<span>D. evaluate high-risk, high-impact events more thoroughly.</span>
Answer:
True, True
Explanation:
In terms of economic efficiency in the market for pollution. It does not matter if the government distributes the permits or auctions them off, as long as if firms can sell the permits to each other. The only difference would be that the government could make money if it auctioned the permits off, thus allowing it to reduce taxes, which would help reduce the deadweight loss from taxation in other markets. Some deadweights loss could also occur if firms use resources to lobby for additional permits.
If government chooses to distribute the permits among firms, the firms could sell the permits to each other, this allocation of permits among firms would not matter for efficiency, but affects the distribution of wealth, and those that sold their permits are better off.
Based on the information given the amount of the transfer taxes is $476.
Using this formula
Total transfer tax=[(Purchased price+ First transfer tax)×(Additional tax)]+Transfer tax
Let plug in the formula
Total transfer tax=[($475,000-$1,000)×($0.10/$100)]+$2
Total transfer tax = ([$474,000 x .001] + $2)
Total transfer tax=$474+$2
Total transfer tax=$476
Inconclusion the amount of the transfer taxes is $476.
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A fixed expense<span> is an </span>expense<span> that will be the same total amount regardless of changes in the amount of sales, production, or some other place</span>
Answer:
a) Net present value of investment = $86,036
b) Since the Net present value is positive thus, Beyer should accept the investment
Explanation:
Data provided in the question:
Cost of the asset = $215,000
Rate of return = 12% = 0.12
Now,
Present Value of Net Cash Flows = Net cash flow × Present value factor
also,
Present value factor = (1 + rate)⁻ⁿ
here,
n is the year
thus,
Year 1 Net cash flows Present value factor Present value
1 77,000 0.89286 68,750
2 54,000 0.79719 43,048
3 82,000 0.71178 58,366
4 172,000 0.63552 109,309
5 38,000 0.56743 21,562
Total 423,000 301,036
a) Net present value of investment = Total present value - Amount invested
= 301,036 - 215,000
= $86,036
b) Since the Net present value is positive thus, Beyer should accept the investment