Which of the following is an example of a depreciation payment?
a. Zoom, Inc. set aside an allowance of $500,000 to eventually replace their jet ski
factory.
b. CleanPrint, Inc. paid $1 million to restock its supply of printing cartridges.
c. TotalOffice, Inc. receives $50,000 per month for renting an office space.
d. FirstStart, Inc. receives $500,000 in profit for last year for management consulting.
a. Zoom, Inc. set aside an allowance of $500,000 to eventually replace their jet ski
factory.
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What is an optimal decision?
What will be an ideal response?
Does the description of inertial inflation rely more on economic or political factors? Explain
What will be an ideal response?
Which of the following represents the key difference between the short run and the long run?
a. In the short run at least one of the firm's resources is fixed, while in the long run all resources under the firm's control are variable. b. The short run corresponds to the anticipated remaining life span of the owner/entrepreneur. c. In the long run at least one of the firm's resources is fixed, while in the short run all resources under the firm's control are variable. d. In the long run at least one of the firm's resources is fixed, while in the short run all resources under the firm's control are fixed.
If the interest rate is 10 percent and cash flows are $1,000 at the end of year one and $2,000 at the end of year two, then the present value of these cash flows is:
A. $2,562. B. $439. C. $3,000. D. $3,200.