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antiseptic1488 [7]
3 years ago
8

A proximity sensor attached to the tip of an endoscope could reduce risks during eye surgery by alerting surgeons to the locatio

n of critical retinal tissue.
If a certain eye surgeon expects that by using this technology, he will avoid lawsuits of $0.6 and $1.35 million 2 and 5 years from now, respectively, how much could he afford to spend now if his out-of-pocket costs for the lawsuits would be only 10% of the total amount of each suit? Use an interest rate of 10% per year.
Business
1 answer:
lilavasa [31]3 years ago
7 0

Answer:

He could afford to spend $133,411 for the device now.

Explanation:

The maximum the surgeon could afford for the device is equal to the sum of present value of the lawsuit costs that he can avoid in year 2 and year 5 which is:

+ Year 2: 600,000 * %out-of-pocket cost for the law suit = 600,000 * 10% = $60,000;

+ Year 5: 1,350,000 * %out-of-pocket cost for the law suit = 1,350,000 * 10% = $135,000.

=> The amount he can afford for the device = 60,000 / 1.1^2 + 135,000 / 1.1^5 = $133,411.

So, the answer is $133,411.

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Depreciation is a process by which A. the cost of plant and equipment is allocated to expense over the time periods which benefi
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Answer:

B. the decline in market value of plant and equipment is determined and recorded

  • <u>Depretiation is a measure of how much value our plant and equipement does loose because of use and the pass of the  time. </u>
  • If depretiation would not exist, we would register the value of plant and equipment as if they worth the same they did when they were bought, wich would be not real.
  • As an example, think about an oven in a bakery after using for some years: it is not in the same conditions that it was when new. This lost in the value of the goods (because of usage in this case), is what depretiations tries to account.

4 0
2 years ago
If potential GDP is equal to $600 billion, what does the long-run aggregate supply curve look like?A) It is a horizontal line at
Ede4ka [16]

Answer:

C) It is a vertical line at $600 billion of GDP

Explanation:

Aggregate supply is the total value of goods and services that companies established in a country are willing to produce and sell for each price level over a given period of time. It is therefore the sum of the supply curves of each firm.

Potential GDP, in turn, is the value of all final goods and services produced by an economy over a given period of time when all factors of production (capital and labor) are being tapped. It is the maximum production point of an economy. In this example, the potential GDP is 600 billion.

In the long run, an increase in the general price level does not affect aggregate production. Thus the aggregate supply curve of an economy represents the sum of all supply in a situation in which all factors of production are employed. This makes the vertical aggregate supply curve at 600 billion.

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3 years ago
Insurance can help you:
Katena32 [7]
The answer is b hope this helps :) :) :)

4 0
3 years ago
What major advantage does a partnership have that a sole proprietorship does not? A. Partnerships combine partners’ assets. B. T
allochka39001 [22]
The answer is A because with a sole proprietorship you can have many partners each contributing small amounts of money, that would add up to a larger amount. :)
6 0
3 years ago
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Balance Sheet Below are items that may appear on the balance sheet. Required: Match each item with its appropriate classificatio
Lerok [7]

Answer:

Item                                               Classification

1. Buildings                                   - Property, plant, and equipment

2. Copyright                                 - Intangible assets

3. Supplies                                  -  Current assets

4. Unearned service revenue   -   Current liabilities

5. Prepaid insurance                 -  Current assets

6. Common stock                      -  Contributed capital

7. Rent payable                          -  Current liabilities

8. Accounts receivable             -   Current assets

9. Allowance for doubtful accounts   - Retained earnings

10 Bonds payable                       - Current liabilities

Explanation:

A. Property, plant, and equipment

Assets of long term nature that are physical fall in this category.

B. Intangible assets

Assets that are of long term and do not have a physical nature fall in this category

C. Current assets

Assets of a short term nature, existing within a period of 12 months are in this category.

D. Current liabilities

Liabilities or obligations due within a period of 12 months fall in this category.

E. Current assets

Assets of a short term nature, existing within a period of 12 months are in this category.

F. Contributed capital

This involves all capital raised from owners of the company excluding reserves attributed to them.

G. Retained earnings

This is the reserve created out of profit earned during the year. Include incomes and expenses here.

7 0
2 years ago
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