Answer:
The annual cash flow using the gross book value method is $18,000
Explanation:
In order to calculate the annual cash flow using the gross book value method we would have to calculate the following formula:
annual cash flow=( value of new machine*ROI)/100
Value of the new machine=$120,000
ROI=15%
annual cash flow= ($120,000* 15%)/100 =
annual cash flow=$18,000
The annual cash flow using the gross book value method is $18,000
It is a routine expense because you know that you will be paying it monthly.
A $ 300
B $ 300
C $ -300
D $ 300
Treasury bills are assets and the monetary base is a liability.
<u>Explanation:</u>
To increase the money supply in the economy, the federal reserve should buy the treasury bills and this will increase the money supply in the economy, leading to more demand in the economy and therefore there will be growth and development of the economy.
With the increase in the purchase of the treasury bills by the federal reserve, the money supply will increase by $300.
