Automatic stabilizers have a similar impact as discretionary fiscal policy but occur automatically, without action by the government. Automatic stabilizers increase aggregate demand during recessions and reduce aggregate demand during expansions.
Answer:
$119,666
Explanation:
The benefit of remodelling can be calculated using the net present value.
The net present value is the present value of after tax cash flows minus the cost of an investment.
The net present value can be calculated using a financial calculator.
Cash flow for year 0 = $-2.8 million
Cash flow each year from year one to year five = $820,000
I = 12.5%
NPV = $119,666
The benefit of the renovation exceeds its cost so the renovation should be carried out.
I hope my answer helps you.
Answer:
d. Some other amount - $11,000
Explanation:
Investing activities: It records those activities which include purchase and sale of the long term assets
. The purchase of long term assets is an outflow of cash and the sale of long term assets is an inflow of cash
The computation of the sale of plant assets is shown below:
= Sale value of equipment - accumulated depreciation + gain on sale of equipment
= $18,000 - $9,000 + $2,000
= $11,000
