Answer: The supervisor should compare the register transactions with the cash receipts report to make sure that both are correct.
Explanation:
The cash register shows the actual amount of money that is collected by the business during the day and the cash receipts journal records the cash collected.
There is therefore a need to ensure that these two tally up as a control method. The supervisors should therefore check for this and if they find that these two are not the same, it means that there is an error somewhere that needs to be rectified.
The following data relate to a company that produces and sells a travel guide that is updated monthly: Each book sells for $20.00. The company sold 8,000 books in June and 10,000 books in July. The unit contribution margin per book is:
Answer:
10.30
Explanation:
20
8000
160 000 June
10000
200 000 July
20 - 3.20 -4 - .50 -2 = 10.30
costs:Printing and binding...............................$3.20 per copyBookstore discounts................................$4.00 per copySalespersons’ commissions....................$0.50 per copyAuthor’s royalties...................................$2.00
The free trade pact known as Mercosur has been successful at creating a full customs union between Brazil and Argentina. True False
Answer:
The given statement is "True".
Explanation:
An agreement for reducing obstacles to exporters and importers amongst two or even more organizations is determined as Free trade pact.Commodities could be purchased as well as transferred crossing international boundaries mostly under free markets having minimal or no governmental taxes restrictions or subsidies to prevent interchange.
Which of the following statements correctly describe properties of an economic model? Check all that apply.
A) An economic model requires a complex set of assumptions.
B) An economic theory can be expressed in the form “If X, then Y, all other things held constant.”
C) An economic model requires simplified assumptions.
D) The purpose of an economic model is to depict the real world as accurately as possible.
Answer:
A) An economic model requires a complex set of assumptions.
D) The purpose of an economic model is to depict the real world as accurately as possible.
Explanation:
The following statements that correctly describes properties of an economic model are:
A) An economic model requires a complex set of assumptions.
D) The purpose of an economic model is to depict the real world as accurately as possible.
An economic model requires a complex set of assumptions.The purpose of an economic model is to depict the real world as accurately as possible.
Are the properties of economic model.
What is Economics?Economics is a social science which base on how human needs are met or satisfied through the allocation of scarce resources .
What is an Economic Model?Economic model is a theoretical processes which consist of variables and how this set of logical variables relate within them.
Therefore,
An economic model requires a complex set of assumptions.The purpose of an economic model is to depict the real world as accurately as possible.Are the properties of economic model.
Learn more on Economics from the link below.
https://brainly.com/question/17996538
Daniel derives utility from only two goods, cake (QC) and donuts (Qd). The marginal utility that Daniel receives from cake (MUc) and donuts (MUd) are given as follows:
MUc = Qd MUd = Qc
Daniel has an income of $240 and the price of cake (Pc) and donuts (Pd) are both $3.
1) What is Daniel's budget constraint?
A) 240 = 3Pc + 3Pd.
B) 240 = 3Qc + 3Qd.
C) 240 = (Pc)(Qc).
D) 240 = (Qc)(Qd).
2) Holding Daniel's income and constant at $240 and $3 respectively, what is Daniel's demand curve for cake?
A. Qc = 120/Pc.
B. Qc = 240/(3 + Pc).
C. Qc = 240/Pc.
D. Qc = 240 - Pc.
E. None of the above.
Answer:
1) What is Daniel's budget constraint?
B) 240 = 3Qc + 3Qd.Total budget = 240
Each cake or donut costs 3 each
2) Holding Daniel's income and constant at $240 and $3 respectively, what is Daniel's demand curve for cake?
E. None of the above.240 = 3c + 3d
3c = 240 - 3d
c = 80 - d
Manner Inc. has incurred the following overhead costs over a 6 week period: Calculate the approximate fixed cost component of Manner's overhead costs using the high-low method. Group of answer choices $408. $470. $258. $250. $542.
Answer:
250 dollars
Explanation:
Variable cost = 1190-710/94-46
= 480/48
= 10 dollars
Fixed cost = 1190-(10*94)
= 1190-940
= 250 dollars
Fixed cost = 710-(10*46)
= 710-460
= 250 dollars
The cost of capital for a firm with a 60/40 debt/equity split, 4.86% cost of debt, 15% cost of equity, and a 35% tax rate would be:______.
