Answer:
1.a. $2,460,000
2.c. $350,000
Explanation:
Calculation of after-tax salvage value
Cost of machine$ 5,000,000
Depreciation (20%+32%)=52% $ 2,600,000
WDV $ 2,400,000
($5,000,000-$2,600,000)
Sale price $ 2,500,000
Profit/(Loss) $ 100,000
Tax-40% $ 40,000
Sale price after-tax $ 2,460,000
Therefore the After-Tax Salvage Value of the production equipment at the end of the 2nd year equals$2,460,000
2.
The net working capital invested in the business, in the beginning will gets recovered at the end of the project.
Year 2, initial working capital of $ 350,000 will therefore be recovered and change in net working capital will be a positive 350,000
Therefore the change in Net Working Capital at the end of the 2nd year equals $350,000
Answer:
Explanation:
There are four possible outcomes
In favor, in favor
In favour, unfavor
Unfavor, in favor
Unfavor, unfavor
<u>Particulars Person</u>
<u>Outcome 1 2 </u>
1 For Against
2 For For
3 Against For
4 Against Against
These are the possible outcomes
Iron ore, sugar, grains (rice & wheat)
Answer:
The Cross elasticity of demand will be the change in demand at Sweat-it-out divided by the change in price at Pump-U-Up
=-0.16/-0.1
= 1.6
Explanation:
The Price decrease from Pump-U-up = 10%
And the resultant decline in Gym membership at sweat-it-out is 16%
The Cross elasticity of demand will be the change in demand at Sweat-it-out divided by the change in price at Pump-U-Up
=-0.16/-0.1
= 1.6
A Positive Cross - Price elasticity indicates both Gyms are close substitutes of one another.
An attempt by one to lower its price will directly impact negatively in membership of the other.
The strategy often adopted in such line of Business is to keep prices at Par or offer distinctive services outside of the traditional, e.g include a Spar into the gym membership, or access to discounted toning or body building products etc.
Answer: The loss of enjoyment people incur when scenic land is converted to commercial use.
The value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government.
The leisure time enjoyed by Americans Funds spent by state governments to build highways
Explanation:
The gross domestic product is the value in terms of money of all the goods and services that are produced in a particular country at a certain period of time.
Over time, people have often criticised the use of GDP as a good measurement of the output of a nation that it does not include every transactions and production for that nation. In this scenario, the following cases are either not accurately accounted for or are measured inaccurately.
1. The loss of enjoyment people incur when scenic land is converted to commercial use.
2. The value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government.
3. The leisure time enjoyed by Americans Funds spent by state governments to build highways.
In the above cases, the monetary value of these activities aren't reflected on the GDP calculation.
