The cost of equipment is P 500,000.00 and the cost of installation is P 30,000.00. If the salvage value is 10% of the cost of equipment at the end of 5 years, determine the book value at the end of the fourth year. Use straight line method. O a. P146,000.00 O b. P142,000.00 O c. P146,010.00 O d. P156,000.00
Q: on Which of the following statements is true? Select one: Oa. Microeconomics studies consumer…
A: Microeconomics is the term used for the individual households. Macroeconomics is the term used to…
Q: Consider an economy described by the following equations: Y=C + I +G Y=7,000 G=4000 T=2,000…
A: Here we are given the components of the aggregate demand function. Using that we will figure out the…
Q: For part B, blank options: a. does/ does not b. equal to/ larger than/ smaller than For part C,…
A: Vaccination is an example of positive externality. Positive Externality in case of public goods:…
Q: When the demand for a product is perfectly in elastic, a price increase will result in____ what is…
A: Perfectly inelastic demand means any small change in price does not lead to a major change in the…
Q: Samsung increases the price for Galaxy smartphones from $450 to $550. As a result the demand for…
A: Price elasticity of demand for a good is estimated to know about the changes in the quantity…
Q: Use the analysis for the market for loanable funds diagram to illustrate and explain how the…
A: The equilibrium in the loanable funds market occurs at such an interest rate where the demand for…
Q: On December 31, 2021, Annie bought a fitness center with exercise equipment and a building worth…
A: On December 31, 2021, Annie bought a fitness center with exercise equipment and a building worth…
Q: ou are an economist for the City Subway Commission. Presently, the price of a subway ride is 80…
A: What is price elasticity of demand? Price elasticity of demand is the ratio of the percentage change…
Q: Apples Bananas Country A Country B 800 O a b С Od 500 1500 If all resources of Country A and Country…
A: In order to find out the benefit from trade for both the countries, we need to find out the…
Q: If prices rose by 3% and nominal output rose by 5%, real output: b. Rose by 8%. c. Fell by 2% Rose…
A: Real value is exclusive of change in price. Whereas nominal value includes the change in price.
Q: ppose the own price elasticity of demand for good X is −2, its income elasticity is 3, its…
A: The elasticity of demand measures the degree of responsiveness of demand to change in the factors…
Q: Rick eats only french fries and burgers at his office cafeteria. His weekly lunch budget is $48.…
A: Rick eats only french fries and burgers at his office cafeteria. His weekly lunch budget is $48.…
Q: What is the elasticity of demand at Q = 500 when the demand equation is P = 1000 - Q? Recall that,…
A: Elasticity measures the responsiveness of quantity demanded with respect to the price of the…
Q: The model of national economy is characterised by the following da Household consumption C-400+0.9…
A: In economics, the marginal propensity to consume is a metric that quantifies induced consumption,…
Q: Describe and provide examples of the "balanced-budget philosophy", " the countercyclical…
A: Fiscal policies are a tool for authorities to stimulate economy in expansionary and recessionary…
Q: How to find the effective interest rate of a bond
A: An effective interest rate of an investment is the real return on a the interest-paying investment…
Q: Economy’s entire money supply is $400,000 and required reserve ratio is 15%. As a result of the…
A: Part (a) When 8000 is repaid, as per rule bank require to keep 15% of the deposit as a reserve…
Q: What is the rate of return when 12 shares of Stock A, purchased for $22/share, are sold for $465?…
A: Introduction: The rate of return can be calculated by dividing the profit by the total cost. Here,…
Q: The interest rate is 6 percent a year and you expect to receive $1,000 next year and the following…
A: Given interest rate = 10 % Amount to be received next year = 1000$
Q: Suppose the central bank had increased the monetary base to expand money supply by x%. However, the…
A: The term "money supply" describes the entire amount of money that is in circulation in the economy…
Q: UPVOTE WILL BE GIVEN. PLEASE WRITE THE COMPLETE SOLUTIONS AND DRAW THE CASH FLOW DIAGRAM. NO LONG…
A:
Q: Consider the consumption of public pasture land. What type of good is public pasture land? Public…
A: Pasture land refers to land where livestock graze on feed crops such legumes, grasses, or grain…
Q: When pollution is put into the environment by factories who produce a specific good, is NOT a method…
A: Production activities sometimes lead to the creation of negative externalities. Negative…
Q: nterest Rate Qty. supplied Qty. demanded 5% 130 170 6% 135 150 7% 140 140 8% 145 135…
A: A market where savers and borrowers interact for loans to purchase homes is called loanable funds…
Q: If inflation rises from 10 to 14 percent, explain what happens to real and nominal interest rates…
A: Inflation A generalized increase in the cost of goods and services is referred to as inflation.…
Q: 5. The real interest rate equals a. the nominal interest rate plus the rate of expected inflation.…
A: Real value excludes the change in price level. And Nominal value includes the change in price…
Q: u are the manager of a monopolistically competitive firm, and your demand and cost. ctions are…
A: DISCLAIMER “Since you have asked multiple question, we will solve the first three subparts question…
Q: Suppose again that checkable deposits started off at $300,000 in First Main Street Bank, the…
A: Given information, Initial checkable deposits: $300,000 Required reserve: 10% Open market purchase…
