Answer:
Hope they got this right this was a few months ago
Explanation:
Answer:
It will take 98 months to pay-off the loan
Explanation:
We need to solve for time (n) in a given annuity:
C $60.00
time n
rate 0.011583333 (0.139 annual / 12 months)
PV $3,500.0000
now, we use logarithmics properties to solve for n:
-n = -97.77655542
n = 97.77 = 98
Answer:
Increase of 2,780
Explanation:
The question is incomplete the balance sheet ofthe firm is attached.
To calculate the cash from operating income we need to determinate from the net income:
adjustment for non-monetary concetps (like depreication and gain at disposal)
the increases and decreases in the working capital account:
In this case Account Receivables decrease from 32,180 to 29,400
In total this decrease of 2,780 represent that the firm collected 2,780 more cash thus It will mean an increase of cash.
Answer:
Explanation:
According to the rule of cost minimization, a firm should should employ that quantity f labor and capital for which the marginal rate of technical substitution between capital and labor (MRTSkl) equals the wage rental ratio (w/r). Hence, the cost minimization rules becomes:
(MRTSkl) = w/r
MPl / MPk = w / r
MPl / w = MPk / r
In the case given, substitute the values of the variables and find that
MPl / w = MPk / r
60 / 12 < 45 / 8
5 < 5.625
Since the ratio is not equal, the firm is not using the optimum mix of inputs. On last dollar spent basis, capital is a better deal than labor, and the firm should use less labor and increase the amount of capital in order to minimize costs.