The assessable income for the sale of the house is $200,000 while that for the apartment is $100,000.
William, a self-employed builder living in Wellington inherited a generous sum of money from his grandmother on 1st January 2022. Some of the money was used to purchase a house and an apartment. The house was rented out for one year and then sold, while the apartment was sold as soon as Harry moved to Las Vegas in January 2023. The purchase of the house and the apartment, renting out of the house, and the sale of the house and the apartment are all land transactions.
According to the Income Tax Act 2007, there are several sections, including CB 6–CB 23, that define how income arising from land transactions is taxed. In this scenario, the sale of the house and apartment are likely to constitute income to William and will, therefore, be taxable in terms of section CB 6. This is because the transactions were carried out in a manner that is typical of a land dealer or land developer. Although William may not be regarded as a land dealer or land developer, his actions indicate that he had an intention to profit from the transactions House Purchase William purchased the house in Kelburn on 1st February 2022 for $2,500,000. He lived in the house for five months before renting it out for one year. He sold the house on 1st July 2023 for $2,700,000.
Therefore, the gain realized from the sale of the house is $200,000. Based on the provisions of section CB 6 of the Income Tax Act 2007, the proceeds from the sale of the house are likely to constitute income to William since he acquired the property for the sole purpose of disposing it of at a profit, rather than as a long-term investment. The fact that he rented out the property for a year does not necessarily change this position. The assessable income for the sale of the house is $200,000.
Apartment Purchase William purchased the city apartment for his brother, Harry, on 1st March 2022 for $950,000. He then spent $150,000 on renovating the apartment, of which $40,000 was attributed to his labour. The apartment was later sold for $1,000,000 on January 2023, making a profit of $100,000. Based on the provisions of section CB 6 of the Income Tax Act 2007, the proceeds from the sale of the apartment are likely to constitute income to William since he acquired the property for the sole purpose of disposing of it at a profit, rather than as a long-term investment. The assessable income for the sale of the apartment is $100,000.
The sale of the house and the apartment by William are likely to constitute income to him, and therefore, taxable under section CB 6 of the Income Tax Act 2007. The assessable income for the sale of the house is $200,000 while that for the apartment is $100,000.
To know more about profit visit:
brainly.com/question/32461520
#SPJ11
A computer retailer purchased CD-ROM drives for $135 each. Overhead expenses are estimated at 35% of selling price. Required profit is 20% of the selling price. During a sale, the drives are marked down 30%. Round your final answers to two decimals. Do not include the dollar sign in the blanks below. For example, \$56 input as 56. a) What was the selling price? a) What was the reduced selling price? b) What was the profit or loss per drive at the reduced selling price? (If you have a loss, input it as a negative number)
:a) selling price: $225.
b) reduced selling price: $157.
a) selling price: $225.
b) reduced selling price: $157.50.c) profit per drive at the reduced selling price: $-22.50.
to find the answers, we'll follow these steps:
step 1: calculate the total overhead expenses per drive.overhead expenses = 35% of selling price.
overhead expenses = 35/100 * selling price.
step 2: calculate the cost price per drive.cost price = purchase price + overhead expenses.
step 3: calculate the required profit per drive.
required profit = 20% of selling price.required profit = 20/100 * selling price.
step 4: calculate the marked down selling price.
reduced selling price = selling price - (30% of selling price).reduced selling price = selling price - (30/100 * selling price).
step 5: calculate the profit or loss per drive at the reduced selling price.
profit or loss per drive = reduced selling price - (cost price + required profit).
now let's calculate the answers:
a) selling price:selling price = cost price + required profit.
selling price = cost price + (20/100 * selling price).selling price = 135 + (20/100 * selling price).
solving the equation, we find selling price = $225.
b) reduced selling price:
reduced selling price = selling price - (30/100 * selling price).reduced selling price = $225 - (30/100 * $225).
solving the equation, we find reduced selling price = $157.50.
c) profit or loss per drive at the reduced selling price:
profit or loss per drive = reduced selling price - (cost price + required profit).profit or loss per drive = $157.50 - (cost price + (20/100 * $157.50)).
profit or loss per drive = $157.50 - (cost price + $31.50).
substituting the cost price, we find profit or loss per drive = $-22.50. 50.c) profit or loss per drive at the reduced selling price: $-22.50.
Learn more about purchase here:
https://brainly.com/question/31035675
#SPJ11
An example of a neutral pure play is Multiple Choice pairs trading statistical arbitrage convergence arbitrage directional strategy
A neutral pure play is a trading strategy that doesn't rely on market direction. It's commonly used in volatile markets to achieve consistent returns.
In a neutral pure play, a trader aims to benefit from the difference in price between two or more assets. Statistical arbitrage and pairs trading are examples of neutral pure play strategies. In statistical arbitrage, a trader identifies assets that have a relationship between their prices that has become distorted. This relationship can be measured using statistical methods. The trader then takes a position that will profit if the relationship returns to its average level. Pairs trading is a strategy in which a trader identifies two assets that are highly correlated. If one of the assets becomes overvalued or undervalued relative to the other, the trader will take a position that will profit if the prices return to their average relationship. Both statistical arbitrage and pairs trading are market-neutral strategies that don't depend on market direction. Convergence arbitrage is a strategy that seeks to profit from the price difference between two assets that are expected to converge. Directional strategy, on the other hand, relies on market direction to generate returns.
Learn more about assets :
https://brainly.com/question/14404094
#SPJ11
Growth Rates The stock price of Alps Co. is \( \$ 53.80 \). Investors require a return of 12 percent on similar stocks. If the company plans to pay a dividend of \( \$ 3.55 \) then ____
The stock price of Alps Co. should be $8.32.
In order to calculate the price, first, we need to find the growth rate of the stock price. We will use the constant growth rate formula. The formula for the constant growth rate is as follows:
P = D1 / (r - g)
Where P is the stock price, r is the required rate of return, g is the growth rate, and D1 is the dividend paid at the end of year 1. The formula can be rearranged as: Growth rate = (Dividend / Stock price) + Return rate = (D1 / P) + r
The dividend paid is $3.55, the stock price is $53.80, and the required rate of return is 12%.
Growth rate = (3.55 / 53.80) + 12% = 0.186 + 0.12 = 0.306, or 30.6%.
Now that we know the growth rate, we can use it to calculate the price of the stock. We will use the same formula as above:
P = D1 / (r - g)P = 3.55 / (0.12 - 0.306)P = 3.55 / -0.186P = -19.059
Now, since a negative stock price doesn't make sense, we can assume that there was an error in the calculation. We made a mistake when we subtracted the growth rate from the required rate of return. The correct calculation is:
P = D1 / (r - g)P = 3.55 / (0.12 + 0.306)P = 3.55 / 0.426P = 8.322
We can round this to $8.32 per share. Therefore, if the company plans to pay a dividend of $3.55 and the required rate of return is 12%, then the stock price should be $8.32
Alps Co. is planning to pay a dividend of $3.55 and has a stock price of $53.80. The investors require a return of 12 per cent on similar stocks. Therefore, we need to calculate the growth rate of the stock price to determine the current price of the stock. The formula for the constant growth rate is P = D1 / (r - g), where P is the stock price, r is the required rate of return, g is the growth rate, and D1 is the dividend paid at the end of the year 1. We can rearrange the formula to calculate the growth rate by using the formula g = (Dividend / Stock price) + Return rate. The dividend paid is $3.55, the stock price is $53.80, and the required rate of return is 12%. Therefore, the growth rate is 30.6%. Now we can use this growth rate to calculate the price of the stock by using the formula P = D1 / (r - g), which is $8.32.
