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Ivenika [448]
3 years ago
10

Knowledge Check 01 Addison Corporation is considering the purchase of equipment that would increase sales revenues by $250,000 p

er year and cash operating expenses by $100,000 per year. The equipment would cost $400,000 and have a 5-year life with no salvage value. The simple rate of return on the investment is closest to
A. 17.5%
B. 20.0%
C. 25.5%
D. 35.0%
Business
1 answer:
Flauer [41]3 years ago
8 0

Answer:

C. 25.5%

Explanation:

Net operating cashflow = (250,000 - 100,000) = 150,000; This is a recurring cashflow; the PMT

Cost of equipment; the PV = 400,000

Next, calculate the rate of return  using Net operating cashflow per year and the equipment cost. You can do this with a financial calculator;

N =5

PMT = 150,000

FV = 0

PV = -400,000

then CPT I/Y = 25.41%

Therefore the return is closest to 25.5%

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Vlada [557]

Answer:

Ans. (1) For preparing vaccines, in olden days,microbes were injected in the bodies of horses ormonkeys. These laboratory animals used to makeantibodies to defend these microbes. Antibodies areproteins which can act against the disease-causinggerms. These antibodies were extracted from theblood of these animals and were used as vaccines.(2) Now-a-days with the advent of biotechnology,the vaccines are manufactured in laboratories withthe help of bacteria. For this purpose, a detailedstudy of the disease causing germ is undertaken.The genes and the DNA of such microbes arethoroughly explored. Then based on thisinformation, proteins which can act against suchmicrobes are synthetically prepared in thelaboratories. The safe vaccine is produced in such away which can defend the body against infections.3) Some types of vaccines are prepared from theextracts of germs. These germs or microbes aredeactivated and made dormant. When they areinjected in the body of a person, they initiate thedefending action. The body of such vaccinatedperson, already develops the antibodies in his or herbody. When in future, this person is again attackedby similar germs the defence starts immediately andthe person does not become sick.Ans. (1) For preparing vaccines, in olden days,microbes were injected in the bodies of horses ormonkeys. These laboratory animals used to makeantibodies to defend these microbes. Antibodies areproteins which can act against the disease-causinggerms. These antibodies were extracted from theblood of these animals and were used as vaccines.(2) Now-a-days with the advent of biotechnology,the vaccines are manufactured in laboratories withthe help of bacteria. For this purpose, a detailedstudy of the disease causing germ is undertaken.The genes and the DNA of such microbes arethoroughly explored. Then based on thisinformation, proteins which can act against suchmicrobes are synthetically prepared in thelaboratories. The safe vaccine is produced in such away which can defend the body against infections.3) Some types of vaccines are prepared from theextracts of germs. These germs or microbes aredeactivated and made dormant. When they areinjected in the body of a person, they initiate thedefending action. The body of such vaccinatedperson, already develops the antibodies in his or herbody. When in future, this person is again attackedby similar germs the defence starts immediately andthe person does not become sick.

3 0
2 years ago
4 Select the correct answer. Which of these components is a part of the Central Processing Unit (CPU) of a computer?​
scoundrel [369]

Answer:

Control unit

Explanation:

Is a part of the "Central Ptocessing Unit (CPU)" of a computar. It is considerado a a "heart of the CPU.

8 0
3 years ago
You have $13,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 13 percent and Stock Y with
kolezko [41]

Answer:

You should invest $8,970 in stock X and $4,030 in stock Y.

Explanation:

These can be estimated as follows:

PER = (ERX * wX) + (ERY * wY) ....................... (1)

Where,

PER = Portfolio expected return = 11.45%, or 0.1145

ERX = Expected return of X = 13%, or 0.13

ERY = Expected retun of Y = 8%, or 0.08

wX = Weight of X = ?

wY = Weight of Y = 1 - wX = ?

Substituting the values into equation (1), we have:

0.1145 = [0.13 * wX] + [0.08 * (1 - wX)]

0.1145 = 0.13wX + [0.08 - 0.08wX]

0.1145 = 0.13wX + 0.08 - 0.08wX

0.1145 - 0.08 = 0.13wX - 0.08wX

0.0345 = 0.05wX

wX = 0.0345 / 0.05

wX = 0.69

Since wY = 1 - wX

Therefore,

wY = 1 - 0.69

wY = 0.31

Total amount to invest = $13,000

Investment in stock X = Amount to invest * 0.69 = $13,000 * 0.69 = $8,970

Investment in stock Y = Amount to invest * 0.31 = $13,000 * 0.31 = $4.030

Therefore, you should invest $8,970 in stock X and $4,030 in stock Y.

6 0
3 years ago
If the marginal propensity to consume (MPC) is 0.8 and taxes decrease by $200, then real GDP will: Please choose the correct ans
NNADVOKAT [17]

Answer:

increase by $800

Explanation:

if taxes decrease by 200 then

GPD x tax multipler = net impact on GDP

the tax multiplier is calculated as follows:

\frac{MPC}{1 - MPC}

\frac{0.8}{1 - 0.8} = \frac{0.8}{0.2}

multiplier = 4

tax variation x multiplier

200 x 4 = 800

As the taxes decreases the effect on the GDP is positive.

7 0
3 years ago
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