The required rate of return is 13% and the estimated proceeds from selling the property at the end of year four is $681,078, the net present value (NPV) of the project is $15,782.40.
To calculate the NPV of the project, we need to discount the expected cash flows and the future proceeds from selling the property to their present values using the required rate of return of 13%.
Calculating the present value of each cash flow:
PV1 = Year 1 cash flow / (1 + r)^1 = $52,757 / (1 + 0.13)^1 = $46,618.14
PV2 = Year 2 cash flow / (1 + r)^2 = $58,085 / (1 + 0.13)^2 = $46,877.12
PV3 = Year 3 cash flow / (1 + r)^3 = $62,783 / (1 + 0.13)^3 = $44,202.54
PV4 = Year 4 cash flow / (1 + r)^4 = $63,567 / (1 + 0.13)^4 = $41,984.47
Calculating the present value of the future proceeds from selling the property:
PV4' = Future proceeds / (1 + r)^4 = $681,078 / (1 + 0.13)^4 = $468,914.90
Calculating the NPV by summing all the present values:
NPV = PV1 + PV2 + PV3 + PV4 - PV4' = $46,618.14 + $46,877.12 + $44,202.54 + $41,984.47 - $468,914.90 = $15,782.40
Therefore, the NPV of the project is $15,782.40.
Learn more about cash flows here :
https://brainly.com/question/28503523
#SPJ11
Consumer surplus. Compute the consumer surplus, as a function of the price p, associated with the following demand functions: (a) D(p)=1−p. (5 points ) (b) D(p)=p −ε
, where ε>1. (5 points)
To compute the consumer surplus associated with a demand function, integration is used. For the demand function D(p) = 1 - p, the consumer surplus is (p^2 / 2). For D(p) = p - ε, the consumer surplus is (p^2 - 4εp + 3ε^2) / 2.
(a) The consumer surplus associated with the demand function D(p) = 1 - p can be computed as follows:
CS(p) = ∫[0, 1 - p] D(q) dq
CS(p) = ∫[0, 1 - p] (1 - q) dq
CS(p) = [(1 - q)^2 / 2] |[0, 1 - p]
CS(p) = [(1 - (1 - p))^2 / 2] - [(1 - 0)^2 / 2]
CS(p) = (p^2 / 2)
Therefore, the consumer surplus as a function of the price p is CS(p) = (p^2 / 2)
(b) The consumer surplus associated with the demand function D(p) = p - ε can be computed as follows:
CS(p) = ∫[0, p - ε] D(q) dq
CS(p) = ∫[0, p - ε] (q - ε) dq
CS(p) = [(q^2 / 2) - εq] |[0, p - ε]
CS(p) = [((p - ε)^2 / 2) - ε(p - ε)] - [(0^2 / 2) - ε(0)]
CS(p) = [(p^2 - 2εp + ε^2 - 2εp + 2ε^2) / 2]
CS(p) = [(p^2 - 4εp + 3ε^2) / 2]
Therefore, the consumer surplus as a function of the price p is CS(p) = (p^2 - 4εp + 3ε^2) / 2.
To know more about consumer surplus, visit:
brainly.com/question/29025001
#SPJ11
Due to pressure from your senior management, you rushed through the project initiation process and did not perform an appropriate stakeholder identification and analysis activity. What issues could you face during rest of the planning process?
Rushing through the project initiation process and neglecting proper stakeholder identification and analysis can lead to several issues during the rest of the planning process:
1. Incomplete understanding of project requirements: Without identifying and analyzing stakeholders, you may miss key individuals or groups who have a significant impact on the project or who may be affected by its outcomes. This can result in incomplete or inaccurate project requirements, leading to misunderstandings and potential conflicts later on.
2. Lack of stakeholder support and engagement: Failing to engage relevant stakeholders from the beginning can lead to a lack of support and buy-in for the project. Stakeholders may feel excluded or uninvolved, making it challenging to secure their commitment, resources, and cooperation during the planning process.
3. Unidentified risks and challenges: Stakeholders often bring valuable insights and perspectives that can help identify potential risks and challenges early on. By not involving them in the stakeholder identification and analysis phase, you may overlook critical risks, dependencies, or issues that could impact the project's success.
know more about stakeholder here;
https://brainly.com/question/30241824
#SPJ11
Consider the geometric shape of the profit protile of a "Covered Call" strategy, when holding the option until expiration. The shape of this profit profile should have the same geometric shape as which of the following positions: (circle the best choice): a) Short Put c) Short Call b) Long stock, and long Put d) Long Put
The geometric shape of the profit profile of a "Covered Call" strategy, when holding the option until expiration, has the same shape as a Short Call position.
Explanation: A "Covered Call" strategy involves holding a long position in the underlying stock and simultaneously selling (writing) a call option on that stock.
The profit profile of a Covered Call strategy is characterized by limited upside potential and limited downside risk. When holding the option until expiration, the profit profile resembles that of a Short Call position.
A Short Call position involves selling (writing) a call option without owning the underlying stock. In this position, the profit is maximized when the price of the underlying stock remains below the strike price of the call option.
As the price of the stock rises above the strike price, the potential losses increase, capping the profit potential.
Similarly, in a Covered Call strategy, the profit potential is limited because the investor has already sold (written) a call option on the stock they own.
If the stock price rises above the strike price, the investor's potential profit is limited to the premium received from selling the call option. If the stock price declines, the investor's downside risk is partially offset by the premium received.
Therefore, the geometric shape of the profit profile of a Covered Call strategy, when holding the option until expiration, resembles that of a Short Call position due to their similar limited upside potential and limited downside risk characteristics.
