If a society decides to reduce the level of economic inequality, the following sets of tools can it use A: "A tax imposed on the value of inheritances", B: "Redistribution from those with high incomes to those with low incomes", and D: "Trying to assure that a ladder of opportunity is widely available". The correct option is D: "all of the above ".
Economic inequality refers to the differences in income and wealth between individuals or groups. When there is economic inequality, some individuals have more money, resources, and assets than others, causing a wealth gap that can hinder social mobility and equality.
There are various ways in which a society can reduce economic inequality, including:Redistribution from those with high incomes to those with low incomes: A society can use policies such as progressive taxes, social welfare programs, and minimum wage laws to redistribute income and wealth from the rich to the poor.Trying to assure that a ladder of opportunity is widely available: Providing education, job training, and access to capital and credit to low-income individuals can help them improve their economic status.A tax imposed on the value of inheritances: Inheritance taxes can be used to prevent wealth concentration and redistribute wealth from the rich to the poor.Option D is the correct answer.
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Complete question
If a society decides to reduce the level of economic inequality, which of the following sets of tools can it use? group of answer choices
A: A tax imposed on the value of inheritances
B: Redistribution from those with high incomes to those with low incomes
D: Trying to assure that a ladder of opportunity is widely available
D: all of the above
"
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suppose policymakers wish to use fiscal policy to fight inflation. which statement is most accurate?
Suppose policymakers wish to use fiscal policy to fight inflation. The most accurate statement is option A. Essentially, the way to lower the inflation rate is to decrease aggregate demand, causing a rise in unemployment.
Inflation is an economic situation when there is a persistent rise in the general price level of goods and services. Inflation reduces the purchasing power of money, thereby reducing the real value of money. Policymakers may use two types of fiscal policy to control inflation: Expansionary fiscal policy and Contractionary fiscal policy.
Contractionary fiscal policy is used to control inflation by decreasing government spending or increasing taxation. By reducing the disposable income of consumers, the aggregate demand for goods and services will decrease, thereby reducing the demand-pull inflation.
This approach aims to reduce the money supply and slow down economic growth, thereby mitigating inflationary pressures. Therefore, the most accurate statement regarding the fiscal policy use to fight inflation is option A. Essentially, the way to lower the inflation rate is to decrease aggregate demand, causing a rise in unemployment.
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Complete question
Suppose policymakers wish to use fiscal policy to fight inflation. Which statement, then, is MOST accurate?
A. Essentially, the way to lower the inflation rate is to decrease aggregate demand, causing a rise in unemployment.
B. Using fiscal policy, the government can have the best of both worlds in the form of low inflation and economic growth.
C. They should not use fiscal policy because in the long run the economy will always go back to equilibrium.
D. Policymakers should use an expansionary policy because job creation is more important than inflation.
on may 31 of the current year, the assets and liabilities of riser, incorporated are as follows: cash $12,300; accounts receivable, $6,750; supplies, $750; equipment, $11,300; accounts payable, $8,650. what is the amount of equity as of may 31 of the current year? $12,300. $31,100. $12,100. $22,450. $39,750.
The correct answer is option B. The amount of equity as of May 31 of the current year is $31,100.
Calculate Total Assets
Total Assets = Cash + Accounts Receivable + Supplies + Equipment
Total Assets = $12,300 + $6,750 + $750 + $11,300
Total Assets = $31,100
Calculate Total Liabilities
Total Liabilities = Accounts Payable
Total Liabilities = $8,650
Calculate Equity
Equity = Total Assets - Total Liabilities
Equity = $31,100 - $8,650
Equity = $31,100
As a result, the equity as of May 31 of this year is $31,100.
Complete Question:
On May 31 of the current year, the assets and liabilities of riser, incorporated are as follows: cash $12,300; accounts receivable, $6,750; supplies, $750; equipment, $11,300; accounts payable, $8,650. What is the amount of equity as of May 31 of the current year?
A. $12,300
B. $31,100
C. $12,100
D. $22,450
E. $39,750
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alderwood prepares an aging of accounts receivable and the result shows that 5% of accounts receivable is estimated to be uncollectible. what is the balance in the allowance for doubtful accounts after bad debt expense is recorded?
