(Textbook Numerical Problems 4). The Missing Link Chain-Link Fence Company is trying to determine how many chain-link fabricating machines to buy for its factory. If we define a chain-link fence of some specified length to be equal to one unit of output, the price of a new fabricating machine is 60 units of output, and the price of a one-year-old machine is 51 units of output. These relative prices are expected to be the same in the future. The expected future marginal product of fabricating machines (i.e., MPKf), measured in units of output, is 165-2K, where K is the number of machines in use. There are no taxed of any sort. The real interest rate is 10% per year. (a). What is the user cost of capital? Specify the units in which your answer is measured.

Answers

Answer 1

The user cost of capital will be 15 units.

Price of new fabricating machine= 60 units of output

Price of a one-year-old machine = 51 units of output

Marginal cost of fabricating machine = 165 - 2K

Real interest rate = 10%

We'll then calculate depreciation which will be:

= (60 - 51)/60 × 100

= 9/60 × 100

= 15%

Therefore, the cost of capital will be:

= (Interest rate + Depreciation) × Price

= (0.10 + 0.15) × 60

= 0.25 × 60

= 15

Therefore, the user cost of capital is 15 units

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Related Questions

What is yall favorite sport to play? And why?

Answers

My favorite sport to play is basketball only because of the competitive aspect to it. Something about the sport gives me a drive & adrenaline that I never really felt before and on top of that it’s a good exercise to keep my body in shape while getting to have fun with my family & peers & teammates
Please mark me brainliest

Explain what options there are for student loans.

Answers

Answer:

federal student loans and private loans.

Explanation:

Michek Company loans Sarasota Company $2,000,000 at 6% for 3 years on January 1, 2020. Michek intends to hold this loan to maturity and has the financial ability to do so. The fair value of the loan at the end of each reporting period is as follows. December 31, 2020 $2,050,000 December 31, 2021 2,020,000 December 31, 2022 2,000,000 Prepare the journal entry(ies) at December 31, 2020, and December 31, 2022, for Michek related to these bonds, assuming (a) it does not use the fair value option, and (b) it uses the fair value option. Interest is paid on January 1.

Answers

Michek Company's Journal Entries related to loans to Sarasota Company are as follows:

a) Journal Entries without using fair value option:

December 31, 2020:

Debit Interest Receivable $120,000

Credit Interest Revenue $120,000

To record the 6% interest due on January 1.

December 31, 2022:

Debit Interest Receivable $120,000

Credit Interest Revenue $120,000

To record the 6% interest due on January 1.

b) Journal Entries with fair value option

December 31, 2020:

Debit Loan Receivable $50,000

Credit Unrealized Gain from Fair Value $50,000

To record the fair value of the loan.

Debit Interest Receivable $120,000

Credit Interest Revenue $120,000

To record the 6% interest due on January 1.

December 31, 2022:

Debit Unrealized Loss from Fair Value $20,000

Credit Loan Receivable $20,000

To record the fair value of the loan.

Debit Interest Receivable $120,000

Credit Interest Revenue $120,000

To record the 6% interest due on January 1.

Data and Calculations:

January 1, 2020, amount of loan = $2,000,000

Interest rate = 6%

Period of loan = 3 years

December 31,                   2020           2021           2022

Fair value of loan   $2,050,000   2,020,000   2,000,000

Interest income         $120,000     $120,000     $120,000 ($2,000,000 x 6%)

Payment of interest = January 1

December 31, 2021:

Debit Unrealized Loss from Fair Value $30,000

Credit Loan Receivable $30,000

Debit Interest Receivable $120,000

Credit Interest Revenue $120,000

Thus, the Loan Receivable account's balance at December 31 each year varies only when using the fair value option.

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Pizza is a product. As you have learned, services are marketed differently. Hypothesize about how the service at your restaurant may be marketed in order to set your business apart from others. How is marketing a service different than for a product?

Answers

Answer:

It's very different

Explanation:

when marketing a product we are trying to show our customers the products by manipulating them with idols, Models..etc that will make the customers think it's a perfect thing to buy because they saw someone famous do it.

for example when you see Tonny Stark wat some pizza on tv you will want to buy the same pizza he is eating.

But for the service part it's intangible so they only can see it, by just showing how beautiful, fansy, luxurious and relaxing it is. For example when you see a commercial on tv about Hawaii.

The DuPont equation Corporate decision makers and analysts often use a particular technique, called a DuPont analysis, to better understand the factors that drive a company’s financial performance, as reflected by its return on equity (ROE).

a. True
b. False

Answers

Answer:

true i think

Explanation:

Felicia has sent a memo to her employee, Ben, to schedule Ben's performance review. Which choice best
describes Felicia in this communication scenario?
O a barrier to the message
O a paraphraser of the message
o the receiver of the message
the sender of the message

Answers

Answer:

Option no. 3

This is the answer

Answer:

3. the sender of the message

Explanation:

edge 2021

Which of the following is NOT a disadvantage of personal interviews?

