is higher when it produces agricultural commodities than it is when it does business process outsourcing. Hence, due to the law of comparative advantage, it chooses to specialize in business process outsourcing and imports agricultural commodities.

5 0
3 years ago
Lauren's salary decreases from $ 37,000 to $ 30,000 . She decides to reduce the number of outfits she purchases each year from 2
nikklg [1K]

Answer:

E=-4.0746

Explanation:

Using the midpoint method, Lauren's income elasticity of demand for new outfits is determined by the change in income multiplied by the average number of outfits, divided by the change in the number of outfits multiplied by the average income:

E=\frac{\Delta I*O_{avg}}{\Delta O*I_{avg}}\\E=\frac{(37,000-30,000)*\frac{20+19}{2}}{(19-20)*\frac{37,000+30,000}{2}}\\E=-4.0746

Her income elasticity of demand for new outfits is -4.0746.

8 0
3 years ago
Question 13 when the total u.s. production of goods and services is divided into consumption goods and services, capital goods,
Annette [7]
Private good service. government goods service . import good service.export good service
4 0
3 years ago
You must place a child in an approved child seat if the child is __________
katovenus [111]
<span>You must place a child in an approved child seat if the child is A. three years of age and under.
If the child is really young, then it has to sit in an approved child seat in a car, because if has to be protected from any harm while you are driving. Older kids, who can more or less protect themselves if something bad happens don't have to sit in these seats, however, they have to wear a seatbelt.
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8 0
3 years ago
The local baseball team owner hires you to help maximize the team's profits. You are told that costs are constant because enough
ozzi

Answer:

increase price per ticket.

Explanation:

increase price per ticket in proportion to cost incurred.

set up an internal control system to ensure all revenue from ticket are well accounted for.

3 0
3 years ago
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