Q: What happen to the economy of the Philippines when Filipino people mostly unemployed
A: A person is said to be unemployed when he or she is actively looking for job at prevailing market…
Q: sing a graph, show what will happen in the market for gasoline if the price of oil increases and…
A: The above question is based on the concept of interaction of supply and demand where supply is…
Q: 5) Which of the following statements is not true about utility? We can compare utility across…
A: Consumer Decision-Making: Microeconomics places great significance on consumer decision-making.…
Q: Give at least one (1) determinant of poverty and explain in detail
A: Lack of resources to satisfy necessities like food, clothes, and shelter constitutes poverty. But…
Q: Suppose the price of menthol, an ingredient used to produce cough drops, has decreased. If nothing…
A: Supply depends on a whole lot of factors including the price of product. The law of Supply says that…
Q: If your tuition is $20,000 this semester, your books cost $2,000, you can only work 10 rather than…
A: Opportunity cost is the cost of the foregone next best alternative.
Q: Suppose the consumption function is given by C=1000+ 0.55(YT), exogenous investment by I = 660,…
A: Consumption is function which shows the relationship between disposable income and consumption. and…
Q: 1. Provide a sample scenario where professionalism is applied. 2. Justify the importance of…
A: Professionalism is a way to act in a way that shows great skill which helps other businesses to…
Q: Haiti had an unemployment rate of 21% in 2009 and in 2011 the unemployment rate decreased to 19%.…
A: The production possibility frontier depicts the combination of two goods that can be produced by…
Q: 3. From the data in the table, calculate the average annual inflation rate as measured by the CPI…
A:
Q: Yogi Maharaj, Inc. is one of the leading retailers of specialty donuts with stores in most major US…
A: To find the maximum willingness to pay we need to derive demand equation . Demand equation depicts…
Q: . Michael Porter’s Diamond Model comprises FOUR major elements. With the use of examples, briefly…
A: 3) Michael Porter's diamond model states that there exist certain factors that cause competitive…
Q: If the purpose of a tax is to decrease the amount of a harmful activity, then the tax would be most…
A: Supply and demand both are affected by the imposition of tax. The imposition of tax changes the…
Q: Draw an isoquant representing Y = 140 for each of the following ca and K denotes units of capital.…
A: Production function represents the relationship between the output and inputs.
Q: Identify any 5 factors that will shift a demand curve to the right. Explain each factor.
A: Rightward shift in demand curve = Increase in demand without any change in price of the good.…
Q: Your income increased by 20%. The resultant impact on your demand curve is Select one: No changes…
A: Introduction: The demand for a commodity depends on various factors including its own price. In the…
Q: Oa. P25,000.00 Ob. P30,000.00 Oc. P15000.00 Od. P20,000.00
A: Given initial cost = 50,000 P Salvage = 10,000 Time = 10 years
Q: Describe the four degrees of competition.
A: Market is the place where buyers and seller interact and exchange the goods and service at given…
Q: How much money should be deposited each year for 8 years starting 1 year from today, if you wish to…
A: Introduction: It is given that the interest rate is 12% and the amount of annuity that is withdrawn…
Q: The table sets out the data for an economy when the government's budget is balanced. Real interest…
A: The real interest rate is the rate of interest an investor, saver or lender gets after permitting…
Q: An economy's consumption function is depicted in the table below. Disposable Income (Y) ($ billions)…
A: total expenditure is the sum of consumption plus investment
Q: The tightness of the labor market is defined as: number of employed worker per filled job number of…
A: Introduction The labor market, also known as the job market, refers to the supply of and demand for…
Step by step
Solved in 2 steps
- A harvester was purchased 4 years ago for $100,000. The current market value is $45,000, which will decline as follows over the next 5 years: $40,000, $33,500, $28,000, $24,000, and $17,000. The O & M costs are estimated to be $16,000 this year. These costs are expected to increase by $5000 per year starting year 2. MARR = 10% The foregone interest in year 4 is _______________.A process plant making 5000kg /day of a product selling for $1.75 per kg has annual directproduction costs of $2 million at 100 percent capacity and other fixed costs of $700,000. What isthe fixed charge per kg at the break-even point? If the selling price of the product is increased by10 percent, what is the dollar increase in net profit at full capacity if the income tax rate is 35percent of gross earnings?Hagar Industrial Systems Company (HISC) is trying to decide between two different conveyor belt systems. System A costs $275,000, has a 4-year life, and requires $81,000 in pretax annual operating costs. System B costs $355,000, has a 6-year life, and requires $75,000 in pretax annual operating costs. Both systems are to be depreciated straight-line to zero over their lives and will have zero salvage value. Suppose the company always needs a conveyor belt system; when one wears out, it must be replaced. Assume the tax rate is 22 percent and the discount rate is 9 percent. Calculate the EAC for both conveyor belt systems. Please lay out initial input of the problems and your calculations of cash flow, NPV, and EAC in an excel format.