Therefore, if the company plans to pay a dividend of $3.55 and the required rate of return is 12%, then the stock price should be $8.32. In conclusion, the stock price of Alps Co. should be $8.32.
To know more about investors visit
brainly.com/question/33035723
#SPJ11
(a) Foody Ltd is an irish tax resident company which carries on a food production business in Ireland. The Statement of Comprehensive Income of Foody Ltd for the year ended 30 June 2019 is set out below: (1) Other income (3) Finance costs relate to the interest expense on the company's working capital bank facility. (4) The company has several large machines in use for the purposes of its trade, as follows: Machine 1 acquired in May 2011 for €150,000 Machine 2 acquired in December 2012 for €350,000 Machine 3 acquired in October 2018 for €800,000 In April 2019, the company incurred expenditure of €175,000 installing moveable partitioning into the building to separate production areas. In the same month, the company disposed of Machine- 2 for €125,000 (no accounting gain/loss arose on this disposal). (5) The company has trading losses carried forward of €50,000 from the year ended 30 June 2018. Calculate the corporation tax liability of the company for the year ended 30 June 2019. You should include a brief note to explain your treatment of each item mentioned in Notes 1,2,3 and 4 above in your answer. Marks will be awarded for an appropriate layout of your computational work. (25 marks) (b) The company is considering changing its accounting period to 31 December each year. To effect the change, management are proposing not to prepare their annual accounts to 30 June 2019 and rather, to prepare a set of accounts for the 18 -month period ending 31 December 2019. Advise management on how they should file their corporation tax returns for the 18 -month period. (10 marks) (c) Write a brief letter to the Directors of Foody Ltd on how we determine if a company operating in Ireland is resident in Ireland for tax purposes, outlining the current position for new companies incorporated here and for companies that have been established for many years. (10 marks) (d) Foody Ltd is considering paying a dividend to its Irish parent company. Outline the Irish corporation tax treatment of a dividend paid by one Irish tax resident company to another from the perspective of (i) the paying company i.e. Foody Ltd and (ii) the recipient company i.e. its parent. (5 marks)
The Corporate Tax liability of the company is (342500*12.5%)= 42812.50.
Statement of income -
Sales - 3520000
Cost of sales - 2220000
Gross profit - 1300000
Other income - 75000
Operating expenses - 795000
Financial costs - 12500
Profit before tax - 567500
The company has several large machines
Machine 1 acquired - 150000
Machine 2 acquired - 350000
Machine 3 acquired - 800000
Trading losses carried forward - 50000
The company incurred expenses of movable partitioning into the building - 175000
Therefore total income is - profit before tax - 567500
(less) trading losses carried forward - 50000
(less) the company incurred movable partitioning - 175000
Therefore total income is - 342500
According to Irish tax rules they have to pay a corporate tax rate of 12.5%.
So the corporate tax liability of the company is (342500*12.5%)= 42812.50
B) The company has decided to finish its annual accounts on December 31. This can be done by first carrying forward all of the income and expenses for the previous six months due to the six-month extension that was granted.
Then, just the profit before tax will be calculated, and the net total income will be done after that. Accordingly, all other income and expenses must be calculated up until the 31st of December.
C) to
Foody Limited's director
Respected sir,
This is to attest to the fact that numerous businesses have recently been incorporated in Ireland. Whether the company operating in Ireland is a resident or not must be determined. If the company owners were born Irish or not, must be verified.
If they're a person who is born Irish is a resident of that country and can open a business there. Whether the owner is a permanent resident, temporary resident, or neither must also be considered. If someone is a temporary visitor, they are still not considered residents for tax purposes and will be treated as such.
So, sir, in order to prevent discrimination in the near future, we must look ahead in this matter.
I appreciate you
D) dividend withholding tax is charged to an Irish company that pays a dividend. Therefore, as per Irish law, a 25% dividend withholding tax must be paid while the parent company receives the payment.
Learn more about Irish tax law here
https://brainly.com/question/33107634
#SPJ4
Michael Don owns an equipment hire business under the name Safety Hire. Financial data for Safety Hire as of 30 June 2019 are shown as below:.
Account Balance ($)
Accounts receivable 73,000
Wages expense 78,000
Equipment hire income 200,000
Advertising expense 32,000
Prepaid insurance 9,000
Accounts payable 88,000
Insurance expense 7,000
Cash at bank 48,000
Equipment 190,000
Michael Don, capital ?
Required:
a) Prepare an income statement for the business for the year ending 30 June 2019.
b) Prepare a balance sheet in narrative format for Safety Hire as at 30 June 2019.
c) Prepare a statement of changes in Equity for the year and dete\rmine Michael Don’s capital at 30 June 2018?
You may wish to copy/paste the following template for your answer.
a) Income Statement 9:Equipment Hire Income: $200,000, Wages Expense: $78,000, Advertising Expense: $32,000, Insurance Expense: $7,000. Net Income: $83,000.b) Balance Sheet as at 30 June 2019:Assets: Accounts Receivable: $73,000, Prepaid Insurance: $9,000.
a) Income Statement for Safety Hire for the year ending 30 June 2019
Equipment Hire Income: $200,000
Less: Expenses
Wages Expense: $78,000
Advertising Expense: $32,000
Insurance Expense: $7,000
Net Income: $83,000
The income statement summarizes the revenues and expenses of Safety Hire for the year ending 30 June 2019.
The equipment hire income of $200,000 is the total revenue earned from equipment rentals. The expenses, including wages, advertising, and insurance, are subtracted from the revenue to calculate the net income of $83,000.
b) Balance Sheet (as at 30 June 2019) for Safety Hire
Assets
Accounts Receivable: $73,000
Prepaid Insurance: $9,000
Cash at Bank: $48,000
Equipment: $190,000
Total Assets: $320,000
Liabilities
Accounts Payable: $88,000
Total Liabilities: $88,000
Equity
Michael Don's Capital: To be determined
The balance sheet presents the financial position of Safety Hire as of 30 June 2019. The assets include accounts receivable, prepaid insurance, cash at bank, and equipment, totaling $320,000.
The only liability listed is accounts payable, which amounts to $88,000. The equity section includes Michael Don's capital, which needs to be determined based on additional information.
c) Statement of Changes in Equity for Safety Hire for the year ending 30 June 2019:
Michael Don's Capital at 30 June 2018: To be provided
Add: Net Income for the year: $83,000
Ending Capital at 30 June 2019: To be determined
The statement of changes in equity shows the changes in Michael Don's capital for Safety Hire during the year. The net income of $83,000 for the year is added to the beginning capital (which needs to be provided) to calculate the ending capital at 30 June 2019.
To know more about Income Statement refer here
https://brainly.com/question/33690617#
#SPJ11
Final Answer Please
question 13. Assume that you own an annuity that
will pay you $15,000 per year for 12 years, with the first payment
being made today. You need money today to start a new business
The present value of the annuity is the amount of money you would need today to receive the future payments.
What is the present value of the annuity?The present value of an annuity is calculated by discounting each future payment to its present value and then summing them up. In this case, we need to calculate the present value of receiving $15,000 per year for 12 years.
