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Inga [223]
3 years ago
9

You are comparing two companies in the same industry. You have determined that Gore Corp. depreciates its plant assets over a 40

-year life, whereas Ross Corp. depreciates its plant assets over a 20-year life. Discuss the implications this has for comparing the results of the two companies.
Business
1 answer:
love history [14]3 years ago
5 0

Answer:

Gore Corp. is depreciating over a longer term than Ross Corp. This means that on a yearly basis, they will have less depreciation expenses. This would give them a higher net income than Ross Corp but as a result they will then have to pay a higher tax.

Ross Corp on the other hand will be depreciating over a shorter term so this would mean that they are recognizing a higher depreciation expense per year. This would mean that their net income will be lower and by extension their taxes will be lower as well.

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Explain how international trade allows a country to move beyond its production possibilities frontier.
Digiron [165]

Answer:

Increased international trade, especially exports, increases production efficiency which allows a country to move beyond its production possibilities frontier.

Explanation:

In business terms, a production possibilities frontier is a curve that shows how much two products in an economy are able to produce when the two products are competing over the same limited resources. The curve can also be used to determine the quantity of a product that can be produced in an economy when the economy is working at its maximum efficiency. There are many factors that affect the production possibilities frontier, namely;

International trade:

Trade is the exchange of goods and services for commercial interests. International trade involves trade between countries. Most countries trade in the form of exports and imports. Exports are goods and services taken to foreign countries while imports are goods and services received from other countries. When there are greater exports than imports, it means that more of your goods and services are on demand by other countries thus makes your currency stronger. An increased demand for domestic goods and services increases production efficiency which allows a country to move beyond its production possibilities frontier.

6 0
3 years ago
What is a brand promise?
Burka [1]
Usually, a brand promise is some sort of statement said by an organization to its consumers, or customers, stating what the customers may expect from their product(s) and/or service(s).

Hope this helps!
5 0
3 years ago
A registered representative sends a prospecting letter to customers stating that significant profits can be achieved by purchasi
nalin [4]

Answer:

B) must be balanced by a statement that trading options can also result in significant losses.

Explanation:

Representatives do not trade securities by themselves, they only enter orders on behalf of their clients and following their clients' orders. That means that the clients assume the risk of losing money due to a bad investment. The clients are also the ones that benefit the most since it is their money being invested. Any statement that states the possibility of significant earnings, must also include the possibility of significant losses.

5 0
3 years ago
V. Wheat is the main input in the production of flour. If the price of wheat decreases, then we would expect:
Murrr4er [49]

Answer:

3. Supply of flour to increase.

Explanation:

The situation above is showing a<em> direct proportional relationship</em> between the "wheat," as a main ingredient of flour, and the flour itself.

If the price of wheat <em>decreases</em>, <u>suppliers will be interested in buying more of it in order to produce more quantities of flour at a </u><em><u>lower cost </u></em>because it will more likely lead to a<em><u> higher profit</u></em>. This will, therefore, increase the supply of flour in the market.

6 0
3 years ago
You are analyzing a project with an initial cost of £130,000. The project is expected to return £20,000 the first year, £50,000
Mashutka [201]

Answer: Net Present Value = -$19,062

Explanation:

First, we'll compute the PV for the respective years

Present Value (Year-1)

= 0.6211 \times [1 + (0.055 - 0.06)]^{1}

=0.6179945

Present Value (Year-2)

= 0.6211 \times [1 + (0.055 - 0.06)]^{2}

=0.614904528

Present Value (Year-3)

= 0.6211 \times [1 + (0.055 - 0.06)]^{3}

=0.611830005

Now, we'll compute the Cash Flow for the respective years

Cash Flow (Initial)

= -130,000\times (\frac{1}{0.6211} )

= -$209,306.07

Cash Flow (Year-1)

=20,000\times (\frac{1}{0.61799} )

=$32,362.75

Cash Flow (Year-2)

=50,000\times (\frac{1}{0.61490} )

=$81,313.44

Cash Flow (Year-3)

= 90,000\times (\frac{1}{0.611830} )

=$147,099.68

Net Present Value:

= -$209,306.07 + ($32,362.75/1.141)+ ($81,313.44/1.142) +($147,099.68/1.143)

= -$209,306.07 +$28,388.38 + $62,568.05 + $99,288.10

= -$19,062

3 0
4 years ago
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