Answer:
See below
Explanation:
Prepaid insurance. Insurance expense
————————————- ———————————-
debit. | Credit. Debit. | Credit
|. 150.00. 150. |
enter the debit of 150 under insurance expense in the journal
enter the credit of 150 under prepaid insurance in the journal
Your company has used competitive bidding to select a supplier for janitorial services. Three suppliers returned acceptable bids within the allotted time frame. Supplier A Supplier B Supplier C Category Weight Rating Rating Rating Quality systems 37% 3 3 4 Financial stability 28% 2 4 3 Management experience 20% 3 2 3 Price 15% 1 4 3 picture Click here for the Excel Data File All scores on a five-point scale with 1 = poor, 5 excellent.
a. Calculate the total weighted score for each supplier. (Round your answers to 2 decimal places.) Total Weighted Score
Supplier A
Supplier B
Supplier C
b. Based on these ratings from the supplier assessment, which supplier appears to be the best?
Supplier A
Supplier B
Supplier C
Answer:
a. Total weighted score:
This is a weighted average of the supplier scores in various categories.
Supplier A
= ∑(Weight of category * rating in category)
= (37% * 3) + (28% * 2) + (20% * 3) + (15% * 1)
= 2.42
Supplier B
= (37% * 3) + (28% * 4) + (20% * 2) + (15% * 4)
= 3.23
Supplier C
= (37% * 4) + (28% * 3) + (20% * 3) + (15% * 3)
= 3.37
b. Based on the ratings, Supplier C appears to be the best.
Mancuso Corporation amended its pension plan on January 1, 2020, and granted $160,000 of prior service costs to its employees. The employees are expected to provide 2,000 service years in the future, with 350 service years in 2020. Compute prior service cost amortization for 2020.
Answer: $28000
Explanation:
Based on the information given in the question, the prior service cost amortization for 2020 will be calculated thus:
= (Prior Service Costs / Service Years in Future) x Service Years in 2020
= ($160,000 / 2,000) × 350
= $80× 350
= $28,000
Therefore, the the prior service cost amortization for 2020 is $28000.
Alpha Inc. and Beta Co. are sheet metal processors that supply component parts for consumer product manufacturers. Alpha has been in business since 1985 and is operating in its original plant facilities. Much of its equipment was acquired in the 80s and 90s. Beta Co. was started two years ago and acquired its building and equipment then. Each firm has about the same sales revenue, and material and labor costs are about the same for each firm.
What would you expect Alpha’s ROI to be relative to the ROI of Beta Co.? Explain your answer.
What are the implications of this ROI difference for a firm seeking to enter an established industry?
Answer: A. Higher
B. The implication for Beta Co. is that because of its lower ROI, its ability to raise capital will be reduced.
Explanation:
a. What would you expect Alpha’s ROI to be relative to the ROI of Beta Co.? Explain your answer.
In this case, Alpha’s ROI to be relative to the ROI of Beta Co. will be higher. Since Alpha's investment cost is lower when compared to that of ‘Beta Co. while both companies have thesame operating income, then the return on investment of Alpha will then be higher than that of Beta due to the lower investment cost that Alpha incurred.
b. What are the implications of this ROI difference for a firm seeking to enter an established industry?
The implication for Beta Co. is that because of its lower ROI, its ability to raise capital will be reduced.
Run-of-the-Mills provides your marketing firm with the following data: When the price of guppy gummies decreases by 5%, the quantity of frizzles sold increases by 4% and the quantity of mookies sold decreases by 6%. Your job is to use the cross-price elasticity between guppy gummies and the other goods to determine which goods your marketing firm should advertise together.
Answer:
guppy gummies and frizzles are complementary goods and should be advertised together
Explanation:
Cross price elasticity of demand measures the responsiveness of quantity demanded of good A to changes in price of good B.
If cross price elasticity of demand is positive, it means that the goods are substitute goods.
Substitute goods are goods that can be used in place of another good.
When the price of gummies decreased, the demand for mookies decreased. these goods are substitutes and should not be advertised together
If the cross-price elasticity is negative, it means that the goods are complementary goods.
