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3 years ago

"Which of the following is correct?

Business

1 answer:

ICE Princess25 [194]3 years ago

5 0

Answer: Option (B) is correct.

Explanation:

The nominal GDP is equal to the real GDP in the base year, that's why GDP deflator in the base year is equal to 100.

GDP deflator is calculated as the nominal GDP divided by the real GDP multiply by 100. It is shown as:

GDP deflator = $\frac{Nominal\ GDP}{Real\ GDP} \times 100$

GDP deflator would be used as the conversion factor that transformed the real GDP into nominal GDP.

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Two incinerators are being considered by a waste management company. Design A has an initial cost of $2,500,000, has annual oper

Vika [28.1K]

Answer:

Desing A: 23,024,370‬

Desing B: 22,520,274.6

It should purchase desing B as the capitalized cost is lower.

Explanation:

We consider annuity for the overhauls and then, perpetuity to consider this incinerators will last indefinitely.

maintenance cost: 800,000 / 0.05 = 16,000,000

Overhaul:

The company will need to fund 1,250,000 every 5 years. We need to determinate the annuity to obtain this future value:

$FV \div \frac{(1+r)^{time} -1}{rate} = C\\$

PV 1,250,000

time 5

rate 0.05

$1250000 \div \frac{(1+0.05)^{5} -1}{0.05} = C\\$

C $ $ 226,218.498

Then at perpetuity:

$ 226,218.498 / 0.05 = 4,524,370

Desing A capitalized cost:

2,500,000 + 16,000,000 + 4,524,370 = 23,024,370‬

We do the same for Desing B:

investment: 5,750,000

maintenance: 600,000 / 0.05 = 12,000,000

overhaul:

$3000000 \div \frac{1-(1+0.05)^{-10} }{0.05} = C\\$

C $ 238,513.725

238,513.73/0.05 = 4,770,274.6

Capitalized cost: 5,750,000 + 12,000,000 + 4,770,274.6 = 22,520,274.6‬

8 0

3 years ago

In what category is the purchase of a computer by a person for household use in national income accounting, that is, in how we c

Nataliya [291]

Answer:

is counted in C, personal consumption

Explanation:

GDP = Consumption spending + Investment spending + Government Spending + Net Export

Consumption spending is all spending by households on services and goods which could be either durable or non durable goods.

Investment is spending by businesses.

I hope my answer helps you

6 0

3 years ago

When companies try to entice customers to make purchases by offering special incentives or excitement-building programs, includi

stealth61 [152]

Answer:

Sales Promotion

Explanation:

The method of order to persuade a potential client to purchase the product is sales promotion.

Sales promotion is meant to be used as a short-term tool to boost sales – as a means of creating long-term customer loyalty, it is rarely acceptable.

Many offers for sales are intended for customers.

5 0

3 years ago

Which is not capital?

KiRa [710]

C Is The Answer I Just Took This My E2020.

6 0

3 years ago

which type of account typically has very high liquidity, low or no interest, and low minimum balance?

sdas [7]

Checking accounts: best for unrestricted access to funds; typically worst for earning interest.

Savings accounts: good for earning some interest with quick access to funds.

Money market accounts: can have higher interest than savings accounts, plus some check-writing and ATM access.

Certificates of deposit (CDs): highest interest rates in exchange for most-limited access to funds

6 0

3 years ago

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