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Volgvan
2 years ago
11

22. At the end of each year for the next 18 years, you receive cash flows of $3700. The initial investment is $25,200 today. Wha

t rate of return are you expecting from this investment? Answer as a whole percentage 13.07%
Business
1 answer:
IrinaK [193]2 years ago
6 0

Answer:

29.37%

Explanation:

Rate of return = Average annual income/Average initial investment

Average annual income = $3,700

Average initial investment = (I+s)/2

Average initial investment = (25,200+0)/2

Average initial investment = $12,600

Rate of return = $3,700/$12,600

Rate of return = 0.2936508

Rate of return = 29.37%

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Assume the price elasticity of demand (Ed) is 0.4 for gasoline in the long run. Some argue that we need a 50% reduction in gasol
dybincka [34]

Answer:

125%

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price

Let x = percentage change in price

o.4 = 50 / x

x = 125

7 0
3 years ago
The level of inventory of a manufactured product has increased by 8,000 units during a period. The following data are also avail
LiRa [457]

Answer:

There will be a difference in the income .

Absorption costing income will be lower as it transfers all the fixed costs to the ending inventory.

Variable costing income will be higher as it does not transfer  the fixed costs to the ending inventory.

The difference will be  of $ 104000

Explanation:

Increase in units 8000                                                              

                                                              Variable       Fixed

Unit manufacturing costs of the period $24.00 $10.00

Unit operating expenses of the period    8.00       3.00

Total Unit Costs                                       $ 32.00    $ 13.00

The net operating income under variable costing for the year will be $ 13* 8000= $ 104000 Lower than the net operating income under  absorption costing.  This is because the all fixed costs will be treated as period cost rather than product costs.

In variable costing the ending inventory will be $104000 lower than the ending inventory under absorption costing  because the fixed costs will not be allocated to products.

Under variable costing, the units in the ending inventory will be costed at $32 each.Under absorption costing, the units in the ending inventory will be costed at $32+ $ 13= $ 45 each.

7 0
3 years ago
Two factors that will influence gabbie's decision are the fact that she is not a morning person and that she is interested in ha
Travka [436]

Answer: Psychological

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Gabbie will look for two things while purchasing the fight ticket, as she is not a morning person , she will prefer a flight in the afternoon or an evening or a night flight. And she would specifically look for a flight with WIFI. So this is psychological effect which influences the decision of Gabbie.

3 0
3 years ago
Read 2 more answers
The FASB Accounting Standards Codification represents the single source of authoritative U.S. generally accepted accounting prin
kipiarov [429]

Answer:

320 Investments—Debt and Equity Securities

10 Overall

25-4 Recognition

4 0
2 years ago
A product's purchase cost plus the discounted cost of maintenance and repair less the discounted salvage value gives the _______
CaHeK987 [17]
<span>I believe the answer for you question would be life-cycle</span>
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