Complementary goods are goods that are consumed together
When the price of gummies decreased, the demand for frizzles increased. the cross price elasticity would be negative. thus they are complements and should be advertised together.
PART A. MULTIPLE CHOICE - 15 MARKS
1. Company orientation does not include which topic below?
Economic Factors
b. Fringe Benefits
C. Occupational Health and Safet
d. None of the above
what is the answer?
Answer: a. Economic factors
Explanation:
Company orientation refers to training that is given to new employees to better prepare them to work in the company and be as efficient as possible.
It includes things like occupational health and safety so that the employee may know how best to behave so as not to cause accident or get injured by one. It also includes telling the employees of the various fringe benefits that might accrue to them.
It would not include economic factors as these as not specific to the company.
Carlos, the HR Director of a large paper manufacturing company, is studying the company's turnover costs. He has accounted for most of the easily calculable costs, but he is concerned about the hidden costs of turnover. Given this information, which of the following is most likely a cause of concern for Carlos?
a. Missed project deadlines
b. Employee referral fees
c. Preemployment medical expenses
d. Accrued vacation expenditures
Answer:
Missed project deadlines
Explanation:
From the question, we are informed about Carlos, who is the HR Director of a large paper manufacturing company, is studying the company's turnover costs. He has accounted for most of the easily calculable costs, but he is concerned about the hidden costs of turnover. Given this information, the most likely a cause of concern for Carlos is Missed project deadlines.
Project deadlines can be regarded as
final time point which is needed for a given project to be done as well as the submission of handing over. It is been
characterized as desired time-frame set for a project as well as links initial time expectations for the project to be
produced in a timely manner.
The Molding Department of Boswell Company has the following production data: beginning work process 40,000 units (60% complete), started into production 730,000 units, completed and transferred out 690,000 units, and ending work in process 80,000 units (40% complete). Assuming materials are entered at the beginning of the process equivalent units materials are:____. a. 500,000.b. 425,000.c. 450,000.d. 525,000.The Molding Department of Boswell Company has the following production data beginning work process 40,000 units (60% complete) started into production 730,000 units, completed and transferred out 690,000 units, and ending work in process 80,000 units (40% complete). Assuming materials are entered at the beginning of the process equivalent units for materials are:____.a. 770,000. b. 650.000. c. 690.000. d. 810.000.
Answer: 770,000
Explanation:
Assuming materials are entered at the beginning of the process, the equivalent units materials will be:
Beginning work process = 40,000 units
Started into production = 730,000 units
Then equivalent units materials will be:
= 40000 + 730000
= 770000
Project Management Practice ProblemBragg’s Bakery is building a new automated bakery downtown Sandusky. Here are the activities that need to be completed to get the new bakery built and the equipment installed.
ACTIVITYPREDECESSORNORMAL TIME (WEEK)CRASH TIME (WEEK)EXPEDITING COST/WEEKA-963000BA853500CA15104000DB,C532000EC1062500FD,E215000
Hint: I have directly provided the crashing cost per unit time.
a. What is the normal project length?
b. What is the critical path in this project?
c. Which activity will you choose to crash first to reduce the duration of the project by one week?
d. What is the project length if all activities are crashed to their minimum?
e. What is the slack for activity D?
Answer:
a. The normal project length is 36 weeks.
b. The critical path in this project is A-C-E-F.
c. The activity that you choose to crash first to reduce the duration of the project by one week is E because it has the least expediting cost/week amongst A, C, E, F.
d. The project length if all activities are crashed to their minimum is 23 weeks.
e. The slack for activity D is 5 weeks.