- The following are data from a production, calculate; The Break-even point in terms of sales value and in . The production demand is at 20,000 units. What is the cw1ent production profit? If the management decides to lower dow11its selling price by 50% given the same demand, will this be a sound decision? Justify. Monthly Fixed Factory Overhead Cost = P600,000 Monthly Fixed Selling Overhead Cost = Pl20,000 Va1iable Manufacturing Cost per Unit = P220 Va1iable Selling Cost per Unit = P30 Variable Distribution Cost per Units = P50 Selling Price per limit = P400PLEASE WRITE YOUR SOLUTION ON A PAPER, THANK YOU A Contractor imported a bulldozer for his job, paying P 350,000 to the Manufacturer. Freight andInsurance charges amounted to P 18,000; customs’ broker’s fees and arrastre services, P 8,500;taxes, permits and other expenses, P 35,000. If the contractor estimates the life of the bulldozer tobe 10 years with a salvage value of P 20,000, determine the book value at the end of 8 years, a. using the Double Declining Balance Method. b. using the Declining Balance Method. c. using the Sinking Fund Method, i = 10% d. using the Sum of the Years MethodAn asset for drilling was purchased and place in service by a petroleum production company. Its initial investment is P60,000 and it has an estimated salvage value of P12,000 at the end of an estimated useful life of 14 years. Compute the book value at the end of the 5th year of life using SLM. a. P48,257.00 b. P42,857.00 c. None of the above d. P45,572.00
- A special-purpose machine tool set would cost $20,000. The tool set will be financed by a $10,000 bank loan repayable in two equal annual installments at 10% compounded annually. The tool is expected to provide annual (material) savings of $30,000 for two years and is to be depreciated by the MACRS three-year recovery period. The tool will require annual O&M costs in the amount of $5,000. The salvage value at the end of the two years is expected to be $8,000. Assuming a marginal tax rate of 25% and MARR of 15%, what is the net present worth of this project? PLEASE USE THE FOLLOWING EQUATION TO SOLVEA special-purpose machine tool set would cost $20,000. The tool set will be financed by a $10,000 bank loan repayable in two equal annual installments at 10% compounded annually. The tool is expected to provide annual (material) savings of $30,000 for two years and is to be depreciated by the MACRS three-year recovery period. The tool will require annual O&M costs in the amount of $5,000. The salvage value at the end of the two years is expected to be $8,000. Assuming a marginal tax rate of 25% and MARR of 15%, what is the net present worth of this project?A special-purpose machine tool set would cost $20,000. The tool set will be financed by a $10,000 bank loan repayable in two equal annual installments at 10% compounded annually. The tool is expected to provide annual (material) savings of $30,000 for two years and is to be depreciated by the MACRS three-year recovery period. The tool will require annual O&M costs in the amount of $5,000. The salvage value at the end of the two years is expected to be $8,000. Assuming a marginal tax rate of 25% and MARR of 15%, what is the net present worth of this project? The net present worth of the project is $ thousand.
- A machine having a first cost of P60,000.00 will be retired at the end of 8 years. Depreciation cost is computed using a constant percentage of the declining book value. What is the total cost of depreciation, in pesos, up to the time the machine is retired if the annual rate of depreciation is 28.72%?Fairfield Properties owns real property that is MACRS depreclated with n=39 years. They paid $3.3 million for the apartment complex and hope to sell it after 10 years of ownership for 41% more than the book value at that time. Determine the anticipated profit, that is,the difference between the probable selling price and the purchase price. (Enter your answer in dollars and not in millions)The difference between the probable selling price and the purchase price is $_____2. It is estimated that depositing 20.000 pesos every end of the 6 months in a sinking fund that gives an interest rate of 14% compounded semi-annually, will provide the money that could replace a machine at the end of 10 years. If the machine has no salvage value, what is the cost of replacement. a. $19,909.85 b. 729.546.06 c. 889.754.30 d. 746.852.58