Answer:
$45,800
Explanation:
Coronado Industries
Cost of Equipment $762,00
Accumulated Depreciation
( $762,000 - 45,000 ) /10*9 years
=$717,000/10×9 years
=71,700×9 years
=$645,300
Therefore Dec 31,2012 book value of equipment will be:
= $762,000 - $645,300
= $116,700
Equipment sold $162,500
The gain to be recognize will be
= $162,500 - $116,700
= $45,800
1 January ,2012 to 31 December,2020 will give us 9 years
Answer:
The correct answer is D. Assign appropriate, but differing, discount rates to each project and then select the projects with the highest net present values.
Explanation:
The discount rate is the cost of capital that is applied to determine the current value of a future payment.
The discount rate is used to "discount" future money. It is widely used when evaluating investment projects. It tells us how much money is worth now from a future date.
The discount rate is the inverse of the interest rate, which serves to increase the value (or add interest) in the present money. The discount rate, on the other hand, detracts from the future money when it is transferred to the present, except if the discount rate is negative, in case it will mean that the future money is worth more than the current one. The interest rate is used to obtain the increase to an original amount, while the discount rate is subtracted from an expected amount to obtain an amount in the present.
Except in exceptional cases, the discount rate is positive because before the promise of receiving money in the future we have the uncertainty of whether we will receive it or not, since there may be a problem that prevents us from receiving that money. Therefore, the farther the money we are going to receive, the less it will be worth now.
(12-6)/12 gives you the growth rate *over five years* (115%)
divide that by 5 and you get an average rate of 23% growth per year.
If we’re rounding, yes, that statement is correct. Otherwise, growth over five years doubled because there was a growth of 115% and year-over-year growth was 23%.
Answer:
False
Explanation:
Variable costs are part of direct expenses incurred in the production of goods meant for sales. Variable costs have a direct and proportionate relationship with the output level. An increase in output level increases variable costs. Examples of variable costs are packaging and raw materials.
The contribution margin is the dollar amount available from the sale of each unit to cater for fixed costs and profits. It is calculated by subtracting variable costs from the selling price. The contribution margin is used in determining the break-even point and the output level required to achieve desired profits.
Solution :
According to the theory of demand and supply, the equilibrium price and the quantity is established where both the demand and supply curves intersect.
From the graph, we can see that the point of equilibrium is at the intersection of D and S.
At this point, mathematically, D = S. In order to determine the price and quantity which exists at this point, we need to equate the demand as well as supply functions to calculate the equilibrium values.
∵ D is equal to S, we have
Now substituting this value of the equilibrium price in to any of the functions, we get the equilibrium quantity at this price.
This is the equilibrium quantity. At this point, equilibrium price as well as the quantity is the same. Let the price of the golf club increases from $120 to $140. So substituting the value to the function above to determine the new quantity.
= 100
Therefore, when the demanded quantity decreases from 120 thousand clubs to 100 thousand clubs. This increases the price and decreases the quantity as the supply curve moved to the left. The demand remains constant.
