Answer:
352,000
Explanation:
add up all the numbers, then you divide by 3
Answer:
Education demand is elastic as compared to salt demand which is highly inelastic.
Explanation:
Elasticity of demand is a measure of the responsiveness of the demand of a good or service relative to it's corresponding change in price. A demand curve can be used to determine the degree of elasticity. A demand curve is a graphical representation of how price varies with quantity of goods and services demanded. The quantity of goods demanded is plotted on the horizontal axis of the graph with the corresponding price plotted on the vertical axis of the graph. With the graph, the elasticity of demand can be calculated. The formula for determining elasticity for demand is;
ED=Q/P
where;
ED=elasticity of demand
Q=percentage change in quantity demanded, where
Q={(Q2-Q1)/Q1}×100
Q2=quantity demanded when price is P2
Q1=quantity demanded when price is P1
P=percentage change in price, where;
P={(P2-P1)/P1}×100
P2=final price
P1=initial price
The formula above can be used to determine the degree of elasticity of a good or service as shown;
If the price elasticity of demand is greater than 1, then the demand is elastic. Meaning the demand is very sensitive to changes in price. This usually happens on goods and services that are wants rather than needs. Wants are luxuries that most people can do without or can find cheaper alternatives while needs are goods that most people can't do without.
If the price elasticity of demand is less than 1, then the good or service is inelastic. Meaning the demand is not very sensitive to changes in price. This usually happens on goods and services that are needs. Needs are goods and services that most people cannot do without.
In our case, salt is a need that most people cannot do without, therefor inelastic. However, quantity of education in private universities is highly elastic since there are many alternatives like public universities that are much cheaper compared to private universities. So a change in price will affect the quantity of demand.
Answer:
$(94,179)
Explanation:
Particulars Year 0 Year 1 Year 2
Cash flows ($1,500,000) A$1,000,000 A$2,000,000
DCF 14% 1 0.8772 0.7695
Present Values 1500,000 A$877,200 A$ 1,538,935
Conversion 1 0.55 0.60
P V in US$ (1,500,000) 482,460 923,361
Therefore Net Present Value = 482,460 +923,361 - 1,500,000 = $(94,179)
Answer:
The cash received from bond issuance is journalized as follows:
Dr Cash $285,600
Cr Bonds payable $280,000
Cr Premium on Bonds payable $5,600
The June 30 and 31 December Year 1 interest on the bonds are recorded thus:
30 June
Dr Interest expense(bal fig) $7,840
Dr Premium on bonds $560
Cr Cash $8400
31 December
Dr Interest expense(bal fig) $7,840
Dr Premium on bonds $560
Cr Cash $8400
The June 30 and 31 December Year 2 interest on the bonds are recorded thus:
30 June
Dr Interest expense(bal fig) $7,840
Dr Premium on bonds $560
Cr Cash $8400
31 December
Dr Interest expense(bal fig) $7,840
Dr Premium on bonds $560
Cr Cash $8400
Explanation:
The amount realized from the bond is calculated thus:
$280,000*102%=$285,600
Premium on bond=Bonds proceeds-par value
=$285,600-$280,000
=$5,600
Semi-annual amortization of bond premium=$5,600/5*6/12
=$560
Semi-annual interest payment=$280,000*6%*6/12
=$8,400
