I think the answer is d since the first 2 options are true
Given:
<span>initial cost $95,000 to implement over a one-year period and will produce no savings during that year.
the company will save $30,000 during the first year of operation.
For the next four years, the savings will be $20,000 per year.
5 percent discount rate
Year Future Value Factor Present Value
0 (95,000)
1 30,000 (1+0.05)</span>¹ 28,571.43<span>
2 20,000 (1+0.05)</span>² 18,140.59
3 20,000 (1+0.05)³ 17,276.75
4 20,000 (1+0.05)⁴ 16,454.05
5 20,000 (1+0.05)⁵ 15,670.52
Net Present Value 1,113.34
Present Value = Future Value / Factor
The NPV of the system is 1,113.34
Take into account the machine's cost of $15,000, residual value of $3,000, and usable life of 5 years with straight line depreciation, what would the monthly amount of depreciation be declining-balance
What is Declining Balance?
In an accelerated depreciation scheme known as the declining balance method, bigger depreciation expenses are recorded in the earlier years of an asset's useful life and smaller depreciation expenses are recorded in the asset's later years. The diminishing balance approach, sometimes referred to as the declining balance method, is the best choice for assets that eventually lose value or become obsolete. This is typically true for high-tech things like computers, cellphones, and other devices of this nature, which are typically useful at first but become less so when newer models are introduced to the market. The eventual phase-out of these assets is taken into account through an accelerated method of depreciation.
To learn more about Declining Balance
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Answer:
An increase in consumer and business confidence will cause an increase in real GDP in the short run and no change in inflation in the short run, everything else held constant.
Explanation:
Please refer attached diagram while reading the explanation :) This will make it easier to understand...
Real GDP (Gross Domestic Product) is the value of all goods and services produced by an economy in a given period of time. When there is an increase in consumer confidence, it is likely that they will spend and purchase more in the economy. This in turn means that the aggregate demand curve will shift to the right (from AD1 to AD2).
On the other hand, when business confidence increase, it is likely that they believe they have a greater growth, profitability and survival in the economy. Hence, they will increase production. This in turn means, the aggregate supply curve will shift right as well (from AS1 to AS2).
Originally, the economy operated at PL1 and AS1/AD1 (market equilibrium point A). With the change in business and consumer confidence causing the right-hand shifts in the curves, the new market equilibrium (B) determines an increase in real GDP to AS2/AD2. However, the price level remains at PL1 which determines that it remains constant and hence there is neither a decrease nor increase in inflation in the short run.