Answer:
$100,890
Explanation:
To determine the value of the debt we must calculate the present value of the note:
present value = future value of the note / (1 + interest rate)⁵
present value = $170,000 / (1 + 11%)⁵ = $170,000 / 1.11⁵ = $170,000 / 1.685
present value = $100,890
Answer:
a. Total revenue from the 3 products:
= $75,000 + $80,000 + $30,000
= $185,000
Total costs at the split-off point:
= $45,000 + $55,000 + $60,000
= $160,000
Gross profit currently being earned
= Total revenue - Total costs
= $185,000 - $160,000
= $25,000
b. Incremental revenue from product A:
= $116,000 - $75,000
= $41,000
Incremental costs = Rent for special equipment + Materials and labor cost
= $17,500 + $12,650
= $30,150
Incremental gross margin = Incremental revenue - Incremental costs
= $41,000 - $30,150
= $10,850
So, if product A is further processed, quarterly profits will increase by $10,850.
Answer:
d. the increases in wheat harvested will get smaller and smaller.
Explanation:
A marginal rate of technical substitution (MRTS) can be defined as an economic principle which is typically used to represent the rate at which a factor such as capital must decrease so that the same level or quantity of production is maintained when another factor such as labor is changed (increased).
An isoquant is the slope of a marginal rate of technical substitution (MRTS) which connects the two input factors provided that the level of output or production is the same.
Also, the diminishing marginal rate of technical substitution refers to the decline (fall) in marginal rate of technical substitution (MRTS) along an isoquant that produces the same quantity (level) of output.
When an isoquant has a diminishing marginal rate of technical substitution, the corresponding isoquants are convex to the origin. Thus, the marginal rate of technical substitution (MRTS) would continue to diminish as more of a factor such as capital is used.
If we add successive laborers to work a given amount of land on a wheat farm, eventually the increases in wheat harvested will get smaller and smaller.
<span>Summer lay-by and Christmas were two occasions in which slaves could look forward to for recreation and relaxation.</span>
Answer:
$628.49
Explanation:
Cash flows Discount factor Future value
$100 1.1449 $114.49
$200 1.07 $214
$300 1 $300
Future value $628.49
The discount factor is as follows
= (1 + interest rate)^number of years
For $100 the year is 2
For $200 the year is 1
For $300 the year is 0