Answer:
Results are below.
Explanation:
To determine whether the project should be accepted or not, we need to calculate the net present value. <u>If the NPV is positive, the project should be accepted.</u>
<u>To calculate the NPV, we will use the following formula:</u>
NPV= -Io + ∑[Cf/(1+i)^n]
Cf1= 9,800/1.0975= 8,929.38
Cf2= 16,400/1.0975^2= 13,615.54
Cf3= 21,700/1.0975^3= 16,415.20
Total= $38,960.12
NPV= -38,700 + 38,960.12
NPV= 260.12
<u>The project is profitable. </u>
Answer:
Increase of $95,000
Explanation:
Stockholder equity: It records the issue of shares, retained earnings, and deduct the dividend amount if declared.
The expenses which are related to the business is directly or indirectly affect the stockholder equity.
So, the net effect is shown below:
Issuance of common stock = $200,000
Less - Payment of salaries expense = $105,000
So, the net effect would be equal to
= $200,000 - $105,000
= $95,000
The accounts payable does not affect stockholder equity. So, it would not be considered.
This $95,000 would increase stockholder equity.
Opportunity based decision making
Answer:
$21.66
Explanation:
We are to find the present value of $9,999,999,999.
The formula to be used is :
P = FV (1 + r/m) ^-mn
FV = Future value
P = Present value
R = interest rate
N = number of years
M = number of compounding
= $9,999,999,999 ( 1 + 0.02 / 4 ) ^-4000 = $21.66
I hope my answer helps you
The correct answer to this question is that:
In a monopoly, “the monopolist
must lower the price on all units to sell one more unit of output”.
This means that in a monopoly market,
if we increase the amount of output without lowering the price, the marginal
revenue decreases. Therefore marginal revenue is indirectly proportional to
number of outputs.
In a perfect competition however, the
marginal revenue is constant to any amount of output.
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