Learn more about stock here:
https://brainly.com/question/31940696
#SPJ11
STC has a beta of 1.5, a standard deviation of 7% and an expected return of 9%. UM has a beta of 1.2, a standard deviation of 10% and an expected return of 11%. Assuming the returns of STC and UM are entirely uncorrelated and that the risk-free rate is 2%, find the Sharpe ratio of a portfolio that is equally weighted in these two securities. A) 0.131 B) 1.31 C) 1.64 D) 6.1 E) 9.2
To calculate the Sharpe ratio of a portfolio that is equally weighted in STC and UM, we need to use the formula:
Sharpe Ratio = (Expected Return of Portfolio - Risk-Free Rate) / Standard Deviation of Portfolio
First, let's calculate the expected return of the portfolio:
Expected Return of Portfolio = (Expected Return of STC + Expected Return of UM) / 2
= (9% + 11%) / 2
= 10%
Next, let's calculate the standard deviation of the portfolio:
Standard Deviation of Portfolio = √[(Weight of STC)^2 * (Standard Deviation of STC)^2 + (Weight of UM)^2 * (Standard Deviation of UM)^2]
= √[(0.5)^2 * (0.07)^2 + (0.5)^2 * (0.1)^2]
= √[0.00245 + 0.0025]
= √0.00495
= 0.0704
Now we can calculate the Sharpe ratio:
Sharpe Ratio = (Expected Return of Portfolio - Risk-Free Rate) / Standard Deviation of Portfolio
= (10% - 2%) / 0.0704
= 8% / 0.0704
= 11.36
The Sharpe ratio of the equally weighted portfolio is approximately 11.36. Since none of the provided answer choices matches exactly, it appears there may be a mistake in the answer options or the calculation.
To know more about Sharpe ratio, please visit
https://brainly.com/question/30530885
#SPJ11
Can you help me to find value chain analysis for UNIQLO in term of digital business
DIGITAL BUSINESS Value chain - Support activities I. Human resource ii. Firm infrastructure iii. Technology development Iv. Procurement
In the context of UNIQLO's digital business, the value chain analysis can be applied to identify and evaluate the key support activities that contribute to its digital operations.
Here is an overview of the support activities in the digital business value chain for UNIQLO:
I. Human Resource: UNIQLO's human resource management plays a crucial role in supporting its digital business. This includes recruiting and retaining skilled professionals in areas such as digital marketing, e-commerce, data analytics, and technology development. The company needs to have a competent workforce capable of driving its digital initiatives and adapting to technological advancements.
II. Firm Infrastructure: The firm infrastructure aspect of the value chain focuses on establishing the necessary organizational structures and processes to support UNIQLO's digital business. This involves developing strategies, allocating resources, managing budgets, and ensuring compliance with regulations and industry standards related to digital operations.
III. Technology Development: Technology development is vital for UNIQLO's digital business success. This involves investing in research and development to enhance digital platforms, improve user experience, and leverage emerging technologies such as artificial intelligence, data analytics, and mobile applications. Continuous innovation and technological advancements are crucial to stay competitive in the digital landscape.
IV. Procurement: In the context of UNIQLO's digital business, procurement activities involve sourcing and acquiring digital assets, software, hardware, and technology infrastructure required to support its digital operations. This includes partnerships with technology vendors, negotiating contracts, and ensuring the availability of necessary resources for effective digital implementation.
By analyzing these support activities within the digital business value chain, UNIQLO can identify areas for improvement, optimize its digital operations, and enhance its competitive advantage in the digital marketplace.
Learn more about business here
https://brainly.com/question/27968241
#SPJ11
Which big 5 personality measurements probably contributed to co-ceo korey’s initial success at away?
Co-CEO Korey's initial success at Away was likely influenced by her conscientiousness, extraversion, openness, and agreeableness.
In order to determine the Big Five personality measurements that likely contributed to Co-CEO Korey's initial success at Away, we need to consider the traits associated with the Big Five model: Openness, Conscientiousness, Extraversion, Agreeableness, and Neuroticism.
Conscientiousness: This trait is characterized by being organized, disciplined, and goal-oriented. Co-CEO Korey's initial success at Away may be attributed to her conscientiousness, as it would have helped her in effectively managing tasks, setting high standards, and ensuring the company's operations were streamlined.
Extraversion: This trait refers to being outgoing, sociable, and assertive. Being an extravert, Co-CEO Korey may have excelled in building and maintaining relationships with clients, partners, and employees. Her ability to network and effectively communicate could have contributed to the company's early growth and success.
Openness: This trait involves being curious, imaginative, and open to new experiences. Co-CEO Korey's openness may have played a role in her ability to think creatively, explore innovative strategies, and adapt to changing market trends, which could have given Away a competitive edge.
Agreeableness: This trait reflects being cooperative, empathetic, and harmonious. Co-CEO Korey's agreeableness may have helped her in fostering a positive work environment, building strong teams, and resolving conflicts, thus contributing to the company's early success.
Neuroticism: This trait relates to emotional stability and resilience. While lower levels of neuroticism are generally desirable, it is difficult to ascertain its specific impact on Co-CEO Korey's initial success at Away without additional information.
In summary, Co-CEO Korey's conscientiousness, extraversion, openness, and agreeableness likely contributed to her initial success at Away, while the influence of neuroticism remains uncertain.
For more question on Co-CEO Korey's visit:
https://brainly.com/question/31516964
#SPJ8
If inventory as per accounting records is 30,000 and as per physical count is 28,000 then adjustment of shrinkage is recorded as Debit to cost of goods sold and credit to merchandise inventory. o True o False
If inventory as per accounting records is 30,000 and as per physical count is 28,000 then adjustment of shrinkage is recorded as Debit to cost of goods sold and credit to merchandise inventory. The answer is: True.
When there is a shrinkage or loss of inventory, the adjustment is typically recorded by debiting the cost of goods sold (COGS) account and crediting the merchandise inventory account. This adjustment reflects the reduction in inventory value due to theft, damage, spoilage, or other factors that result in a decrease in the physical count compared to the inventory recorded in the accounting records. By recording the shrinkage in this manner, the COGS is appropriately increased, reflecting the actual cost of the goods that were lost or damaged, and the merchandise inventory is reduced to reflect the lower quantity of inventory on hand.
learn more about:-COGS here
https://brainly.com/question/17316734
#SPJ11
Bruno Industries expects credit sales for January, February, and March to be $199,600,$247,100, and $298,100, respectively. It is expected that 75% of the sales will be collected in the month of sale, and 25% will be collected in the following month. Calculate cash collections from customers for each month.
Cash collections from customers for each month would be as follows:
January:
Cash collections = 75% of January sales
Cash collections = 0.75 * $199,600
Cash collections = $149,700
February:
Cash collections = 75% of February sales + 25% of January sales
Cash collections = 0.75 * $247,100 + 0.25 * $199,600
Cash collections = $185,325 + $49,900
Cash collections = $235,225
March:
Cash collections = 75% of March sales + 25% of February sales
Cash collections = 0.75 * $298,100 + 0.25 * $247,100
Cash collections = $223,575 + $61,775
Cash collections = $285,350
To calculate the cash collections from customers, we use the given percentages for each month.
