Answer:
The correct answer is B: $5,600
Explanation:
Giving the following information:
Schager Company purchased a computer system for $40,000. The estimated useful life is 10 years, and the estimated residual value is $5,000.
Double-declining balance method= Netbook value* (2/useful life in years)
Year 1:
Double-declining balance method= (40000-5000)*(2/10)= $7000
Year 2:
Double-declining balance method= (35000-7000)*0.20= $5,600
Number of firms -one
Nature of product-a unique product with no close substitute
Entry- completely blocked
Information - complete
Collusion between sellers - irrelevant
Firm's control over the price of product - considerable , but limited by market demand and goal of profit maximisation
Demand curve of the firm's product - equals market demand curve : downward sloping
Long-run economic profit - can be positive
There are a lot of factors to consider in increasing minimum wage.
In the pro side, minimum wage workers will be happy if their wage is increased because their take home pay will be higher.
However, if this increase will be implemented, a lot of business owners, especially small businesses, will be forced to relieve some workers of their position as well as be discouraged to hire more workers. This is because the salary for new hires will be used for the increase. Increasing minimum wage will also result to the increase of the wages of the existing workers, to ensure that they are equally treated.
The price-to-cash-flow method of stock valuation generally uses either are the EBITDA or operating cash flow from the cash flow statement as a measure of cash flow. Thus, option (a) is correct.
What is stock?
The term stock refers to the product are the ready to the sale for the bulk in the production. The stock are always in the bulk in items. The stock are the measure according to the quantity. The stock was ready to deliver to the wholesaler.
The company's stock is typically valued using the price flow method and either EBITDA or operating cash as the cash flow statement method measure.
As a result, the company stock valuation is the measure two the methods are the operating and EBITDA. Therefore, option (a) is correct.
Learn more about stock, here:
brainly.com/question/14649952
#SPJ4