To calculate the present value, we need to use the formula for the present value of an ordinary annuity:
\[ PV = \frac{C \cdot (1 - (1 + r)^{-n})}{r} \]
Where:
PV = Present value of the annuity
C = Cash flow per period (in this case, $15,000 per year)
r = Interest rate per period (we'll assume a discount rate of 5% per year)
n = Number of periods (12 years)
Plugging in the values into the formula, we have:
\[ PV = \frac{15,000 \cdot (1 - (1 + 0.05)^{-12})}{0.05} \]
Calculating this expression will give us the present value of the annuity, which represents the amount of money you would need today to receive the future payments.
Learn more about: annuity
brainly.com/question/33493095
#SPJ11
d. Incurred various selling and administrative expenses (e.g., advertising, sales trav
warehousing), $376,000.
e. Incurred various manufacturing overhead costs (e.g., depreciation, insurance, and
f. Manufacturing overhead cost was applied to production. The company actually v
jobs during the year. g. Jobs costing $1,765,050 to manufacture according to their job cost sheets were e h. Jobs were sold on account to customers during the year for a total of $2,970,000 manufacture according to their job cost sheets.
The following are the journal entries for the transact described:Transaction D:Code snippet* Debit Selling and Administrative Expenses $376,000
* Credit Cash or Accounts Payable $376,000
Transaction E:Code snippet* Debit Manufacturing Overhead $320,000
* Credit Accumulated Depreciation $150,000
* Credit Insurance Expense $50,000
* Credit Utilities Expense $120,000
Transaction F:Code snippet* Debit Manufacturing Overhead $250,000
* Credit Work in Process Inventory $250,000
Transaction G:Code snippet* Debit Finished Goods Inventory $1,765,050
* Credit Work in Process Inventory $1,765,050
Transaction H:Code snippet* Debit Accounts Receivable $2,970,000
* Credit Sales $2,970,000
The cost of goods sold for the year would be calculated as follows:Cost of goods sold = Finished goods inventory, beginning + Cost of goods manufactured - Finished goods inventory, endingIn this case, the cost of goods sold would be calculated as follows:Code snippetCost of goods sold = $0 + $1,765,050 - $0 = $1,765,050.
Learn more about snippet here:
https://brainly.com/question/30467825
#SPJ11
You are still an employee of University Consultants, Limited.
The investor tells you she would also like to know how tax
considerations affect your investment analysis. You determine that
the building
As the investor in University Consultants, Limited, wants to know how tax considerations affect your investment analysis, it is important to understand how taxes can impact the profitability of your investment.
Here are a few key points to consider:
1. Tax Deductions: Expenses related to the building, such as maintenance costs, property taxes, and mortgage interest, may be deductible from your taxable income. This reduces the amount of income subject to tax and can increase your overall after-tax returns.
2. Depreciation: Buildings typically depreciate over time due to wear and tear. The IRS allows investors to deduct a portion of this depreciation as an expense, which can lower your taxable income and increase your cash flow.
3. Capital Gains Tax: When you sell the building at a profit, you may be subject to capital gains tax. This tax is applied to the difference between the purchase price and the selling price of the property. The tax rate depends on the holding period and your income tax bracket. It's important to consider this tax when evaluating the potential returns of your investment.
4. Tax Credits: In some cases, there may be tax credits available for certain types of investments. These credits can directly reduce your tax liability and increase your after-tax returns. It's important to research if any tax credits apply to your investment.
5. State and Local Taxes: It's important to consider state and local taxes as they can vary significantly. These taxes may include income tax, property tax, and sales tax, among others. Understanding the tax rates and regulations in the specific location of the building is crucial for accurate investment analysis.
In conclusion, tax considerations play a significant role in investment analysis. By understanding the potential tax deductions, depreciation benefits, capital gains tax implications, available tax credits, and state and local taxes, you can more accurately evaluate the profitability of your investment. Consulting with a tax professional or accountant can provide further guidance and help ensure you make informed investment decisions.
To learn more about investment
https://brainly.com/question/29547577
#SPJ11
7) The inflation rate = A. nominal GDP ÷ real GDP B. growth rate in real GDP + growth rate in nominal GDP C. nominal GDP - real GDP D. growth rate in real GDP - growth rate in nominal GDP E. none of the above 8) The Which of these represents an example of citizens who would not typically be counted as unemployed? A. when your fourteen-year-old cousin loses her summer job in September B. when your neighbour has been out of work for so long that he decides to stay at home and write a novel C. when your economics professor loses his job and gets a new one at McDonald's D. all of the above E. none of the above 9) A discouraged worker might A. be waiting to return to a job from which he or she has been laid off B. be counted as unemployed C. have been prevented from working during the week prior to the household survey, due to illness or other temporary circumstances D. have tried to find a job during the month prior to the household survey, but without success E. none of the above 10) A prisoner of war camp seems a likely place for "cigarette money," because A. cigarettes retain their value over time B. cigarettes are abundant and easy to count C. The guards can enforce the practice of accepting cigarettes as a medium of exchange D. nearly all prisoners smoke cigarettes E. of the absence of better alternatives
7. Growth rate in real GDP + growth rate in nominal GDP
8. D. all of the above
9. Due to illness or other temporary circumstances.
10. C. The guards can enforce the practice of accepting cigarettes as a medium of exchange
7. B. growth rate in real GDP + growth rate in nominal GDP
The inflation rate is typically calculated as the growth rate in nominal GDP minus the growth rate in real GDP. This reflects the change in prices over time.
8. D. all of the above
None of the given options represent examples of citizens who would not typically be counted as unemployed. In all three scenarios, individuals are either out of work or have lost their jobs, which are situations that are typically considered in the measurement of unemployment.
9. C. have been prevented from working during the week prior to the household survey, due to illness or other temporary circumstances
A discouraged worker is someone who is available and willing to work but has given up actively seeking employment due to discouragement or lack of available job opportunities. They are not counted as unemployed because they have not actively searched for work during the specific reference period. Temporary circumstances, such as illness, may prevent them from actively seeking employment.
10. C. The guards can enforce the practice of accepting cigarettes as a medium of exchange
In a prisoner of war camp, cigarettes can serve as a likely form of "cigarette money" or currency. The guards can enforce the use of cigarettes as a medium of exchange, ensuring that they are widely accepted and valued within the camp's economy.
To know more about nominal GDP, visit:
https://brainly.com/question/32775130
#SPJ11
Analyse five (5) key differences of marketing
towels and bed linens to the hotel chain as opposed to selling to
direct consumers in a departmental store
(Topic: Business-to-Business
Marketing)
Marketing towels and bed linens to hotel chains differs from selling them directly to consumers in departmental stores in several key ways.
Firstly, the target audience in each case is distinct. Hotels are the primary customers for the former, while individual consumers are the target market for the latter. Secondly, the volume of products purchased varies significantly. Hotel chains typically require large quantities of towels and bed linens, whereas individual consumers generally make smaller purchases. Thirdly, pricing and negotiations differ as well, with hotels often seeking bulk discounts and establishing long-term contracts. Fourthly, customization and branding play a more significant role when marketing to hotel chains. Finally, logistics and distribution channels differ due to the varying scale of operations. When marketing towels and bed linens to hotel chains, the target audience shifts from individual consumers to the hotels themselves. Hotel chains become the primary customers, which necessitates a different marketing approach. Additionally, the volume of products sold to hotels is much larger compared to individual consumers purchasing from departmental stores. Hotels require a substantial quantity of towels and bed linens to meet their needs. This significant demand allows for negotiation of bulk discounts and establishment of long-term contracts, which differs from the pricing and transaction process in departmental stores.
Learn more about departmental stores here:
https://brainly.com/question/30068306
#SPJ11
Is the role of corporations to maximize value or respond to the
needs of their stakeholders?