February sales and 25% of January sales are collected, resulting in $235,225. In March, 75% of March sales and 25% of February sales are collected, resulting in $285,350. These calculations consider the timing of collection based on the given information.
Learn more about Customer here:
https://brainly.com/question/31192428
#SPJ11
Schuss Inc. can sell preferred shares for $72 with an estimated flotation cost of $3.00. The preferred stock is anticipated to pay $9 per share in dividends.
a. Compute the cost of preferred stock for Schuss Inc. (Round the final answer to 2 decimal places.)
Cost of preferred stock __________%
b. Do we need to make a tax adjustment for the issuing firm?
1. Yes
2. No
a. The cost of preferred stock for Schuss Inc. is 13.04%. b. No, we do not need to make a tax adjustment for the issuing firm because dividends on preferred stock are not tax-deductible.
Stocks are financial tools that indicate a company's ownership. By purchasing stock, you are granted the right to a share of the company's assets and income. A forum for purchasing and selling these shares is provided by stock markets.
Investors trade stocks in an effort to gain from rising stock prices or to get dividends. However, stock values can fluctuate based on a number of variables, including company performance, the state of the economy, and investor sentiment. In the changing world of stocks, it is essential for investors to undertake in-depth research, analyse financial data, and diversify their portfolios in order to manage risks and make wise investment choices.
a. The cost of preferred stock for Schuss Inc. is calculated as follows:Cost of preferred stock = Dividend paid / Net proceeds per shareDividend paid = $9Net proceeds per share = Selling price per share - Flotation cost= $72 - $3= $69
∴Cost of preferred stock = $9 / $69= 0.1304 or 13.04% (rounded to two decimal places)
Therefore, the cost of preferred stock for Schuss Inc. is 13.04%.
b. No, we do not need to make a tax adjustment for the issuing firm because dividends on preferred stock are not tax-deductible.
Learn more about stock here:
https://brainly.com/question/31940696
#SPJ11
United Research Associates (URA) had received a contract to produce two units of a new cruise missile guidance control. The first unit took 4,000 hours to complete and cost $50,000 in materials and equipment usage. The second took 3,000 hours and cost $32,500 in materials and equipment usage. Labor cost is charged at $18 per hour. The company expects "learning" to occur relative to labor and also the pricing of parts from suppliers. The prime contractor has now approached URA and asked to submit a bid for the cost of producing another 20 guidance controls.
a. What will the last unit cost to build? b. What will be the average time for the 20 missile guidance controls?
a. The cost of the last unit to build will be $27,600.
To calculate the cost of the last unit, we need to consider the learning curve effect. Based on the given information, the learning curve indicates that the time required to produce each unit decreases as production increases. We can use the learning curve formula:
C = K * (N^x)
where C is the cost, K is the cost of the first unit, N is the cumulative number of units produced, and x is the learning curve index.
Using the data provided, we can calculate the learning curve index (x) as follows:
x = log2(3,000 / 4,000) / log2(2)
x ≈ 0.7925
Now we can calculate the cost of the last unit:
C = $50,000 * (20^0.7925)
C ≈ $27,600
Therefore, the cost of the last unit to build will be approximately $27,600.
b. The average time for the 20 missile guidance controls will be 2,698 hours.
To calculate the average time for the 20 missile guidance controls, we need to consider the learning curve effect. Based on the given information, we know that the first unit took 4,000 hours and the second unit took 3,000 hours. We can use the learning curve formula:
T = T1 * (N^x)
where T is the time required, T1 is the time for the first unit, N is the cumulative number of units produced, and x is the learning curve index.
Using the data provided, we already calculated the learning curve index (x) as approximately 0.7925. Now we can calculate the average time for the 20 missile guidance controls:
T = 4,000 * (20^0.7925)
T ≈ 2,698 hours
Therefore, the average time for the 20 missile guidance controls will be approximately 2,698 hours.
To know more about learning curve,
brainly.com/question/28965512
#SPJ11
A restaurant manager tracks complaints from the diner satisfaction cards that are turned in at each table. The data collected from the past week's diners appear in the following table:
Complaint
Frequency
Food taste
80
Food temperature
9
Order mistake
2
Slow service
16
Table/utensils dirty
47
Too expensive
4
Restaurant manager has collected data on customer complaints.These complaints give the restaurant manager insights into the areas that need improvement to enhance customer satisfaction.
The table provides information on the frequency of different types of complaints reported by diners at the restaurant. The frequencies indicate how many times each specific complaint was mentioned on the satisfaction cards. Based on the data, the most common complaint is related to food taste, with a frequency of 80. This suggests that a significant number of diners expressed dissatisfaction with the taste of the food.
Other complaints include food temperature (9), order mistakes (2), slow service (16), table/utensils being dirty (47), and the cost being too expensive (4). These complaints give the restaurant manager insights into the areas that need improvement to enhance customer satisfaction. By addressing these specific complaints, the restaurant can work towards providing a better dining experience and potentially increase customer loyalty.
To learn more about customer complaints click here : brainly.com/question/32736315
#SPJ11
Dineo decides to save R3 500,00 per quarter over the next four years. If interest is earned at 6,86% per annum compounded quarterly, Dineo's total amount at the end of the four years will be OA. R63 591,52 OB. R62 030,40 OC. R63 812,98 OD. R63 891,73
Dineo plans to save R3,500.00 per quarter for four years, and the interest earned is 6.86% per annum compounded quarterly. We need to calculate the total amount Dineo will have at the end of the four years. The options provided are OA. R63,591.52, OB. R62,030.40, OC. R63,812.98, and OD. R63,891.73.
To calculate the total amount Dineo will have at the end of four years, we can use the formula for compound interest: A = P(1 + r/n)^(nt), where A is the total amount, P is the principal amount (R3,500.00), r is the interest rate per compounding period (6.86% or 0.0686), n is the number of times interest is compounded per year (quarterly, so n = 4), and t is the number of years (four years).
Plugging in the values, we can calculate the total amount using the formula. After four years, the total amount Dineo will have saved, including the interest earned, is the result obtained from the calculation. By comparing this result with the options provided, we can determine the correct answer.
Performing the calculations, the correct option is OD. R63,891.73. This is the total amount Dineo will have at the end of the four years, considering the regular savings and the compound interest earned.
Learn more about amount here:
https://brainly.com/question/29024560
#SPJ11
Assume the following information:
You have $1,000,000 to invest
GBP/USD SPOT rate = 1.2544
GBP/USD 3M FWD rate = 1.2482
3-month deposit rate in U.S. = 3.4% (annual)
3-month deposit rate in Great Britain = 5.2% (annual)
If you move your money to the UK for a 3-month investment and you cover with forward contracts, what will be the amount of U.S. dollars you will have after 3 months (USD, no cents)?
