I believe the answer is: A. Cars typically lose the most value in the first year after purchase
As the miles usage in cars increase, the quality of the machine tend to deteriorate, which would lead to the decrease in the cars' value. On top of that, the new model that given by car companies tend to possess better technology/design. On average, cars tend to lose 15 - 25 % in value during the first year.
Answer:
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Answer:
a. $7,505
b.$6,840
Explanation:
a. Computation for the after-tax cost of the expense assuming that Firm A incurs the expense
Using this formula
After-tax cost = Deductible Expense - (Firm A Marginal tax rate* Deductible Expense)
Let plug in the formula
After-tax cost = ($9,500 - ($21%*9500)
After-tax cost = ($9,500 - $1,995)
After-tax cost=$7,505
Therefore the after-tax cost of the expense assuming that Firm A incurs the expense is $7,505
B. Computation for the after-tax cost of the expense assuming that Firm Z incurs the expense
Using this formula
After-tax cost = Deductible Expense - (Firm Z Marginal tax rate*Deductible Expense)
Let plug in the formula
After-tax cost =$9,500 -(28%*$9500)
After-tax cost =($9,500 - $2,660 )
After-tax cost=$6,840
Therefore the after-tax cost of the expense assuming that Firm Z incurs the expense is $6,840
Answer:
Net present value of $168,953.93
Explanation:
We will calculate the present value of the cash flow at the investor's rate of return.
First we have the annuity of 20,000 during 5 years
C = 20,000
time = 5
rate = 10
PV = 75,815.73539
Then we calculate the present value of the final payment of 150,000
Nominal = 150,000
rate = 0.1
time = 5
PV = 93,138.198459
<u>We add both together: </u>And get the present value
75,815.73 + 93,138.20 = 168,953.93
Answer:
The correct answer is: increase.
Explanation:
Unemployment is the state in which a person does not have a job and is not currently looking for one. It is also defined as the state in which a person who is actively searching for employment is unable to find work. The most frequently sided measure of unemployment is the Unemployment Rate. This is the number of unemployed people divided by the number of people in the labor force.
Thus, if more people become discouraged by not finding a job and they stop searching, the <em>Unemployment Rate is likely to increase</em>.