When Alderwood performs an aging of its receivables, the results reveal that 5% of them are thought to be uncollectible. After bad debt cost is noted, there is $1,000 left in the allowance for doubtful accounts.
To determine the balance in the allowance for doubtful accounts after bad debt expense is recorded, we first need to know the total amount of accounts receivable and the amount of bad debt expense recorded.
Assuming the total accounts receivable balance is $100,000, the estimated amount of uncollectible accounts is 5% of $100,000, which is $5,000. This $5,000 is the amount that should be recorded as bad debt expense for the period.
To calculate the new balance in the allowance for doubtful accounts, we need to subtract the existing balance in the account from the amount of bad debt expense recorded. Assuming the current balance in the allowance for doubtful accounts is $3,000, we would have:
New allowance for doubtful accounts balance = Current balance - Bad debt expense
New allowance for doubtful accounts balance = $3,000 - $5,000
New allowance for doubtful accounts balance = -$2,000
Since the new balance in the allowance for doubtful accounts is negative, it means that the company needs to increase its allowance for doubtful accounts by $2,000 to cover the estimated uncollectible accounts. The journal entry to record this would be:
Debit Bad Debt Expense $5,000
Credit Allowance for Doubtful Accounts $2,000
Credit Accounts Receivable $3,000
This would result in a new balance in the allowance for doubtful accounts of $1,000 ($3,000 - $2,000).
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groupe air uses two measures of activity, flights and passengers, in the cost formulas in its budgets and performance reports. the cost formula for plane operating costs is $48,840 per month plus $2,381 per flight plus $7 per passenger. the company expected its activity in october to be 63 flights and 293 passengers, but the actual activity was 61 flights and 298 passengers. the actual cost for plane operating costs in october was $199,070. the activity variance for plane operating costs in october would be closest to: multiple choice $1,824 f $1,824 u $4,727 u $4,727 f
As per the given variable cost the activity variance for plane operating costs in October would be closest to $4,727 U (unfavorable) (option c).
Groupe Air utilizes a cost formula to calculate their plane operating costs. This formula includes a base cost of $48,840 per month, an additional cost of $2,381 per flight, and a variable cost of $7 per passenger. Based on their initial projections, Groupe Air expected to have 63 flights and 293 passengers in the month of October. Using this information, the expected cost for plane operating costs in October can be calculated as follows:
Expected cost = $48,840 + ($2,381 x 63) + ($7 x 293) = $203,999
However, their actual activity in October was slightly different than expected, with only 61 flights and 298 passengers. As we all know that the actual cost for plane operating costs in October was $199,070.
To determine the activity variance for plane operating costs, the expected cost must be subtracted from the actual cost:
Activity variance = Actual cost - Expected cost = $199,070 - $203,999 = -$4,929
The negative sign indicates that the actual cost was lower than the expected cost, which is a positive outcome for Groupe Air's cash flow. Therefore, option (c) is the correct choice.
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dividends are a portion of a earnings returned to the investor. b the equity returned to the investor c liabilities returned to the company d assets returned to the company
Dividends are a portion of earnings returned to the investor. So, correct option is A.
Dividends are payments made by a company to its shareholders, typically in the form of cash or additional shares of stock. These payments represent a portion of the company's earnings that are distributed to its shareholders as a reward for their investment in the company.
Dividends are generally paid out of a company's profits, and the amount and frequency of dividend payments are determined by the company's board of directors.
Investors often look to dividend payments as a way to generate income from their investments, particularly in companies that have a long history of paying regular dividends.
Dividends can also be an indicator of a company's financial health, as they demonstrate a commitment to returning value to shareholders rather than retaining all profits for reinvestment in the business.
Therefore, correct option is A.
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comparing the u.s. economy in the 1920s with the economy in the 1990s, both decades multiple choice suffered from economic depressions. had soaring stock markets. had a lack of any government regulation of the stock market. had slow economic growth.
When comparing the US economy in the 1920s with the economy in the 1990s, both decades b. had soaring stock markets.
The US economy in the 1920s and the 1990s are two different periods that had some similarities and differences. One of the similarities is that both decades had soaring stock markets. During the 1920s, the stock market experienced a rapid increase in value, with the Dow Jones Industrial Average more than tripling between 1920 and 1929. Similarly, in the 1990s, the stock market also experienced significant growth, with the Dow Jones reaching an all-time high in 1999. However, there were differences in terms of government regulation, economic growth, and economic depressions.