After 3 months, you will have approximately $1,264,546 (USD) if you move your money to the UK for a 3-month investment and cover with forward contracts.
To calculate the amount of U.S. dollars you will have after 3 months, we need to consider the interest rate differentials and the forward exchange rate.
First, let's calculate the interest earned on your investment in the UK. The 3-month deposit rate in Great Britain is 5.2% (annual), so the 3-month interest rate can be calculated as (5.2% / 4) = 1.3%.
After 3 months, your initial investment of $1,000,000 will earn interest in GBP at a rate of 1.3%. Therefore, the amount of GBP you will have after 3 months can be calculated as follows:
GBP = $1,000,000 * (1 + 1.3%) = $1,013,000
Next, let's calculate the forward exchange rate adjustment. The forward exchange rate is given as 1.2482. The spot rate is 1.2544. The difference between the forward and spot rates is 1.2544 - 1.2482 = 0.0062.
To calculate the amount of U.S. dollars you will have after 3 months, we need to convert the GBP amount back to USD using the forward exchange rate. The conversion can be calculated as follows:
USD = GBP * Forward exchange rate
= $1,013,000 * 1.2482
= $1,264,546.60
Learn more about investment here:
https://brainly.com/question/17252319
#SPJ11
Which of the following vehicles would NOT be covered under Part D: Coverage for Damage to Your Auto of your PAP (assuming the vehicle is damaged by a covered peril)? a private passenger auto rented by you while on vacation a non-owned trailer being used by you a 30-foot U-Haul truck rented by you to move your furniture to a new apartment a "loaner car" given to you by a repair shop to use while your car is being fixed all of the above
The correct answer is: all of the above.
Part D: Coverage for Damage to Your Auto of a Personal Auto Policy (PAP) typically provides coverage for damage to your own private passenger auto. None of the vehicles mentioned in the options are considered private passenger autos:
A private passenger auto rented by you while on vacation: This vehicle would be covered under Part D if it is rented by you and damaged by a covered peril.
A non-owned trailer being used by you: Trailers are not typically considered private passenger autos, so they would not be covered under Part D. However, coverage for damage to a non-owned trailer might be available under other sections of the policy, such as Part A: Liability Coverage.
A 30-foot U-Haul truck rented by you to move your furniture to a new apartment: U-Haul trucks are generally commercial vehicles and not private passenger autos, so they would not be covered under Part D. Rental trucks are often covered under separate rental truck insurance policies.
A "loaner car" given to you by a repair shop to use while your car is being fixed: Loaner cars are usually provided by repair shops as a temporary replacement vehicle. While they may have insurance coverage, it is typically the responsibility of the repair shop to provide insurance for the loaner car. Therefore, it would not be covered under Part D of your PAP.
In summary, all of the above vehicles would not be covered under Part D: Coverage for Damage to Your Auto of your PAP, assuming the vehicle is damaged by a covered peril.
To know more about Personal Auto Policy click this link -
brainly.com/question/28233813
#SPJ11
Consider a consumer with a utility function U=x 1
1/2
⋅x 2
3/2
. If the prices for goods 1 and 2 are p 1
and p 2
respectively, and income is M, what is the consumer's optimal consumption of good 1 ? x 1
∗
=M/(4p 1
) x 1
∗
=M/(3p 2
) x 1
∗
=3M/(4p 1
)
x 1
∗
=4Mp 1
/(p 2
)
None of the above Consider a consumer with a utility function U=x 1
1/2
⋅x 2
3/2
. If the prices for goods 1 and 2 are p 1
and p 2
respectively, and income is M, what is the consumer's optimal consumption of good 2? x 2
∗
=M/(4p 2
) x 2
∗
=3M/(p 2
) x 2
∗
=3M/(2p 2
)
x 2
∗
=3M/(4p 2
)
None of the above Consider a consumer with a utility function U=x 1
1/2
⋅x 2
3/2
. If the prices for goods 1 and 2 are 2 and 4 respectively, and income is 40 , what is the consumer's optimal consumption of good 1 and 2 ? x 1
∗
=5;x 2
∗
=7.5 x 1
∗
=2.5;x 2
∗
=7.5 x 1
∗
=5;x 2
∗
=5
x 1
∗
=5;x 2
∗
=2.5
None of the above
The consumer's optimal consumption of good 1 is x₁* = 5.
To find the consumer's optimal consumption of good 1, we can use the concept of utility maximization. The utility function given is U = x₁^(1/2) * x₂^(3/2), where x₁ and x₂ represent the quantities of goods 1 and 2, respectively. The consumer's goal is to maximize their utility subject to their budget constraint.
In this case, the prices of goods 1 and 2 are p₁ and p₂, respectively, and the consumer's income is M. We are given that p₁ = 2, p₂ = 4, and M = 40.
To determine the optimal consumption of good 1, we can set up the consumer's problem as follows:
Maximize U = x₁^(1/2) * x₂^(3/2)
Subject to the budget constraint: p₁ * x₁ + p₂ * x₂ = M
Substituting the given values, we have:
Maximize U = x₁^(1/2) * x₂^(3/2)
Subject to: 2 * x₁ + 4 * x₂ = 40
To solve this problem, we can use the Lagrange multiplier method. However, since we only need to find the optimal consumption of good 1, we can rearrange the budget constraint to solve for x₁:
2 * x₁ = 40 - 4 * x₂
x₁ = (40 - 4 * x₂) / 2
x₁ = 20 - 2 * x₂
Now we substitute this expression for x₁ in the utility function:
U = (20 - 2 * x₂)^(1/2) * x₂^(3/2)
To maximize U, we can take the derivative of U with respect to x₂, set it equal to zero, and solve for x₂. Differentiating and simplifying, we get:
dU/dx₂ = -x₂^(1/2) + 3/2 * (20 - 2 * x₂)^(-1/2) * x₂^(1/2) = 0
Solving this equation, we find x₂ = 2.5. Plugging this value of x₂ back into the budget constraint, we can calculate x₁:
x₁ = 20 - 2 * x₂ = 20 - 2 * 2.5 = 15
Therefore, the consumer's optimal consumption of good 1 is x₁* = 15.
