Answer:
The expected real value (in terms of January 1, 2009, dollars) of the depreciation charge in year 2013 will be $1,958,815.416.
Explanation:
It is expected that the value of the dollar in the German market will fall at the same rate as that of the real market value of the dollar when we envisage the exchange rate will remain the same. Thus the depreciation of the tax write-off in terms of its real value in dollars will fall at 5% every year from 2009 to 2013.
Therefore, at a tax rate of 50% in Germany, a $2.5 million charge on depreciation on the investment of $5 million will result in 2013.
To calculate the real value of the dollar at an inflation of 5% yearly in 2013
When the tax rate in German is 50%, then charges of depreciation of $5 million will equal4$2.5 million in 2013 dollars. When the dollar's real value of this write-off is declining due to the inflation at 5% annually, the real value in 2013 will be calculated as:
Given: $2,500,000 (P/F , 5%, 5years)
; 0.78356 (factor for calculating the amount to be recieved after 5years)
= $2,500,000 * 0.78356
= $1,958,815.416
Answer:
Since the average variable cost curve lies below the average total cost curve, this implies that the average variable cost is the lowest price at which the producer can sell.
If there is no possible output where the price would be at least equal to the average variable costs, the firm should cease production, because it is not going to recover its costs, not to talk about making a profit.
Explanation:
A firm's average variable cost is the total variable cost divided by the total output. For example, if the total variable cost for a particular product is $4,500 with a total output of 450 units, then the average variable cost is $10 ($4,500/450).
Answer:
C.
Explanation:
The critical path is the sequence of activities between a project's start and finish that takes the shortest time to complete.
Answer:
B) is a fixed cost
Explanation:
According to my research on the process of loan repayments we can say that the $900 weekly payment is a fixed cost. This is because the $900 payment is the same amount every week and does not change until the initial loan plus the interest is payed in full. This would not be the case if the payment amount is different every week.
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