Answer:
The main reason behind using the residual income in place of rate if income is that the manager always goes for that project that gives maximum benefit to the organization.
Explanation:
The main reason behind using the residual income in place of rate if income is that the manager always goes for that project that gives maximum benefit to the organization.
As residual income is referred to income that calculated after deducting all debt and expenses occur on the project. ROI is a way to predict the profit of the project while residual income calculates the net income that the organisation generates from the project.
Answer:
To increase its revenue, transit authority should lower the fare.
Explanation:
The 'elasticity of demand' measures the change in consumers response in quantity he demands as a result of the change in price, other factors remaining same.
A product is called elastic if with the increase or decrease in price, there is a drastic change in the quantity demand of the product. If the transit authority will lower its fare, then their revenue will increase as the elasticity of demand for bus trip is 1.2. By lowering the fare, the demand would increase and their revenue will increase.
Answer:
500
Explanation:
please find attached the table referred to in this question and a second table where marginal cost is included
A perfect competition is characterised by many buyers and sellers of homogeneous goods and services. Market prices are set by the forces of demand and supply.
in a perfect competition, price = marginal cost = marginal revenue
Marginal cost = total cost 2 - total cost 1
e.g. marginal cost at 2 units of output = $7 - $2 = $5
Hank and Helen would supply at the point where marginal cost is equal to $5.
looking at the second attached table, there are two points where marginal cost is equal to $5. at output 1 and output 5.
at output one, Hank and Helen would be earning a loss because total cost is greater than total revenue. so they would not supply at this point.
at output five, Hank and Helen would earn a profit and thus would supply at 5 units of output.
Since all firms face and identical cost structure, the industry supply would be 100 x 5 = 500 pounds
Answer: Is all of the above.
Explanation:
Accounting involves the process of taking accurate records of financial and non-financial activities of a business organization. Accounting is the language of business as it is needed for every business to succeed, also in accounting, records are kept that are useful in decision making.
Based on the amount it would cost to build the machine and the interest rate as well as the payoff, the following are true:
a. The machine will take a year to build which means the payoff will only start coming in next year.
First find the present value of the perpetuity:
= 70 / 5%
= $1,400
You then need to find the present value of the above in the current period:
= 1,400 / ( 1 + 5%)
= $1,333
NPV is:
= 1,333 - 1,000 cost
= $333
B. If the amount produced increases by 1%, you should use the Gordon Growth Model:
<em>= Next payoff / ( Interest - Growth)</em>
=70/ ( 5% - 1%)
= $1,750
Take this to current year:
= 1,750 / 1.05
= $1,667
NPV will be:
= 1,667 - 1,000
= $667
Find out more about NPV at brainly.com/question/7254007.