Answer: 7.9%
Explanation:
The weighted cost of capital for a firm shows the cost of capital from all sources that fund the business including stock and long term liabilities.
Formula is:
= (Weight of equity * cost of equity) + (Weight of debt * (cost of debt * (1 - tax rate) ))
= (0.4 * 0.15) + ( 0.6 * ( 0.0486 * ( 1 - 35%)))
= 0.06 + 0.018954
= 7.895%
= 7.9%
Cor-Eng Partnership was formed on January 2, 20X1. Under the partnership agreement, each partner has a 50/50 capital balance with a true up a payment required to equal the initial capital accounts. Partnership net income or loss is allocated 50/50. To form the partnership, Cor originally contributed assets costing $30,000 with a fair value of $80,000 on January 2, 20X1, while Eng contributed $20,000 in cash. Drawings by the partners during 20X1 totaled $3,000 by Cor and $9,000 by Eng. Cor-Eng's 20X1 net income was $25,000. Eng's initial capital balance (after the true up payment) in Cor-Eng is:______.
a. $25,000
b. $20,000
c. $50,000
d. $40,000
Answer:
Cash (Dr.) $20,000
Other Assets (Dr.) $80,000
Goodwill (Dr.) $60,000
Cor capital (Cr.) $80,000
Eng Capital (Cr.) $80,000
Explanation:
Goodwill is a firms excess asset value than its original cost. It is an intangible asset of a company. Eng and Cor both invested equal amount of value in the business. The fair value of assets is 80,000 which is 60,000 in excess of its cost.
Strategic controls are largely subjective criteria intended to verify that the firm is using appropriate strategies for the conditions in the external environment and the company's competitive advantages.
A. True
B. False
Answer:
A. True
Explanation:
In Business management, a strategy can be defined as a set of guiding principles, actions and decisions that an organization combines so as to achieve its business goals, attract customers and possess a competitive advantage over its rivals in the industry.
Business strategy sets the overall direction for the business because it focuses on defining how a business would achieve its goals, objectives, and mission; as well as the funds and material resources required to implement or execute the business plan. The components of a business strategy includes the following;
I. Value.
II. Vision.
III. Mission.
Basically, strategic controls are subjective criteria that are developed by a business firm so as to verify and ensure that the business firm has implemented the appropriate strategies for the conditions in the external environment and the competitive advantages of the business firm.
Suppose a commercial bank has checkable deposits of $80,000 and the legal reserve ratio is 20 percent. If the bank's required and excess reserves are equal, then its actual reserves
Answer: $32000
Explanation:
The required reserves will be calculated as:
= Checkable deposit × Legal reserve ratio
= $80000 × 20%
= $16000
Excess reserves = $16000
Actual reserves will now be:
= Required reserves + Excess reserves
= $16,000 + $16,000
= $32,000
You paid $9,700 for a $10,000 par value Treasury bill maturing in 3 months. What is the holding-period return if you hold the treasury bill until maturity
Answer:
The holding-period return if the treasury bill is held until maturity is:
= $300.
Explanation:
a) Data and Calculations:
Par value of Treasury bill = $10,000
Price paid for the bill = 9,700
Holding-period return = $300
Maturity period of the bill = 3 months
b) The holding-period return, otherwise called the yield, is the total return earned on the Treasury bill investment during the 3 months that it is held. The holding period is the 3-months time the Treasury bill is held by an investor, which corresponds to the period between the purchase date and sale date of the Treasury bill.
The responsibility report for a revenue center would compare:___.
A. actual revenues to budgeted revenues.
B. actual revenues and costs to budgeted revenues and costs.
C. actual profits to budgeted profits.
D. actual costs to budgeted costs.
Answer:
A. actual revenues to budgeted revenues.
Explanation:
Revenue center deals with quantity sold and sales prices. Therefore it keeps track of differences between Actual (Quantity x Price) and Budgeted (Quantity x Price).Thus, The responsibility report for a revenue center would compare: A. actual revenues to budgeted revenues.
Which of the following is NOT one of the components of a firm's business model?
A. strategic resources
B. the industry competitors
C. core strategy
D. customer interface
E. partnership network
Answer: the industry competitors
Explanation:
A business model simply refers to the strategy that a company will use in making profit and achieving its goals.
