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2 years ago

1. One government policy for dealing with a natural monopoly is to:

Business

1 answer:

ladessa [460]2 years ago

5 0

The government uses the ability to break up monopolies into smaller firms. This happened with AT&T in 1982

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Joe wants to be able to purchase a dream car on January 1,2004, just after he graduates from college. Joe has had a part time jo

Bad White [126]

Answer:

FV= $46,031.45

Explanation:

Giving the following information:

Monthly deposit= $450

Number of months= 59

Interest rate= 0.21/12= 0.0175

To calculate the final value, we need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= monthly deposit

FV= {450*[(1.0175^59) - 1]} / 0.0175 + 450

FV= $46,031.45

5 0

3 years ago

Mariposa Inc is considering improving its production process by acquiring a new machine. There are two machines management is an

kondor19780726 [428]

Answer:

Machine B should be purchased because it has a lower equivalent annual cost

Explanation:

To determine the better of the two options, we would compare the equivalent annual cost of each options using a discount rate of 14% per annum

Equivalent annual cost = Total PV of cost /Annuity factor

Total PV of cost = Initial cost + PV of annual operating cost

PV of annual operating cost= Annual operating cost × Annuity factor

Annuity factor = (1- (1+r)^(-n))/r

r- rate , n- years

Machine A

PV of annual operating cost = 8,000 × (1- 1.14^(-3)/0.14= 18573.05622

PV of total cost = 290,000 +18573.05622 = 308,573.06

Uniform Annual cost = 308,573.06 /2.321632027 = 132,912.13

Equivalent annual cost = $132,912.13

Machine B

PV of annual operating cost = 12,000 × (1- 1.14^(-2)/0.14= 19759.92613

PV of total cost = 180,000 + 19759.92613 = 199,759.93

Equivalent annual cost = 199,759.93 /1.6466=$121,312.15

Equivalent annual cost = $121,312.15

Machine B should be purchased because it has a lower equivalent annual cost

Total PV of cost

6 0

2 years ago

Jarvey Corporation is studying a project that would have a ten-year life and would require a $450,000 investment in equipment wh

Tems11 [23]

Answer:

Payback period = 3 years

Explanation:

The payback period is the average length of time it takes the cash inflow from a project to recoup the cash outflow.

Where a project is expected to generate a series of equal annual net cash inflow, the payback period can be calculated as:

Payback period =The initial invest /Net cash inflow per year 

The cash inflow = Net operating income + Depreciation

= 105, 000 + 45,000 = 150,000

Note we have to add back depreciation because it is not a cash-based expenses. And payback period makes use of only cash-based revenue and expenses.

Payback period = 450,000/150,000

= 3 years

Payback period = 3 years

5 0

3 years ago

Parents can reduce their taxes by:

shusha [124]

Parents can reduce their taxes by using a child care tax credit. The government gives parents tax credit for each child that they have. Unlike tax deduction and exemption, tax credit can be able to reduce more in the parents’ tax bill. Tax deduction just tries to lower the taxable income and not a reduction in other areas.

8 0

3 years ago

Read 2 more answers

Because of the sarbanes-oxley act, accountants must maintain financial documents and audit work for

BabaBlast [244]

Because of the Sarbanes-Oxley act, accountants must maintain financial documents and audit work for five years.
This act was enacted in 2002 in the US. It has to do with the accuracy of financial information, and was named after the sponsors of the act, US Senator Paul Sarbanes and U.S. Representative Michael G. Oxley.

6 0

3 years ago