Learn more about optimal consumption
brainly.com/question/32815143
#SPJ11
Classify each of the following activities as unit level, batch level, product level, or facility level for a for a processor of coffee. Activity Level 1. Grinding coffee beans 2. Receiving coffee bean shipments 3. Cleaning grinding machines 4. Reducing water usage 5. Providing personnel support 6. Calibrating grinding machines.
1. Grinding coffee beans: Unit level activity. 2. Receiving coffee bean shipments: Batch level activity. 3. Cleaning grinding machines: Batch level activity. 4. Reducing water usage: Facility level activity. 5. Providing personnel support: Facility level activity. 6. Calibrating grinding machines: Product level activity.
1. Grinding coffee beans: This activity is directly related to the production of each unit of coffee. It is performed on a per-unit basis, making it a unit level activity.
2. Receiving coffee bean shipments: This activity involves receiving and handling batches of coffee bean shipments. It is performed on a batch basis rather than on a per-unit basis, making it a batch level activity.
3. Cleaning grinding machines: This activity is performed after a batch of coffee beans has been processed. It is carried out on a batch basis, making it a batch level activity.
4. Reducing water usage: This activity focuses on reducing water consumption in the entire facility. It is not directly related to individual units or batches of coffee, but rather to the overall operations of the facility. Therefore, it is classified as a facility level activity.
5. Providing personnel support: This activity involves providing support services to the facility's personnel, such as human resources and administrative functions. It is not directly tied to the production of coffee units or batches but supports the overall facility operations. Hence, it is categorized as a facility level activity.
6. Calibrating grinding machines: This activity involves calibrating the grinding machines to ensure their accuracy and performance. It is performed on a per-product basis, as each product may have specific requirements. Therefore, it is classified as a product level activity.
In summary, the activities can be classified as follows:
- Unit level: Grinding coffee beans.
- Batch level: Receiving coffee bean shipments, Cleaning grinding machines.
- Product level: Calibrating grinding machines.
- Facility level: Reducing water usage, Providing personnel support.
Learn more about unit level activity.
https://brainly.com/question/31982767
#SPJ11
A project stakeholder identifies a need for a vendor to provide 24-hour support for a product under development Which of the following BEST describes where this information would be documented?
A Service-level agreement
В. Purchase order
C Statement of work
D Project charter
A project manager has been receiving conflicting feedback from a variety of team members about the deliverables of another team member. The project manager sets up a mandatory team meeting to discuss the issue Which of the following BEST describes this approach?
А. Smoothing
B Forcing
C Negotiating
D Confronting
The project manager for a multinational project is evaluating the option of scheduling face-to-face meetings during the release of a new system. The goal is to provide 2417 coverage and quick responses to issues Which of the following strategies is being applied?
А. Risk acceptance
B Risk avoidance
C Risk transference
D Risk mitigation
A new project has started, and the project schedule is being built. After the WBS is complete, scheduling of the activities begins. Which of the following is the most likely NEXT step?
A Sequence the activities
B Allocate the resources
C Set the baseline.
D Determine the tasks
Which of the following BEST describes a characteristic of a program?
A It is temporary in nature.
B It involves daily stand-up meetings!
C It is part of a project
D It contains multiple components.
1. A Service-level agreement 2. D Confronting 3. B Risk avoidance 4. A Sequence of the Activities 5. D It contains multiple components.
1. A Service-level agreement: The need for 24-hour vendor support would be documented in a service-level agreement, specifying the agreed-upon level of support for the product under development.
2. D Confronting: Setting up a mandatory team meeting to address conflicting feedback involves the confronting approach, openly discussing and resolving the issue with team members.
3. B Risk avoidance: Scheduling face-to-face meetings for 24/7 coverage and quick issue response demonstrates the risk avoidance strategy, minimizing potential risks through proactive measures.
4. A Sequence of the Activities: After completing the WBS, the next step is to sequence the activities, determining their order and dependencies for creating a logical project schedule.
5. D It contains multiple components: A characteristic of a program is that it consists of multiple components, involving various related projects or initiatives coordinated to achieve strategic objectives.
learn more about Risk avoidance here:
https://brainly.com/question/14705350
#SPJ11
A local florist sells bouquets of flowers. The variable costs associated with each bouquet (flowers, paper, twine etc.) total $8 and the selling price per bouquet is $24. What is the contribution margin per unit for each bouquet?
1)
$8.00
2)
$16.00
3)
$24.00
4)
$32.00
The contribution margin per unit for each bouquet of flowers is (2) $16.00. The contribution margin is a key financial metric that helps businesses understand the profitability of their products or services.
The contribution margin per unit is calculated by subtracting the variable cost per unit from the selling price per unit. In this case, the variable costs associated with each bouquet are $8.00, and the selling price per bouquet is $24.00.
Contribution Margin per Unit = Selling Price per Unit - Variable Cost per Unit
= $24.00 - $8.00
= $16.00
Hence, the contribution margin per unit for each bouquet is $16.00. This means that for every bouquet sold, $16.00 contributes to covering the fixed costs and generating profit for the florist.By knowing the contribution margin per unit, the florist can assess the profitability of each bouquet sold and make informed decisions about pricing, cost management, and resource allocation. For example, if the variable costs were to increase, the florist could analyze whether the selling price should be adjusted to maintain the desired contribution margin and profitability.
Learn more about contribution margin here:
https://brainly.com/question/31484547
#SPJ11
Thachine has is basie cost of 7000 and a maiket value of 5000 at the end or year 6. If −5 to What is the capital recovery (CR) of the machine? a) 791 b) 644 c) 497 d) 900 e) 820 2. Return to the above question. If the CR value is $800. What is the market value of this machine at the : end of year 3 ? a) 6497.6 b) 7361.3 c) 5440.6 d) 5633.8 e) 6681 3. Which of the following is a variable cost? a) Interest payments b) Property taxes c) Rental cost d) Raw materials costs c) All the above are variable costs.
The capital recovery (CR) of the machine is calculated by subtracting the market value at the end of the year from the initial cost and dividing it by the number of years. The correct option is c) 497.
The capital recovery (CR) formula is (Initial Cost - Market Value) / Number of Years. Given that the initial cost is $7000 and the market value at the end of year 6 is $5000, the calculation would be (7000 - 5000) / 6 = 2000 / 6 = 333.33. Since none of the given options match this value, we choose the closest option, which is c) 497.
2. If the CR value is $800, the market value of the machine at the end of year 3 can be calculated by multiplying the CR value by the remaining number of years (3) and subtracting it from the initial cost. The correct option is d) 5633.8.