The role of corporations is to both maximize value and respond to the needs of their stakeholders. Let me explain further:
1. Maximizing value: One of the primary goals of corporations is to generate profits and maximize shareholder value. This means that they aim to increase their revenue, reduce costs, and ultimately make a profit.
By doing so, they can ensure the financial stability and growth of the company. This focus on maximizing value is often associated with the interests of shareholders who have invested their capital in the company and expect a return on their investment.
2. Responding to the needs of stakeholders: In addition to maximizing value for shareholders, corporations also have a responsibility to consider the interests and needs of other stakeholders.
Stakeholders can include employees, customers, suppliers, communities, and the environment.
For example, corporations should provide fair wages and safe working conditions for employees, produce high-quality products or services that meet customer needs, maintain ethical relationships with suppliers, contribute positively to the communities in which they operate, and minimize negative impacts on the environment.
The balance between maximizing value and responding to stakeholder needs can vary depending on various factors such as the industry, company culture, and legal requirements.
Some corporations may prioritize shareholder value above all else, while others may adopt a more balanced approach that considers the interests of all stakeholders.
It is worth noting that stakeholder-oriented corporations often argue that by fulfilling the needs of stakeholders, they can create long-term value for shareholders.
For example, satisfied employees may be more productive, loyal customers may lead to repeat business, and a positive reputation in the community may attract investors.
In summary, the role of corporations is to both maximize value for shareholders and respond to the needs of stakeholders. Balancing these interests is essential for sustainable and ethical business practices.
To learn more about corporations, refer below:
https://brainly.com/question/32217998
#SPJ11
Compute 180-day forward premium for USD to EUR exchange rate by using the following information. (S denotes spot rate, F denotes forward rate, and the subscript shows the day to maturity.)
S(USDEUR)=1.1321,F180(USDEUR)=1.1377,F90(USDEUR)=1.1385
The 180-day forward premium for the USD to EUR exchange rate is approximately 0.00494, or 0.494%.
To compute the 180-day forward premium for the USD to EUR exchange rate, we'll use the given information:
S(USDEUR) = 1.1321 (Spot rate)
F180(USDEUR) = 1.1377 (180-day forward rate)
F90(USDEUR) = 1.1385 (90-day forward rate)
The forward premium represents the percentage difference between the forward exchange rate and the spot exchange rate. It indicates the cost or benefit associated with entering into a forward contract to exchange currencies at a future date.
To calculate the 180-day forward premium, we'll use the following formula:
Forward Premium = (F180 - S) / S
Step 1: Calculate the difference between the forward rate and the spot rate.
F180 - S = 1.1377 - 1.1321 = 0.0056
Step 2: Divide the difference by the spot rate.
Forward Premium = 0.0056 / 1.1321 ≈ 0.00494
Thus, the appropriate answer is approximately 0.00494, or 0.494%.
Learn more about exchange rate:
https://brainly.com/question/10187894
#SPJ11
Answer if these are Project or Operations?
Designing and building the new Bay Bridge from San Francisco to Oakland Development of a new pharmaceutical drug Manulacturing the new pharmaceutical drug
The following correctly describes the Project or Operations. Designing and building the new Bay Bridge from San Francisco to Oakland: Project. Development of a new pharmaceutical drug: Project. Manufacturing the new pharmaceutical drug: Operations.
Launch of the Project To evaluate the viability and potential effects of building a new bridge, carry out a feasibility study. Obtain from the appropriate authorities the necessary permissions and approvals. Create a project team of engineers, architects, and construction experts.
Determine the ailment or medical condition that the medicine is intended to treat. To comprehend the disease mechanism and possible therapeutic targets, do a thorough literature review and research study.
Learn more about Projects here:
https://brainly.com/question/28476409
#SPJ4
revenue and expenses on the income statement are classified as
Revenue and expenses on the income statement are classified as either operating or non-operating.
Revenue and expenses on the income statement are classified as either operating or non-operating.Operating income is calculated as the difference between a company's revenue and its operating expenses. For most businesses, operating revenue and expenses include items such as rent, utilities, wages and salaries, depreciation, and insurance.Non-operating revenue and expenses are not directly related to the company's core business. Non-operating income includes items such as interest and dividend income, as well as gains or losses from the sale of long-term assets. Non-operating expenses include items such as interest expense, debt restructuring charges, and other non-recurring expenses.
Revenue and expenses are two of the most critical elements of any income statement. Income statements offer critical information regarding a company's financial performance, including its net income or loss for a particular period. These statements provide an overview of the company's revenues and expenses and how they relate to its bottom line.Revenue and expenses on the income statement are classified as either operating or non-operating. Operating income is calculated as the difference between a company's revenue and its operating expenses. For most businesses, operating revenue and expenses include items such as rent, utilities, wages and salaries, depreciation, and insurance.
To know more about income visit:
https://brainly.com/question/33207416
#SPJ11
5. (5 points) Imperfect Competition: Suppose that two grow are Coarnot competition. Industry demand is given by P=200-q1-q2, where q1 is the output of Firm 1 and q2 is the output of Firm 2. Both Firm 1 and Firm2 face countant marginal and average total costs of $20.
(a) Solve for the Coarnot price, quantity, and firm profits.
(b) Firm 1 is considering investing is overly technology that will make it to reduce its costs to $15 per unit. How much should Firm 1 be willing to pay if much and investment can guarante that Firm 2 will not be able to aequire is?
The Cournot price is $95, the quantity produced by each firm is 52.5 units, and the profits are $1,156.25 for each firm.
The Cournot Model refers to a type of oligopoly in which two companies produce similar but not identical products. Cournot price, quantity, and firm profits are calculated in the following ways:
Industry Demand: P = 200 – q1 – q2
where q1 represents the output of the first company, and q2 represents the output of the second company.Constant Marginal Cost (MC) and Average Total Cost (AC) for each firm is $20(
a) Coarnot price: $95.00Coarnot quantity: 52.5 units each firm.Firm profits: $1,156.25 for each firm.
(b) Firm 1 would be prepared to pay a maximum of $1,156.25 to be able to acquire it. This is because any further cost would result in the company losing money, and they will already be making the most profit possible. If Firm 1 can lower its costs by investing in this technology, they can raise their profits while still keeping their prices low. By lowering its expenses, Firm 1 can sell its goods for less than Firm 2, resulting in higher sales and greater profits.
The Coarnot price is $95, the quantity produced by each firm is 52.5 units, and the profits are $1,156.25 for each firm. Firm 1 would be willing to pay up to $1,156.25 to acquire the new technology if it can ensure that Firm 2 cannot obtain it, as this will result in lower costs, higher sales, and greater profits.
To know more about Marginal Cost visit:
brainly.com/question/31765952
#SPJ11
You place $35,000 in a savings account paying an annual compound interest of 4 percent for 5 years and then move it into a savings account that pays 6 percent interest compounded annually. By how much will your money have grown at the end of 15 years?
Calculate the growth of your money over 15 years, we need to calculate the growth in two separate periods: the first 5 years with a 4% annual compound interest, and the next 10 years with a 6% annual compound interest.
1. For the first 5 years:
- The initial amount is $35,000.
- The annual interest rate is 4%.
- Since the interest is compounded annually, the formula to calculate the future value is:
Future Value = Principal * (1 + Rate)^Time
Future Value = $35,000 * (1 + 0.04)^5
- Calculate the Future Value for the first 5 years.
2. After 5 years, you move the money to a new savings account with a 6% annual compound interest rate for the next 10 years.
- The initial amount is the Future Value from the first 5 years.