Explanation:
a) The normal length of the project = completion time of last activity = 36 weeks.
b) The criteria for critical activity:
[tex]LC_{i} = ES_{i} ,\\LC_{j} = ES_{j} ,\\[/tex]
[tex]ES_j - ES_i = LF_j - LF_{i} =[/tex] duration of the activity
where ES = Earliest start time, EF = Earliest finish time , LC = latest completion time, LF = latest finish time ,
The suffix- i refers to the preceding node, suffix-j refers to the succeeding node.
activities satisfying above all criteria are A, C, E, F
therefore critical path is A-C-E-F.
c) To reduce the project duration by 1 week. we should choose to crash among critical activities A, C, E, F. thus we choose to crash activity E because it has the least expediting cost/week amongst A, C, E, F.
d) if we crash all the activities to their minimum, then the project length = sum of crash time of all critical activities
= [6 + 10 + 6 + 1]
= 23 weeks.
e) The slack of activity d = LS - ES = 34 - 29
= 5 weeks
The critical path is given in the diagram,
Renee paid $4,000 in mortgage interest on a $110,000 mortgage that was taken out when she bought her home several years ago. She also has a home equity loan of $130,000 that she used to pay for a cruise around the world. The interest on the home equity loan was $8,000. What amount is deductible as interest expense for Renee in 2021
Answer:
The amount that is deductible as interest expense for Renee in 2021 is:
= $4,000.
Explanation:
a) Data:
Home mortgage - $110,000
Interest on home mortgage = $4,000
Home equity loan for a cruise around the world = $130,000
Interest on the home equity loan = $8,000
Deductible interest expense for Renee in 2021 is $4,000
b) Usually, the interest expenses that a taxpayer pays on her home equity loan to enjoy a cruise around the world, on personal credit card, on automobile loan, and on other types of personal consumer finance interests are not tax-deductible.
The steps of the accounting cycle are presented below. Identify the correct order of the steps.
a. Journalize and post the closing entries.
b. Start with beginning account balances.
c. Prepare the financial statements.
d. Compute the unadjusted balance in each account, and prepare the unadjusted trial balance.
e. Journalize and post adjusting entries.
f. Enter the unadjusted trial balance on the worksheet, and complete the worksheet (optional).
g. Prepare the adjusted trial balance.
h. Analyze and journalize transactions as they occur.
i. Post journal entries to the accounts.
j. Prepare the post-closing trial balance.
Answer:
The correct order is as follows:
a. Start with beginning account balances.
First start with the opening balances which are the closing balances from the last period.
b. Analyze and journalize transactions as they occur.
Enter transactions into their journals as they occur.
c. Post journal entries to the accounts.
Post the entries from the journals to the relevant accounts in the company books.
d. Compute the unadjusted balance in each account and prepare the unadjusted trial balance.
Prepare the unadjusted trial balance based on those entries.
e. Enter the unadjusted trial balance on the worksheet and complete the worksheet (optional).
f. Journalize and post adjusting entries.
There might be errors so you would need to adjust the entries and then journalize them.
g. Prepare the adjusted trial balance.
Using these adjusted entries, prepare an adjusted trial balance.
h. Prepare the financial statements.
The adjusted balances will be used to construct financial statements such as the Balance sheet.
i. Journalize and post the closing entries.
Post the closing entries to the books.
j. Prepare the post-closing trial balance.
Then prepare the final trial balance which is also called the post-closing trial balance.
In 2016, 59.7 percent of the adult population (253 million) was employed. If the employment rate increased to 62 percent,
Instructions: In part a, round your response to one decimal place. In part b, enter your response as a whole number.
a. How many more people would be working?
______ million
b. By how much would output increase if per worker GDP were $122,000?
$ _____ billion
Answer:
a. 5.819 million
b. $709918
Explanation:
Below is the calculation:
a. Total number of adult population = 253 million
Total employed adult = 253 x 59.7% = 151.041
Number of employed adult after increase in employment rate = 253 x 62% = 156.86
More people would be working = 156.86 - 151.041 = 5.819 million
b. GDP per capita is $122,000, so increase in GDP = 5.819 x 122000
Increase in GDP = $709918
The principal-agent problem arises when ________.
a. the owners of the firm also manage the firm
b. managers serve on a firm's board of directors
c. a firm is organized as a sole proprietorship
d. the owners of the firm are not the people managing the firm
Answer:
a. the owners of the firm also manage the firm
Explanation:
In domain of supply chain management and economics principal–agent problem can be regarded as one that occur when single person or an entity stand in the position of making decisions or in position of taking actions on behalf of another person/ entity Instance of this is real-life example where the way that companies are been owned and been operated. The owners of the company i.e "principal" of the company will be the one to elect a board of directors.
