Answer:
Annual depreciation= $28,940
Explanation:
Giving the following information:
Kansas Enterprises purchased equipment for $78,500 on January 1, 2021. The equipment is expected to have a five-year service life, with a residual value of $6,150 at the end of five years.
Annual depreciation= 2*[(original cost - residual value)/estimated life (years)]
Annual depreciation= 2* [(78,500 - 6,150)/5]= $28,940
The major financial benefit of beginning your retirement funding early is related to : Increased cost of living.
The value of money will always dropped. Let's say that in the present time, you could get one hamburger with $1. In the future, it will be more likely that the cost will increase, maybe you need about $ 1.5 - $ 2 to buy a hamburger by the time you retire
hope this helps
I really want to know were the question is in this paragraph
Answer:
9%
Explanation:
The first step is to understand the relevant terms in the question
Average Cost of New Capital
The cost of capital represents a required return rate (in percentage) an organisation or an individual ( in the case of John) will need to make a capital project advantageous, worthwhile or profitable.
In the case of John, the Average Cost of New Capital is 9%
MARR - Minimum Acceptable Rate of Return
This rate also in percentage represents the lowest or minimum rate of return a business or an individual is able to accept in order to start a given project. It is usually based on the risk of the project as well as the alternate benefit foregone if other projects were accepted.
It is also called the Hurdle rate, or the cutoff rate.
John's MARR is 18%
Based on these,
John's Net rate of return is calculated as follows
Minimum Acceptable Rate of Return - Average Cost of the New Capital
= 18% - 9% = 9%
Answer:
Option (b) is correct.
Explanation:
The production possibility frontier refers to the graphical representation of various combination of output that an economy can produce with available or limited factors of production or resources.
Alternatively, it tells us about the combination of two goods that a firm can produce with the fixed amount of resources as both the goods are important for their manufacture.
