Calculate the federal government's share of total output in 1993, 2003, and 2013.

ivolga24 [154]

Compounding interest is interest on top of interest.

For example, say you put 100 bucks in the bank.
You get 10% interest compounded daily on that 100 bucks.

That means that you get 10% interest not only on those 100 bucks, but all the money you make after.

So your interest would go from 10% on 100 bucks, to 10% on 110 bucks and so forth.

I hope this helps and please press that ❤ under my reply, it really helps!

7 0

3 years ago

Determine the amount of consumer surplus generated in the following situation. After soccer practice, Stacey is willing to pay $

AlladinOne [14]

Answer:

The answer is: There was no consumer surplus in this situation.

Explanation:

consumer surplus refers to the difference between the maximum amount a consumer is willing to pay for a good or service and the actual price of the good or service.

In this case there was no consumer surplus, since Stacey was willing to pay only $2 for a bottle of mineral water and its price was $2.25, so she didn't buy it.

5 0

3 years ago

Suver Corporation has a standard costing system. The following data are available for June: Actual quantity of direct materials

Amiraneli [1.4K]

Answer:

$8.20 per pound

Explanation:

The computation of the actual price per pound is shown below:

Material price variance = (Standard price per pound - Actual price per pound) × Actual quantity purchased

-$7,000 = ($8.00 - Actual price per pound) × 35,000

$8.00 - Actual price per pound = -$7,000 ÷ 35,000

Actual price per pound = $8.20 per pound

Hence, the actual price per pound is $8.20 per pound

We simply applied the above formula so that the correct value could come

And, the same is to be considered

4 0

3 years ago

Molly's auto detailers maintains its records on the cash basis. During 2018, molly's collected $72,800 from customers and paid $

igor_vitrenko [27]

Accrued Net Income will be calculated as below:

Sales $72800

Less Expenses $20400

Cash Income $52400

Less: Depreciation $4900

Add: Accounts Receivable Inc $4500

Less: Reduction in Prepaid Exp $1900

Add: Reduction in Acc Liab $1700

Accrued Income $51800

Depreciation will be reduced as its an expense and all expenses will be reduced.

Increase in Accounts Recievables indicate there have been sales which have not been paid for yet, thus sales will increase and this needs to be added

Reduction in Prepaid Expenses refer to expenses being paid off earlier but now need to be recognised, thus these need to be added to expenses

Reduction in accrued liabilitites indicate that expenses of previous period have been paid off now thus those need to be reduced from cash expenses.

6 0

3 years ago

Adams, Incorporated would like to add a new line of business to its existing retail business. The new line of business will be t

Alekssandra [29.7K]

Answer:

machine's cost = $200,000 + $10,000 + $30,000 = $240,000

useful life of 4 years

salvage value of $25,000, depreciable value = $215,000

MACRS 3-year asset:

0.333 x $215,000 = $71,595
0.445 x $215,000 = $95,675
0.148 x $215,000 = $31,820
0.074 x $215,000 = $15,910

incremental sales of 1,250 units per year, during 4 years:

1,250 x $200 = $250,000
1,250 x $206 = $257,500
1,250 x $212.18 = $265,225
1,250 x $218.55 = $273,188

incremental COGS of 1,250 units per year, during 4 years:

1,250 x $100 = $125,000
1,250 x $103 = $128,750
1,250 x $106.09 = $132,613
1,250 x $109.27 = $136,588

net working capital increases by 12% of sales revenue = $250,000 x 12% = $30,000

WACC = 10%

tax rate = 40%

initial investment = $240,000 (machine cost) + $30,000 (working capital) = $270,000

net cash year 1 = [($250,000 - $125,000 - $71,595) x (1 - 40%)] + $71,595 = $103,638
net cash year 2 = [($257,500 - $128,750 - $95,675) x (1 - 40%)] + $95,675 = $115,520
net cash year 3 = [($265,225 - $136,588 - $31,820) x (1 - 40%)] + $31,820 = $92,295
net cash year 4 = [($273,188 - $136,588 - $15,910) x (1 - 40%)] + $15,910 = $88,324 + $25,000 (salvage value) + $30,000 (net working capital) = $143,324

to calculate the present value:

PV = $103,638/1.1 + $115,520/1.1² + $92,295/1.1³ + $143,324/1.1⁴ = $94,216 + $95,471 + $69,343 + $97,892 = $356,922

NPV = $356,922 - $270,000 = $86,922

4 0

3 years ago