Answer: Machine B because it has the lower Present Value
Explanation:
<h2>
Machine A</h2>
= Present Value of income - Present Value of Costs
Present value of Income;
Sold for $5,000 after 10 years.
= 5,000/ (1 + 8%)^10
= $2,315.97
Present Value of Costs;
Purchased for $48,000.
Maintenance of $1,000 per year for years.
Present value of maintenance= 1,000 * Present value factor of annuity, 10 years, 8%
= 1,000 * 6.7101
= $6,710.10
Machine A Present Value
= 2,315.97 - 6,710.10 - 48,000
= -$52,394
<h2>
Machine B</h2>
No salvage value.
Present Value of costs
Purchased for $40,000.
Present value of maintenance = (4,000 / (1 + 8%)^3) + (5,000 / ( 1 + 8)^6) + (6,000 / ( 1 + 8%)^8)
= -$9,567.79
Present Value = -40,000 - 9,567.79
= -$49,568
Answer:
Example of not a natural experiment an economist might use to evaluate a theory is:
C. Here the Students in a microeconomics principles course are advised to play a game with their classmates to determine and evaluate what all decisions they make under certain adjusted circumstances.
Explanation:
Natural experiment : A natural experiment is referred to an observational and also an empirical study in which we get to study about the experimental and controllable varieties of variables. which can not het manipulated anywhere by the researchers.
Instead these experiments are allowed to affect the environment and the nature or the different factors which are not under control of our researchers. In contrast to the experimental values and all the natural experiments are even not controlled by the researchers but instead they also admire and obseve those experiments for their own studies.
So, the right option is:
C. Here the Students in a microeconomics principles course are advised to play a game with their classmates to determine and evaluate what all decisions they make under certain adjusted circumstances.
Answer:
$4,550
Explanation:
First, we need to calculate the product cost per unit
Product cost per unit = Total production costs / Units produced
= ($15,085 + $10,200 + $9,200) / 6,050 units
= $5.7 per unit
Cost of goods sold = $5.7 × 3,700 units
= $21,090
Net income = Sales - Cost of goods sold - Operating expenses
= ($8.2 × 3,700) - $21,090 - $4,700
= $30,340 - $21,090 - $4,700
= $4,550
Answer:
The revenue recognition principle
Explanation:
The revenue recognition principle states that revenue should be recorded when services have been performed or products have been delivered to customers and not when cash is received for the service rendered
For example, if a supplier delivers 10,000 worth of goods to consumers in November and is paid for the goods in December. Revenue should be recognised in November and not December.
<span>Purchases that have substantial sociale or economic consequences represent high-involvement purchase decisions because they require a deep scrutiny phase where positive consequences are compared with negative ones to understand if benefits outweigh losses and are desirable for society.</span>
