Answer:
average amount invested in the asset = $450,000
Explanation:
given data
equipment costs = $700,000
residual value = $200,000
cost savings = $60,000
to find out
average amount invested in the asset
solution
we get here Average amount invested that is express as
average amount invested in the asset = ( Amount invested + Residual value) ÷ 2 ........................1
put here value we get
average amount invested in the asset = 
average amount invested in the asset = $450,000
Answer:
I should not accept the bet; the precise level of risk aversion does matter.
Explanation:
Risk averse person is the one who is not willing to take the risk even if he is given high returns. Risk averse person will always avoid the risks. In the given scenario the person is risk averse. If he rolls out the dice he has to pay $200 times the dice number which means he just have two chance (dice rolls 1 or dice rolls 2) for getting return otherwise he will loose the bet and he will have to pay money from the pocket.
Answer:
c. $3,750
Explanation:
Green Thumb Company provides two years warranty for any product defect. The provision needs to be made for the warranty expense and it should be reported in the balance sheet as warranty liability. The company budgets the warranty expense to be 2% in year of sales which is $2,400 ($120,000 * 2%) and 3% in the year after sale which is $1,350 ($45,000 * 3%). The total warranty liability for the year 2017 which will be reported at December 31, 2017 is $3,750.
Answer:
Helps a company jump-start demand
Explanation:
Format war in business is defined as competition for market dominance between producers of a particular type of technology with closely related functions.
Aggressive marketing are strategies employed to gain and ensure survival in a new market.
A typical example an aggressive marketing in the format war is selling a software at a low price but a relatively high price for support service.
One of the advantages is that it helps a company jump -stand demand among competitions
Answer:
A) $10 per person
B) $15000000
C) $30000000
D) $15000000
Explanation:
A) Cost of corn subsidies per person in the United States in 2012 = 3 billion/300 million = 3000000000/300000000 = $10 per person
B) We are told that 10 percent of 300 million population are those willing to provide funding. Thus;
Number of people providing funding = 10% × 300 million = 30,000,000
Each of these 30,000,000 people are willing to only provide $0.50.
Thus;
total funding raised for their lobbying efforts = $0.50 × 30,000,000
total funding raised for their lobbying efforts = $15000000
C) We are told that the recipients of corn subsidies donated just 1% of the total amount which they received via subsidies. Thus;
Amount raise to support lobbying efforts to continue the corn subsidy =
1% × $3 billion = $30000000
D). the difference between which the amount raised by the recipients of the corn subsidy exceeds that of the amount raised by the opponents of the corn subsidy = $30000000 - $15000000 = $15000000