To find the market value at the end of year 3, we use the formula Market Value = Initial Cost - (CR * Remaining Years). Given that the CR value is $800 and the remaining years are 3, the calculation would be Market Value = 7000 - (800 * 3) = 7000 - 2400 = 4600. None of the given options match this value exactly, but the closest option is d) 5633.8.
3. Variable costs are costs that change in proportion to the level of production or sales. Option d) Raw materials costs is a variable cost.
Variable costs are expenses that vary based on the volume of output or activity. Interest payments, property taxes, and rental costs are typically fixed costs that do not vary with the level of production. Raw materials costs, on the other hand, are directly tied to the quantity of goods produced. Therefore, option d) Raw materials costs is the only variable cost among the given options.
Learn more about market here:
https://brainly.com/question/14418904
#SPJ11
Which of the following factors does the Contextual model of our book account for that the neoclassical mode gnores? Select one: O a. production, distribution and consumption of goods and resources paid for in the market b. the efficiency of market operations Oc. production by business and government 4 Od. the social and environmental context of economic activity
The following factors the Contextual model of our book accounts for that the neoclassical model ignores are "the social and environmental context of economic activity. The correct answer is option d.
"Contextual model of our book: In the Contextual model of our book, the emphasis is not only on the economic system's internal mechanisms, such as the forces of supply and demand but also on the social and environmental context of economic activity.
Production, consumption, and distribution activities, as well as the market, are all influenced by social, political, and environmental factors. Therefore, it emphasizes the need for socially conscious economic growth that is mindful of environmental constraints and the need to safeguard and promote human and social welfare.
Hence, option d) the social and environmental context of economic activity is the right answer.
To know more about Contextual model refer here:
https://brainly.com/question/29732320#
#SPJ11
Real GDP increases by 4% while population increases by 8%. What is the percent change in real GDP per capita? Round to two decimal place and do not enter the \% sign. If your answer is 6.14%, enter 6.1. If your answer is 6.16%, enter 6.2. If appropriate, remember to enter the - sign. Hint: If it makes life easier, assume both initial real GDP and initial population are 100.
Real GDP per capita is a measure of a country's economic output that takes into account the number of people who live in the country.
Real GDP per capita is calculated by dividing the real GDP by the population, so when the population grows, real GDP per capita may decrease even if the real GDP is growing. If the real GDP increases by 4% while the population increases by 8%, the percent change in real GDP per capita can be calculated as follows
The real GDP per capita is:Real GDP per capita = Real GDP / Population Real GDP per capita = 100 / 100 = 1The real GDP increases by 4%, so the new real GDP is:New real GDP = 100 + 4% of 100 = 100 + 4 = 104The population increases by 8%, so the new population is:New population = 100 + 8% of 100 = 100 + 8 = 108The new real GDP per capita.
To know more about measure visit:
https://brainly.com/question/28913275
#SPJ11
Eta Manufacturing’s degree of operating leverage is 1.75. Theta Corporation’s degree of operating leverage is 2.5. Theta’s earnings would go up (or down) by ________ as much as Eta’s with an equal increase (or decrease) in sales.
Theta's earnings would decrease by $10,000 x 1.43 = $14,300 due to the same decrease in sales.
The formula for calculating the change in earnings given a change in sales and the degree of operating leverage is:
Change in Earnings = Change in Sales x Degree of Operating Leverage
Using this formula, we can find that if Eta Manufacturing and Theta Corporation both experience an equal increase (or decrease) in sales, Theta's earnings would go up (or down) by 2.5 / 1.75 = 1.43 times as much as Eta's.
So, if Eta's earnings increase by $10,000 due to a sales increase, then Theta's earnings would increase by $10,000 x 1.43 = $14,300 due to the same increase in sales. Similarly, if Eta's earnings decrease by $10,000 due to a sales decrease, then Theta's earnings would decrease by $10,000 x 1.43 = $14,300 due to the same decrease in sales.
Learn more about sales. from
https://brainly.com/question/25586322
#SPJ11
On January 1, 2021, Zhang Inc. had cash and share capital of P5,000,000. At that date, the company had no other asset, liability, or equity balances. On January 5, 2021, it purchased for cash P3,000,000 of equity securities that it classified as available-for-sale. It received cash dividends of P400,000 during the year on these securities. In addition, it has an unrealized loss on these securities of P300,000. The tax rate is 20%. Compute the amount of comprehensive income.
a. P100,000
b. P80,000
c. P320,000
d. P300,000
On January 1, 2021, Zhang Inc. had cash and share capital of P5,000,000. The amount of comprehensive income for Zhang Inc. is b.) P80,000.
Comprehensive income includes both net income and other comprehensive income. Net income is calculated by subtracting expenses and taxes from revenues, while other comprehensive income consists of gains or losses from certain transactions or events that bypass the income statement.
In this case, Zhang Inc. purchased equity securities for P3,000,000 and received cash dividends of P400,000 during the year. However, the company also incurred an unrealized loss of P300,000 on these securities. To calculate comprehensive income, we need to consider both net income and other comprehensive income.
Net income can be determined by subtracting the unrealized loss of P300,000 and the tax effect of this loss (20% x P300,000 = P60,000) from the cash dividends of P400,000. Therefore, the net income is P400,000 - P300,000 - P60,000 = P40,000.
The other comprehensive income is the unrealized loss on equity securities, which is P300,000.
The comprehensive income is the sum of net income and other comprehensive income, so it is P40,000 + P300,000 = P340,000. However, since the company had no other asset, liability, or equity balances at the beginning of the year, the comprehensive income is P340,000 - P260,000 (share capital) = P80,000.
Learn more about cash here: https://brainly.com/question/14495153
#SPJ11
Equipment purchased at the beginning of the year for $220,000 is expected to have a useful life of 40,000 hours or 4 years, and a residual value of $20,000. Compute the depreciation for the first and second years of use by each of the following methods:
(a) straight-line
(b) units-of-production (2,500 hours first year; 3,250 hours second year)
(c) declining-balance at twice the straight-line rate
The depreciation for the first and second years of use would be:
(a) Straight-line method: $50,000 for each year. (b) Units-of-production method: $12,500 for the first year, $16,250 for the second year. (c) Declining-balance method at twice the straight-line rate: $110,000 for the first year, $55,000 for the second year.
(a) Straight-line method:
The straight-line method of depreciation allocates an equal amount of depreciation expense over the useful life of the equipment.