In the 1920s, there was a lack of any government regulation of the stock market, while in the 1990s, there were more government regulations put in place. In addition, the US economy experienced slow economic growth during the 1920s, whereas in the 1990s, the economy was booming. Finally, the US economy experienced two economic depressions in the 1920s, while in the 1990s, there was only one recession.
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brickhouse is expected to pay a dividend of $3.25 and $2.50 over the next two years, respectively. after that, the company is expected to increase its annual dividend at 4.1 percent. what is the stock price today if the required return is 11.5 percent?
The stock price today is $30.47.
To calculate the stock price today, we need to use the dividend discount model:
P = D1/(1+r) + D2/(1+r)^2 + D3/(r-g)/(1+r)^2
where P is the stock price, D1 is the dividend in year 1, D2 is the dividend in year 2, D3 is the expected dividend in year 3, r is the required return, and g is the expected growth rate.
Using the given information, we have:
D1 = $3.25
D2 = $2.50
r = 11.5%
g = 4.1%
To find D3, we first need to find the dividend in year 3:
D3 = D2 * (1+g) = $2.50 * (1+0.041) = $2.60
Now we can substitute the values into the equation:
P = $3.25/(1+0.115) + $2.50/(1+0.115)^2 + $2.60/(0.115-0.041)/(1+0.115)^2
P = $1.80 + $1.68 + $27.99
P = $30.47
Therefore, the stock price today is $30.47.
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which of the following is true for a firm having a current stock price of $42.02, an expected 1st year dividend of $3, and a sustainable growth rate of 8%? group of answer choices it has a required market return of approximately 15.14%. it has a dividend yield of 7.35%. none of the above the stock price is expected to remain flat next year
The statement that true is it has a required market return of approximately 15.14%.
Given information:
Current stock price = $42.02Expected 1st year dividend= $3Sustainable growth rate= 8%We know that the dividend yield can be calculated by dividing the expected dividend by the current stock price of the firm. In this case,
Dividend yield = Expected dividend / Current stock price = $3/$42.02 = 0.0712 or 7.12%.Now, the required market return of the firm can be calculated using the constant growth rate formula.
R = (D1/Po) + gWhere,
R = required rate of returnD1 = Expected dividend in the next yearPo = current stock priceg = sustainable growth rateGiven,
D1 = $3Po = $42.02g = 8%Putting the values in the above equation,
R = (3/42.02) + 0.08 = 0.150914 or 15.09%.Therefore, we can say that the firm has a required market return of approximately 15.14%.
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(14b) 5. a local sub restaurant located on campus offers a student rate for its sub lunch special. this is a form of
The local sub restaurant located on campus is offering a student rate for its sub lunch special as a form of marketing strategy to attract more students to its business.
In this scenario, the keyword "offers" is crucial in understanding the situation. The restaurant is offering a special deal to students, which is known as a "student rate." This means that the restaurant is giving students a discount on the regular price of their sub lunch special.
When a business offers a special rate or discount, it is a form of marketing strategy that aims to attract customers. In this case, the sub restaurant is specifically targeting students who are often looking for affordable meal options on campus.
Offering student rates or discounts is a common marketing strategy used by businesses to attract a specific group of customers.
These discounts are often available to students with valid identification, such as a student ID card.
The discounted price may be lower than the regular price or may include additional benefits, such as a free drink or side dish.
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a casino offers you a game with a six-sided die where you are paid the value of the roll. the casino lets you roll the first time. if you are happy with your roll, you can cash out. else, you can choose to re-roll and cash out on this second value. what is the fair value of this game?
You can play for the first time at the casino. You can pay out if you are satisfied with your score. If not, you have the option to reroll and take the second number. This game is fair value at $4.25.
The fair value of this game can be calculated by considering the expected value of the two possible outcomes: cashing out after the first roll or choosing to re-roll and cashing out on the second value.
If you cash out after the first roll, the expected value is the average of all possible outcomes on a six-sided die, which is (1 + 2 + 3 + 4 + 5 + 6) / 6 = 3.5.
If you choose to re-roll, the expected value of the second roll is also 3.5. However, since you have the option to re-roll only if you are not happy with your first roll, it makes sense to re-roll only if your first roll is less than or equal to 3. In this case, the expected value of the game becomes the average of the outcomes where you cash out after the first roll (4, 5, and 6) and the expected value of the second roll (3.5), which is (4 + 5 + 6 + 3.5 + 3.5 + 3.5) / 6 = 4.25.
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the government engages in fiscal policy when ? a. the environmental protection agency cleans up a toxic waste spill. b. the irs collects tax payments every april 15. c. congress extends unemployment benefits during a recession. d. the fed engages in open market operations
The government engages in fiscal policy when Congress makes changes to government spending and taxation in order to influence the economy.
Therefore, option (c) is the correct answer as Congress extending unemployment benefits during a recession is an example of fiscal policy. This is because during a recession, there may be an increase in unemployment, which can lead to a decrease in consumer spending and aggregate demand. By extending unemployment benefits, the government can provide a safety net for unemployed workers and increase their disposable income, which can stimulate consumer spending and economic activity.
Option (a) is an example of environmental policy, option (b) is an example of tax collection, and option (d) is an example of monetary policy, not fiscal policy.
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nature of uncollectible accounts the xyz corporation owns and operates hotels and casinos including the xyz grand and the bellagio in las vegas, nevada. as of a recent year, xyz reported accounts receivable of $639,000 and allowance for doubtful accounts of $136,107. patient care manufactures and sells a wide range of healthcare products including band-aids and tylenol. as of a recent year, patient care reported accounts receivable of $823,000 and allowance for doubtful accounts of $42,796. a. compute the percentage of the allowance for doubtful accounts to the accounts receivable for the xyz corporation. round your answers to one decimal place.
The allowance for doubtful accounts is a contra asset account that represents the estimated amount of accounts receivable that may not be collected.
To compute the percentage of the allowance for doubtful accounts to the accounts receivable for the XYZ corporation, we can use the following formula: Allowance for doubtful accounts / Accounts receivable = Percentage of allowance for doubtful accounts to accounts receivable
For XYZ corporation, the calculation would be:
$136,107 / $639,000 = 0.213, or 21.3%. This indicates that XYZ corporation estimates that 21.3% of its accounts receivable may not be collected. For patient care, the calculation would be: $42,796 / $823,000 = 0.052, or 5.2%. This indicates that patient care estimates that 5.2% of its accounts receivable may not be collected.
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true of false. the primary goal of variance analysis is to penalize managers for failure to adequately control operations.
The statement given is not correct. The main objective of variance analysis is to hold managers accountable for poor operational management is false.
Operations management is the control of a company's organisational framework, operational procedures, and financial goals. It pertains to the administration of duties necessary for a company to operate successfully on a daily basis, such as setting objectives and supervising numerous departments. Operations management's main purpose is to plan, organize, and strategize everyday tasks and routines. A well-executed strategy can assist in helping an organisation reach its deadlines and production targets. Operations management, in its simplest form, is the control of company operations for the purpose of achieving objectives, increasing productivity, and maximising profitability.
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HELP ASAP. WILL GIVE BRAINLIEST
after decreasing nominal GDP & real GDP, what would the next step for the federal reserve bank?
A. Observe how inflation is a factor.
B. Force banks to set the interest rate at 0%
C. Force consumers to buy more products
Answer:
If nominal GDP and real GDP decrease, the Federal Reserve Bank may take various actions to stabilize the economy. The most appropriate next step for the Federal Reserve Bank would likely be option A, which is to observe how inflation is affected. Inflation refers to the overall increase in prices of goods and services in an economy.
If the Federal Reserve Bank observes that inflation is decreasing along with the decrease in GDP, it may consider lowering interest rates to stimulate borrowing and spending, which can help increase demand for goods and services and boost economic growth. Lower interest rates can also help make borrowing more affordable for businesses, which can lead to increased investment and job creation.
On the other hand, if the Federal Reserve Bank observes that inflation is still high despite the decrease in GDP, it may consider increasing interest rates to reduce borrowing and spending and prevent the economy from overheating. Higher interest rates can also help to control inflation by increasing the cost of borrowing, which can discourage excessive borrowing and spending.
