Answer:
$4,800,000
Explanation:
Widget corporation purchased all of its fixed assets three years ago for $6 million
These assets can be sold today for $3 million
The company receives $1.8 million in cash after liquidation of current assets
Therefore the market value of the company's total assets today can be calculated as follows
Market value = $3,000,000 + $1,800,000
= $4,800,000
Hnence the company's market value for today is $4,800,000
Answer:
The marginal cost is $200 that she needs to complete the task.
Explanation:
Giving the following information:
Cassie has just spent $800 purchasing, cleaning, and reconstructing an antique quilt which she expects to sell for $1,500 once she is finished. After having spent $800, Cassie discovers that she would need some special period fabric that would cost her $200 in material and time to complete the task. Alternatively, she can sell the quilt "as is" now for $900.
The $800 is a sunk cost. Now we need to determine the marginal cost. The marginal cost is $200 that she needs to complete the task.
Answer: Deficit; higher; a decrease
Explanation:
<em>The term crowding-out effect refers to a situation in which a government </em><em><u>deficit</u></em><em> results in</em><em><u> higher</u></em><em> interest rates, causing </em><em><u>a decrease</u></em><em> in private spending on investment and consumer durables.</em>
The Crowding-out effect is what happens when a Government increases its spending past its revenues and gets a budget deficit. In other to balance its books therefore it will borrow heavily.
If the Government is such a large one like the American Government or the British Government, the borrowing might be so large that it will have the effect of reducing the amount of loanable funds in the market thereby increasing the interest rates due to a reduced supply of loanable funds.
As there are now increased interest rates, it will be more expensive for companies to borrow to spend on investment or for consumers to spend on durables. It will have the effect of <em>crowding out</em> the private sector.
<span>This is what Joe says: "Information is more important than the additional revenue and additional cost of being open 1 more hour."
He is a wise person</span>
Answer:
Option (A) is correct.
Explanation:
Accounting rate of return is determined to take the efficient business decision related to the capital budgeting and it tell us whether to accept the proposal or not. The following is the formula:
Accounting rate of return = (Average Income ÷ Initial Investment)
For example:
Net profit for 3 years are as follows:
2012 - 13 = $50 million
2013-14 = $100 million
2014-15 = $150 million
Initial investment = $200
Average profit = ($50 + $100 + $150) ÷ 3
= $100
Accounting rate of return = (Average Income ÷ Initial Investment)
= $100 ÷ $200
= 0.5 or 50%
