Answer:
France has comparative advantage in production of wine
Austria has comparative advantage in production of rye.
4 bushels of rye for each bottle of wine
1 bottle of wine for each bushel.
b. 4 bushel of rye per bottle of wine.
Explanation:
France has comparative advantage in producing wine as it has opportunity cost of 4 bushels per bottle of wine. Austria has comparative advantage in producing bushels as it has opportunity cost of 10 bushels per bottle of wine. The both countries can gain advantage if they agree for 4 bushels per wine.
Answer:
$4,800
Explanation:
The computation of additional annual cash inflow is shown below:-
Saving in Annual Maintenance Cost by new machine = $15,000 - $6,000
= $9,000
Net savings on Maintenance = $9,000 × (1 - 0.4)
= $5,400
Decrease in Depreciation due to purchase of New machinery
= ($60,000 ÷ 10) - ($45,000 - 10)
= $6,000 - $4,500
= $1500
Tax to be paid due to decrease in Depreciation = Decrease in Depreciation due to purchase of New machinery × Tax rate
= $1,500 × 0.4
= $600
Net Annual cash Inflow due to new machinery = Net savings on Maintenance - Tax to be paid due to decrease in Depreciation
= $5,400 - $600
= $4,800
So, for computing the additional annual cash inflow we simply applied the above formula.
Answer:
C. VL = VU + PV(Tax Shield) - PV(CFD)
Explanation:
The static trade off theory is a theory of capital structure in corporate finance, first proposed by Alan Kraus and Robert H. Litzenberger. The theory emphasizes the trade-offs between the tax benefits of increasing leverage and the cost of bankruptcy associated with higher leverage. The <u>answer is C</u> as we know relative to the unleveraged firm, leverage provides both costs and benefits. The benefits are the tax shields provided by debt.
Answer:
b. the Columbian Exchange.
Explanation:
The transatlantic flow of people and goods such as corn, potatoes, horses, and sugarcane is called the Columbian Exchange.
The Columbian exchange or interchange, refers to the monumental flow of humans, plants and animals between the continents of North and South America and West Africa; and was named after Christopher Columbus.
The Columbian interchange has been documented to have taken place in the in the 15th and 16th centuries: also referred to as 'the old world'
Answer:
The answer is: Cultural environment
Explanation:
Cultural environment is the set of values, behaviors, attitudes, customs and aspirations of people.
They are continuously changing and evolving, for instance 100 years ago gays weren´t allowed to marry, in many places being gay was outlawed. All businesses should change their marketing strategies to reflect cultural changes. Imagine if the TV ads from the 1980s were still running today, many would be considered scandalous, misogynistic or sexist.
