Answer:
B. $40,955.35
Explanation:
The computation of the amount that need to pay is shown below:
The Amount needed at 18 age is
= Present value of all future expenses
= $8000 × (1.02)^18 + $8,000 × (1.02)^19 ÷ 1.1 +$ 8000 × (1.02)^20 ÷ (1.1)^2 + $8,000 × (1.02)^21 ÷ (1.1)^3
= $11,425.6 + 10,594.98 + 9,824.44 + 9,109.39
= $40,954.95
It is nearest to option B
Answer:
Refer explanation
Explanation:
A. Average total cost (ATC) is the total cost divided by the number of units sold. It is unlikely to increase. This is especially because as more output is produced, fixed costs are spread over a larger number of units. Thus, the fixed cost per unit falls. The firm is also likely to exploit economies of scale (falling average costs due to rise in output). Thus, this is a decreasing cost industry.
B. The firm should charge $4 since the marginal cost i.e. the cost of producing an additional unit of output is $4. At this price, the firm would make a loss of $30 million since the price is enough only to cover the variable costs. It would not be able to cover the fixed costs of $30 million. The difficulty to make profits and the loss made would discourage the firm, causing it to exit the industry.
C. Profit = Total Revenue - Total Costs.
At price $5, total revenue = $5 x 30 million = $150 million. Total costs includes both variable and fixed costs. Fixed cost as provided is $30 million. Variable costs = $4 x 30 million = $120 million. Hence, total costs would be = $30 million + $120 million = $150 million. Profit/loss = $0 (150 million - 150 million). The firm is at the break-even point where TR is equal to TC and makes neither a profit nor a loss.
D. At 40 million bags demanded for $5, the total revenue would be = $5 x 40 million = $200 million. The total fixed cost would remain the same as provided in the question ($30 million). Total variable costs would now be $40 million x $4 = $160 million. Thus, the total costs are $160 million + $30 million = $190 million. Profit = $200 million (Total Revenue) - $190 million (Total Costs) = $10 million
E. The fair rate of return is the point where the economic profit is zero ($0). In order to identify the price, the costs are important. The firm’s fixed costs would remain as 30 million. The variable costs would be 40 million x $4 which is $160 million. The total cost would thus be $160 million + $30 million = $190 million.
It is important to then identity the total revenue. TR is equal to P x 40 million. This can then be substituted in the profit equation in order to obtain the price.
Profit = TR - TC
0 = 40P - $190 million
$190 million = 40P
P = $190 / 40
P = $4.75
The long range predictors in the question are:
- Relative monetary growth
- relative inflation rates
- nominal interest rate differentials
The short range predictors in the question are:
- psychological factors
- investor expectations
- bandwagon effects
<h3>What are long range indicators?</h3>
These are the indicators that are able to provide a prediction for the way that an economy would be in the future.
<h3>What are short range indicators?</h3>
These are the instruments that are used periodically to check the economic trends whioch happenly usually more than once in a year.
Read more on economic indicators here: brainly.com/question/903754
Answer:
The correct option is b. $3,918.
Explanation:
This can be calculated using the simple present value (PV) formula as follows:
PV = FV / (1 + r)^n ............................ (1)
Where;
PV = Present value of the amount = ?
FV = Future value of the amount = $5,000
r = Discount rate = 5%, or 0.05
n = number of years = 5
Substituting the values into equation (1), we have:
PV = $5,000 / (1 + 0.05)^5
PV = $5,000 / 1.05^5
PV = $5,000 / 1.2762815625
PV = 3,918
Therefore, the correct option is b. $3,918.
Answer:
$67,150
Explanation:
The computation of cost of goods manufactured for this period is shown below:-
Cost of goods sold = Beginning finished goods + Cost of goods manufactured - Ending finished goods
$71,400 = $84,000 + Cost of goods manufactured - $79,750
$71,400 = $4,250 + Cost of goods manufactured
Cost of goods manufactured = $71,400 - $4,250
= $67,150
Therefore for computing the cost of goods manufactured we simply applied the above formula.