It should be noted that the principal-agent problem arises when the owners of the firm also manage the firm
You won a lottery that will make equal payments of $3,500 at the end of each year for the next six years. If the annual interest rate stays constant at 8%, what is the value of these payments in today’s dollars? Round your answer to the nearest whole dollar.
Answer:
$16,180.08
Explanation:
Present value can be calculated using a financial calculator
Cash flow from year 1 to 6 = 3500
i = 8%
pv = $16,180.08
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Crane Enterprises reported cost of goods sold for 2020 of $1,290,700 and retained earnings of $4,708,100 at December 31, 2020. Crane later discovered that its ending inventories at December 31, 2019 and 2020, were overstated by $116,750 and $32,910, respectively. Determine the corrected amounts for 2020 cost of goods sold and December 31, 2020, retained earnings.
Answer:
Adjusted Cost of Goods sold = $1,206,860Adjusted Retained Earnings = $4,675,190Explanation:
An overstated opening inventory would overstate Cost of Goods sold. The overstatement should therefore be removed from the Cost of goods sold.
An overstated closing inventory would understate Cost of Goods sold. The overstatement should therefore be added to the Cost of Goods sold.
Adjusted Cost of Goods sold 2020 = Cost of Goods sold + 2020 ending inventory - 2019 opening inventory
= 1,290,700 + 32,910 - 116,750
= $1,206,860
Adjusted Retained earnings
The retained earnings would have to be adjusted for the overstatement of the current inventory by $32,910 because this understated Cost of Goods sold.
= Retained earnings - Overstatement of inventory
= 4,708,100 - 32,910
= $4,675,190
William owns 1 share of Park stock. He purchased the stock three years ago for $17.50. The stock is currently trading for $40 per share. The stock has paid the following dividends over the past three years. o Year 1: $1.00. o Year 2: $2.00. o Year 3: $3.00. What is the compounded rate of return (IRR) that William has earned on this investment
Answer:
sim eu também preciso desta respota
A company pays its employees $2,900 each Friday, which amounts to $580 per day for the five-day workweek that begins on Monday. If the monthly accounting period ends on Thursday and the employees worked through Thursday, the amount of salaries earned but unpaid at the end of the accounting period is:
Answer:
$2,320
Explanation:
Calculation to determine what amount of salaries earned but unpaid at the end of the accounting period is:
Ending salaries earned but unpaid=$2,900-$580
Ending salaries earned but unpaid=$2,320
($2,900-580)
Therefore the amount of salaries earned but unpaid at the end of the accounting period is: $2,320
did you mom ever yell at you
Answer:
yeah everyone mother yelled every child for their life
Using cost behavior patterns MFG Company experiences the following cost behavior patterns each week: Fixed costs: supervisor’s salary $1,600; factory rent $3,700 Mixed costs: utilities $2,100 + $6.75 per unit Variable costs per unit: manufacturing labor wages $23.00; supplies used in production $10.00; packaging cost $3.75; warranty cost $4Required:Compute total costs to be incurred for a week with 2,750 units of activity.
Answer:
Total cost= $138,025
Explanation:
Giving the following information:
Fixed costs:
supervisor’s salary $1,600
factory rent $3,700
Mixed costs:
utilities $2,100 + $6.75 per unit
Variable costs per unit:
manufacturing labor wages $23.00
supplies used in production $10.00
packaging cost $3.75
warranty cost $4
Units produced= 2,750
First, we need to calculate the total variable cost:
Total variable cost= 2,750*(6.75 + 23 + 10 + 3.75 + 4)
Total variable cost= $130,625
Now, the total fixed cost:
Total fixed cost= 1,600 + 3,700 + 2,100
Total fixed cost= $7,400
Finally, the total cost:
Total cost= 130,625 + 7,400
Total cost= $138,025
Bud Corp. had book income (net) of $1,000,000 this year. The corporation's federal income tax expense was $200,000. This year, the corporation purchased and placed in service a depreciable asset. The asset cost $60,000. For book purposes, depreciation this year was $20,000 (already included in the calculation of $1,000,000 book income). For tax purposes, the corporation elected bonus depreciation for the asset. What is the corporation's taxable income for this year?