Option B, forcing banks to set the interest rate at 0%, is not an appropriate action because it limits the flexibility of banks to respond to economic conditions and can lead to unintended consequences such as inflation or a decline in the value of the currency.
Option C, forcing consumers to buy more products, is also not an appropriate action because it interferes with consumer choices and can be counterproductive to economic growth. In a market economy, consumers make choices based on their own preferences and budget constraints, and forcing them to buy more products can lead to inefficiencies and distortions in the economy
After decreasing nominal GDP & real GDP, the next step for the federal reserve bank is "observe how inflation is a factor". The correct option is A.
If nominal GDP and real GDP have decreased, it could indicate a slowdown in economic activity and a potential risk of deflation. The next step for the Federal Reserve Bank would likely be to observe how inflation is affected.
The Federal Reserve is responsible for monetary policy, and one of its key objectives is to maintain stable prices which typically involves targeting a moderate level of inflation.
This could involve implementing expansionary monetary policies, such as lowering interest rates, increasing money supply and so on.
Therefore, the correct option is A.
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true or false: a major reason why a firm may choose a related diversification strategy is to take advantage of both economies of scale and of scope.
The given statement " A related diversification strategy is to take advantage of both economies of scale and of scope" is true. Because, a related diversification strategy involves a company expanding its operations into a new industry or market that is related to its existing business.
One of the key advantages of related diversification is that it allows the company to take advantage of economies of scale and scope.
Economies of scale refer to the cost advantages that a company gains by increasing production or output, while economies of scope refer to the cost advantages that a company gains by producing a range of products or services using the same resources and capabilities.
By pursuing a related diversification strategy, a firm can leverage its existing resources and capabilities across multiple businesses, leading to both economies of scale and scope. This can help to reduce costs, increase efficiency, and improve overall profitability.
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you decide you need someone to be responsible for the development of one hundred new video game capsules, all to be created using a new development system. what job do you list as available? select an option from the choices below and click submit.
A project manager would be the most suitable job for someone responsible for the development of one hundred new video game capsules using a new development system. Here option D is the correct answer.
When it comes to developing a large number of video game capsules using a new development system, it is crucial to have someone who can oversee the entire process and ensure that everything runs smoothly and efficiently.
A project manager is a professional who specializes in managing projects and coordinating the efforts of different teams to achieve specific goals and objectives. In this scenario, a project manager would be responsible for overseeing the development of the video game capsules and ensuring that they are completed within the designated timeline and budget.
They would work closely with the video game developers, game designers, and software engineers to ensure that the new development system is properly implemented and that the resulting video game capsules are of high quality.
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Complete question:
Which job would be suitable for someone responsible for the development of one hundred new video game capsules using a new development system?
a) Video Game Developer
b) Game Designer
c) Software Engineer
d) Project Manager
in the context of organizational reward systems, fairness in the wages paid by an organization, in terms of competitive market rates outside the organization, is known as .in the context of organizational reward systems, fairness in the wages paid by an organization, in terms of competitive market rates outside the organization, is known as .external equitymerit-based rewardingindividual equitymarket-based payment
In the context of organizational reward systems, fairness in the wages paid by an organization, in terms of competitive market rates outside the organization, is known as external equity.
In general , External equity is known as the fairness and competitiveness of an organization's pay structure that is relative to the pay and benefits offered by other organizations in the same industry or labor market. It means that an organization pays its employees a wage that is competitive with the wages paid by other organizations for similar jobs.
Also, external equity, the organization can also attract and retain talented employees, as well as avoid labor turnover and legal issues that may arise from paying employees less than the market rates.
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the brs corporation makes collections on sales according to the following schedule: 50% in month of sale 45% in month following sale 5% in second month following sale the following sales have been budgeted: sales april $180,000 may $190,000 june $180,000 budgeted cash collections in june would be: group of answer choices $180,900 $184,500 $175,500 $180,000
The budgeted cash collections in June would be $184,500 (Answer choice B).
The question asks for the budgeted cash collections in June for BRS Corporation based on the given sales and collection schedule. Sales information: - April: $180,000, - May: $190,000, - June: $180,000. Collection schedule:- 50% in the month of sale, 45% in the month following sale, 5% in the second month following sale.
