She will be indifferent between these plans if her rate of time discount is equals 21 percent. If her rate of time discount is less than this amount she will opt for a plan B.
<h3>What is
discount rate?</h3>
The bank rate, sometimes known as the discount rate in American English, is the interest rate charged by a central bank on its loans and advances to commercial banks.
In a discounted cash flow (DCF) analysis, the discount rate is the interest rate used to calculate the present value of future cash flows. This helps establish whether the future cash flows from a project or investment will be worth more than the initial capital outlay required to support the project or investment.
The discount rate is an essential measure of an economy's credit situation.
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Inherent risk is one of the risks auditors and analysts must look for when reviewing financial statements, along with control risk and detection risk. ... The ultimate risk posed to the company also depends on the financial exposure created by the inherent risk if the process for accounting for the exposure fails.
Answer:
8. First-In, First-Out (FIFO) - a.
7. Disclosure Principle - b
1. Specific Identification - c
6. Weighted-Average - d
4. Conservatism - e
3. Last-In, First-Out (LIFO) - f
5. Consistency Principle - g
2. Materiality Concept - h
Explanation:
FIFO is a sale technique which provides the oldest stoke of goods as the first sales batch, while LIFO brings the last inventory first.
The materiality concept is a situation where the financial information of a company is said to be material from observing the preparation of the financial statements if it can change the opinion of a reasonable person.
The consistency principle states that once an accounting principle is adopted, it can never be changed. Disclosure principle states that company report must be given to outsiders for knowledgeable decision.
Answer:
Profit maximizing price of the firm = 50 cents
Average total cost of e-book = $10.5
Explanation:
As per the data given in the question,
Maximum annual profit = $35,000
It sells = 15,000 copies
Expense rate = 50 cent
Company must spend = $150,000
Here, Profit maximizing price of the firm = marginal cost (Expense rate)
So, Profit maximizing price of the firm = 50 cents
As per the following formula,
Average total cost = Total cost ÷ Quantity of output
= ((0.5 × 15,000) + $150,000) ÷ 15,000
= $10.5
Answer:
3200 tonnes
Explanation
Production of rice in 2001 =1000 tonnes
% rice to total production = 25%
Total production =100/25 *1000 = 4000 tonnes
2002 production of rice decrease by 4%
Decrease = 4% * 1000 = 40
Production of rice =960
% production of rice increase by 5% = 25%+5%= 30%
Total food production 100/30*960 =3200 tonnes