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fiasKO [112]
2 years ago
15

You have just purchased a new DVD player to show videos to your customers. The DVD player costs $500, and you depreciate the mac

hine at a rate of 25% each year. You can borrow money from the bank at 10%, or receive 6% for depositing money at the bank. The expected inflation rate in the coming year is 5%. You used the company's own funds to purchase the DVD player. The firm's user cost of capital for the first year is:__________.
A. $130
B. $150.
C. $155.
D. $175.
Business
1 answer:
SVETLANKA909090 [29]2 years ago
3 0

Answer: $130

Explanation:(.25 + .06 - .05)*500

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Rasek [7]

Answer:

13 years

Explanation:

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8 0
3 years ago
A company purchased a weaving machine for $206,520. The machine has a usedul life of 8 years and a residual value of $11,000. It
Alex777 [14]

Answer:

The amount of depreciation expense that should be recorded for the second year is $28,600

Explanation:

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= ($195,520) ÷ (752,000 bolts)

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Now for the second year, it would be

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4 0
3 years ago
Is a business cycle a type of recession?<br> yes or no?
Kruka [31]

Answer:

The Answer is gonna be Yes

8 0
2 years ago
The graph shows excess demand. A graph titled Excess supply has quantity on the x-axis and price on the y-axis. A line with posi
Anton [14]

Answer:the firm should increase price

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4 0
3 years ago
Read 2 more answers
Newhard Company assigns overhead cost to jobs on the basis of 115% of direct labor cost. The job cost sheet for Job 313 includes
OLEGan [10]

Answer:

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Explanation:

The computation of the total manufacturing cost assigned as follows:

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3 0
2 years ago
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