Answer:
$2.58 million
Explanation:
Given that
First payment today = 0.5million
Second payment a year time = 0.9 million
Third payment in 2 years time = 1.6 million
In calculating the real worth of the contract, second payment must be brought back by one period at 12% rate because the payments a made a year from today and also the third payment must be brought back two period at 12% rate because the payments is made two years from today.
Thus
Real value/worth = 0.5 + (0.9 ÷ [1 + 0.12]) + (1.6 ÷ [1 + 0.12]^2)
= 0.5 + 0.803 + 1.275
= 2.578 million
Approximately $2.58million
Answer:
Give an example of a situation in which a surplus of a product led to decreased prices. similarity, give a example of a situation in which a shortage led to increased prices. what eventually happened in each case? why?
In the course of having surplus of a product which decreases the price, this happens as a result of high competition as there many people selling the same products which in turns leads to crash in price in order to make sales and little profit.
while product shortage or scarcity happens as a result of decrease in resources or decrease in supply, hence; results into scarcity of products which eventually aids increment of price
Explanation:
Answer:
$34,050
Explanation:
The total job cost consist of the direct and indirect cost (also known as overheads). The direct cost includes the cost of direct materials, direct labour, direct machine hours etc.
While the manufacturing overheads consist of indirect labour cost, depreciation, etc.
Total Direct costs = $10,000 + $13,000
= $23,000
If the allocate manufacturing overhead at 85% of direct labor cost
Manufacturing overheads = 85% × $13,000
= $11,050
The total cost of Job No. 110
= $23,000 + $11,050
= $34,050
Answer:
a. the discount window or the term auction facility
Explanation:
The discount window is an instrument of monetary policy usually controlled by central banks of the nation that allows eligible institutions to borrow money from the central bank, usually on a short-term basis, to meet temporary shortages of liquidity caused by internal or external disruptions.
Term Auction Facility (TAF) is the same as discount window since the eligible collateral for loans is the same for both.
Answer: question not complete
c. Suppose Beth’s kindly (but still greedy) father offers to eliminate the uncertainty in Beth’s profits by agreeing to trade her the weekly profits based on a stable price of $20 per acre in exchange for the profits Beth actually makes. Should she take the deal?
d. Graph your results and explain them intuitively. Solution to this is in the picture attached
Explanation:
During the period of drought, the rate of mowing is $15 per acre, while, in the period of monsoons, the rate is $25 per acre.
a). Beth's supply function will be
q = 5P - 50
If P =15
q = 5 x 15 - 50
= 75-50
= 25
If P = 25
q = 5 x 25 - 50
= 125 - 50
= 75
b). The periods of both drought and monsoon will last for equal number of weeks in the summer. The average weekly profit will be:
If P = 15
π = P x q - C
= 15 x 25 - 362.5
= 375 - 362.5
= 12.5
If P =25
π = P x q - C
= 25 x 75 - 1362.5
= 1875 - 1362.5
= 512.5
The average weekly profit will be
=12.5 + 512.5 / 2
=525 / 2
= 262.5
c). Father offer a price of $20 irrespective of the season and the quantity will be:
q = 5 x 20 - 50
= 50
The profits in this case will be
π = P x q - C
= 20 x 50 - 800
= 200
This is less than the average profits in the other cases, hence, this offer will make her worse off.