The components of the business model of a company include the strategic resources, core strategy, partnership network, and the customer interface.
It should be noted that the industry competitors isn't among the components.
You have been asked to analyze First Union Bank. You have only the following information on the bank at year-end 2021: Net income is $440,000, total debt is $2.0 million, and the bank’s debt ratio is 50 percent. What is First Union Bank’s ROE for 2021? (Do not round intermediate calculations. Round your percentage answer to 2 decimal places. (e.g., 32.16))
Answer:
22%
Explanation:
Calculation to determine First Union Bank’s ROE for 2021
First step
Debt ratio = 0.50 = $2.0m / Total assets
Second step
Total assets = $2.0m / 0.50
Total assets = $4.000m
Third step
Total equity = $4.000m - $2.0m
Total equity = 2.000m
Now let determine the ROE
ROE = $440000 / $2.000m
ROE=22.00%
Therefore First Union Bank’s ROE for 2021 is 22.00%
In the Month of March, Digby received orders of 123 units at a price of $15.00 for their product Deal. Digby uses the accrual method of accounting and offers 30 day credit terms. Digby delivers 123 units in April. They received payment for 62 units in March, and 62 units in April. In the March income statement, how much revenue is recognized on the March income statement from this order
Answer:
The amount of revenue is recognized on the March income statement from this order is $1,845.00.
Explanation:
Accrual accounting can be described as a method of accounting in which revenue or expenses are recorded at the time of the transaction rather than when payment is received or made.
Since this transaction occurred in March, the total revenue of orders of 123 units received in the month of March will be recognized on the March income statement from this order. That is:
Amount of revenue to recognized in March = 123 * $15.00 = $1,845.00
Therefore, the amount of revenue is recognized on the March income statement from this order is $1,845.00.
When a company has an obligation or right to repurchase an asset for an amount greater than or equal to its selling price, the transaction should be treated as a repurchase transaction. financing transaction. put option. outright sale.
Answer:
financing transaction.
Explanation:
A financial statement is a written report that quantitatively describes a firm's financial health. Under the financial statements is a cash-flow statement, which is used to record the cash inflow and cash equivalents leaving a business firm.
Cash flow statement, also known as the statement of cash flows, contains financial information about operating, investing and financing activities.
A transaction can be defined as a business process which typically involves the interchange of goods, financial assets, services and money between a seller and a buyer.
Financing transaction can be defined as an obligation or right of an organization (business firm) to repurchase an asset for an amount greater than or equal to the selling price of the asset.
A French family flies from Paris, France to New York City where they have a brief layover before flying to Montreal, Canada. While in New York the family has a $25 dollar lunch at a hot dog stand near Time Square. How does this lunch contribute to U.S. GDP?
a. U.S. GDP remains unchanged, but French GDP increases by 22 Euros ($25 U.S.).
b. GDP decreases by $25
c. GDP increases by $25
d. GDP does not change since the family is not from the U.S.
Answer:
C
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Consumption spending includes spending by households on goods and services. Consumption spending includes :
spending on durables - e.g. buying a laptop
spending on nondurables - e.g. buying clothes, food
spending on services - e.g. payment of hospital bill
the purchase of a textbook by a student is an example of consumption spending on durable goods
Investment - It includes purchases of goods and services made by businesses in the production of goods and services
Government spending - It includes government consumption expenditure and gross investment. The purchase of a new limousine for the president is an example of consumption expenditure
Net export = export - import
the purchase of hotdog constitutes consumption of non durable goods and this would increase US GDP by $25
The SRT partnership agreement specifies that partnership net income be allocated as follows in the following order: Partner S Partner R Partner TSalary allowance $20,000 $25,000 $15,000Interest on avg. capital balance 10% 10% 10%Remainder 30% 30% 40%Average capital balances for the current year were $60,000 for S, $50,000 for R, and $40,000 for T.Refer to the information given. Assuming no restrictions and current year net income of $45,000, what amount should be allocated to each partner? Partner S Partner R Partner TA) $17,000 $21,000 $7,000B) ($9,000) ($9,000) ($12,000)C) $13,500 $13,500 $18,000D) $22,500 $22,500 $0
Solution :
Note 1
calculation of remaining income after distribution of salary and interest on capital.
