Answer:
The Average return on this asset over the next 5 years = 14.79 percent
Explanation:
using below mentioned calculation :
=((5-1)/(12-1) * 0.145) + ((12-5)/(12-1)*0.1496)
=0.1479 or 14.79%.
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Answer:
an externality, market failure
Explanation:
The company in this case has a par production because the cost to the seller is the same as the benefit to the buyer. Now the company is dumping chemicals that are affecting people in the community that do not patronise them. The chemicals cause poisoning of wildlife and harms health of nearby residents.
This characterised an externality that is the dumping of chemicals affecting the residents in the community.
It is also a market failure because while the company is not making profit they are also harming the society where they operate.
Answer:
Increased, Decreased
Explanation:
The reason is that when the taxable income increase this means that the business is earning more and if the business is earning more then this means that the business is paying more in taxes which is percentage of the profit earned by the business. So taxable income will increase in future due to increase in taxable income.
The tax allowed dedutions lessens the taxable income which means its increase in future will lessen the taxable income and as a result lower taxes would be paid in the future. So taxable income will decreased as a result of increase in the tax allowed deductions.