Answer:
$960,000
Explanation:
Calculation to determine the corporation's taxable income for this year
Using this formula
Taxable income=Book income+Depreciation Expense-Asset
Let plug in the formula
Taxable income=$1,000,000+$20,000-$60,000
Taxable income=$960,000
Therefore the corporation's taxable income for this year is $960,000
Lardo Inc. plans to build a new manufacturing plant in either Country X or Country Y. It projects gross revenue in either location of $4 million per year. Operating expenses would be $1.5 million in Country X and $1.8 million in Country Y. Country X levies income tax at a rate of 20 percent on net business income. Country Y does not have an income tax, but assesses a 10 percent tax on gross revenue, without allowance for any deductions. a. Calculate the after-tax profit for each country. b. In which country should Lardo build its new plant?
Answer:
Following are the solution to the given points:
Explanation:
For point a:
After-tax profit for each country.
For Country X:
[tex]Particulars \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ Amount(\$)\\\\Gross \ \ Revenue\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 4,000,000\\\\ Operating\ \ Expenses \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 1,500,000\\\\ Pre-tax \ \ Profit \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 2,500,000 \\\\[/tex]
[tex]Tax \ [ 2,500,000 \times 20\% \ ] \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 500,000\\\\ After-tax\ \ profit\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 2,000,000[/tex]
For Country Y:
[tex]Particulars \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ Amount(\$)\\\\Gross \ \ Revenue\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 4,000,000 \\\\Operating\ \ Expenses \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 1,800,000\\\\[/tex]
[tex]Pre-tax\ \ Profit \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 2,200,000\\\\Tax\ [40,00,000 \times 10\%] \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 400,000 \\\\After-tax\ \ profit \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 1,800,000[/tex]
For point b:
For Country X:
Lardo is expected to establish its new plant in Country X, because Country X's after tax income is higher than Country y's after-tax income [$1,800,000].
Explain how business can deal with unemployment as one of their initiative to address socio-economic issues
Answer:
Below is the required solution.
Explanation:
How can companies influence the crisis in jobs and skills? Nearly 80 case studies show three areas in which businesses can take the lead:
Work with educational and training providers to assist people in developing the skills they need in the world of workSupport startups and smaller companies to promote entrepreneurshipLink talent to markets by bridging the gap between employers and job-seekers.Eight factors that can make programmes and practises more effective also emerge from case studies.
Build multi-sector partnershipsDevelop win-win approachesUnderstand the talent value chainBe relevant to the contextCommit leadership to the causeDesign for the futureLeverage ICTTest first, scale secondIn the context of a marketing mix, the product includes: Group of answer choices the name of the brand. personal selling the elements of advanced strategic planning the point of purchase
Answer:
the name of the brand.
Explanation:
Marketing mix can be defined as the choices about product attributes, pricing, distribution, and communication strategy that a company blends and offer its targeted markets (customers) so as to build and maintain a desired response.
Generally, a marketing mix is made up of the four (4) Ps;
1. Promotions: for a good sales record or in order to increase the number of people buying a product and taking services, it is very important to have a good marketing communication such as advertising, sales promotion, direct marketing, etc.
2. Price: this represents the amount of money a customer buying goods and services are willing to pay for it.
3. Place: this represents the areas of distribution of these goods and services for easier access by the potential customers.
4. Products: this is typically the brand name, goods and services that gives satisfaction to the customer's needs and wants. They are either tangible or intangible items.
In the context of a marketing mix, the product includes the name of the brand.
Your total lottery winnings are actually worth ______________ more than the same amount as less than $20,000 to you today.
Answer:
Your total lottery winnings are actually worth __$10,000____________ more than the same amount as less than $20,000 to you today.
Explanation:
My total worth today is $ 10,000
My present worth today is less than $20,000 by $10,000
Hence, the lottery amount is more than by amount X which is equal to the difference between $20,000 and My total worth in present times
$20,000 - $10,000 = $10,000
What is the process of project appraisal?
