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Rudik
19 days ago
15

If increasing physical capital increases productivity, why would a company not buy newer, faster computers for all its workers e

very year?
Business
1 answer:
Mariulka [3.1K]19 days ago
7 0

Response: this would be too costly and unnecessary

There are various resources and production factors necessary for the company. Human capital and physical resources, such as faster computers, are among these. While purchasing new computers for every employee would significantly boost productivity, it would be an excessive and unwarranted cost unless such technology is essential for their particular roles, especially as computers tend to become obsolete within a mere three years.


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Wilson Co. is considering two mutually exclusive projects. Both require an initial investment of $10,000 at t = 0. Project X has
Nady [2956]

Answer:

d. $1,376.74

Explanation:

The NPV for Project X is calculated as follows:

Year Cash outflow/inflow Present value factor      Present value

0              -$10,000.00                         1                   -$10,000.00

1                 $6,000.00                   0.900901              $5,405.41

2                 $8,500.00                     0.811622              $6,898.79

NPV                                                                        $2,304.20

For Project Y, the NPV is:

Year Cash outflow/inflow Present value factor      Present value

0                -$10,000.00                       1                   -$10,000.00

1                   $4,600.00              0.900901             $4,144.14

2                   $4,600.00                  0.811622             $3,733.46

3                    $4,600.00                   0.731191                   $3,363.48

4                    $4,600.00                  0.658731             $3,030.16

Total                                                                        $4,271.25

The formula for calculating Equivalent Annual Annuity is expressed as:

C = r*(NPV)/(1-(1+r)-n)

For Project X, where NPV = $2304.20

using r = 11% and n = 2

Plugging in values into the formula gives us:

C = 11%*$2304.20/(1-(1+11%)−2

    =$1345.38

For Project Y, where NPV = $4271.25

using r = 11% and n = 4

Inserting the values into the formula, we find C = 11%*$4271.25/(1-(1+11%)−4

   = $1376.74

Thus, the more profitable project is Y, with an equivalent annual annuity of $1376.74.

8 0
8 days ago
Which type of financing source performs the most strict, rigorous review of business records before guaranteeing financing?
Free_Kalibri [3151]
In my opinion, the answer is <span>Real estate financing, which generally spans a long period, typically ranging from 10 to 30 years. A down payment of approximately 20% is common, and this often requires a significant loan amount. Thank you for your question. I trust this response is helpful. </span>
5 0
25 days ago
Natsu Company’s annual accounting period ends on October 31, 2017. The following information concerns the adjusting entries that
Mariulka [3175]

Response:

Natsu Company

1. Journal Adjustments as of October 31:

a. Expense for Supplies $54,370

   Inventory for Supplies $54,370

This entry records the expenses incurred for supplies throughout the period.

b. Expense for Insurance $4,730

   Prepaid Insurance $4,730

This entry captures the insurance expenses for the period in question.

c. Wages Expense $5,000

  Wages Payable $5,000

This entry is to acknowledge the wages that have not been paid for the period.

d. Depreciation on Building $5,400

   Accumulated Depreciation $5,400

This reflects depreciation expense for the current year.

e. Rent Receivable $1,000

   Rent Revenue $1,000

This entry documents the revenue from rent for the month.

f. Unearned Rent $1,450

  Rent Revenue $1,450

This entry is for recognizing rent revenue for two months.

2. General Journal Entries for cash transactions in November 2017 relating to c and e:

c:

Date General Journal                         Debit      Credit

Nov. 7      Salaries Payable   $5,000

                Cash Account                            $5,000

This reflects the disbursement of wages for the final week of October.

e:

Date General Journal    Debit      Credit

Nov. 15    Cash Account      $2,000

               Rent Revenue                     $1,000

               Rent Receivable                   1,000

This entry captures the collection of rent for both October and November.

Clarification:

a) Data and Calculations:

1. Supplies

Beginning Balance         $600

Purchases       54,570

Supplies Expense   54,370*

Ending Balance         $800

2. Policy  Purchase Date   Months of         Cost

                                               Coverage        

         A        April 1, 2016              24          $6,000

         B        April 1, 2017               36            7,200

         C        August 1, 2017           12            1,320

3. Insurance Expense for 2017:

Policy A Nov 2016 to October 2017  $3,000 ($6,000 *12/24)

Policy B April 2017 to October 2017 $1,400 ($7,200 * 7/36)

Policy C Aug. 1 2017 to October 2017 $330 ($1,320 * 3/12)

Total Insurance Expense = $4,730

4 0
1 month ago
Alabama this winter was socked in with snow which closed highways, stores and schools for weeks. Because of the road closures, s
arsen [2965]
people initiate an underground market to peddle soup and provide delivery services for it. we recognize that the winter conditions, particularly snow, lead to highway closures, disrupting transport. If shops are shut, this would heighten demand while the supply dwindles. Should the government impose a temporary price cap of $1 on soup, down from an equilibrium price of $5, I believe individuals will attempt to hoard supplies owing to the significant demand paired with scarce availability, prompting the emergence of a black market for soup sales and deliveries.
8 0
14 days ago
Which of the law ideas might be created under the Elastic Clause?
Katen [2907]
<span>#1) What types of laws could be established using the Elastic Clause?

Response:
Initially, it’s important to note that the Elastic Clause refers to a provision in the Constitution, specifically Clause in Article I, Section 8, which empowers Congress to enact all laws deemed "Necessary and Proper." The interpretation of this clause has sparked considerable debate about Congress's authority to legislate on matters not explicitly mentioned in the Constitution. Among the various possibilities, the most plausible law that could be enacted under the Elastic Clause is A) regulations for ratifying foreign treaties.

<span>I trust this is helpful, Regards. </span></span>
6 0
21 day ago
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