Total Net Income $ 45,000
Less : Salary allowance $ 60,000
($20,000 + $25,000 + $15,00)
Less : Interest on capital $ 15,000
($ 6,000 + $ 5,000 + $ 4,000)
Remaining income / (loss) to be allocated $ 30,000
Since the remaining income is negative, i.e. it loss to the SR partnership, so such Loss will also be allocated to the partners. Since in a partnership, Partners are required to share profits as well as losses. Hence, such loss will be deducted from the other shares.
Scheduled of amount allocated to each partner
Partners S Partner R Partner T
a). Salary allowance allocated $ 20,000 $ 25,000 $ 15,000
b). Interest on average capital $ 6000 $ 5000 $ 4000
balance allocated.
c). Remaining income allocated $ 9000 $ 9000 $ 12,000
Total allocation (a + b - c) : $ 17,000 $ 21,000 $ 7,000
Productivity Question 3 options: is nearly the same across countries, and so provides no help explaining differences in the standard of living across countries. explains very little of the differences in the standard of living across countries. explains some, but not most of the differences in the standard of living across countries. explains most of the differences in the standard of living across countries.
Answer:
explains most of the differences in the standard of living across countries.
Explanation:
Gross Domestic Products (GDP) is a measure of the total market value of all finished goods and services made within a country during a specific period.
Simply stated, GDP is a measure of the total income of all individuals in an economy and the total expenses incurred on the economy's output of goods and services in a particular country.
Basically, the four (4) major expenditure categories of GDP are consumption (C), investment (I), government purchases (G), and net exports (N).
Productivity is a measure of how efficient is the manufacturing of finished goods and services in a country. Thus, it's a measure of total output with respect to input such as capital, labour, and other resources.
Generally, productivity is a ratio of output (product) to the resources (input) that is required to produce the product and as such determines the economic output of a particular country, as well as the standard of living of its population.
Hence, productivity explains most of the differences in the standard of living across countries based on the value of output generated with a unit of input.
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month:
Direct materials $86,000
Direct labor $43,500
Variable manufacturing overhead $21,800
Fixed manufacturing overhead 33,100
Total manufacturing overhead $54,900
Variable selling expense $15,400
Fixed selling expense 24,800
Total selling expense $40,200
Variable administrative expense $5,700
Fixed administrative expense 28,400
Total administrative expense $34,100
Required:
a. What is the total product cost?
b. What is the total period cost?
Answer:
Results are below.
Explanation:
The product costs are all the expenses incurred in production being direct and indirect:
Direct materials= 86,000
Direct labor= 43,500
Variable manufacturing overhead= 21,800
Fixed manufacturing overhead= 33,100
Total product cost= $184,400
The period costs are all the expenses not involved in production (selling and administrative):
Variable selling expense= 15,400
Fixed selling expense= 24,800
Variable administrative expense= 5,700
Fixed administrative expense= 28,400
Total period cost= $74,300
The Lime Corporation has obtained the following sales forecast data:
July August September October
Cash sales $ 80,000 $ 70,000 $ 50,000 $ 60,000
Credit sales $ 240,000 $ 220,000 $ 180,000 $ 200,000
The regular pattern of collection of credit sales is 20% in the month of sale, 70% in the month following the month of sale, and the remainder in the second month following the month of sale. There are no bad debts. The budgeted cash receipts for October would be:_________
a. $188.000
b. $248,000
c. $226,000
d. $278,000
e. none of above
Answer:
b. $248,000
Explanation:
The computation of the cash receipts for October would be
Particulars October
Cash sales $60000
August credit Sales $22000 (10% of $220,000)
September Credit Sales $126000 (70% of $180,000)
October credit Sales $40000 (20% of $200,000)
Budgeted cash receipt $248000
Hence, the correct option is b.
The fund has 49,000 shares and liabilities of $124,000. Assume the fund is sold with a front-end load of 2.5 percent. What is the offering price of the fund
Answer: $49.81
Explanation:
The offering price is calculated as:
= NAV per share / (100 - front-end load)
NAV per share = (Value - liabilities) / Number of shares
= [ ( 12,000 * 86) + (32,000 * 15) + (3,500 * 69) + (75,000 * 10) - 124,000] / 49,000 mutual fund shares
= 2,379,500 / 49,000
= $48.56
Offering price = 48.56 / (100 - 2.5%)
= $49.81
Take a real time example of a company of your own choice working in Pakistan and then discuss the factors that lead to pressure for local responsiveness. Discuss it in detail. Draw diagram to show the effect.
