Answer:
Increase spending and shift aggregate demand to the right in an effort to reach full employment output.
Explanation:
The goal of expansionary fiscal policy with respect to output is to reduce the problem of unemployment. In order to let this work, the government must increase its spending or Decrease the tax rate. This will make the Aggregate Demand Curve to the right which is a proof of increasing real Gross Domestic Product (GDP) as well as gradual reduction of unemployment.
Answer:
$2,014
Explanation:
Alain's net investment income tax is the lesser of 1) his net investment income ($53,000) or 2) his modified adjusted gross income less the threshold of $200,000 .
Therefore
$304,000 - $200,000 = $104,000
3.8%×$104,000= $3,952
($53,000 × 3.8% )= $2,014
The additional tax that alain will pay on his net investment income for the year is $2,014
<u>Solution and Explanation:</u>
<u>
Answer:1</u> The total annual cash inflows associated with the new machine for capital budgeting purposes is:
=$10000
<u>Answer:2 </u>The internal rate of return promised by the new machine to the nearest whole percent is:
Particulars Year Amount ($)
Cash outflow 0 -40000
Cash inflow 1 10000
2 10000
3 10000
4 10000
5 10000
6 10000
IRR 13%
=13% using IRR function in excel.
<u>Answer:3</u> IRR=17%
with salvage value
Particulars Year Amount ($)
Cash outflow 0 -40000
Cash inflow 1 10000
2 10000
3 10000
4 10000
5 10000
6 22000
IRR 17%
using IRR function in excel.
Answer:$5600
Explanation:
The FIFO inventory system is an inventory system where the inventory purchased first is the first to be sold.
If 800 units are sold, the inventory sold would be calculated as:
$6 × 400 = $2,400
$8 × 400 = $3200
=$5,600
Answer:
$270,000
Explanation:
Contribution per kite = $6.50 - $3.50 = $3.00
Break even point = 90,000 kites
Since;
Break even point = Fixed cost / Contribution per kite.
We have:
90,000 = Fixed cost / $3.00
Fixed cost = 90,000 * $3.00 = $270,000
Therefore, Ocean City Kite Company's fixed costs is $270,000.