Answers

Answer:

Where are the options to this question

An analyst predicted last year that the stock of Logistics, Inc., would offer a total return of at least 10% in the coming year. At the beginning of the year, the firm had a total stock market capitalization of $10 million. At the end of the year, its market cap was $12 million even though it experienced a loss, or negative net income, of $2.5 million. Did the analyst's prediction prove corrct? Explain using the values for total annual return.
The total rate of return for the firm is %. (Round to two decimal places.)
Did the analyst's prediction prove correct? (Select the best answer below.)
A. Yes, the analyst's prediction is correct because the firm's total rate of return is even higher than the predicted one regardless of the negative net income.
B. No, the analyst's prediction is incorrect because the firm had a negative net income even though its total rate of return is higher the predicted one
C. Yes, the analyst's prediction is correct because the firm's negative net income was fully recovered by the positive annual rate of return.
D. No, the analyst's prediction is incorrect because the firm had a lower total rate of return than the one the analyst predicted.

Answers

The analyst's prediction was correct because the total return from the market capitalization of Logistics, Inc. increased to 20% from 10%.

A. Yes, the analyst's prediction is correct because the firm's total rate of return is even higher than the predicted one regardless of the negative net income.

Data and Calculations:

Total return predicted by analyst = >10%

Total stock market capitalization at beginning = $10 million

Total stock market capitalization at ending = $12 million

Increase in market capitalization witnessed during the year = $2 million ($12 - $10 million)

Return for the year based on market capitalization = 20% ($2/$10 x 100)

Net loss for the year = $2.5 million

Thus, the analyst's prediction was correct because the total returns recorded at the end of the year was 20%, which was more than 10%.

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It is December​ 31, the end of the​ year, and the controller of Saxton Corporation is applying the​ lower-of-cost-or-market (LCM) rule to inventories. Before any​ year-end adjustments, the company reports the following​ data: LOADING...​(Click the icon to view the​ data.) Saxton determines that the net realizable value of ending inventory is $48,000. Show what Saxton should report for ending inventory and for cost of goods sold. Identify the financial statement where each item appears. Financial statement where item is reported Balance to be reported Inventory Balance Sheet Cost of goods sold Income Statement 393000

Answers

The inventory that will be reported on the balance sheets is $43000 while the cost of goods sold is $455000

Your question is incomplete. A similar question will be used on guiding you. Let's assume the following figures:

The net realizable value of ending inventory = $43000Historical cost of ending inventory = $58000Cost of goods sold = $440000

To know the inventory amount that will be reported on the balance sheets, you've to select the lowest between the net realizable value of the ending inventory and the historical cost of ending inventory. The lowest is $43000.

The cost of goods sold that'll be reported will be:

= $440,000 + $15,000

= $455,000

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Explain the significance of each of the following major fields of business activity: manufacturing, wholesaling, retailing.

Answers

Answer:

Manufacturing is the process of transforming raw resources into a form that customers can utilize. A picture frame maker creates completed items out of wood and glass. A baker is someone who transforms flour, sugar, and spices into pies and cakes. Manufacturing, more than any other industry, lends itself to large-scale operations. This is due to the fact that many of these businesses, such as automotive manufacturing, require significant quantities of money and a big number of employees to get started.

Explanation:

Wholesalers purchase items from extractive or manufacturing firms and resell them to other businesses. They often acquire in big numbers before selling in tiny ones.

Retailers purchase items from wholesalers, manufacturers, and extractive companies and sell them to customers. Most people associate retail with a store where they may purchase products.

Ishmail is figuring out whether his products will be used by the end consumer or be purchased by businesses to create other products. This decision will determine whether he creates industrial or consumer goods. He decides to make a chart comparing and contrasting these two types of goods. What should he include for each type of “good” on this chart?

Answers

Ishmail can produce either industrial goods or consumer goods. They have different characteristics as shown below:

Industrial goods:

Either raw materials or goods that have not been processed into their final form. Bought by other businesses in order to process them into finished goods Used in the production of goods and services e.g. machinery Are generally more expensive than consumer goods Purchased in large quantities

Consumer goods:

Final products that are meant for consumers Can be durable or non-durable Usually bought in small quantities Cheaper than industrial goods.

In conclusion, industrial goods and consumer goods are generally different in terms of buyers, price and volume of purchase.

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Who can check your credit score?