To calculate the budgeted cash collections in June, we need to consider collections from sales in April, May, and June Collections from June sales (50% in the month of sale):June sales: $180,000, 50% collected in June: $180,000 * 0.5 = $90,000Collections from May sales (45% in the month following sale): May sales: $190,000, 45% collected in June: $190,000 * 0.45 = $85,500
Collections from April sales (5% in the second month following sale):April sales: $180,000 , 5% collected in June: $180,000 * 0.05 = $9,000. Add up all the collections for June: June collections = $90,000 (from June sales) + $85,500 (from May sales) + $9,000 (from April sales) = $184,500. the budgeted cash collections in June would be $184,500 (Answer choice B).
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you can only present your information in an aggregated format (i.e., total sales by region) rather than on a dis-aggregated, customer level. group of answer choices true false
True, the question states that you can only present your information in an aggregated format, such as total sales by region, rather than on a disaggregated, customer level.
In an aggregated format, data is combined and summarized to show a general overview, like total sales by region. This format helps in identifying trends, patterns, and comparisons among different groups or regions. It is useful when presenting information to a broad audience that doesn't need detailed, individual-level data.
On the other hand, disaggregated data presents information at a more granular level, such as individual customer sales. This level of detail can be helpful for understanding specific cases or making data-driven decisions at a micro-level. However, the question explicitly asks you not to present information in this format..
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the bruin's den outdoor gear is considering a new 7-year project to produce a new tent line. the equipment necessary would cost $1.63 million and be depreciated using straight-line depreciation to a book value of zero. at the end of the project, the equipment can be sold for 15 percent of its initial cost. the company believes that it can sell 26,500 tents per year at a price of $70 and variable costs of $30 per tent. the fixed costs will be $455,000 per year. the project will require an initial investment in net working capital of $217,000 that will be recovered at the end of the project. the required rate of return is 11.3 percent and the tax rate is 21 percent. what is the npv?
To calculate the NPV, we need to find the present value of the cash inflows and outflows of the project. The initial investment is $1.63 million plus $217,000, which equals $1.847 million.
The annual cash inflows are the revenue from selling tents minus the variable and fixed costs. The revenue is $70 per tent times 26,500 tents, which equals $1.855 million. The variable costs are $30 per tent times 26,500 tents, which equals $795,000. The fixed costs are $455,000. Therefore, the annual cash inflow is $605,000 ($1.855 million - $795,000 - $455,000).
The cash outflows are the annual depreciation expense, which is $1.63 million divided by 7 years, which equals $233,143 per year. At the end of the project, the equipment can be sold for 15 percent of its initial cost, which is $244,500.
To calculate the present value of the cash flows, we use the formula:
NPV = -Initial investment + (Annual cash inflow - Depreciation expense - Taxes) x Present value factor + Salvage value x Present value factor. The present value factor is calculated using the required rate of return of 11.3 percent and the number of years of the project, which is 7.
Plugging in the numbers, we get:
NPV = -$1,847,000 + ($605,000 - $233,143 - $71,997) x 4.562 + $244,500 x 0.508
NPV = -$1,847,000 + $809,812 + $124,245
NPV = -$912,943
Therefore, the NPV of the project is -$912,943, which means the project should not be accepted as it does not generate positive value.
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during routine inspections, a field engineer discovers that one of the company's pipelines is leaking hazardous chemicals into the environment. the engineer recommends that the line be shut down so that seals can be replaced and the pipe can be inspected more closely. his supervisor commends him on his thoroughness, and says the report will be passed on to the company's maintenance division. the engineer moves on to his next job, assuming things will be taken care of in a timely manner. while working in the area again several months later, the engineer notices that the problem hasn't been corrected and is in fact getting worse. what should the engineer do?
The engineer ask the boss to look into what steps have been taken in this regard.
Civil engineers plan, design, build, supervise, manage, and maintain infrastructure projects and systems, such as roads, buildings, airports, tunnels, dams, bridges, and water supply and sewage treatment systems, in both the public and private sectors. The pay level of an engineer is very high when compared to other career fields, which is a big advantage for this line of employment. Also, your pay will probably rise over time as you acquire more knowledge and experience. Your compensation as an engineer may also be impacted by other things. Engineers must be strong in math. Engineering is primarily concerned with planning and producing answers to issues, and in the course of creating, constructing, and testing the solutions they generate, engineers frequently need to apply equations and computations.
