Answer:
Effect on income= $15,000 favorable
Explanation:
Giving the following information:
It has just determined that another $40,000 of repair work is required. Alternatively, it has found a newer used lift that is for sale for $170,000. The company estimates that both lifts would have useful lives of 6 years. The new lift is more efficient and thus would reduce operating expenses by about $20,000 per year. Darcy Roofing could also rent out the new lift for about $10,000 per year. The old lift is not suitable for rental. The old lift could currently be sold for $25,000 if the new lift is purchased.
Year 0= -170,000 + 25,000 + 40,000= -105,000
Year 1 trough 6= 20,000*6= 120,000
Effect on income= $15,000 favorable
Answer:
By writing that check and investing in mutual funds, M1 will decrease, but M2 will remain the same.
Explanation:
M1 includes currency and coin, demand deposits, travelers' checks, check accounts, and negotiable order of withdrawal (NOW) accounts.
M2 includes all M1 + savings deposits, money market securities, mutual funds, and other time deposits.
Answer:
Portugal and Austria
Comparative Advantage in the Production of Beer and Cheese:
1a. Portugal
b. Austria
2. a. 3 barrels and
b. 0.09 or 1/11 pounds
3. A. 4 barrels of beer per pound of cheese
Explanation:
a) Data and Calculations:
Portugal's opportunity cost of producing a pound of cheese = 3 barrels of beer
Austria's opportunity cost of producing a pound of cheese = 11 barrels of beer
Price of trade (cheese in terms of beer) = 11/3 = 3.667 = 4
b) Portugal's comparative advantage over the production of cheese is her economy's ability to produce cheese at a lower opportunity cost than Austria. This comparative advantage gives Portugal the ability to sell cheese at a lower price than Austria and realize a more favorable balance of trade.
Answer:
The correct answer is C. $46.50.
Explanation:
The current value of one share of stock is the present value of all expected future cash flows. The present value (PV) of cash flows in each year is calculated as follows.
PV = Future value / (1 + Rate of return)^Number of years
The future value is the dividend received on the share in a particular year while the rate of return is 11.4% (i.e. 0.114).
Applying the above formula,




Current value of share = $1.221 + $0.927 + $0.977 + $0.260 + $43.114
= $46.50
Hence, the correct option is C. $46.50.
Answer:
$2.51
Explanation:
Gena Manufacturing Company calculation for contribution margin unit
Using this formula
Fixed cost + Tax profit/Estimated sales units
Let plug in the formula
Where:
Fixed cost =$259,000
Tax profit=$126,034
Estimated sales units=153,400
Hence:
(259,000 + 126,034) / 153,400
=$385,034/153,400
= $2.51
Therefore the contribution margin that is required to attain the profit target will be $2.51