APV and WACC are similar in that they reflect the tax benefit of leverage.
<h3>How to illustrate the information?</h3>
It should be noted that the adjusted present value (APV) is used to value a project.
The weighted cost of capital (WACC) implies the rate at which a company is expected to pay all its security holders in order to finance its assets.
In conclusion, APV and WACC are similar in that they reflect the tax benefit of leverage.
<u>Complete question:</u>
APV and WACC are similar in that they reflect the tax benefit of ...........
a. leverage
b. relocation
c. equity
d. waiting
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Negative shocks reduce production and increase unemployment. Positive shocks increase production and reduce unemployment.
Unexpected change moving SRAS. A positive supply shock increases SRAS, whereas a negative supply shock decreases SRAS. A combination of slowing overall economic output (declining) and rising price levels (inflation). Stagnation occurs when SRAS decreases.
A negative supply shock leads to an increase in the natural rate of interest. If real interest rates are not adjusted, there will be excess demand in the labor market. t = 0 unless the real interest rate is adjusted. Then we move into an economy where the market is imperfect.
A supply shock is an unexpected event in which the supply of a product or commodity changes, causing a sudden change in price. A positive supply shock increases output and decreases prices, while a negative supply shock decreases output and increases prices.
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The best type of anchor line is three strand twisted nylon in most anchoring circumstances. Three strand line can absorb shock and the constant tugging associated with anchoring much better than braided line or chain alone. The chain may also be used specially in anchorages that are main rock or coral which may cut a nylon line. A length of chain should be used among the anchor and a longer length of line. The chain will add weight to set your anchor without creation it too heavy to lift manually while serving to exert a horizontal pull on the anchor to set it.
Answer:
decrease by $56,600 per month
Explanation:
The impact on the net operating income would be shown below:
In the first case,
Sales ( $31 × 16,100 units) = $499,100
Variable expenses ($25 × 16,100 units) = - $402,500
Fixed expenses = - $111,000
Net loss = - $14,400
And, the fixed cost not avoidable cost is $71,000
So, the net income decreased by
= $71,000 - $14,400
= $56,600
if the product A is discontinued
Answer:
Direct material= $340
Explanation:
Giving the following information:
Direct labor $540
Beginning work in process inventory $330
Ending work in process inventory $420
Cost of goods manufactured $1620
Manufacturing overhead $830
T<u>o calculate the direct material used in production, we need to use the following formula:</u>
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
1,620= 330 + DM + 540 + 830 - 420
Direct material= $340
