The type of goal they set is referred to as medium term goal. There are three types of goal, short, medium and long term goals. Short term last for a maximum of two years, medium term goal last for a maximum of five years while long term goal can last up to ten years.
Given that the marginal cost is $18, and the price per Bushel of $48, the farmer can choose to increase production or not. This is because at this margin, the return on investment will be:
(48-18)/18*100
=166.67%
Which means he'll still be profitable if he chooses to do nothing. The correct answer is:
c. stay at this level of production.
Answer:
<em> NPV 501.54</em>
benefit-cost ratio: 1.0066872
Explanation:
discount rate 0.2
# Cashflow Discounted
0 -75000 -75000
1 20000 16666.67
2 25000 17361.11
3 30000 17361.11
4 50000 24112.65
<em> NPV 501.54</em>
<em><u>PV ratio of the project:</u></em> PV of cashflow / PV of outflow
75,501.54/75,000 = 1,0066872
Answer:
Social obligation
Explanation:
The reason is that the minimum output that the law requires you to deliver is your obligation and is mandated by law. This means this is what the law decides the firm to deliver and is minimum social responsibility which gives the firm license to operate. Such an obligation or least social work required by law is known as social obligation.
Answer:
Option D is the correct answer.
d) debit to interest Receivable of $10
Explanation:
Under the accrual basis or principle of accounting, we match the revenue with the expenses and record the transactions in the period to which they relate to rather than when the cash is paid or received. This means that the interest receivable that is accrued for time period relating to this year should be recorded as a revenue in the current period and as an asset under interest receivable as it will be received in the next period.
Thus, the interest on the note relating to 1 month of December will be recorded as follows,
Interest Revenue = 1500 * 0.08 * 1/12 = 10
31 Dec 2021
Interest Receivable 10 Dr
Interest Revenue 10 Cr