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which factors may influence a company's choice of inventory cost flow assumption? (select all that apply.) multiple select question. actual physical flow of inventory financial statement effect tax implications of choice demand for its products
Factors that may influence a company's choice of inventory cost flow assumption include:
the actual physical flow of inventorytax implications of choicefinancial statement effectThe actual physical flow of inventory refers to the actual movement of goods in and out of the company, which can impact how costs are assigned to individual units of inventory. The tax implications of the choice of cost flow assumption can impact the amount of taxes the company owes, as different methods can result in different levels of taxable income.
The financial statement effect relates to how different methods of cost flow assumption can impact the presentation of a company's financial statements, which can affect investor perceptions and decisions. Therefore, companies should carefully consider these factors when selecting a cost flow assumption for their inventory.
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which is a likely outcome and might serve as an argument against the imposition of a tariff on a country from which we import manufacturing goods because that country can produce them at a lower cost than our domestic manufacturers of that good? a. another country that can also produce that good at a lower price than our domestic manufacturers will replace the country on which we imposed tariffs and will export (almost) the same amount of the good to us. b. our domestic manufacturers will benefit, create jobs, and our economy will be larger than if we had not imposed that tariff. c. we will increase our total surplus since revenues will be generated from the tariff. d. the country on which we imposed the tariffs will still be able to export the same quantities of that good to us.
The country can produce them at a lower cost than our domestic manufacturers of that good because we will increase our total surplus since revenues will be generated from the tariff. (option c).
Tariffs are taxes imposed on imported goods to make them more expensive and less competitive with domestically produced goods.
Imposing tariffs on manufacturing goods from a country that produces them at a lower cost than our domestic manufacturers may lead to several outcomes.
Another possible outcome is that our domestic manufacturers may benefit from the tariff by becoming more competitive and creating jobs, leading to a larger economy than if we had not imposed the tariff.
Moreover, imposing tariffs on manufacturing goods may not increase our total surplus since revenues generated from the tariff may be offset by the higher cost of goods and reduced demand, leading to a decrease in consumer surplus.
So, the right choice is (c).
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which of the following is the best example of participative decision making? employees are asked to create the work schedule they will live by for the next year. managers create a work schedule for their employees senior management shares corporate goals with all employees. employees are asked to create a work schedule that another group will live by for the upcoming year
The best example of participative decision making is when "employees are asked to create the work schedule they will live by for the next year". Option A is correct.
This is because it involves active involvement and input from employees in the decision-making process.
In participative decision making, employees are given a voice in the decision-making process, which can lead to better outcomes, higher job satisfaction, and increased commitment to the organization. Option A is the best example because it empowers employees to create a schedule that meets their needs and preferences, which can improve their work-life balance and increase their motivation and productivity.
By involving employees in the decision-making process, the organization can benefit from their insights, ideas, and expertise, which can help to improve efficiency, quality, and innovation.
Option A holds true.
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a company lends its supplier $158,000 for 3 years at a 8% annual interest rate. interest payments are to be made twice a year. the entry to record the establishment of the loan includes a debit to:
The entry to record the establishment of the loan includes a debit to "Notes Receivable" for $158,000, which represents the amount of the loan provided to the supplier.
The company is essentially becoming a creditor and expects to receive the principal amount along with interest over a period of 3 years. The credit entry would be to "Cash" for the same amount, indicating that the company has transferred cash to the supplier.
Since interest payments are to be made twice a year, the company would need to record adjusting entries every six months to recognize the interest expense and update the balance in the "Notes Receivable" account.
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Some companies use a social networking strategy in which they avoid making direct advertising or brand statements. outline the advantages and disadvantages of such a strategy.
The advantages like Builds trust, Enhances engagement and Encourages word-of-mouth marketing and disadvantages like Slower growth, Limited control and Requires more resources of companies using a social networking strategy where they avoid making direct advertising or brand statements.
Let's understand both briefly.
Advantages: 1. Builds trust: By not pushing promotional content directly, companies can build trust among their audience, as consumers are more likely to trust content that is not overtly selling a product or service.