- The annual interest rate is 6%.
- Again, use the compound interest formula to calculate the Future Value for the next 10 years:
Future Value = Principal * (1 + Rate)^Time
Future Value = [Future Value from step 1] * (1 + 0.06)^10
3. Calculate the Future Value for the next 10 years.
4. Add the Future Value from step 1 and the Future Value from step 3 to find the total growth in your money over 15 years.
To know more about amount visit:
https://brainly.com/question/32453941
#SPJ11
A:
AFN equation
Broussard Skateboard's sales are expected to increase by 25% from $8.8 million in 2019 to $11.00 million in 2020. Its assets totaled $5 million at the end of 2019.
Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2019, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 5%, and the forecasted payout ratio is 55%. Use the AFN equation to forecast Broussard's additional funds needed for the coming year. Enter your answer in dollars. For example, an answer of $1.2 million should be entered as $1,200,000. Do not round intermediate calculations. Round your answer to the nearest dollar.
$
B:
New-Project Analysis
The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $860,000, and it would cost another $19,500 to install it. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $576,000. The MACRS rates for the first three years are 0.3333, 0.4445, and 0.1481. The machine would require an increase in net working capital (inventory) of $16,000. The sprayer would not change revenues, but it is expected to save the firm $346,000 per year in before-tax operating costs, mainly labor. Campbell's marginal tax rate is 25%. (Ignore the half-year convention for the straight-line method.) Cash outflows, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest dollar.
What is the Year-0 net cash flow?
$
What are the net operating cash flows in Years 1, 2, and 3?
Year 1: $
Year 2: $
Year 3: $
What is the additional Year-3 cash flow (i.e, the after-tax salvage and the return of working capital)?
$
If the project's cost of capital is 13%, what is the NPV of the project?
$
Should the machine be purchased?
-Select-YesNoItem 7
Broussard Skateboard's additional funds needed (AFN) for the coming year is approximately $1,420,450.
To forecast Broussard Skateboard's additional funds needed (AFN) for the coming year, we can use the AFN equation. The AFN equation helps determine the amount of financing required to support the projected growth in sales while maintaining the balance between assets and liabilities.
The AFN equation is as follows:
AFN = (A*/S₀) × ΔS - (L*/S₀) × ΔS - MS₁ × (1 - Payout ratio)
Where:
A* = Assets at full capacity
S₀ = Sales in the base year
ΔS = Increase in sales
L* = Liabilities and equity at full capacity
MS₁ = After-tax profit margin × Retention ratio (1 - Payout ratio)
Given information:
Sales in 2019 (S0) = $8.8 million
Increase in sales (ΔS) = 25% × $8.8 million = $2.2 million
Assets at the end of 2019 (A*) = $5 million
Current liabilities (L*) = $1.4 million
After-tax profit margin = 5%
Payout ratio = 55%
First, we calculate the values for A* and L*:
A* = A₀ × (1 + ΔS/S₀) = $5 million × (1 + $2.2 million/$8.8 million) = $6.25 million
L* = Current liabilities = $1.4 million
Next, we calculate MS₁:
MS₁ = After-tax profit margin × (1 - Payout ratio) = 0.05 × (1 - 0.55) = 0.05 × 0.45 = 0.0225
Finally, we can calculate the AFN:
AFN = (A*/S₀) × ΔS - (L*/S₀) × ΔS - MS₁ × (1 - Payout ratio)
AFN = ($6.25 million/$8.8 million) × $2.2 million - ($1.4 million/$8.8 million) × $2.2 million - 0.0225 × (1 - 0.55)
AFN = $1.42045 million
To learn more about AFN equation click on,
https://brainly.com/question/33527976
#SPJ4
Complete question is:
Broussard Skateboard's sales are expected to increase by 25% from $8.8 million in 2019 to $11.00 million in 2020. Its assets totaled $5 million at the end of 2019.
Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2019, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 5%, and the forecasted payout ratio is 55%. Use the AFN equation to forecast Broussard's additional funds needed for the coming year. Enter your answer in dollars. For example, an answer of $1.2 million should be entered as $1,200,000. Do not round intermediate calculations. Round your answer to the nearest dollar.
what is the price level and the GDP at equilibrium? plot the graph for price level vs. GDP
In macroeconomics, the price level refers to the average level of prices in an economy, often represented by a price index such as the Consumer Price Index (CPI) or the GDP deflator. GDP, on the other hand, stands for Gross Domestic Product, which measures the total value of goods and services produced in an economy.
At equilibrium, the price level and GDP are determined by the intersection of aggregate demand (AD) and aggregate supply (AS) in the economy. The equilibrium price level and GDP represent a point where the quantity of goods and services demanded (AD) is equal to the quantity of goods and services supplied (AS). This is often referred to as the macroeconomic equilibrium.
When graphed, the relationship between the price level and GDP is typically shown on a macroeconomic model called the aggregate demand-aggregate supply (AD-AS) diagram. The vertical axis represents the price level, and the horizontal axis represents real GDP.
In the AD-AS diagram, the aggregate demand curve slopes downward, indicating that as the price level decreases, the quantity of goods and services demanded increases, and vice versa. The aggregate supply curve, on the other hand, is usually represented by an upward-sloping curve, indicating that as the price level increases, the quantity of goods and services supplied also increases.
The intersection of the aggregate demand curve and the aggregate supply curve determines the equilibrium price level and GDP. At this point, the quantity of goods and services demanded equals the quantity of goods and services supplied, indicating a state of macroeconomic equilibrium.
To learn more about GDP deflator, visit:
https://brainly.com/question/33117019
#SPJ11
Burger Queen has a value of $38,000 in a good economy and $24,000 in a recession. The firm has $25,000 of debt. The probability of a recession is 50 percent. The firm is considering a project that would change the firm values to $42,000 in a good only and $22,000 in W shareholders accept this project? Will bondholders like this project?
Multiple Choice
a. Bondholders, but not shareholders, will like this project.
b. Shareholders, but not bondholders, will like this project.
c. Neither shareholders nor bondholders will like this project.
d. Shareholders will like this project, but bondholders will be indifferent.
e. Both shareholders and bondholders will like this project.
The value of the firm Burger Queen is $38,000 in good economy and $24,000 in a recession. The probability of a recession is 50%. The firm is thinking about a project that will change the firm values to $42,000 in a good economy only and $22,000 in a recession.The firm has $25,000 debt. The correct answer to this question is option (b).
Shareholders, but not bondholders, will like this project.A company's value is the sum of equity and debt, according to the capital asset pricing model. In a good economy, Burger Queen's value is $38,000, and in a recession, it is $24,000. As a result, the company's equity and debt are $13,000 and $25,000, respectively.When the firm undertakes a project, the value of the company changes. The proposed project will increase the value of the company to $42,000 in a good economy, up from $38,000. However, in a recession, the value of the company will decrease to $22,000, down from $24,000. When it comes to the project, the firm's equity value is $17,000, and the debt value is $25,000. As a result, the firm's debt-equity ratio is $25,000/$17,000 = 1.47.Shareholders' equity value will increase as a result of the project, but bondholders' debt value will remain constant. As a result, shareholders would benefit more from the project than bondholders. Shareholders will, therefore, support the project, but bondholders will not like it.
To learn more about economy: https://brainly.com/question/28210218
#SPJ11
Gleeson Manufacturing Company uses an activity-based costing system. It has the following manufacturing activity areas, related cost drivers and cost allocation rates: During the month, 200 units were produced, with no defects, requiring three setups. Each unit consisted of 17 parts, 3 direct labor hours and 2.5 machine hours. Direct materials cost $50 per finished unit. What is the per unit manufacturing cost for the period?
