Based on your understanding of the how these firms differ, identify which of the following are factors that affect multinational
1 answer:
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Answer:
The option (b) 2.4 is correct.
Explanation:
We can find price elasticity of demand by using the formula shown in the attachment attached with.
Since we know the quantities of product associated with the market price of the product, by putting values in the equation we have:
Price elasticity of Demand =
= [(6000 - 4000) / (6000 + 4000)/2] / [(13 - 11) / (13+11)/2]
Price elasticity of Demand = 2.4
So this is how we can find the price elasticity of supply which says that the producers will respond to prices drop by producing lower quantity of product.
Answer:
After tax salvage value $1,278,852.8
Explanation:
MARCS five years class:
after four years we will have depreicate:
0.2 + 0.32 + 0.192 + 0.1152 = 0,8272
(Data from the attached MACRS)
tax basis of the asset:
6,170,000 x ( 1 - 0.8272) = 1.066.176
We will be taxed for the difference between the basis and the salvage value:
1,370,000 - 1,066,176 = 303,824 taxable gain:
303,824 x 30% = 91,147.2
After tax salvage value:
salvage valeu - income tax expense
1,370,000 - 91,147.2 = 1,278,852.8