Answer:
Đánh giá sự cần thiết của dự án , Thẩm định kỹ thuật, Thẩm định khả năng vốn tài chính dự án
Explanation:
4. Distinguish between impact and incidence of taxes
Explanation:
Jzbskbeks boy The New York Times New Roman yor
Answer:
The term impact is used to express the immediate result of or original imposition of the tax. The impact of a tax is on the person on whom it is imposed first. Thus, the person who is Habile to pay the tax to the government bears its impact. The impact of a tax, as such, denotes the act of impinging.
Explanation:
Câu 1 Bản chất của quản trị chiến lược là phác thảo hình ảnh tương lai của doanh nghiệp trong lĩnh vực hoạt động trên cơ sở khai thác các:
a Nguồn lực
b Năng lực cạnh tranh
c Thế mạnh
d Lợi thế cạnh tranh
Mr. Hopper expects to retire in 30 years, and he wishes to accumulate $1,000,000 in his retirement fund by that time. If the interest rate is 12% per year, how much should Mr. Hopper put into his retirement fund at the end of each year in order to achieve this goal
Answer:
Annual deposit = $4100
Explanation:
Annual deposit = $4100
Number of years for retirement = 30 years
Future value of money = $1000000
Interest rate = 12%
Now use the below formula to find the annuity amount.
Annual deposit = Future value (A/F, r, n)
Annual deposit = 1000000 (A/F, 12%, 30)
Annual deposit = 1000000(0.0041)
Annual deposit = $4100
The amount Mr Hopper should put in his retirement fund each year is $4143.66.
In order to determine the amount of money Mr. Hopper should deposit each year, this formula would be used:
Yearly payment = future value / annuity factor
Annuity factor = {[(1+r)^n] - 1} / r
Where:
R = interest rate
N = number of years
Annuity factor = [(1.12)^30 - 1] / 0.12 = 241.332684
Yearly payment = $1,000,000 / 241.332684 = $4143.66
To learn more, please check: https://brainly.com/question/14640433
Sarasota Company purchased a machine at a price of $103,200 by signing a note payable, which requires a single payment of $130,002 in 3 years. Click here to view factor tables Assuming annual compounding of interest, what rate of interest is being paid on the loan
Answer:
-7.407%
Explanation:
Let interest rate be x%
Present value of payment = $130,002 * PV of discounting factor (rate%, time period)
$103,200 = $130,002 * 1.0x^3
1.0x^3 = $103,200 / $130,002
1.0x = ($103,200 / $130,002)^(1/3)
1.0x = 0.793834^(1/3)
1.0x = 0.92592660981
x = (0.92592660981 - 1) * 100
x = -0.07407*100
x = -7.407%
Suppose the corrective tax policy and the number of pollution permits available do not change in spite of this demand shift. As a result of the technology change, the price of pollution will change under , and the quantity of pollution will change under
Answer:
As a result of the technology change, the price of pollution will be same as price of pollution with pollution permits.
The quantity of pollution with corrective tax will be lower than quantity of pollution with pollution permits.
Explanation:
The pollution permits are issued to reduce pollution by firms. The companies will reduce the pollution and will only be able to emit pollution up to certain limit. The price of pollution with corrective tax will be same as the price of pollution with pollution permits.
Houston Fashions is considering a new product line that would require an investment of $ 140,000 in fixtures and displays and $ 180,000 in working capital. Store managers expect the following pattern of net cash inflows from the new product line over the life of the investment.
Year Amount
1 ......... $70,000
2 ......... 78,000
3 ......... 72,000
4 ......... 56,000
5 ......... 50,000
6 ......... 48,000
7 ......... 44,000
a. Compute the payback period for the proposed new product line. Houston Fashions requires a four- year pre-tax payback period on its investments. (Round to one decimal point.) Should the company make this investment? Explain.
b. Should Houston Fashions use any other capital project evaluation method(s) before making an investment decision? Explain.
Answer:
4.88 years
other methods should be used because payback method does not account for the time value of money
Explanation: