Question 9 Suppose money invested in a hedge fund earns 1% per trading day. There are 250 trading days per year. What will be your annual return on $100 invested in the fund if the manager allows you to reinvest in the fund the 1% you earn each day

Answers

Answer 1

Answer:

1103.22%

Explanation:

The value of the investment at the end of the year assuming  250  trading days per year can be computed the future value formula provided below:

FV=PV*(1+daily return)^n

PV=initial investment=$100

daily return=reinvestment rate=1%

n=number of trading days in a year=250

FV=$100*(1+1%)^250

FV=$ 1,203.22

Annual return=( 1,203.22/$100)-1

Annual return=1103.22%


Related Questions

The following information relates to the manufacturing operations of the Abbra Publishing Company for the year: Beginning Ending Raw materials inventory $ 547,000 $ 610,000 The raw materials used in manufacturing during the year totaled $1,018,000. Raw materials purchased during the year amount to: Multiple Choice

Answers

Answer:

the Raw materials purchased during the year is $1,081,000

Explanation:

the computation of the  Raw materials purchased during the year is shown below;

Material used in production $1,018,000.00

Add: Ending Raw Material $610,000.00  

Less: Beginning Rawmaterial $547,000.00

Purchase $1,081,000.00

Hence, the Raw materials purchased during the year is $1,081,000

Black Diamond Company produces snow skis . Each ski requires 2 pounds of carbon fiber . The company's management predicts that 6,000 skis and 7,000 pounds of carbon fiber will be in inventory on June 30 of the current year and that 160.000 will be sold during the next ( third ) quarter . A set of two skis sells for $ 400 . Management wants to end the third quarter with 4,500 skis and 5,000 pounds of carbon fiber in inventory . Carbon fiber can be purchased for $ 25 per pound Each ski requires 0.5 hours of direct labor at $ 30 per hour . Variable overhead is applied at the rate of $ 18 per direct labor hour . The company budgets fixed overhead of $ 1,792,000 for the quarter . Required : 1. Prepare the third - quarter production budget for skis .

Answers

Answer:

158,500

Explanation:

Preparation of the third - quarter production budget for skis .

BLACK DIAMOND COMPANY Production Budget (in units)Third Quarter

Budgeted ending inventory (skis) 4,500

Add budgeted sale 160,000

Required units of available production 164,500

(4500+160,000)

Deduct beginning inventory (skis) (6,000)

Units to be manufactured 158,500

(164,500-6,000)

Therefore the third - quarter production budget for skis is 158,500

Maize Plastics manufactures and sells bottles per day. Fixed Costs are $30,000 and the variable costs for manufacturing 50 bottles are $10,000. Each bottle is sold for $1,000. How would the daily profit be affected if the daily volume of sales drop by 10%?
a. profits are reduced by $4,000
b. profits are reduced by $1,000
c. profits are reduced by $5,000
d. profits are reduced by $6,000

Answers

Answer:

a. profits are reduced by $4,000

Explanation:

Calculation to determine How would the daily profit be affected if the daily volume of sales drop by 10%

First step is to calculate the Variable cost per unit

Variable cost per unit = $10,000 / 50

Variable cost per unit = $200

Second step is to calculate the Profit for 50 bottles

Profit for 50 bottles = ($1,000 × 50) - ($30,000 + $10,000)

Profit for 50 bottles = $10,000

Third step is to calculate the Sales after 10% drop

Sales after 10% drop = 50 × (1 - 0.10)

Sales after 10% drop= 45

Fourth step is to calculate the Profit for 45 bottles

Profit for 45 bottles = ($1,000 × 45) - ($30,000 + (45 × 200))

Profit for 45 bottles= $6,000

Now let determine the Change in profit

Change in profit = $10,000 - $6,000

Change in profit= $4,000

Therefore How would the daily profit be affected if the daily volume of sales drop by 10% is that the PROFITS ARE REDUCED BY $4,000

Suppose that the total value of dividends to be paid by companies in the Narnian stock market index is $100 billion. Investors expect dividends to grow over the long term by 5% annually, and they require a 10% return. Now a collapse in the economy leads investors to revise their growth estimate down to 4%. By how much should market values change

Answers

Answer:

The correct answer is "16.67%".

Explanation:

Given:

Dividend,

= $100 billion

Rate of return,

= 10%

= 0.10

Growth rate,

= 5%

= 0.05

Now,

Market value will be:

= [tex]\frac{Dividend}{Rate \ of\ return-Growth \ rate}[/tex]

= [tex]\frac{100}{0.10-0.05}[/tex]

= [tex]\frac{100}{0.05}[/tex]

= [tex]2000 \ Billion[/tex] ($)

After collapse,

The market value will be:

= [tex]\frac{100}{(.10-.04)}[/tex]

= [tex]\frac{100}{.06}[/tex]

= [tex]1666.67[/tex] ($)

Change in market value will be:

= [tex]2000-1666.67[/tex]

= [tex]333.33 \ Billion[/tex] ($)

hence,

The percentage change in market value will be:

= [tex]\frac{333.33}{2000}[/tex]

= [tex]16.67[/tex]%

An accurate assessment of a company's cost structure and customer value proposition requires that managers Multiple choice question. examine current accounting data. evaluate the specific value chain activities under their control. understand the value system for the entire industry. separate their activities from those of their distribution channel allies.

Answers

Answer:

understand the value system for the entire industry.

Explanation:

An industry value chain can be defined as a physical representation of all of the activities and processes undertaken by a company or business firm for the manufacturing of goods and services, especially starting with the purchase of raw materials, manufacturing of finished goods and then ending with the delivery of the finished goods (products) to the market and consumers through a supply chain.

Generally, an accurate assessment of a company's cost structure and customer value proposition requires that managers completely understand the value system for the entire industry.

This ultimately implies that, a manager must ensure that the industry value chain comprises of the costs, margins of suppliers, value-creating activities and processes, and forward channel partners (allies).

Bayside Restaurant LLC is a limited liability company. Its sole member is Conrad. For federal income tax purposes, unless the firm indicates otherwise, it will automatically be taxed as:_________ a. a corporation. b. a person. c. a partnership. d. a sole proprietorship.

Answers

Answer:

D)sole proprietorship

Explanation:

From the question we are informed about Bayside Restaurant LLC who is a limited liability company. Its sole member is Conrad. For federal income tax purposes, In this case, unless the firm indicates otherwise, it will automatically be taxed as sole proprietorship.

A limited liability company can be regarded as popular business structure

which gives benefits of a partnership as well as benefits of corporation. It reffered to as is a newer business structure with several benefits to its members. It is been governed by the individual states with recognition in all states. An limited liability company give room for pass-through taxation of a partnership as well with limited liability of a corporation.

A sole proprietorship can be regarded as " sole trader" or "proprietorship". It can be explained as an unincorporated business, whereby there is just one owner that do pays personal income tax on the earned profit from the business. A sole proprietorship is regarded as the easiest type of business that can be to established due to a lack of government regulation.

A tremendous flood along the Mississippi River destroys thousands of factories, reducing the nation's capital stock by 5%. What happens to current employment and the real wage rate

Answers

Answer:

Both employment and the real wage rate would decrease

Explanation:

Given that the capital stock of a nation or country jas a direct impact on such country in terms of savings and investments which directly translates to additional.economic development.

Hence, in this case, when a tremendous flood along the Mississippi River destroys thousands of factories, reducing the nation's capital stock by 5%. What happens to current employment and the real wage rate is that "Both employment and the real wage rate would decrease"

This because there won't be adequate money available to create more employment. And with lease employment opportunities than the available labor, the real wage rate tends to decrease over time.

evaluate 3|-3| A.-6 B.6 C.9 D.-9​

Answers

Answer:

9

Explanation:

3|-3|

|-3| is the absolute value of - 3 which is 3

Hence,

3 * 3 = 9

Bermuda Cruises issues only common stock and coupon bonds. The firm has a debt–equity ratio of .73. The cost of equity is 11.5 percent and the pretax cost of debt is 6.6 percent. What is the capital structure weight of the firm's equity if the firm's tax rate is 39 percent?

Answers

Answer:

0.5780

Explanation:

Calculation to determine the capital structure weight of the firm's equity

Using this formula

Weight of equity = 1 / (1 + D-E)

Let plug in the formula

Weight of equity = 1 / (1 + .73)

Weight of equity = 1 / 1.73

Weight of equity = 0.5780

Therefore the capital structure weight of the firm's equity is 0.5780

what is meant by access payment​

Answers

Answer:

Excess Payment means the portion of the aggregate of any cash plus the fair market value (as determined by the Board of Directors, whose determination shall be conclusive evidence of such fair market value and described in a Board Resolution) of other consideration payable in respect of any tender offer or other negotiated transaction by the Company or a Subsidiary for all or any portion of the Common Stock that is in excess of an amount equal to the product of (x) the number of shares of Common Stock with respect to which the aggregate tender offer or negotiated purchase consideration is payable times (y) the Reference Price.

Explanation:

Goodluck!!

At the beginning of the year, accounts receivable were $45,000 and the allowance for bad debts was $4,200. During the year, sales (all on account) were $180,000, cash collections were $165,000, bad debts expense totaled $3,100, and $2,600 of accounts receivable were written off as bad debts. The balance at the end of the year for the Accounts Receivable account was: Multiple Choice $42,400. $54,300. $57,400. $60,000.

Answers

Answer:

$57,400

Explanation:

Calculation to determine what The balance at the end of the year for the Accounts Receivable account was

Using this formula

Ending balance in accounts receivable = Accounts receivable-Accounts receivable written off as bad debts+Sales on account-Cash collections

Let plug in the formula

Ending balance in accounts receivable = $45,000 - $2,600 + $180,000 - $165,000

Ending balance in accounts receivable = $57,400

Therefore The balance at the end of the year for the Accounts Receivable account was $57,400

Perit Industries has $110,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are:
Project A Project B
Cost of equipment required $110,000 $0
Working capital investment required $0 $110,000
Annual cash inflows $20,000 $68,000
Salvage value of
equipment in six years $8,600 $0
Life of the project 6 years 6 years
The working capital needed for project B will be released at the end of six years for investment elsewhere. Perit Industries’ discount rate is 16%.
Required:
1. Compute the net present value of Project A.
2. Compute the net present value of Project B.
3. Which investment alternative (if either) would you recommend that the company accept?

Answers

Answer:

$-32,775.48

$185,710.69

Project B

Explanation:

Net present value is the present value of after-tax cash flows from an investment less the amount invested.  

NPV can be calculated using a financial calculator  

Only projects with a positive NPV should be accepted. A project with a negative NPV should not be chosen because it isn't profitable.  

When choosing between positive NPV projects, choose the project with the highest NPV first because it is the most profitable.

Project A  

Cash flow in year 0 = -$110,000

Cash flow in year 1 - 5 =  $20,000

Cash flow in year 6 = $20,000 +  $8,600 = 28,600

I = 16%

NPV = $-32775.48

Project B  

Cash flow in year 0 = -$110,000

Cash flow in year 1 - 5 =  $68,000

Cash flow in year 6 = $68,000 + $110,000 = $178,000

I = 16%

NPV = $185,710.69

Project B should be chosen because its NPV is positive

To find the NPV 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  

A Consumer Expenditure Survey in the city of Firestorm shows that people buy only firecrackers and bandages. s AConsumer Expenditure Survey in 2016 shows that the average household spent $216 on firecrackers and $18 on bandages. In 2016, the reference base year, the price of a firecracker was $6, and the price of bandages was $2 a pack. In the current year, 2017, firecrackers are $5 each and bandages are $3 a pack Calculate the CPI market basket and the percentage of a household's budget spent on firecrackers in the base year.
The CPI market basket is nothing ______ and nothing _______ packs of bandages dollars worth of bandages . The percentage of a​ household's budget spent on firecrackers in the base year is_______ percent.

Answers

Answer: 92.3%

Explanation:

The total budget which is the sum of all the expenditure by the household will be the addition of the $216 spent on firecrackers and $18 on bandages. This will be:

= $216 + $18

= $234

Price of a firecracker = $6

Price of bandages = $2 a pack

Number of firecrackers = $216/$6 = 36

Number of bandages = $18/$2 = 9

CPI market basket is 36 firecrackers and 9 bandages.

Therefore, the percentage of a household's budget spent on firecrackers in the base year will be:

= Expenditures on firecrackers/Total expenditure

= $216 / $234

= 92.3%

Taveras Corporation is currently operating at 50% of its available manufacturing capacity. It uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company made the following estimates: Machine-hours required to support estimated production 235,000 Fixed manufacturing overhead cost $ 3,760,000 Variable manufacturing overhead cost per machine-hour $ 2.00
Required:
1. Compute the plantwide predetermined overhead rate.
2. During the year, Job P90 was started, completed, and sold to the customer for $3,900. The following information was available with respect to this job: Direct materials $ 1,794 Direct labor cost $ 1,287 Machine-hours used 86
Compute the total manufacturing cost assigned to Job P90.

Answers

Answer:

Results are below.

Explanation:

To calculate the predetermined manufacturing overhead rate we need to use the following formula:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= (3,760,000 / 235,000) + 2

Predetermined manufacturing overhead rate= $18 per machine hour

Job P90:

Direct materials $ 1,794

Direct labor cost $ 1,287

Machine-hours used 86

We need to allocate overhead costs:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 18*86= $1,548

Total manufacturing costs= 1,548 + 1,794 + 1,287

Total manufacturing costs= $4,629

The key idea of the aggregate expenditure model is that in any particular year, the level of GDP is determined mainly by:_________
a) export spending.
b) investment spending.
c) government spending.
d) the level of aggregate expenditure.

Answers

The correct answer is d

Select the financial statement on which the user would most likely find the answer to the question given. (Select all that apply.) Did the company purchase any intangible assets during the year?

Answers

Answer: Balance sheet

Explanation:

Intangible assets are recorded in the balance sheet along with other assets. Specifically, they are recorded as fixed assets because they represent assets that last for more than a year.

To see if any intangible assets have been purchased in a year therefore, one needs to take a look at the balance sheet to see if the Intangible asset balance has increased from the previous year. If it has then some new intangible assets were purchased.

name business sector in which kpm is operating​

Answers

Answer:

1. banking and capital markets ( banking, capital markets and insurance.)

2. healthcare and life sciences.

Due to an error in computing depreciation expense, Prewitt Corporation overstated accumulated depreciation by $11 million as of December 31, 2021. Prewitt has a tax rate of 30%. Prewitt's retained earnings as of December 31, 2021, would be:_________ (Round million answer to 2 decimal places.)
A. overstated by $6 million.B. understated by $14 million.C. understated by $6 million.D. overstated by $14 million.

Answers

Answer:

Understated by 7.7 Million

Explanation:

Calculation to determine Prewitt's retained earnings as of December 31, 2021, would be:

Accumulated depreciation $11,000,000

Less Deferred tax liability ($3,300,000)

(30%*$11,000,000)

Retained earnings $7,700,000 Understated

Therefore Prewitt's retained earnings as of December 31, 2021, would be:Understated by 7.7 Million

In one week, Sami can knit 5 sweaters or bake 240 cookies. In one week, Leila can knit 15 sweaters or bake 480 cookies. Which of the following is correct? Question 6 options: a) Leila has an absolute and a comparative advantage in both tasks. b) Leila has an absolute advantage in both tasks and a comparative advantage in knitting sweaters. c) Sami has an absolute advantage in both tasks and a comparative advantage in knitting sweaters. d) Sami has an absolute and a comparative advantage in both tasks. e) Sami has an absolute advantage in both tasks and a comparative advantage in baking cookies.

Answers

Answer:

B

Explanation:

A country has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries.

A company has absolute advantage in the production of a good or service if it produces more quantity of a good when compared to other countries

Leila makes more sweaters and cookies than Sami. She has an absolute advantage

opportuntiy cost

Sami :

Sweaters = 240 / 5 = 48

cookies = 5/240 = 0.02

Rob consumes two goods, x and y. He has an allowance of $50 per week and is not endowed with either of the goods. If the price of good x increases and his substitution and income effects change demand in opposite directions.

a. good x must be a Giffen good.
b. good x must be an inferior good.
c. WARP is violated.
d. good x must be a normal good.
e. There is not enough information to judge whether good x is a normal or inferior good.

Answers

Answer:

B

Explanation:

Inferior good is a good whose demand decreases when income increases

The substitution effect looks at the change in price of a good relative to other goods.  When the price of good x increases, rob should increase consumption of good y and reduce that of good x if it were a normal good

The income effect looks at how a change in price affects real disposable income

Company A, a British manufacturer, wishes to borrow US dollars at a fixed rate of interest. Company B, a US multinational, wishes to borrow sterling at a fixed rate of interest. They have been quoted the following rates per annum ( adjusted for differential tax effects):
Sterling US dollars
Company A 11.0% 7.0%
Company B 10.6% 6.2%
Design a swap that will net a bank, acting as intermediary, 10 basis points per annum and that will produce a gain of 15 basis points per annum for each of the two companies.

Answers

Answer:

Company b 11.0 % 7.o%

Explanation:

Is this ok

On October 29, Lobo Co. began operations by purchasing razors for resale. The razors have a 90-day warranty. When a razor is returned, the company discards it and mails a new one from Merchandise Inventory to the customer. The company's cost per new razor is $15 and its retail selling price is $70. The company expects warranty costs to equal 6% of dollar sales. The following transactions occurred.

2012
Nov.
11 Sold 60 razors for $4,800 cash.
30 Recognized warranty expense related to November sales with an adjusting entry.
Dec.
9 Replaced 12 razors that were returned under the warranty.
16 Sold 180 razors for $14,400 cash.
29 Replaced 24 razors that were returned under the warranty.
31 Recognized warranty expense related to December sales with an adjusting entry.

2013
Jan.
5 Sold 120 razors for $9,600 cash.
17 Replaced 29 razors that were returned under the warranty.
31 Recognized warranty expense related to January sales with an adjusting entry.

Required:
Prepare journal entries to record above transactions and adjustments.

Answers

Answer:

1. Cash (Dr.) $4,800

Sales (Cr.) $4,800

2. Warranty Expense 6% * $4800 (Dr.) $288

Estimated warranty Liability (Cr.) $288

3. Estimated warranty liability $15 * 12 razors (Dr.) $180

Inventory (Cr.) $180

4. Cash (Dr.) $14,400

Sales (Cr.) $14,400

5. Warranty Expense 6% * $14,400 (Dr.) $864

Estimated warranty Liability (Cr.) $864

6. Warranty liability $15 * 24 razors (Dr.) $360

Inventory (Cr.) $360

7. Cash (Dr.) $9,600

Sales (Cr.) $9,600

8. Warranty Expense 6% * $9600 (Dr.) $576

Estimated warranty Liability (Cr.) $576

9. Estimated warranty liability $15 * 29 razors (Dr.) $435

Inventory (Cr.) $435

Explanation:

Lobo Co sells razors to customer. It provides 90 day return warranty. The estimated returns are 6% of sales made. The estimated warranty liability is recognized at the time of sales. The expense for return of razor is recognized as warranty expense as company discards the returned razors which costs it $15 per razor.

Beginning inventory, purchases and sales data for tennis rackets are as follows:
Apr. 1 Inventory 12 units at $45
Apr. 11 Purchase 13 units at $47
Apr. 14 Sale 18 units
Complete the inventory cost card assuming the business maintains a perpetual inventory system and calculate merchandise sold and ending inventory using LIFO.
Assume the selling price for the units sold on April 14 was $100.

Answers

Answer:

Cost of goods sold = $836

Ending inventory = $315

Explanation:

a) Data and Calculations:

Date     Description    Units  Unit Price  Balance

Apr. 1    Inventory         12         $45       $540

Apr. 11  Purchase          13         $47       $1,151 ($540 + 13 * $47)

Apr. 14 Sale                 (18)      $100        $315 ($7 * $45)

Sales revenue = $1,800 ($100 * 18)

Cost of goods sold = $836 ($47 * 13 + $45 * 5)

Ending inventory = $315  ($7 * $45)

b) Under the LIFO (Last in, First out) inventory valuation method, it is assumed that goods that were purchased closest to the selling date were the ones to be sold while those purchased earlier remain in inventory.

Verslas is a firm operating in a monopolistically competitive market. It is currently maximizing profit with an output of 1,200 units and a price of $5. Based on this information, which of the following statements must be true?

a. Verslas could not sell more units by lowering its price.
b. Verslas is earning normal profit.
c. Verslas is earning $3,600 in profit.
d. Verslas has a marginal revenue less than $5.
e. Verslas has a marginal revenue greater than $5.

Answers

Answer:

b

Explanation:

A monopolistic competition is when there are many firms selling differentiated products in an industry. A monopolistic competition has characteristics of both a monopoly and a perfect competition. the demand curve is downward sloping. it sets the price for its goods and services.

An example of monopolistic competition are restaurants  

When firms are earning positive economic profit, in the long run, firms enter into the industry. This drives economic profit to zero

If firms are earning negative economic profit, in the long run, firms leave the industry.  This drives economic profit to zero

in the long run, only normal profit is earned

If Verslas is producing at a profit maximising point, it means that marginal revenue equal marginal revenue and the firm is earning a normal profit

Discuss the principles of professionalism.​

Answers

Answer:

Maintain confidentiality in professional relationships. ... Fulfill commitments in a reliable, responsive and efficient manner. Be fully accountable for actions, use of resources and financial dealings.

g A company's flexible budget for 15,000 units of production showed sales, $60,000; variable costs, $22,500; and fixed costs, $17,000. The sales expected if the company produces and sells 19,000 units is (Do not round intermediate calculations):

Answers

Answer:

$76,000

Explanation:

The first step is to find the sales price per unit

= 60,000/15,000

= $4

Therefore the sales expected from the company can be calculated as follow

= 4×19,000

= 76,000

Hence the expected sales is $76,000

• A bond’s is generally $1,000 and represents the amount borrowed from the bond’s first purchaser. • A bond issuer is said to be in if it does not pay the interest or the principal in accordance with the terms of the indenture agreement or if it violates one or more of the issue’s restrictive covenants. • The contract that describes the terms of a borrowing arrangement between a firm that sells a bond issue and the investors who purchase the bonds is called . • A bond’s allows a bondholder or preferred stockholder to convert their bond or preferred share, respectively, into a specified number or value of common shares.

Answers

Answer: 1. Face value

2. Default

3. Indenture

4. convertibility provision

Explanation:

• A bond’s (face value) is generally $1,000 and represents the amount borrowed from the bond’s first purchaser.

• A bond issuer is said to be in (default) if it does not pay the interest or the principal in accordance with the terms of the indenture agreement or if it violates one or more of the issue’s restrictive covenants.

• The contract that describes the terms of a borrowing arrangement between a firm that sells a bond issue and the investors who purchase the bonds is called (indenture)

• A bond’s (convertibility provision) allows a bondholder or preferred stockholder to convert their bond or preferred share, respectively, into a specified number or value of common shares.

Future pension liabilities are estimated based on all of the following except a.expected employee compensation levels. b.federal withholding income tax. c.employee life expectancy. d.employee turnover.

Answers

Answer:

The answer is B.

Explanation:

The correct option is B. - federal withholding income tax.

Pension liability is the amount of money that a company or government at any level(federal or state) has to account for in order to make future pension payments. It is a future payment that a company or government is obligated to pay its retired employees.

They take into considerations:

1. Their employees turnover

2. Their employees life expectancy

3. Their employees compensation level.

Federal tax level is not the issue because the payment is futuristic and federal tax can change.

The adjusted trial balance of Bramble Corp. at December 31, 2019, includes the following accounts:

Common Stock $16,700
Dividends $7,300
Service Revenue $37,900
Salaries and Wages Expense $16,000
Insurance Expense $2,900
Rent Expense $3,400
Supplies Expense $2,500
Depreciation Expense $1,700

Required:
Prepare an income statement for the year.

Answers

Answer:

$11,400

Explanation:

                       Income Statement

         For the year ended December 31, 2019

Particulars                                                Amount

Revenues

Service revenue                                       $37,900

Expense

Salaries & wages expense       $16,000

Insurance expense                   $2,900

Rent expense                            $3,400  

Supplies expense                     $2,500

Depreciation expense              $1,700

Total expenses                                         $26,500

Net income (loss)                                     $11,400

Classity each of the following items as a final good or an intermediate good, and classifly the expenditure on each final good.

Item 1. A DVD bought by a household.
item 2. New computers bought by PepsiCo
Item 3. New aircraft bought by Southwest Airlines
item 4. Fertilizer bought by a Florida tomato grower.

Item 1 is ________ and Item 2 _________.

