Answer:
Receiving $2,000 every year for 6 years is worth more today.
Explanation:
$2,000 received per year is annuity as same amount is received every year.
Given:
Amount received every year = $2,000
Time period = 6 years
Rate = 5%
Check PVIFA (Present value of annuity factor) table for 5% and 6 years, we get 5.0757
Present value of annuity = 2,000 × 5.0757
= $10,151.4
Receiving $2,000 every year for 6 years is worth more today than receiving $10,000 today as present value of annuity is worth $10,151.4 today which is more than $10,000.
So, $2,000 every year is worth more today.
<em>Find the given attachments for the complete solution</em>
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Answer:
$1,068,000
Explanation:
The computation of the total manufacturing overhead cost should be
Total variable manufacturing overhead for 50,000 machine hours is
= Indirect labor + Machine supplies +Indirect materials
= 630,000+90,000+120,000
= $840,000
Now
Variable manufacturing overhead per machine hour is
= Total variable manufacturing overhead cost ÷ Number of machine hours
= $840,000 ÷ 50,000
= $16.80
And,
Total variable manufacturing overhead for 60,000 machine hours
= Variable manufacturing overhead per machine hour × 60,000
= $16.80 × 60,000
= $1,008,000
Now the total manufacturing overhead cost should be
= 1,008,000 + 60,000
= $1,068,000
Answer:
12.84
Explanation:
In this question, we use the Capital Asset Pricing Model (CAPM) formula which is shown below
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
= 1.5% + 1.80 × (7.8% - 1.5%)
= 1.5% + 1.80 × 6.3%
= 1.5% + 11.34%
= 12.84
Since the standard deviation is not relevant. Hence, ignored it
Answer:
A. It is the point where the demand and supply curves intersect.
Explanation:
The term equilibrium is used in economics to mean balance. The equilibrium price is the balance between the demand and supply forces. Therefore, the equilibrium price is the prevailing market price.
In a graph that shows both the supply and demand curves, the equilibrium point will be the intersection point of the two curves. The intersection or equilibrium point will represent the current market price. A change to either the quantity demanded or quantity supplied will cause the equilibrium point to change.
