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Julli [10]
3 years ago
5

Provide a brief explanation of why depreciation of capital assets is considered in determining potential net income from an inve

stment, but not included in determining the net cash flow of an investment.
Business
1 answer:
lisabon 2012 [21]3 years ago
6 0

Answer:

Depreciation is the allocation of the cost of capital assets over their useful life. Since capital assets are held for use in more than one accounting period.

Explanation:

Depreciation is an accounting method for allocating the cost of a tangible asset over time.

Depreciation is found on the income statement, balance sheet, and cash flow statement. It can thus have a big impact on a company’s financial performance overall.

Ultimately, depreciation does not negatively affect the operating cash flow of the business.

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g Consider the income-expenditure model. Suppose that the marginal propensity to consume is equal to 0.8. A reduction in taxes o
RideAnS [48]

Answer:

increase by 400 billion dollars

Explanation:

marginal propensity to consume = mpc

tax multiplier = -mpc/1-mpc

from our question we were given mpc to be 0.8

-0.8/1-0.8

= -0.8/0.2

= -4

change in output = -4(-100)

= 400 billion dollars

for a $100 tax decrease, output will increase by $100 billion x 4

= $400 billion

3 0
3 years ago
The following data represent quantities of tea leaf pluckings (tender shoots from tea plants) from sixteen different plots of te
mr_godi [17]

Answer:

Explanation:

1)H_0 : All group means equal or \mu _1=\mu _2=\mu _3=\mu _4

H_1:\mu 1=\mu 2=\mu 3\neq \mu 4

At least one of the treatment group means are different

ANOVA TABLE      

<u>Source of Variation    SS         df      MS            F          P-value        F crit </u>

Between Groups       213.5      3    71.16667   0.65 0.5975     3.490295

Within Groups          1312.5      12   109.375  

MSB = SSB / DFB = 71.16667

MSE = SSE / DFE = 109.375

F = MSB / MSE = 0.650667

3) P-value: 0.597576

The test statistic is not significant and failed to reject the null hypothesis.

4) The test statistic is not significant. So, there is no evidence to conclude that there is a difference between groups.

4 0
3 years ago
What is capital market?
goblinko [34]
It's a financial market where people can buy or sell long-term debt or equity-backed securities

The example of capital markets are : New York stock Exchange, American stock exchange, London stock exchange, NASDAQ, Etc

5 0
3 years ago
The use of government taxes and spending to alter macroeconomic outcomes is known as?
maw [93]

it's known as fiscal policy

6 0
2 years ago
Diamonds and other jewels often carry a high price to convey an image of high quality or uniqueness. This type of pricing is kno
olchik [2.2K]
Prestige pricing is a unique pricing method involving products which would actually generate less overall profit at lower prices than higher prices. As long as the product is views by the public as being "prestigious," it will be in greater demand at the higher price. If the price were lowered, the public opinion of the product would be lower and the product would be seen as less desirable. This results in the product selling less at the lower price than at the higher price.
5 0
3 years ago
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