Answer:
When marginal cost meet with the demand curve
Explanation:
<em>The industry will do the most efficient allocation of resources when the marignal cost met the demand curve. </em>
When that occur the cost of producing an additional unit matches the amount the consumers are willing to pay for it thus, are in equilibrium.
The government will also have to look for the marginal revenue at this point to determinate wheter or not to subsidize the monopoly or not to avoid going bankruptcy
Answer:
At June 30th, 2020 an investor will purchase the bonds at 197,327 which is the present value of the bond at the market rate.
<u>June 30th entries:</u>
interest expense 11,627.4 debit
discount on bonds payable 627.4 credit
cash 11000 credit
/effective method
interest expense 11,776.25 debit
discount on bonds payable 776.25 credit
cash 11000 credit
/straight-line method
the tables are attached to the answer.
Explanation:
effective method
procceds 193,790
face value 200,000
discount on bonds payable 6,210
bond rate 0.055 (11% annual / 2 payment per year)
market rate 0.06 (12% annual / 2 payment per year)
straight line:
6,210 / 8 (4 years and 2 payment per year) = 776,25
Answer:
Demonstrate a commitment to ethical decision making
Explanation:
The most important way to maintain ethical behavior at workplace for management is to demonstrate a commitment to ethical decision making. Because it is the management who can commit to demonstrate ethical decision making which will encourage the employees to behave similarly which is ethically and hence the workplace environment will become ethical.
<span>An opportunity cost is defined as what someone gives up to receive the potential benefits from the purchase of one more unit of something else. Given the choices above, every ordinary decision we make involves an opportunity cost, is correct. Whenever someone has to make a decision, something is always given up in order to make the final decision. </span>
Answer:
A
Decision: Project A should be selected.
B
NPV =$40,909.09
Explanation
A
<em>Since the two projects would achieve the same objectives, the project with the lowest initial cost should be selected.</em>
Kindly note that the $2 million already spend on project A is not a relevant cash flow because it is sunk cost. Hence, the initial cos outlay of project A will be $2 million which will be spent should the project be undertaken.
Project B on the other hand would cost $1.5 million in initial cost which is $500,000 cheaper than project A.
Decision: Project A should be selected.
B
<em>The NPV is the difference between the PV of cash inflows and the PV of cash outflows. A positive NPV implies a good investment decision and a negative figure implies the opposite. </em>
NPV of an investment:
NPV = PV of Cash inflows - PV of cash outflow
Initial cost = 50,000
The NPV of the savings
NPV = 100,000× 1.1^(-1) - 50,000= 40,909.09
NPV =$40,909.09