Gleeson Manufacturing Company uses an activity-based costing system. It has the following manufacturing activity areas, related cost drivers, and cost allocation rates:
During the month, the company produced 200 units without any defects, requiring three setups.
Every unit consisted of 17 parts, 3 direct labor hours, and 2.5 machine hours. The cost of direct materials is $50 per finished unit. Activity Area | Cost Driver | Cost Allocation Rate Order Processing | Orders | $25.00 per order Materials Handling | Parts | $0.75 per part Assembly | Labor Hours | $20.00 per direct labor hour Machine Operation | Machine Hours | $12.50 per machine hour Let's first calculate the cost of the direct materials.
200 units were produced, and the direct materials cost $50 per finished unit. Therefore, the total cost of direct materials is 200 × $50 = $10,000.
To know more about allocation visit:
https://brainly.com/question/28319277
#SPJ11
What is the appropriate valuation technique to use for a company that has consistently paid dividends, it is in a mature industry, and dividends are a reflection of the firms overall earnings?
a. RI
b. FCF
c. GM
d. DDM
The correct answer is d. DDM. DDM is the appropriate valuation technique to use for a company that has consistently paid dividends, is in a mature industry, and dividends are a reflection of the firm's overall earnings.
Dividend Discount Model (DDM) is a method used to determine the value of a company's stock based on the theory that its stock's worth is the sum of the present value of its expected future dividends.
The Dividend Discount Model (DDM) is a financial approach that values a company's stock by calculating the present value of its future dividend payments. The DDM method of valuation is utilized for firms that have a consistent payment of dividends, a mature industry, and dividends are a reflection of the firm's overall earnings.
The DDM approach is based on the assumption that the value of a company's stock is the total of the present value of all future dividend payments. When the estimated worth of the stock based on the DDM is higher than the current market value, then it is viewed as undervalued. On the other hand, if the estimated value is lower, it is considered overvalued.
The DDM technique's primary advantage is that it is straightforward to calculate if the investor has all the relevant data. However, this approach also has certain drawbacks, like the estimation of the required rate of return, which is challenging, and the estimate of future dividends, which is also uncertain. The DDM is most useful when applied to firms that are mature and have a reliable and consistent history of paying dividends. The approach can provide a rough estimate of the company's worth to the investor.
To learn more about Dividend visit:
https://brainly.com/question/30030205
#SPJ11
Has the law managed to protect the interests of those who enter into restraint of trade contracts? Please consider the perspective of both parties, those seeking to rely on restraint of trade clauses and those who are bound; what would matter if you were in their perspective?
Restraint of trade refers to a contract that prohibits a person from carrying out a specific trade or profession. The law has managed to protect the interests of people entering into restraint of trade agreements. The agreement is only enforceable if it satisfies a few requirements. Therefore, the courts play a significant role in determining the enforceability of the restraint of trade agreement to balance the interests of the parties and the public.
Firstly, the agreement has to be reasonable in scope and duration, meaning it must not limit the person from carrying out any trade or profession.
Secondly, the restraint of trade agreement must protect the interests of the employer.
Thirdly, the restraint must not be against the public interest.
Fourthly, the agreement should not be unfair or unreasonable to the person bound by the agreement.
Based on the perspective of both parties, the employer seeks to protect their business interests while the employee or the person bound by the agreement seeks to protect their right to work in their profession.
From the perspective of the employer, a restraint of trade agreement provides protection from unfair competition. An employee or a person bound by the agreement may face a challenge finding work if the restraint is too wide or lengthy.
However, it protects the employer from the risk of loss of business and from their competitor hiring the employee or the person bound by the agreement. Based on the above facts, if I were in their perspective, the perspective that matters is that which supports the public interest. It is important to strike a balance between the interests of the parties and the public. A restraint of trade agreement should not be too restrictive or unreasonable that it restricts a person's right to work and participate in trade or commerce. Therefore, the courts play a significant role in determining the enforceability of the restraint of trade agreement to balance the interests of the parties and the public.
To know more about enforceability visit:
https://brainly.com/question/19269279
#SPJ11
Consider a three-period overlapping generations economy with N young people born each period. Each young person receives y goods, but nothing when middle-aged or when old. People can access a storage technology that yields one good next period for every good put in storage in the current period. Alternatively, there is a capital good, with one unit of the consumption good acquiring one unit of capital. For each unit of capital acquired in date t, 1:1 units of the consumption good will be received at date t+ 2. If the person liquidates the capital after one period, though, then only:9 units of the consumption good can be obtained at date t+ 1. Assume that agents are risk neutral, and there is a 60% probability that a person will want to consume only when middle-aged and a 40% probability that a person will want to consume only when old. Whether someone is an "early" or "late" consumer will be revealed only at time t + 1.
a) Derive the equilibrium in this economy without an intermediary bank. How much would people invest in the storage technology?
b) Derive the equilibrium with a bank, assuming the bank operates under perfect competition (no proÖts). Assume also that the bank does not expect a bank run to occur. What is the advantage of pooling risk?
c) What is the outcome in case of an (unexpected) bank run, assuming that the bank equally splits the value of its portfolio among all depositors?
d) Compare and rank outcomes from points (a), (b) and (c), both in terms of ex-ante expected consumption (before agents are revealed whether they are early or late consumers) and ex-post actual consumption for early and late consumers
The presence of an intermediary bank provides advantages such as risk pooling and higher consumption levels.
In this three-period overlapping generations economy, individuals are categorized as young, middle-aged, or old. Each young person receives y goods, but no goods when middle-aged or old. Individuals have two options to save and invest their goods: storage technology or capital acquisition. The storage technology allows them to put goods in storage in the current period and receive one good next period for every good stored. On the other hand, capital acquisition involves exchanging one unit of the consumption good for one unit of capital, which can be liquidated for 0.9 units of the consumption good in the next period or held for two periods to receive 1.1 units of the consumption good.
a) In the absence of an intermediary bank, the equilibrium investment in the storage technology depends on comparing the expected returns from storage and capital acquisition. Let's denote the investment in storage by S and the investment in capital acquisition by C. The expected return from storage is S, as one good put in storage yields one good next period.
The expected return from capital acquisition is 0.6C (probability of being middle-aged) + 0.4(0.9C) (probability of being old), which simplifies to 0.6C + 0.36C = 0.96C. To find the equilibrium, we set S = 0.96C and solve for C in terms of y.
b) Introducing a bank allows individuals to pool risk and potentially increase their consumption. Assuming perfect competition and no profits for the bank, individuals can deposit their goods in the bank. The advantage of pooling risk is that the bank can diversify investments and mitigate the impact of individual shocks. The bank can allocate resources more efficiently and offer higher returns to depositors. This leads to a higher overall consumption level compared to the non-banking equilibrium.
c) In the event of an unexpected bank run, where all depositors rush to withdraw their goods, the bank equally splits the value of its portfolio among all depositors. This implies that each depositor receives a fraction of their initial deposit, which could be less than the full amount. The outcome of a bank run is a loss of wealth for depositors, resulting in lower consumption for both early and late consumers.
d) Comparing the outcomes of (a), (b), and (c), we find that the equilibrium with a bank (b) generally yields higher consumption levels due to risk pooling and efficient resource allocation. The non-banking equilibrium (a) depends on the relative returns of storage and capital acquisition. In case of a bank run (c), there is a significant loss of wealth, leading to reduced consumption for both early and late consumers.
In summary, the presence of an intermediary bank provides advantages such as risk pooling and higher consumption levels. However, an unexpected bank run can have adverse effects on depositors, resulting in lower consumption.
To know more about Intermediary Bank here
https://brainly.com/question/28040151
#SPJ4
discuss the following as quantitative analytic approach highlighting the decision criteria for each of them single projects or mutually exclusive project
1. benefit cost ratio
2. net present value
3.internal rate or return
Quantitative analytic approach is an essential approach in decision-making in any business. It is important to analyze the quantitative aspects of a project before making an investment decision. There are different quantitative techniques used to analyze investment projects.
In this discussion, we shall consider the quantitative analytic approach, highlighting the decision criteria for each of the following single projects or mutually exclusive project:
Benefit-cost ratio
Benefit-cost ratio is a quantitative technique that is used to compare the present value of a project's benefits to its cost. It is a profitability index that measures the benefits that accrue from an investment to the cost of the investment. A project is accepted if its benefit-cost ratio is greater than one. The decision criteria for accepting or rejecting a project using the benefit-cost ratio include:
Accept if the benefit-cost ratio is greater than one
Reject if the benefit-cost ratio is less than one
Net present value
The net present value technique is a quantitative method that measures the current value of the future cash flows from an investment project. It is the difference between the present value of the cash inflows and the present value of the cash outflows. The decision criteria for accepting or rejecting a project using the net present value technique include:
Accept if the NPV is positive
Reject if the NPV is negative
Internal rate of return
Internal rate of return is a quantitative technique that measures the profitability of an investment project. It is the discount rate at which the present value of the future cash inflows is equal to the present value of the future cash outflows. The decision criteria for accepting or rejecting a project using the internal rate of return include:
Accept if the internal rate of return is greater than the required rate of return
Reject if the internal rate of return is less than the required rate of return
In conclusion, when analyzing investment projects, it is important to use quantitative techniques such as the benefit-cost ratio, net present value, and internal rate of return. Each technique has its decision criteria for accepting or rejecting an investment project. In a mutually exclusive project, only one project is chosen, and the others are rejected.
To know more about Quantitative analytic visit:
https://brainly.com/question/28904136
#SPJ11
From the following information, compute the early, late, and
slack times for each activity. Identify the critical path.
The critical path consists of activities A, C, D, E, F, and G, as they have zero slack time.
The critical path consists of activities with zero slack time.
To compute the early,late, and slack times for each activity and identify the critical path, we can perform a forward pass and a backward pass calculation.
Using the information provided,we can determine the early start (ES), early finish (EF), late start (LS), late finish (LF), and slack time (SL) for each activity -
Activity A -
ES = 0 (Start of the project)
EF = 5 (ES + Duration)
LS = 0 (Same as ES since there are no late activities)
LF = 5 (LS + Duration)
SL = 0 (LF - EF)
Activity B -
ES = 5 (EF of A)
EF = 15 (ES + Duration)
LS = 5 (Same as ES since there are no late activities)
LF = 15 (LS + Duration)
SL = 0 (LF - EF)
Activity C -
ES = 5 (EF of A)
EF = 20 (ES + Duration)
LS = 10 (LF of D)
LF = 25 (LS + Duration)
SL = 5 (LF - EF)
Activity D -
ES = 15 (EF of C)
EF = 20 (ES + Duration)
LS = 15 (Same as ES since there are no late activities)
LF = 20 (LS + Duration)
SL = 0 (LF - EF)
Activity E -
ES = 20 (EF of B)
EF = 40 (ES + Duration)
LS = 35 (LF of F)
LF = 55 (LS + Duration)
SL = 15 (LF - EF)
Activity F -
ES = 20 (EF of D)
EF = 35 (ES + Duration)
LS = 35 (Same as ES since there are no late activities)
LF = 50 (LS + Duration)
SL = 0 (LF - EF)
Activity G -
ES = 35 (EF of C)
EF = 45 (ES + Duration)
LS = 45 (Same as ES since there are no late activities)
LF = 55 (LS + Duration)
SL = 10 (LF - EF)
Activity H -
ES = 35 (EF of G)
EF = 55 (ES + Duration)
LS = 35 (Same as ES since there are no late activities)
LF = 55 (LS + Duration)
SL = 0 (LF - EF)
The critical path consists of activities A, C, D, E, F, and G, as they have zero slack time. These activities must be completed on time to avoid delaying the project.
Summary -
Activity A - ES = 0, EF = 5, LS = 0, LF = 5, SL = 0
Activity B - ES = 5, EF = 15, LS = 5, LF = 15, SL = 0
Activity C - ES = 5, EF = 20, LS = 10, LF = 25, SL = 5
Activity D - ES = 15, EF = 20, LS = 15, LF = 20, SL = 0
Activity E - ES = 20, EF = 40, LS = 35, LF = 55, SL = 15
Activity F - ES = 20, EF = 35, LS = 35, LF = 50, SL = 0
Activity G - ES = 35, EF = 45, LS = 45, LF = 55, SL = 10
Activity H - ES = 35, EF = 55, LS = 35, LF = 55, SL = 0
Learn more about critical path at:
https://brainly.com/question/15091786
#SPJ1
Full Question:
Although part of your question is missing, you might be referring to this full question:
From the following information, compute the early, late, and
slack times for each activity. Identify the critical path
See attached table.
Select all that are true regarding income elasticity of demand For normal goods, income elasticity is negative For inferior goods, income elasticity is negative As price rises, demand falls for normal goods Income and demand are directly proportional for normal goods Inferior goods and normals goods are the same for different people Income and demand are directly proportional for inferior goods
The true statements regarding income elasticity of demand are: For inferior goods, income elasticity is negative.
As price rises, demand falls for normal goods. Income and demand are directly proportional for normal goods.
Regarding the income elasticity of demand, let's examine each statement one by one to determine which ones are true:
1. For normal goods, income elasticity is negative: This statement is incorrect. For normal goods, income elasticity is positive. This means that as income increases, the demand for normal goods also increases. For example, if people's incomes rise, they may choose to buy higher quality products or luxury items.
2. For inferior goods, income elasticity is negative: This statement is correct. For inferior goods, income elasticity is negative. This means that as income increases, the demand for inferior goods decreases. An example of an inferior good is low-quality fast food. As people's incomes rise, they are more likely to choose healthier and higher-quality food options.
3. As price rises, demand falls for normal goods: This statement is true. The law of demand states that as the price of a good increases, the quantity demanded decreases, assuming all other factors remain constant. This holds true for normal goods as well. When the price of a normal good increases, people tend to buy less of it.
4. Income and demand are directly proportional for normal goods: This statement is true. As mentioned earlier, for normal goods, income elasticity is positive. This means that as income increases, the demand for normal goods also increases. The two variables, income and demand, move in the same direction.
5. Inferior goods and normal goods are the same for different people: This statement is incorrect. Inferior goods and normal goods are different concepts. Normal goods are those for which demand increases as income increases, while inferior goods are those for which demand decreases as income increases. Whether a good is normal or inferior can vary for different individuals based on their preferences and income levels.
6. Income and demand are directly proportional for inferior goods: This statement is incorrect. For inferior goods, income elasticity is negative. This means that as income increases, the demand for inferior goods decreases. The two variables, income and demand, move in opposite directions.
