I guess the correct answer is they would do better charging $15 than $10.
Tom and Sadie charge people to park on their lawn while attending a nearby craft fair. At the current price of $10, eight people park on their lawn. If they raise the price to $15, they know that only six people will want to park on their lawn. Whether they have eight or six cars parked on their lawn does not affect their costs. From this information it follows that they would do better charging $15 than $10.
Answer:
- 1. Paid $38 for an oil change.
$38 Maintenance Expenses - DEBIT
$38 Cash - CREDIT
- 2. Paid $564 to install special shelving units, which increase the operating efficiency of the truck.
$564 Delivery Trucks - DEBIT
$564 Cash - CREDIT
Explanation:
1. Paid $38 for an oil change
$38 Maintenance Expenses - DEBIT
$38 Cash - CREDIT
An oil change it's just an expenses of maintenance, which goes as General Expenses directly to the Income Statement.
2. Paid $564 to install special shelving units, which increase the operating efficiency of the truck.
$564 Delivery Trucks - DEBIT
$564 Cash - CREDIT
The installations of shelving units it's an improvements in the company's fixed assets, therefore, assets improvements are activated as fixed assets in the non-current assets section of the balance sheets.
Answer:
Instructions are listed below.
Explanation:
Giving the following information:
A friend of Mr. Richards recently won a law suit for $30 million. They can either take the payments over 10 years or settle today for cash of $25 million. Mr. Richard is optimistic that he can earn a 6% return on the money and that they should settle for $25 million today and he will invest it for them.
First, we need to find the present value of the 30 million.
To do that we need to calculate the final value.
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {3,000,000*[(1.06^10)-1]}/0.06= 39,542,385
PV= FV/(1+i)^n= 39,542,385/1.06^10= 22,080,261
B) Now we know that the present value of option B is higher. One dollar today is better than one dollar tomorrow. It is better to receive the money now to invest it.
Answer:
the real rate of interest of 6.39 %
Explanation:
given,
rate of return on your bond = 11.29 %
the inflation rate = 4.6 %
real rate of return = ?
rate of return = 
rate of return = 
rate of return =
rate of return = 
= 6.39 %
the real rate of interest of 6.39 %
