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Sveta_85 [38]
2 years ago
6

Which of the following scenarios will shift the investment demand curve right? Instructions: You may select more than one answer

. a. Business taxes increase. b. The expected return on capital increases. c. Firms have a lot of unused production capacity. d. Firms are planning on increasing their inventories.
Business
1 answer:
svet-max [94.6K]2 years ago
3 0

Answer:

Any exogenous variable that leads to an increase in investment shifts the investment demand curve to the right.

Exogenous variables are all economic variables other than the real interest rate, which is endogenous to the model.

Hence, the following answers are correct:

  • Expected return on capital increases - this would incentivize firms to invest more because now the expect to earn higher profits on those investments.
  • Firms are planning on increasing their inventories - buying inventory is a form of investment because inventories are assets, and economic profit is expected from them. This will shift the curve to the right as well.

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A manufacturer of printed circuit boards is considering purchasing a new surface mount technology component placement system. Tw
Darina [25.2K]

Answer:

R is a better alternative because it has a higher NPV than Q.

Explanation:

Machines                            Q                                  R

First costs                   $380,000                  $395,000

Net annual revenue $150,000 in year 1,      $152,500

                                  increasing by $500

                                   per year thereafter  

Salvage value               $4,000                             0

Life, years                           8                                 10

MACRS 7 year recovery:

year                    %                         Q                           R

1                      14.29%               54,302                  56,445.50

2                    24.49%               93,062                  96,735.50    

3                     17.49%               66,462                  69,085.50

4                     12.49%               47,462                  49,335.50

5                      8.93%               33,934                   35,273.50

6                      8.92%               33,896                  35,234.00

7                      8.93%               33,934                   35,273.50

8                      4.46%                16,948                    17,617.00

net cash flow

year                                    Q                           R

1                                     116,505.70                   118,880.93

2                                    130,396.70                  132,982.43    

3                                    121,411.70                     123,304.93

4                                    115,086.70                   116,392.43

5                                    110,676.90                    111,470.73

6                                    110,930.10                    111,456.90

7                                    111,326.90                     111,470.73

8                                    108,306.80                 105,290.95

9                                                                            99,125

10                                                                           99,125

Using a financial calculator, I calculated the NPV using a 12% discount rate:

  • Q's NPV = $200,636.15
  • R's NPV = $259,221.01

6 0
3 years ago
Which conclusion is best supported by the data in the graph?
maria [59]

Technology is a growing part of the US economy.

The four largest manufacturing industries in America are computers and electronics; chemicals; food, beverages, and tobacco; petroleum and coal—account for about 51 percent of manufacturing GDP. The top nine sectors constitute approximately 79 percent of manufacturing GDP. These sectors accounted for 68 percent of total manufacturing employment in 2010.

From the above graph, we can see clearly that the technology sector had increased from $225billion in 2006 to about $360billion in 2011, which is about a 60% increase in a span of 5 years, thats a massive growth within a short period.

8 0
3 years ago
Read 2 more answers
Fred Stone is an employee of Henrock Company. During the first part of the year, Stone earned $4,340 while working in State Q. F
lyudmila [28]

Answer:

$280

Explanation:

SUTA is a synonym for State Unemployment Tax paid by employers and employees , and used by the government to provide the insurance expenditures for the unemployed citizens

The reciprocal arrangement exempts the tax payer from his former country of work. H e will be taxed in the new country of work at the applicable rate

SUTA ceiling earning = $7000

SUTA rate = 4.0%

SUTA = $280

5 0
3 years ago
All of the following are functions of a knowledge management system EXCEPT: a. designing information systems. b. improving colla
Alika [10]

Answer:

designing information systems

Explanation:

knowledge management system are system designed to managed the knowledge of a company. The design of IT Systems is not under it scope.

7 0
3 years ago
Why do you think it is important to do what is right even when no one is looking
kirill115 [55]

It's important because if you were to get used to doing "something wrong", you might as well go into the habit until you get caught. Besides, it's best to do the right thing.

5 0
3 years ago
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