The present worth of this business it has been calculated is given as $302,898.
How to solve for the worth of the business
<u>In the first year</u>
Cash flow = 44000
PVF at 9.7% = 0.91158
The present value = 0.91158 * 44000
= $40106
<u>In the second year </u>
Cash flow = $61,000,
PVF at 9.7% = 0.83097
The present value = $50689.17
<u>In the third year</u>
Cash flow = $80,000
PVF at 9.7% = 0.7575
The present value = $60600
<u>In the 4th year </u>
Cash flow = $200,000
PVF at 9.7% = 0.7575
The present value = $151,500
The worth of the business today is going to be the sum of all the present values
= $151,500 + $60600 + $40106.52 + $50689.17
= $302,898
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The company is attempting to prove its employees a stress free environment in which they gave them yoga classes and cooking class to lessen the stress that they could acquire from the company because of working. This will allow them to be motivated or to change their moods, and elightens them in doing their job in the company despite of its hard or struggling status.
Answer:
d
Explanation:
A good has positive externality if the benefits to third parties not involved in production is greater than the cost. an example of an activity that generates positive externality is research and development. Due to the high cost of R & D, they are usually under-produced. Government can encourage the production of activities that generate positive externality by granting subsidies.
A good has negative externality if the costs to third parties not involved in production is greater than the benefits. an example of an activity that generates negative externality is pollution. Pollution can be generated at little or no cost, so they are usually overproduced. Government can discourage the production of activities that generate negative externality by taxation. Taxation increases the cost of production and therefore discourages overproduction. Tax levied on externality is known as Pigouvian tax.
Government can regulate the amount of externality produced by placing an upper limit on the amount of negative externality permissible
Coase theorem has been proposed as a solution to externality. According to this theory, when there are conflicting property rights, bargaining between parties involved can lead to an efficient outcome only if the bargaining cost is low
Another solution to negative externality is through the activities of charities. Charities can raise donations to limit or regulate the activities of firms that constitutes a negative externality.
STEM: nanobiologist, statistician, automotive engineer.
Information Technology: database administrator, computer help desk technician, video game designer.
Arts, A/V Technology, and Communications: printing equipment operator, special effects artist, graphics illustrator.
Answer:
$124,700
Explanation:
Indirect labor budgeted is $57,000
Factory supervision is $65,000
The normal capacity is 142,500
Direct labor 145,000
Therefore the flexible budget can be calculated as follows
= 57,000+65,000/142,500
= 122,000/142,500
= 0.86
0.86×145,000
= 124,700
Hence the flexible budget is $124,700