2. Enhances engagement: Engaging with consumers on social media in a more organic, conversational manner can lead to increased interaction and engagement, which can strengthen brand loyalty. 3. Encourages word-of-mouth marketing: When companies avoid direct advertising, consumers are more likely to share their content and experiences, leading to organic growth and increased brand exposure.
Disadvantages: 1. Slower growth: Not using direct advertising or brand statements can result in slower growth, as promotional content is often necessary to drive sales and increase brand awareness quickly. 2. Limited control: By not making direct brand statements, companies might have limited control over the way their brand is perceived by the public.3. Requires more resources: Engaging with consumers on social media in a non-promotional manner often requires more time, effort, and resources as opposed to more traditional advertising methods.
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santa klaus toys just paid a dividend of $2.20 per share. the required return is 9.3 percent and the perpetual dividend growth rate is 3.1 percent. what price should this stock sell for five years from today?
The price the stock should sell for five years from today is $38.94.
To calculate the price of the stock after 5 years, we need to use the dividend discount model.
First, we need to calculate the next dividend payment by multiplying the current dividend by (1+growth rate) to the power of the number of years.
Next year's dividend = $2.20 x (1+3.1%) = $2.27
Dividend in five years = $2.27 x (1+3.1%)^5 = $2.77
Then, we need to calculate the present value of all future dividends beyond year five, using the perpetual growth formula:
PV = D / (r - g) where D is the next dividend payment and r is the required return, and g is the perpetual growth rate.
PV of all future dividends beyond year five = $2.77 / (9.3% - 3.1%) = $49.47
Finally, we can calculate the present value of the stock price in five years by using the formula:
PV = D1 / (r - g) x (1 + g) ^ 5, where D1 is next year's dividend payment.
PV of stock price in five years = $2.27 / (9.3% - 3.1%) x (1 + 3.1%) ^ 5 = $38.94.
Therefore, the price the stock should sell for five years from today is $38.94.
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larkspur company had cost of goods sold of $3,200. if beginning inventory was $3,300 and ending inventory was $1,100, larkspur's purchases must have been:
The cost of products sold for the Larkspur firm was $3,200. Larkspur's purchases must have totaled $6,500 if beginning inventory was $3,300 and ending inventory was $1,100.
All items and services acquired for resale or consumption throughout the manufacturing process are included in purchases of goods and services, except capital goods whose consumption is recorded as consumption of fixed capital. Offering a discount on a second product in exchange for the first product's purchase is known as "purchase with purchase."
A buy is when something is obtained in exchange for some type of payment, such as products or services. The typical forms of payment are cash or credit (to be paid later).
purchases = Cash Purchases + Credit Purchases.
purchases = 3,300 + 3,200
purchases = $6,500
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a person who works as a(n) works on every aspect of the export process and can represent multiple manufacturers of like products.
A person who works as a(n) export management company (EMC) works on every aspect of the export process and can represent multiple manufacturers of like products.
EMCs provide a variety of services, including market research, export financing, export documentation, logistics, and legal support. They essentially act as intermediaries between domestic manufacturers and foreign buyers by helping manufacturers find foreign customers and facilitating the export process.
An EMC can help a manufacturer enter a foreign market without having to commit a lot of resources and time. By working with an EMC, manufacturers can reduce their risk and costs associated with exporting, while still being able to tap into international markets.
EMCs can also help manufacturers with the complexities of exporting, such as navigating different languages, cultures, and regulations.
In essence, an export management company serves as an outsourcing partner for manufacturers looking to expand their reach globally. They provide a turnkey solution for exporting and enable manufacturers to focus on their core business functions while still reaching new customers abroad.
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which possible price and quantity combination is most efficient from society's point of view but would require the government to subsidize the firm?
The price and quantity combination that is most efficient from society's point of view but would require the government to subsidize the firm is when the market price is below the socially optimal price, resulting in a lower quantity produced than the socially optimal quantity.
In this case, the government may provide a subsidy to the firm to encourage it to produce the socially optimal quantity.
This situation is often observed in cases where the production of a good or service generates positive externalities, which are benefits to society that are not reflected in the market price. Examples of positive externalities include education, research and development, and public health.
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