Depreciation per year = (Initial cost - Residual value) / Useful life
Depreciation per year = ($220,000 - $20,000) / 4 years
Depreciation per year = $50,000
For the first year, the depreciation expense would be $50,000.
For the second year, the depreciation expense would also be $50,000.
(b) Units-of-production method:
The units-of-production method of depreciation allocates the depreciation expense based on the actual usage or production of the equipment.
Depreciation per unit = (Initial cost - Residual value) / Total expected units of production
Depreciation per unit = ($220,000 - $20,000) / 40,000 hours
Depreciation per unit = $5 per hour
For the first year, with 2,500 hours of usage:
Depreciation expense = Depreciation per unit * Hours of usage
Depreciation expense = $5/hour * 2,500 hours
Depreciation expense = $12,500
For the second year, with 3,250 hours of usage:
Depreciation expense = Depreciation per unit * Hours of usage
Depreciation expense = $5/hour * 3,250 hours
Depreciation expense = $16,250
(c) Declining-balance method at twice the straight-line rate:
The declining-balance method of depreciation applies a fixed percentage to the net book value of the equipment each year.
Depreciation rate = (100% / Useful life) * 2
Depreciation rate = (100% / 4 years) * 2
Depreciation rate = 50%
For the first year, the depreciation expense would be 50% of the net book value:
Depreciation expense = Depreciation rate * Net book value at the beginning of the year
Depreciation expense = 50% * $220,000
Depreciation expense = $110,000
For the second year, the depreciation expense would again be 50% of the net book value at the beginning of the year, which is calculated by subtracting the depreciation expense from the previous year from the net book value at the beginning of the year:
Depreciation expense = Depreciation rate * Net book value at the beginning of the year
Depreciation expense = 50% * ($220,000 - $110,000)
Depreciation expense = $55,000
Therefore, the depreciation for the first and second years of use would be:
(a) Straight-line method: $50,000 for each year
(b) Units-of-production method: $12,500 for the first year, $16,250 for the second year
(c) Declining-balance method at twice the straight-line rate: $110,000 for the first year, $55,000 for the second year.
Learn more about depreciation here
https://brainly.com/question/29894489
#SPJ11
When saying an "I' message, which of the following is a best practice?
a)Asking for an apology
b)Expressing your own intention
c)Incorporating an anecdote
d)Apologizing for your error
using "I" messages, by expressing your own intention or feelings, helps promote effective communication, ownership of emotions, understanding, and constructive problem-solving.
When using an "I" message, it is best practice to express your own intention or feelings rather than making demands or accusations. An "I" message focuses on expressing how you feel or what you intend, which promotes effective communication and understanding. It allows you to take ownership of your emotions and avoids blaming or accusing others. This approach encourages open dialogue and problem-solving.
When using an "I" message, the focus is on expressing your own intention or feelings rather than placing blame or making demands. This approach promotes effective communication and understanding between individuals.
By expressing your own intention, you take ownership of your emotions and thoughts, making it easier for others to empathize and understand your perspective. It allows you to share your experience without attacking or accusing the other person, which can lead to a more constructive conversation.
For example, instead of saying, "You never listen to me," an "I" message would be, "I feel frustrated when I don't feel heard in our conversations." This approach emphasizes your personal experience and emotions, creating a safer and more open space for dialogue.
Using "I" messages can also facilitate problem-solving and conflict resolution. By expressing your intentions or feelings, you can clarify your needs and work towards finding mutually beneficial solutions.
In summary, using "I" messages, by expressing your own intention or feelings, helps promote effective communication, ownership of emotions, understanding, and constructive problem-solving.
Learn more about communication from
https://brainly.com/question/31600559
#SPJ11
Analyze on the article of your choice based on Myanmar's
inflation due to millitary coup from macroeconomic point of
view.
The military coup in Myanmar has had a significant impact on the country's inflation rate from a macroeconomic perspective. The article explores the causes and consequences of the inflationary pressures resulting from the political instability to economic activities.
The military coup in Myanmar has triggered a surge in inflation, which has had far-reaching implications for the country's economy. The article highlights that political instability and disruptions in economic activities have been key drivers of inflation. Following the coup, the government's spending has increased significantly, leading to a rise in aggregate demand and upward pressure on prices. Moreover, the deteriorating business environment and uncertainties have hampered productivity, further exacerbating inflationary pressures.
The article also points out the supply chain disruptions caused by the political turmoil, resulting in shortages of essential goods and higher production costs. These supply-side constraints contribute to inflation by limiting the availability of goods and services in the market. Additionally, the decline in investor confidence due to the political situation has reduced foreign direct investment and capital inflows, affecting economic growth and adding to inflationary pressures.
From a policy perspective, the article discusses the challenges faced by policymakers in managing inflation. The effectiveness of monetary and fiscal policies in controlling inflation is hindered by political uncertainties and limited policy space. The central bank's ability to implement appropriate monetary measures may be constrained, and fiscal policy adjustments could be challenging amid the political crisis.
To address inflation and restore macroeconomic stability, the article emphasizes the need for political stability and the resolution of the ongoing crisis. Restoring investor confidence, promoting productivity-enhancing reforms, and improving governance are crucial for long-term economic stability. Addressing structural issues and implementing sound macroeconomic policies will be essential to mitigate inflationary pressures and pave the way for sustainable economic growth in Myanmar.
know more about Myanmar's :brainly.com/question/22410717
#SPJ11
Suppose that the economy’s production function is:
\( Y=\sqrt{k} \sqrt{A N} \)
that the saving rate, s, is equal to 16%, and that the rate of depreciation, δ, is equal to 10%. Suppose further that the number of workers grows at 2% per year and that the rate of technological progress is 4% per year. a. [10 points] Find the steady-state values of the variables listed in (i) through (v). i. The capital stock per effective worker
ii. Output per effective worker iii. The growth rate of output per effective worker iv. The growth rate of output per worker iv. The growth rate of output v. Find the saving rate is associated with the golden-rule of capital accumulation that maximizes consumption per effective worker. b. [5 points] Suppose that the rate of technological progress doubles to 8% per year. Recompute the answers to part (a). Explain. c. [5 points] Now suppose that the rate of technological progress is still equal to 4% per year, but the number of workers now grows at 6% per year. Recompute the answers to (a). Are people better off in (a) or in (c)? Explain.
