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Nikolay [14]
3 years ago
5

Consider two goods--one that generates external benefits and another that generates external costs. A competitive market economy

would tend to produce
Business
1 answer:
KiRa [710]3 years ago
5 0

Answer:

Produce more of the good that generates external cost and less of the good that creates external benefit.

Explanation:

External benefits refer to the situation where the benefit of production of goods or services goes to a third party that is not directly involved in the process of production.  

Similarly, external cost refers to the situation where the cost of production of goods and services is borne by a third party which is not directly involved in the process of production.  

A competitive market economy would tend to produce more of the good that generates external cost and less of the good that creates external benefit. This is because in case of external cost the private cost will be lower than social cost, so the firms will be able to produce more of the good.

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Purpose of Assignment The purpose of this assignment is for students to employ capital budgeting techniques using time value of
garik1379 [7]

Answer:

Present Value 5,715,331.32

We are going to accept the project only if the initial investment is at 5,715,331 or below in order to achieve the return to support the cost of capital structure of the company

Accepting a project with a higher cost will not generate enought cashflow to sustain the patyment of debt and the return expected from the stockholders therefore, will generate a economic result and investor will leave the company for other which can sustain their desired return.

Explanation:

We are going to discount the yearly cash-flow at the given rate of 12.50%

then, the terminal value which is the present value of the future period will also be discounted at this rate.

The sum of all this will be the present value of the firm.

\left[\begin{array}{ccc}$Year&$Cash Flow&$Discounted\\1&575000&511111.11\\2&625000&493827.16\\3&650000&456515.77\\4&725000&452613.93\\5&850000&471689.61\\$terminal&6000000&3329573.74\\Present&Value&5715331.32\\\end{array}\right]

The formula we use the present value of a lump sum:

\frac{Maturity}{(1 + rate)^{time} } = PV

We are going to accept the project only if the initial investment is at 5,715,331 or below in order to achieve the return to support the cost of capital estructure of the company

3 0
2 years ago
EA15.
alexgriva [62]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

flexible budget:

direct materials of $2 per unit

direct labor of $3 per unit

manufacturing overhead of $1 per unit.

Fixed costs are $35,000.

20,000 units:

Total direct material= 2*20,000= 40,000

direct labor= 3*20,000= 60,0000

overhead= 1*20,000= 20,000

Total manufacturing costs= $120,000

Fixed costs= 35,000

Total product costs= $155,000

25,000 units:

Total direct material= 2*25,000= 50,000

direct labor= 3*25,000= 75,0000

overhead= 1*25,000= 25,000

Total manufacturing costs= $150,000

Fixed costs= 35,000

Total product costs= $185,000

3 0
2 years ago
Pereot Fragrances states that they are a "moving, flexible, innovative, customer-oriented global company that delivers real valu
Airida [17]

Answer: Option (A)

Explanation:

From the given case/scenario, we can state that this particular example represents the espoused value of organizational culture. Espoused values tends to contribute/add up to the evolution and development of the normal standards/values of an organization/company for the time period it tends to conduct business from now to the future.

8 0
3 years ago
The accounting records of Omar Company contained the following information for last year: Beginning Ending Direct materials inve
Dafna11 [192]

Answer:

$70,000

Explanation:

The amount of direct material purchased during the year will be arrived at by working back from the amount of Direct Materials used within the year, then we <u>less</u> opening stock of Direct Material because obviously that was not purchased within the year but was carried over from previous period; and finally we add closing stock of Direct Material because that was left over from what was bought during the current period.

Direct materials used............................... $72,000

Beginning Direct materials inventory... ($9,000)

Ending Direct materials inventory..........<u> $7,000 </u>

Direct material purchased ........................<u>$70,000</u>

6 0
3 years ago
Joel takes out a loan with a stated rate of 11. 85% interest. If the interest is calculated weekly, how much greater is Joel’s
vredina [299]

The effective interest rate is greater by 0.72 percentage points as compared to the nominal interest rates.

Computation:

Given,

(r) Nominal Interest rate =11.85%

(m) compounding period = weekly, that is 52.

The formula of the effective interest rate will be used:

\begin{aligned}\text{Effective Interest Rate}&=(1+\frac{r}{m})^m-1\\&=(1+\frac{0.1185}{52})^{52}-1\\&=(1.00227)^{52}-1\\&=0.1257\;\text{or}\;12.57\%\end{aligned}

Now, the difference of the effective interest rate and nominal interest rate will be determined to know the exceeding percentage:

\begin{aligned}\text{Difference Percentage}&=\text{Effective Interest rate - Nominal Interest rate}\\&=0.1257-0.1185\\&=0.72\end{aligned}

Therefore, option a. 0.72 percentage points is correct.

To know more about the effective interest rates, refer to the link:

brainly.com/question/14270693

8 0
2 years ago
Read 2 more answers
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