Answers

Current or potential creditors — like credit card issuers, auto lenders, and mortgage lenders — can pull your credit score and report to determine creditworthiness as well. Credit history is a major factor in determining (a) whether to give you a loan or credit card, and (b) the terms of that loan or credit card.

Hope this helps you!

Overinflated tires are more prone to _____.
A. hydroplaning
B. deflating slowly
C. blowouts
D. catching on fire

Answers

Answer:

Blowouts

Explanation:

It is because it pops easier

blow outs its easy to explode

A contract with an illegal object is not voidable
True
False

Answers

Answer:false

Explanation:

False

A voidable contract is legal. Its a void contract that is illegal- thus this statement is false

Hope this helped you- have a good day bro cya)

Summarize red lines and reverse red lining and why they are unethical lending practices

Answers

Answer:

3 For example, redlining has been used to describe discriminatory practices by retailers, both brick-and-mortar and online. Reverse redlining is the practice of targeting neighborhoods (mostly non-white) for higher prices or lending on unfair terms such as predatory lending of subprime mortgages. A 2017 study by Federal Reserve Bank of Chicago economists found that redlining—the practice whereby banks discriminated against the inhabitants of certain neighborhoods—had a persistent adverse impact on the neighborhoods, with redlining affecting homeownership rates, home values and credit scores in 2010.

The following entries appear in a cash account in March. $ Payments by customers 15,000 Rents received 250 Insurance paid 150 Drawings 700 Capital paid in 2,000 The balance at 1st March was $2,000 (in hand) what was the closing balance at 31st March? ​

Answers

Answer:

ejvjnwkjvnjn

Explanation:

baxcjnsldkv

the closing balance is 24,768

Which scenario best reflects the relationship between production and demand in a recession?
Car dealerships have minimal overstock.
Car dealerships are not restocking.
• Car dealerships cannot sell their stock.
• Car dealerships cannot obtain stock.

Answers

Answer:

A car dealership can't sell their stock

Explanation:

In a recessionary economic situation, the scenario that best reflects the relationship between production and demand is a car dealership cannot sell its stock.

What characterizes a recession?

It occurs when an economy declines for two consecutive quarters. It is an analysis that is based on the variation of a country's GDP.

Therefore, in a recession situation, consumers would generally choose to spend their money on essentials such as food and medicine. It is then concluded that the sale of vehicles in this period would be reduced and therefore the dealerships would not sell their stock.

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Race is a factor of
a. demographics
b. communication
c. possible customers
d. competition

Answers

Answer:

Race is a factor of a. demographics

Explanation:

Answer:

Competition

Explanation:

Just like a relay, competing to be the first

Soda vs GDP Note: The linear model is the linear trend line (the broken line). (i) Both the USA and Mexico consume more soda than predicted by the linear model. But which of the two countries consumes much more than predicted? [ Select ] (ii) Both Japan and Switzerland consume less soda than predicted by the linear model. But which of the two countries consumes much less than predicted? [ Select ] (iii) Of the countries named on the scatterplot, which country’s soda consumption was closest to the amount predicted by the linear model? [ Select ] (iv) Of the countries named on the scatterplot, which country’s soda consumption was furthest from the amount predicted by the linear model?

Answers

The linear model is a term that determines a direct relationship between two elements that maintain a constant rate.

According to this and the graph shown in the figure below, we can answer the above questions as follows:

The US consumes more soda than Mexico.Japan consumes less soda than Switzerland.Egypt was the country that had the consumption of soda closest to the amount predicted by the linear model.The USA was the country that had the consumption of soda farther than what was predicted by the linear model.

We can arrive at these answers by looking at the chart. This is because the red dashed line, in the center of the graph, shows the forecast of the linear model about the consumption of soft drinks in the countries, taking into account their GDP.

In this case, by observing the position of the countries around this line, we can conclude the consumption of soda.

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When the cost of most goods and services rise over time, this has the effect of a dollar being able to buy less over time. This is called _____.

deflation
inflation
supply and demand
exchange value

Answers

The answer would be inflation .

A manufacturer has two manufacturing departments, Assembly and Painting. The company uses the FIFO method and it reports the following data. Units completed in the Assembly department are transferred to the Painting department. Units Direct materials Percent Complete Conversion Percent Complete Beginning work in process inventory 75,000 60% 40% Units started this period 900,000 Units completed and transferred out 885,000 Ending work in process inventory 90,000 80% 30% Production cost information for the Assembly department follows. Beginning work in process Direct materials $ 134,400 Conversion 45,900 $ 180,300 Costs added this period Direct materials $ 3,693,600 Conversion 2,690,100 $ 6,383,700 Calculate the number of units started and completed this period for the Assembly department.

Answers

The number of units that the manufacturer started and completed this period for the Assembly Department is 810,000 units.

