Answer:
The expected real value (in terms of January 1, 2009, dollars) of the depreciation charge in year 2013 will be $1,958,815.416.
Explanation:
It is expected that the value of the dollar in the German market will fall at the same rate as that of the real market value of the dollar when we envisage the exchange rate will remain the same. Thus the depreciation of the tax write-off in terms of its real value in dollars will fall at 5% every year from 2009 to 2013.
Therefore, at a tax rate of 50% in Germany, a $2.5 million charge on depreciation on the investment of $5 million will result in 2013.
To calculate the real value of the dollar at an inflation of 5% yearly in 2013
When the tax rate in German is 50%, then charges of depreciation of $5 million will equal4$2.5 million in 2013 dollars. When the dollar's real value of this write-off is declining due to the inflation at 5% annually, the real value in 2013 will be calculated as:
Given: $2,500,000 (P/F , 5%, 5years)
; 0.78356 (factor for calculating the amount to be recieved after 5years)
= $2,500,000 * 0.78356
= $1,958,815.416
When a treaty is signed between nations to lower tariffs and improve imports, this is a free trade agreement. This is <u>True</u>.
<h3>What is a free trade agreement?</h3><h3 />
Sometimes nations get together and discuss a treaty that will allow for trade to be easier between them.
To this end they will reduce tariffs, and other barriers to trade. This is to encourage free trade between the nations. This treaty is a free trade treaty.
Find out more on barriers to trade at brainly.com/question/1326741.
Answer: The correct answer is "Costs that are small and unimportant with little impact on profits are called marginal costs."
Explanation: The statement "Costs that are small and unimportant with little impact on profits are called marginal costs." Is not TRUE because as the following statement says the marginal cost is the change in a firm's total cost due to a one‑unit change in output.
Answer:
The correct answer is Enterprise resource planning system
Explanation:
Enterprise resource planning system is a system that makes the planning of the company resources. It is mainly used for daily business activities like accounting, operations related to the supply chain, procurement, etc
As per the given question, the system that deal with the fluctuations of the currency exchange rates that created an extra problem so this represents the enterprise resource plannning
Answer:
b) rise by about 1 percent
Explanation:
Given that a person's nominal income rises by 5 percent and the price level rises from 125 to 130.
Percentage increase in price level = (130 - 125)/125
= 5/125
= 1/25 = 4%
Difference between rise in the person's nominal income and rise in price level
= 5% - 4%
= 1%
Hence the right option is b) rise by about 1 percent.
