Answer:
2.96% will be effective rate of the investment
Explanation:
First year:
1,000 x 1 + 10%) = 1,100
<em><u>Second year: </u></em>
1,100 + 3,000 = 4,100 invesmtent balance
4,100 x (1 - 5%) = 3,895
<em><u>Third year:</u></em>
3,895 + 2,000 = 5,895
5,895 x (1 + 2%) = 6012.9
<em><u>Fourth year:</u></em>
6012.9 + 500 = 6512.9
6,512.9 x (1+ 8%) = 7033.932
We calcualte rate that is equivalent with the following cash flow:
We solve using excel goal seek
0.029646151
Answer:
Option C is correct
Explanation:
For equilibrium condition to apply
MPl/w = MPK/r where mpl=4, MPK = 40 and r= 100
That is dollar spent on capital Change in output should be equal to change in out put for extra dollar spent on labour.
So therefore:
4/40 = 4/100
Since average return from capital is more so firm needs more capital and less labour to meet equilibrium condition that is MPL/w is equal to MPK/r.
Option C is the right one
A fund formed by periodically setting aside money for the gradual repayment of a debt or replacement of a wasting asset.
Answer:
The net income for Niler Corporation for the current year is $30,900.
Explanation:
When there is a discontinued operation, the income from the discontinued operation is added to the income from continuing operations while the loss on disposal of the same operation is added to obtain the net income for the company. This can be done as follows for this question:
Niler Corporation
Partial Income Statement
<u>Details $ </u>
Income from continuing operations 35,000
income from operations of discontinued Line C 8,400
Loss on disposal of Line C <u> (12,500) </u>
Net income <u> 30,900 </u>
Therefore, the net income for Niler Corporation for the current year is $30,900.