Data and Calculations:

                                             Units        Direct materials       Conversion

                                                          Percent Complete   Percent Complete

Beginning WIP inventory    75,000               60%                       40%

Units started this period  900,000

Units completed and

transferred out               885,000

Ending WIP inventory       90,000               80%                        30%

Units started and completed this period = Units completed and transferred out - Beginning work in progress inventory

= 810,000 units (885,000 - 75,000)

Thus, it is also equal to Units started in the Assembly Department during the period minus Ending work in progress inventory

= 810,000 units (900,000 - 90,000)

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Calcular el interes que genera un capital emprestado de $ 15500 a una tasa del 6,5% anual durante 240 dias
Necesito ayuda

Answers

Answer:

I think answer is 41.97.

What is the collection of direct, non-advertising messages a company presents to the public about itself, its brand, and its products? A. Sales promotions B. Market research C. Direct marketing D. Public relations Please select the best answer from the choices provided A B C D

Answers

Answer:

Is a D. Public relations

what are two examples of ways an electronic record may be disturbuted to others?

Answers

Answer:

Way 1. Email, Way 2. Publish on Internet

HURRY!!!!! !PERSONAL FINANCE! In the New York Stock Exchange, traders are on the floor verbally submitting their offers. What type of stock market is this considered to be?

A. neutral

B. physical

C. virtual

D. rational

Answers

Answer: the ANSWER IS B!!!!!!

Explanation:

Answer: B

Explanation:

An entrepreneur is a person who__a business venture.
assumes the risk for
organizes
does not get involved in
operates

Answers

Answer:

assumes the risk for organizes

Explanation:

because in every business there is profit or loss if we don't take risk how we achieve our goal

Blossom Company expects to have a cash balance of $78,200 on January 1, 2022. These are the relevant monthly budget data for the first two months of 2022
1. Collections from customers: January $120,700, February $248,200.
2. Payments to suppliers: January $68,000, February $127,500.
3. Wages: January $51,000, February $68,000. Wages are paid in the month they are incurred.
4. Administrative expenses: January $35,700, February $40,800. These costs include depreciation of $1,700 per month. All other costs are paid as 4. incurred.
5. Selling expenses: January $25,500, February $34,000. These costs are exclusive of depreciation. They are paid as incurred.
6. Sales of short-term investments in January are expected to realize $20,400 in cash. Blossom Company has a line of credit at a local bank that enables it to borrow up to $42,500. The company wants to maintain a minimum monthly cash balance of $34,000.
Prepare a cash budget for January and February.

Answers

Answer:

Blossom Company expects to have a cash balance of $78,200 on January 1, 2022. These are the relevant monthly budget data for the first two months of 2022 Collections from customers: January $120,700, February $248,200. 1. Payments to suppliers: January $68,000, February $127,500. 2. Wages: January $51,000, February $68,000. Wages are paid in the month they are incurred. 3. Administrative expenses: January $35,700, February $40,800. These costs include depreciation of $1,700 per month. All other costs are paid as 4. incurred. Selling expenses: January $25,500, February $34,000. These costs are exclusive of depreciation. They are paid as incurred. 5. Sales of short-term investments in January are expected to realize $20,400 in cash. Blossom Company has a line of credit at a local bank that enables it to borrow up to $42,500. The company wants to maintain a minimum monthly cash balance of $34,000. 6. Prepare a cash budget for January and February. (List items that increase cash balance first.)

BLOSSOM COMPANY Cash Budget January February $ $ tA TA

$ $

Explanation:

Which employees should be aware of how to turn off power to a shop in an emergency?
Managers
Owners
Contractors
All workers should know how to turn the power off in an emergency.

Answers

Answer:

Last one.

Explanation:

All the workers should know how to turn off the power in an emergency. Just in case there isn't one, there is the other.


What do you understand by "Industrialisation"?

Answers

Industrialisation is the period of social and economic change that transforms a human group to an industrial society from an agrarian society, involving the extensive manufacturing reorganisation of an economy. Industrialisation requires many key elements to grow on a significant scale. Your welcome

You don’t have to notify employees that a lockout/tagout is about to begin.
True
False

Answers

False. Employees must be notified by the supervisor about the beginning of a lockout/tagout procedure.

Lockout and tagout are work procedures that ensure that safety is maintained for employees, especially during equipment repairs or maintenance.

Lockout involves ensuring that the operation of a machine or process is in a safe mode by isolating energy from the system.

Tagout is a labeling that ensures that warnings are issued to employees during a lockout so that a machine or process is not re-energized until the repair or maintenance is complete.

Thus, it is FALSE that employees will not be notified that a lockout/tagout is about to commence.

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