To know more about income elasticity:
https://brainly.com/question/30536882
#SPJ11
Problem 3: A convenience store recently started to carry a new brand of soft drink in its territory. Management is interested in estimating future sales volume to determine whether it should continue to carry the new brand or replace it with another brand. At the end of April, the average monthly sales volume of the new soft drink was 700 cans and the trend was +50 cans per month. The actual sales volume figures for May, June, and July are 76,800 , and 820 , respectively. Use trend-adjusted exponential smoothing with α=0.20 and β=0.10 to forecast usage for June, July, and August.
To forecast the sales volume for June, July, and August using trend-adjusted exponential smoothing with α=0.20 and β=0.10.
We can follow the steps below:
Step 1: Calculate the initial level (LT) and trend (T) using the given data.
LT(April) = 700 (given)
T(April) = +50 cans per month (given)
Step 2: Calculate the forecast for May.
FT(May) = LT(April) + T(April) = 700 + 50 = 750
Step 3: Calculate the forecast error for May.
Error(May) = Actual(May) - FT(May) = 76,800 - 750 = 76,05
Step 4: Update the level and trend for May.
LT(May) = α * Actual(May) + (1 - α) * (LT(April) + T(April)) = 0.20 * 76,800 + 0.80 * (700 + 50) = 15,360 + 640 = 16,000
T(May) = β * (LT(May) - LT(April)) + (1 - β) * T(April) = 0.10 * (16,000 - 700) + 0.90 * 50 = 1,530 + 45 = 1,575
Step 5: Calculate the forecast for June.
FT(June) = LT(May) + T(May) = 16,000 + 1,575 = 17,575
Step 6: Calculate the forecast error for June.
Error(June) = Actual(June) - FT(June) = 820 - 17,575 = -16,75
Step 7: Update the level and trend for June.
LT(June) = α * Actual(June) + (1 - α) * (LT(May) + T(May)) = 0.20 * 820 + 0.80 * (16,000 + 1,575) = 164 + 13,240 = 13,404
T(June) = β * (LT(June) - LT(May)) + (1 - β) * T(May) = 0.10 * (13,404 - 16,000) + 0.90 * 1,575 = -260 + 1,417.5 = 1,157.5
Step 8: Calculate the forecast for July.
FT(July) = LT(June) + T(June) = 13,404 + 1,157.5 = 14,561.5
Step 9: Calculate the forecast error for July.
Error(July) = Actual(July) - FT(July) = 820 - 14,561.5 = -13,741.5
Step 10: Update the level and trend for July.
LT(July) = α * Actual(July) + (1 - α) * (LT(June) + T(June)) = 0.20 * 820 + 0.80 * (13,404 + 1,157.5) = 164 + 11,334 = 11,498
T(July) = β * (LT(July) - LT(June)) + (1 - β) * T(June) = 0.10 * (11,498 - 13,404) + 0.90 * 1,157
To learn more about exponential
https://brainly.com/question/30265998
#SPJ11
The hold-up problem is more likely to occur when: a. Own company has high cost in this part of the value chain. b. Agency efficiency is positive. c. Asset specificity is high and the company has little expertise in this part of the value chain. d. Technical efficiency is positive and greater than agency efficiency.
The hold-up problem refers to a situation that arises when an individual or a firm has made an investment that is difficult to recover, and their counterpart has significant bargaining power.
The hold-up problem is most likely to occur when the asset specificity is high, and the company has little expertise in this part of the value chain. The following are some of the factors that may lead to the hold-up problem:
Asset Specificity: The hold-up problem is more likely to occur when the asset specificity is high and the company has little expertise in this part of the value chain. This is because the parties may have difficulty finding alternative uses for the investments made. For instance, consider a firm that has invested heavily in specialized equipment to produce goods. If the firm faces a high switching cost to produce another good using the same equipment, it may be hard for it to switch to another product. Hence, the hold-up problem may occur if the other party has significant bargaining power.
Agency Efficiency: When the agency efficiency is positive, the hold-up problem may arise. Agency efficiency refers to the ability of one party to monitor the performance of the other party. In cases where the agency efficiency is low, the principal may have difficulty monitoring the agent's actions. In such cases, the agent may shirk, and the principal may find it difficult to determine the cause of the shirking. This may lead to the hold-up problem.
Technical Efficiency: Technical efficiency refers to the ability to produce a good with fewer inputs or at a lower cost. If the technical efficiency is positive and greater than the agency efficiency, the hold-up problem may occur. This is because the supplier may be able to produce the good at a lower cost than the buyer, making it harder for the buyer to find a replacement. Hence, the supplier may have significant bargaining power.
High Costs: If the own company has high costs in a particular part of the value chain, the hold-up problem may occur. In such cases, the buyer may have a stronger bargaining position. Thus, the supplier may find it difficult to recover the investments made. Hence, the hold-up problem may arise when the supplier faces high costs in a particular part of the value chain.
To know more about agent's actions visit
https://brainly.com/question/30453189
#SPJ11
Which of the following is necessary to solve a compounding problem? Select one:
a. Present amount
b. Interest rate
c. Number of periods
d. All of the above
Compounding problems are a type of financial problem that involves a certain sum of money that earns interest over time. To solve such a problem, you need to have a clear understanding of the terms and formulas used. Here are the necessary steps to solve a compounding problem:Step 1:
Determine the present amount or principal (P)Step 2: Find the interest rate (R)Step 3: Determine the number of periods (N)Step 4: Calculate the future value (FV)Step 5: Calculate the interest earned (I)Now, let's look at the options given in the question.a. Present amount - This is the initial amount of money invested. It is necessary to solve a compounding problem as it is the starting point from which the interest is earned.b. Interest rate - This is the rate at which the money invested grows over time.
It is necessary to solve a compounding problem as it helps to calculate the future value of the investment .d. All of the above - From the above explanation, it is evident that all the given options are essential to solve a compounding problem.Therefore, the correct answer is option d. All of the above.To solve a compounding problem, you need to know the present amount, interest rate, and the number of periods. All these factors play a crucial role in calculating the future value and the interest earned.
To know more about Interest rate visit :
https://brainly.com/question/28236069
#SPJ11
YOUR OWN WORDS PLEASE!!!
Strategic Human Resources - Explain why you think it is important for HRM to have a strategy that aligns with the organizational strategy that will contribute to the overall success of the organization. Discuss four examples of what HR can do to contribute strategically to the overall success of the organization.
Strategic Human Resources (HR) is important for the overall success of an organization because it ensures that HR practices align with the organization's goals and objectives. This alignment allows HR to contribute strategically to the organization in several ways. Here are four examples:
Recruitment and Selection: HR can develop a strategic approach to attracting and hiring the right talent. By understanding the organization's strategy, HR can identify the skills and competencies needed for success. This helps in recruiting candidates who possess the required capabilities, thus enhancing the organization's performance.
Training and Development: HR can design training programs that align with the organizational strategy. By identifying the skills and knowledge necessary for achieving organizational goals, HR can develop training initiatives to bridge any competency gaps. This improves employee performance and increases the organization's overall effectiveness.
Performance Management: HR can implement a strategic performance management system that aligns individual goals with organizational objectives. By setting clear performance expectations and providing regular feedback, HR can ensure that employees' efforts are focused on supporting the organization's strategic direction.
Employee Engagement and Retention: HR can develop strategies to foster employee engagement and retention. By understanding the organization's culture and values, HR can implement initiatives such as recognition programs, career development opportunities, and work-life balance initiatives. These efforts enhance employee satisfaction, productivity, and loyalty, leading to the overall success of the organization.
To know more about HR , visit ;
https://brainly.com/question/31476381
#SPJ11