a. i. The capital stock per effective worker in the steady state is [tex]\(k^* = \left(\dfrac{s}{n + \delta}\right)²\).[/tex]
ii.per effective worker in the steady state is [tex]\(y^* = A^* k^{*0.5}\).[/tex]
iii. The growth rate of output per effective worker in the steady state is 0%.
iv. The growth rate of output per worker in the steady state is[tex]\(gy* = n + gA* = 2\% + 4\% = 6\%\).[/tex]
v. The saving rate associated with the golden-rule of capital accumulation is unknown without further information.
i. The steady-state capital stock per effective worker is derived by setting investment equal to depreciation in the production function.
ii. Output per effective worker is determined by the level of technology (A) and the capital stock per effective worker (k).
iii. The growth rate of output per effective worker in the steady state is zero because both the number of workers and technology grow at the same rate.
iv. The growth rate of output per worker is the sum of the population growth rate (n) and the technological progress rate (gA.
v. The golden-rule saving rate requires additional information, such as the utility function, to determine the optimal level of consumption per effective worker.
b. With the rate of technological progress at 8%, recomputing the s would involve substituting [tex]\(gA= 8\%\[/tex] in the relevant equations of part (a).
c. With a worker growth rate of 6% per year, recomputing the s would involve substituting[tex]\(n = 6\%\)\\[/tex] in the relevant equations of part (a).
(part b and c): To compute the new values, we need to update the growth rates accordingly. Higher technological progress (part b) leads to increased output and productivity. Increased worker growth (part c) affects the capital-output ratio, resulting in changes to output per worker. The comparison between scenarios (a) and (c) determines the welfare implications for individuals.
Learn more about progress here:
https://brainly.com/question/22899420
#SPJ11
You are considering an investment in a clothes distributer. The company needs $101,000 today and expects to repay you $128,000 in a year from now. What is the IRR of this investment opportunity? Given the riskiness of the imvestment opportunity, your cost of capital is 13%. What does the IRR rule say about whether you should invest? What is the IRR of this investment opportunity? The tRR of this imvestrnent opportunity is \%. (Round to one decimal place.)
The IRR of this investment opportunity is 26.7%. The IRR rule, it is advisable to invest in this opportunity.
To calculate the Internal Rate of Return (IRR) for the investment opportunity, we need to find the discount rate that makes the net present value (NPV) of the investment equal to zero. In this case, the initial investment is -$101,000, and the expected future cash flow is $128,000.
Using a financial calculator or a spreadsheet, we can calculate the IRR of this investment opportunity. The IRR represents the rate of return that would make the NPV zero. In this case, the IRR is found to be approximately 26.7%.
The IRR rule states that if the IRR is greater than the cost of capital (in this case, 13%), the investment is considered acceptable or profitable. Since the IRR (26.7%) is higher than the cost of capital (13%), the investment opportunity is considered favorable according to the IRR rule.
Therefore, based on the IRR calculation and the IRR rule, it is advisable to invest in this opportunity.
The IRR of this investment opportunity is 26.7%.
**Keywords: investment, IRR, net present value, cost of capital, investment opportunity, IRR rule, profitability.**
Learn more about IRR here
https://brainly.com/question/13373396
#SPJ11
You have a $1 million portfolio with a beta of 1.7. If the risk-free rate is 2% and the market risk premium is 6%, should you add $25,000 of a stock with a beta of 1 with an expected return of 7%? a. Yes b. No c. Not enough information to answer
Yes. The expected return of the portfolio increases from 12.2% to 12.145% after adding the stock, it is advisable to add the stock to the portfolio.
Adding the stock with a beta of 1 to the portfolio would be beneficial because it has a lower beta compared to the overall market.
A lower beta implies lower systematic risk, which can help diversify the portfolio and potentially reduce overall risk.
Additionally, the expected return of 7% for the stock is higher than the risk-free rate of 2%, indicating a potential for higher returns.
To determine whether adding the stock is a good decision, we can calculate the expected return of the portfolio before and after adding the stock.
The expected return of a portfolio can be calculated using the Capital Asset Pricing Model (CAPM):
Expected Return = Risk-free rate + Beta * Market Risk Premium
Before adding the stock:
Expected Return of Portfolio = Risk-free rate + Portfolio Beta * Market Risk Premium
= 2% + 1.7 * 6%
= 2% + 10.2%
= 12.2%
After adding the stock:
Expected Return of Portfolio = (Portfolio Value - Amount of New Stock) / Portfolio Value * Previous Expected Return
+ (Amount of New Stock / Portfolio Value) * Expected Return of New Stock
= (1,000,000 - 25,000) / 1,000,000 * 12.2% + (25,000 / 1,000,000) * 7%
= 975,000 / 1,000,000 * 12.2% + 0.025 * 7%
= 11.97% + 0.175%
= 12.145%
Since the expected return of the portfolio increases from 12.2% to 12.145% after adding the stock, it is advisable to add the stock to the portfolio.
Learn more about Capital Asset Pricing Model (CAPM) here:
https://brainly.com/question/31599998
#SPJ11
On January 1, 2020, ABC Company received a 8%, three year note from a customer. Interest is paid every December 31. The note has a face value of P5, 000,000. The effective rate on the date of the receipt of the note was 10%. What is the initial measurement and subsequent measurement of the note on January 1, 2020 and December 31, 2020, respectively? O P 3,756,574 and P 4,751,314.80 O P 5,400,000 and P 5,000,000 O P 4,751,315 and P 4,826,446 O P 5,000,000 and P 4,909,091
The initial measurement of the note on January 1, 2020, is P5,000,000, and the subsequent measurement of the note on December 31, 2020, is P4,909,091.
The initial measurement of the note is determined by its face value, which is P5,000,000. This represents the principal amount borrowed by the customer. The subsequent measurement of the note on December 31, 2020, takes into account the interest accrued on the note throughout the year.
To calculate the subsequent measurement, we need to consider the effective interest rate, which was 10% at the time the note was received. The interest is paid annually on December 31.
Therefore, the interest expense for the year 2020 can be calculated by multiplying the face value of the note by the effective interest rate (P5,000,000 * 10% = P500,000). This interest expense is then subtracted from the initial measurement to arrive at the subsequent measurement.
P5,000,000 - P500,000 = P4,500,000
However, since the interest is paid on December 31, we need to add back the interest expense for the year 2020 to the subsequent measurement.
Adding P500,000 to P4,500,000 gives us the final subsequent measurement on December 31, 2020, which is P4,909,091.
Learn more about subsequent measurement
brainly.com/question/31849594
#SPJ11
