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2 years ago

If a firm enjoys economies of scale,

Business

1 answer:

disa [49]2 years ago

5 0

Answer: Its average total cost will decrease as production increases

Explanation: Variable cost will decrease as a result of economies of scale, therefore the cost/unit or average total cost will decrease.

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An investment project provides cash inflows of $615 per year for eight years. a. What is the project payback period if the initi

aksik [14]

Answer:

It will take 3 years and 66 days to pay for the initial investment.

Explanation:

Giving the following information:

Cash flows= $615 for 8 years

Initial investment= $1,750

The payback period is the time required to cover for the initial investment.

Year 1= 615 - 1,750= -1,135

Year 2= 615 - 1,135= -520

Year 3= 615 - 520= 95

Exactly:

(95/520)= 0.18*365= 66

It will take 3 years and 66 days to pay for the initial investment.

8 0

3 years ago

Suppose you invest semiannually for 25 years in an annuity that pays 5% interest, compounded semiannually. At the end of the 25

bonufazy [111]

Answer:

$354,500

Explanation:

First find the amount invested ie the Present Value as follows :

n = 25 × 2 = 50

i = 5%

P/yr = 2

Pmt = $0

Fv = $500,000

Pv = ?

Using a Financial Calculator to enter the amounts as above, the Present Value is $145,471

Total Interest = Future Value - Present Value

= $500,000 - $145,471

= $354,529

Thus interest is $354,500 (nearest hundred dollars).

7 0

3 years ago

Which of the following items are allowed when calculating an individual taxpayer's alternative minimum tax?a. Standard deduction

blsea [12.9K]

Answer:

The correct answer is letter "D": All of the above.

Explanation:

Alternative Minimum Tax (AMT) is an action taken by the Internal Revenue Service (IRS) to encourage every taxpayer to pay at least the minimum amount possible out of the income received. This includes a series of deductions that are not limited to standard deductions, personal exemptions, medical and dental expenses, charitable donations, qualified taxing interest, and casualty losses.

6 0

2 years ago

Which statement is FALSE? Select one: a. Diluted EPS is never higher than Basic EPS b. Use of the "Treasury Stock Method" determ

7nadin3 [17]

Answer:

big pp

Explanation:

very small pp

6 0

3 years ago

If during the year the portfolio manager sells all of the holdings of stock D and replaces it with 150,000 shares of stock E at

eimsori [14]

Answer:

The correct answer is 30.10%.

Explanation:

According to the scenario, the given data are as follows:

Stock A price = $30

Value of stock A = $30 × 210,000 = $6,300,000

Stock B price = $35

Value of stock B = $35 × 310,000 = $10,850,000

Stock C price = $10

Value of stock C = $10 × 410,000 = $4,100,000

Stock D price = $15

Value of stock D = $15 × 610,000 = $9,150,000

So, We can calculate the portfolio turnover rate by using following formula:

Portfolio turnover rate = Value of stocks sold or purchase / Market Value of Assets

Where, Market Value of Assets = Value of stock A + Value of stock B +Value of stock C + Value of stock D

= $6,300,000 + $10,850,000 + $4,100,000 + $9,150,000

= $30,400,000

And Value of stock sold = value of stock D = $9,150,000

So, by putting the following values in the formula:

= Turnover Rate = 9,150,000 / 30,400,000

= 30.10%

Hence, the portfolio turnover rate is 30.10%.

7 0

3 years ago