Answer:
This responsiveness also promotes the local market orientation of a subsidiary and therefore the strength of its existing network with the businessmen and government authorities.
Explanation:
Usually, firms working within the global market confront two sorts of competitive pressure. They face pressure to scale back costs and pressure to react locally. These competing forces throw a corporation into conflict. In response to cost-reduction efforts, a corporation has got to lower its unit cost. It's going to also need a corporation to supply a consistent product on the international market to downstream the experience curve as soon as feasible. In response to local pressures, however, it's necessary for a firm to differentiate its product offering and marketing strategy from one country to a different in an effort to satisfy the various demands arising from domestic consumer preferences, business practices, channels of distribution, competitive conditions and public policies.
While some associations, like Company A, face a high to scale back cost and low for the reaction locally, while others, like Company B, face low to scale back costs and high for local reaction, many companies are within the situation of Company C. they're under strong costs reduction demands and high local responsiveness pressures. Tackling competing and contradicting demands may be a strategically challenging problem for a corporation, especially because local reactions tend to extend expenses. It suggests and supports three layers of variables, including environmental, structural, and organizational responsiveness. Structural variables like the intensity of competition, heterogeneity of demand, and localization of components increase local reaction.
The manager of a crew that installs carpeting has tracked the crew’s output over the past several
weeks, obtaining these figures:
Week Crew Size Yards Installed
1 4 96
2 3 72
3 4 92
4 2 50
5 3 69
6 2 52
Compute the labor productivity for each of the weeks. On the basis of your calculations, what can
you conclude about crew size and productivity?
You own a portfolio equally invested in a risk-free asset and two stocks. One of the stocks has a beta of 1.25 and the total portfolio is equally as risky as the market. What must the beta be for the other stock in your portfolio?
Answer:
The answer is "1.75"
Explanation:
The portfolio is equally weighted with three parts, which each weighs 33,33%. The risk-free asset (Rf) is available worldwide and beta 0 is given for the market portfolio.
[tex]Return \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ Beta \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ Probability (Pi)\\\\\text{Risk free Return (Rf)} \ \ \ \ \ \ \ \ \ \ \ 0 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 33.33\%\\\\Stock 1\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 1.25 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 33.33\%\\\\Stock 2\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ ? \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 33.33\%\\\\[/tex]
[tex]\text{Portfolio Beta = (Pi Rf * Beta Rf) + (Pi Stock1 * Beta Stock1) + (Pi Stock2 * Beta Stock2)}\\\\1 = (33.33\% \times 0) + (33.33\% \times 1.25) + (33.33\% \times x)\\\\1 = 0 + 0.416625 + 0.3333x\\\\1 - 0.416625 = 0.3333x\\\\0.583375 = 0.3333x\\\\x =\frac{0.583375}{0.3333}\\\\x = 1.75[/tex]
Nick’s Novelties, Inc., is considering the purchase of new electronic games to place in its amusement houses. The games would cost a total of $475,000, have a fifteen-year useful life, and have a total salvage value of $47,500. The company estimates that annual revenues and expenses associated with the games would be as follows: Revenues $ 240,000 Less operating expenses: Commissions to amusement houses $ 70,000 Insurance 45,000 Depreciation 28,500 Maintenance 30,000 173,500 Net operating income $ 66,500 Required: 1a. Compute the payback period associated with the new electronic games. 1b. Assume that Nick’s Novelties, Inc., will not purchase new games unless they provide a payback period of five years or less. Would the company purchase the new games?
Answer:
a. 5 years
b. Yes they will because the payback period is 5 years.
Explanation:
a. Payback period
First calculate the annual cash inflow:
= Net income + Depreciation
= 66,500 + 28,500
= $95,000
The investment cost was $475,000
Payback period = Investment cost / Annual cash inflow
= 475,000 / 95,000
= 5 years
b. The company will purchase the games because they have a payback period of 5 years.
which type of exporting has the least amount of commitment and risk but will probably return the least profit
Answer: Indirect Exporting
Explanation:
Indirect exporting describes a scenario where an entity exports to another country through an intermediary. They essentially sell to this intermediary and this intermediary then sells to consumers in other countries.