Answers

Answer:

Item 1. A DVD bought by a household. - This is a final good, to be used for entertainment purposes, and a consumption expenditure.

item 2. New computers bought by PepsiCo - This is a final good, meant to be used for administrative purposes by PepsiCo. It is an investment expenditure because the new computers are an asset.

Item 3. New aircraft bought by Southwest Airlines - This is a final good, to be used as an asset by the airline in order to transport passengers from one place to another. This is an investment expenditure because the aircraft will be used to produce economic benefits for the company.

item 4. Fertilizer bought by a Florida tomato grower - This is an intermediate good, because it is bought in order to be used in the production process of another good, an agricultural product. This is an investment expenditure, because it is essentially intermediate inventory, a type of asset, and assets are investments.

Other Questions
Which source is most likely to be accurate The circumference of the inner circle is 44 feet.The distance between the inner circle and the outer circle is 3 feet.By how many feet is the circumference of the inner circle?Use 22/7 for . Round to the nearest hundredth of a foot Birmingham Bolt, Inc., has been approached by one of its customers about producing 800,000 special-purpose parts for a new home product. The customer wants 100,000 parts per year for eight years. To provide these parts, Birmingham would need to acquire a $500,000 new production machine. The new machine would have no salvage value at the end of its eight-year life. The customer has offered to pay Birmingham $7.50 per unit for the parts. Birminghams managers have estimated that, in addition to the new machine, the company would incur the following costs to produce each part: Direct labor $2.00Direct material $2.50 Variable 2.00Total $6.50In addition, annual fixed out-of-pocket costs related to the production of these parts would be $20,000.a. Compute the net present value of the machine investment, assuming that the company uses a discount rate of 9 percent to evaluate capital projects.b. Based on the NPV computed in (a), is the machine a worthwhile investment? Explain.c. In addition to the NPV, what other factors should Birminghams managers consider when making the investment decision? What is the answer for this Hi guy can you help me to make a introductory paragraph about smartphone. Please I need only introductory. Please help, correct answers only, will give brainliest. 5. Which function is associated with phagocytes in the blood?O A) initiating blood clotsB) transporting dissolved nutrientsO C) producing antibodiesD) engulfing bacteria Talk about an important choice that you had to make in your life The perimeter of a triangle is 57 inches. Twice the length of the longest side minus the length of the shortest side is 22 inches. The sum of the length of the longest side and twice the sum of both the other side lengths is 94 inches. Find the side lengths A person invests $3,500 in an account that earns 7.5% interest compounded continuously. What is the value of the investment after 4 years? function of semilunar valves in the heart Scientists have developed a new type of solar cell with an efficiency of over 40 %.The efficiency of the solar cell was confirmed independently by other scientists.Suggest why it was important to confirm the efficiency independently. El proceso de seguimiento de un proyecto o plan de accion de resposabilidad social busca evaluar las actividades realizadas para asegurar el cumplimiento solo del cronograma de ejecucion. Es verdadero o falso? Create a dialogue for 2 women, which should include the following topics:- 1 Relative clauses (Subject relative clause or object relative clause)- 1 "Wish" and "If" (conditional 2)- 1 Passive voiceThe length of the dialogue should have a minimum of 10 and a maximum of 15 interventions per character. This is an excerpt from a journal from a soldier fighting on the western front. The trenches are mud up to our ankles. In other places, the trenches are waist deep in water. We spend all our time digging and filling sandbags, running for supplies and stores, or building up the tops of the trench. There is no time to be weary or bored. What does this journal entry describe?a. the difficulty of eating in a trench b. the difficulty of bombing a trench c. the difficulty of sleeping in a trench d. the difficulty of maintaining a trench In the endocrine system, what is the function of a negative feedback loop? What is wrong with these statements? Correct each one.2to the power of 3 x 2 to the power of 5 = 215 A square wooden raft floats on a lake. The density of the water in the lake is 1000 kg/m. The sides of the raft are 2.0m long and the thickness of the raft is 0.20 m. The mass of the raft is 700 kg. How many barrels, each of mass 100 kg, could be placed on the raft before its surface sinks to the surface of the water? Which graph shows the line y = 2x + 3?CADBA. Graph A B. Graph DC. Graph BD. Graph C 1 +3 = ????????????????