Which of the following is a primary benefit of entrepreneurial competition?

Machine A has an initial cost of $6,000 with total annual maintenance costs of $750. Machine B has an initial cost of $8,500 wit

ryzh [129]

When the initial cost of Machine A is $6,000 and that of Machine B is $8,500, then both the machines will have the same current value at the end of 10 years.

<h3>What is the meaning of current value?</h3>

The present market value of an asset that prevails in the market is known as the current value of an asset. Using the given conditions, the current value will be the same as computed under,

$\rm Cost\ of\ Machine\ A\ + Maintenance\ Cost(Interest\ Rate)= Cost\ of\ Machine\ B\ +Maintenance\ Cost(Interest\ Rate)$

Putting the given value and solving further we get,

$\rm Current\ Value\ x\ 7.25\ x\ 10\% = \dfrac{2500}{345}\\\\\rm Current Value= 10$

Hence, the significance of current value is aforementioned.

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5 0

1 year ago

Henry Josstick has just started his first accounting course and has prepared the following balance sheet and income statement fo

Brut [27]

Answer:

INCOME STATEMENT

Net sales $710

Cost of goods sold ($585)

Selling, gen & admin expenses ($39 )

Depreciation ($13)

EBIT $73

Interest expense ($26 )

Taxable income $47

Taxes ($16 )

Net income $31

Balance Sheet

Property, plant, and equipment $525

Less accumulated depreciation ($121)

Net fixed assets $404

Inventories $51

Cash $16

Receivables $40

Total current assets $107

Total Assets $511

Shareholders’ equity $94

Long-term debt $355

Payable $36

Debt due for repayment $26

Total current liabilities $62

Total liabilities $417

Total liabilities & shareholders’ equity $511

Explanation:

Sales and Expenses balances are included in Income statement. Assets, Equity and Liabilities balances are included in the balance sheet.

5 0

3 years ago

One common feature of agile projects is the "walk-around meeting". A. True B. False

SashulF [63]

Answer:

A

Explanation:

Agile means able to move around quickly

3 0

3 years ago

Economists who advocate the Keynesian theory of economics would say that prices and wages are sticky and decreases in AD will de

sashaice [31]

Answer:

flexible and increases in AD will increase unemployment.

Explanation:

Keynesian economics can be regarded as macroeconomic theory that base on effects of total spending in the economy as well as its effects on inflation, output and employment. With regards to this theory, Keynes serve as advocate that speak that about increased government expenditures as well as lower taxes in order to stimulate demand as well as saving the global economy from depression.

It should be noted that Economists who advocate the Keynesian theory of economics would say that flexible and increases in AD will increase unemployment.

7 0

3 years ago

Two investment advisors are comparing performance. Advisor A averaged a 20% return with a portfolio beta of 1.5 and Advisor B av

Phantasy [73]

Answer:

Advisor A

Explanation:

t bill rate = 0.05

market rate = 0.13

the beta of the market is always 1

the rate of return= 0.05 + (0.13 - 0.05) x 1

= 0.13

which is 13%

this is for advisor A. 

with a return of 20% and 1.5 beta

0.05 + ( 0.20 - 0.05) x 1.5

= 27.5% for advisor b

when the return is 15% and beta is 1.2

0.05 + (0.15 - 0.05) x 1.2

= 17%

Therefore advisor a is better

3 0

3 years ago