Answer:
nominal tax shield in year 10: 6,812 dollars
present value of the tax shield: 1,837.49
Explanation:
the nominal tax shield in year 10:
We look into the MACRS table for 10-years property class: 6.55%
The depreciation expense for this year is 260,000 x 6.55% = 17,030
Then this produces a tax shield of 40% 6,812
The nominal tax shield at year 10 is 6,812 dollars
considering time value of money today this tax shield is worth:
PV: 1,837.49
Answer:
raising prices to customers (in order to cover the high costs).
Explanation:
Supply-side economist can be defined as economists who believes that the ability and willingness of the producers of goods and services to manufacture or produce sets the pace for the economic growth of a country.
This ultimately implies that, increasing the supply of goods and services would cause an economic growth for a country.
Options for attacking or mitigating the high costs of items purchased from suppliers do not include, the seller such as a retailer raising prices to customers in a bid to cover the high costs incurred from the supply.
However, the seller could pressure his or her supplier to lower the cost, switch to a cheaper substitute products, and creating a collaborative effort with the supplier for mutual cost-saving opportunities in the market.
Answer:speculative investment
Explanation:
just took the test.
Answer:
We should discontinue Product B
Explanation:
We should check if Product B generates a contribution or not:
We subtract from the sales revenues the variable cost:
revenue 39,500
variable cost of goods sold (25,500)
variable selling expenses <u> (16,500) </u>
Contribution (2,500)
<em>As the contribution is negative, we should discontinue </em>Product B as is less expensevely to stop production than continue.
