Answer:
c. Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous.
Explanation:
When the demand decreases along with the decrease in supply, obviously the equilibrium quantity will also decrease, to match the level of supply and demand.
But the price cannot be fairly estimated as because the supply is decreased the prices shall increase for equilibrium but as the demand has also decreased the prices shall decrease in order to match the equilibrium.
Thus, the price is ambiguous but definitely the quantity shall stand decreased for equilibrium.
Answer:
1. Assuming a discount rate of 14%, compute the net present value of each piece of equipment.
- Puro equipment: $255,203
- Briggs equipment: $318,944
2. A third option has surfaced for equipment purchased from an out-of-state supplier. The cost is also $560,000, but this equipment will produce even cash flows over its 5-year life. What must the annual cash flow be for this equipment to be selected over the other two
Explanation:
Year Puro Equipment Briggs Equipment
0 -$560,000 -$560,000
1 $320,000 $120,000
2 $280,000 $120,000
3 $240,000 $320,000
4 $160,000 $400,000
5 $120,000 $440,000
I used an excel spreadsheet to calculate the NPVs
the PV of the third equipment's annual cash flow should be higher than $878,944 (PV of Brigg's cash flows = $560,000 + $318,944)
now I used a annuity table: annuity factor for 5 years and 14% is 3.4331
cash flow x 3.4331 ≥ $878,944
cash flow ≥ $878,944 / 3.4331 = $256,021
As flat fee =
57.50 - 5000*0.01 = 7.50
<span>Let fee per share = x </span>
so it would be
<span> y = 0.01x + 7.5
so i conclude correct option fro above statement is
B
hope it helps</span>
Complete Question:
What advantages can Kim Ping expect if she decides to export her ducks to Morocco? Check all that apply.
- Foreign importers will pay manufacturing costs, allowing Kim Ping to offer her ducks at a more competitive price.
- Kim Prin will have better control over how her products are made than she will have with other forms of globalization.
-The market for Kim Ping's toys will expand, making it less dependent on her home market.
- Kim Ping's ducks will cost less because of reduced tariffs, making her more competitive.
Answer:
-The market for Kim Ping's toys will expand, making it less dependent on her home market.
Explanation:
Kim Ping's globalization efforts will help it to enjoy expanded markets. Expansion into foreign markets makes firms less dependent on their home markets. They can produce more goods at less costs because of the advantage of large scale production that becomes possible with expanded markets. As Kim Ping expands into the global market it becomes more efficient because it reviews its production systems to suit the global market. The expansion of Kim Ping into Morocco will also benefit the local market as consumers have expanded choices.