Much like investment banks underwriting stock, this type of exporting has very little risk and commitment attached because it simply involves one selling everything to an intermediary. The company exporting has therefore absolved itself of further risk which will then be incurred by the intermediary. t
The intermediary will however buy the goods at a discount due to the risk they take on. As a result, this gives less profit.
Asteria earned a $27,000 salary as an employee in 2020. How much should her employer have withheld from her paycheck for FICA taxes
Answer:
$2,070
Explanation:
Calculation to determine How much should her employer have withheld from her paycheck for FICA taxes
Social security tax 6.2%
Medicare tax which is 1.45%
Social security tax = $27,000 x 6.2%
Social security tax = $1,674
Medicare tax = $27,000 x 1.45%
Medicare tax =$391.5
FICA taxes Paycheck withheld= - $1,674 + $391.5
FICA taxes Paycheck withheld=$2,065.5
FICA taxes Paycheck withheld=$2,070 (Approximately)
Therefore How much should her employer have withheld from her paycheck for FICA taxes will be $2,070
During the year, Wright Company sells 500 remote-control airplanes for $120 each. The company has the following inventory purchase transactions for the year. Date Transaction Number of Units Unit Cost Total Cost Jan. 1 Beginning inventory 40 $ 68 $ 2,720 May. 5 Purchase 270 71 19,170 Nov. 3 Purchase 220 76 16,720 530 $ 38,610 Calculate ending inventory and cost of goods sold for the year, assuming the company uses specific identification. Actual sales by the company include its entire beginning inventory, 250 units of inventory from the May 5 purchase, and 210 units from the November 3 purchase.
Answer:
Wright Company
Cost of goods sold = $36,430
Ending inventory = $2,180
Explanation:
a) Data and Calculations:
Date Transaction Number of Units Unit Cost Total Cost
Jan. 1 Beginning inventory 40 $ 68 $ 2,720
May. 5 Purchase 270 71 19,170
Nov. 3 Purchase 220 76 16,720
Total available for sale 530 $ 38,610
Specific identification of Sales of 500 units:
Cost of goods sold:
Jan. 1 Beginning inventory 40 $ 68 $ 2,720
May. 5 Purchase 250 71 17,750
Nov. 3 Purchase 210 76 15,960
Total 500 $36,430
Cost of goods sold = $36,430
Ending inventory:
May. 5 Purchase 20 71 $1,420
Nov. 3 Purchase 10 76 760
Total 30 $2,180
Ending inventory = $2,180
For each of the following events, explain the short-run and long-run effects on output and the price level, assuming open economy and that policymakers take no action.
a. The stock market declines sharply, reducing consumers’ wealth.
b. The federal government increases spending on national defense.
c. A technological improvement raises productivity.
d. A recession overseas causes foreigners to buy fewer U.S. goods.
Answer:
High prices of products as well as increases poverty.
Explanation:
The stock market declines sharply, reducing consumers’ wealth that leads to high prices of products as well as increases poverty. The federal government increases spending on national defense that decreases the foreign reserves and money for other fields of the country. A technological improvement raises productivity which increases the economy of the country as well as standard of living. A recession overseas causes foreigners to buy fewer U.S. goods that leads to lower income of the country and purchasing power of the country. Due to this, there is less money for other fields and institutions.
Answer:
b. The federal government increases spending on national defense.
Explanation:
Hope this helps
Acme Company is considering investing in a new machine that costs $126,594 and that has a useful life of 12 years with no salvage value. The machine will generate $19,500 annually in net cash inflows. The internal rate of return on the investment is: (Round your intermediate calculations to 3-decimals and your internal rate of return calculations to the nearest whole percent.)
Answer: 11%
Explanation:
The internal rate of return is the rate that will equate the cash inflows with the cost of investment.
It is therefore the discount rate used to find the present value of an annuity because the inflows are stable and are therefore annuities.
Present value of annuity = Annuity * Present value factor of annuity, 12 years, %?
126,594 = 19,500 * Present value of annuity factor
Present value of annuity factor = 126,594 / 19,500
= 6.492
Go to a present value of annuity factor table and find the interest rate that intersects with 12 years to give a factor of 6.492:
Rate is 11%