User Account

All Pages

What is the annual user cost of a van

Assignment Help Microeconomics
Reference no: EM13887955

A delivery company can buy a new van for $50,000. It can ?nance the purchase with a bank loan. The annual interest rate is 12%. Interest payments are tax deductible and the corporate tax rate is 30%. The company estimates that it will be able to sell the van a year later for $30,000. Any capital loss is tax deductible. What is the annual user cost of a van?

Reference no: EM13887955

Questions Cloud

Is the resulting tax system advantageous to investment-take : Suppose companies can deduct interest payments on their debt against their taxable income: they pay tax on pro?ts, net of interest payments on debt. The revenue that a com- pany generates from some new investment is taxed, but it can be offset by ..
Analyze the importance of the pre-solicitation notice : The Pre-Solicitation Notice: Analyze the importance of the pre-solicitation notice to the success or failure of the contracting process
Compute the equilibrium for the two islands : Suppose there is free trade between the islands in cloth and food but no trade in labor and land. Compute the equilibrium for the two islands together with the labor of Crusoe as the unit of account. (Hint: Use the symmetry of the problem.)
What are the express and implied agreements : Who are the stakeholders? Who are those people and/or groups to which we owe a duty? What are the express and implied agreements that you have with each of the constituents
What is the annual user cost of a van : A delivery company can buy a new van for $50,000. It can ?nance the purchase with a bank loan. The annual interest rate is 12%. Interest payments are tax deductible and the corporate tax rate is 30%.What is the annual user cost of a van?
Society production possibility frontier : Plot the society's production possibility frontier for food and wood.
Distinguish between an ideal standard and a normal standard : Distinguish between an ideal standard and a normal standard. What factors should be considered in setting (a) the direct materials price standard and (b) the direct materials quantity standard?
Discuss the types of concurrent ownership options : Prepare a 1-page report in which you do the following: Discuss the types of concurrent ownership options available to you and your partner in the purchase of your first home
Production of goods : In a box diagram, indicate the set of ef?cient allocations of goods 1 and 2 to the production of goods 3 and 4.

Reviews

Write a Review

Microeconomics Questions & Answers

  Develop the case for the notion of negative or positive

make a case for the notion of a negative or positive externality. show model that illustrate how to internalize the

  Characteristic of organizational control

What do the fundamental consistencies underlying the behavior of all individuals enable researchers to do - which of the following is a generic term that covers a broad range of feelings that people experience?

  Balance of trade deficit must always be offset net capital

"A balance of trade deficit must always be offset by net capital inflows from abroad." Agree or disagree with this statement and explain. Suppose a Japanese firm buys a 1 year treasury bill with a face value of $10,000 today for $9400. If the value o..

  What is average variable cost and marginal cost

Suppose that a firm is currently employing 10 workers, the only variable input, at a wage rate of $100. The average physical product of labor is 25, the last worker added 10 units to total output, and total fixed cost is $5,000.

  Question cash flow budgetingusing the following information

question cash flow budgetingusing the following information complete the cash flow budget for the months of january

  Calculate the degree of operating leverage

What is DynaLinear's breakeven sales volume (in units) for converters and calculate the degree of operating leverage at a projected volume of 14,000 units and explain what the DOL means.

  What price to ask for well kept house in a growing neighbour

your grandmother heard you were studying economic and decided to make use of your knowledge. she is selling her house and wants to know what price to ask for her well kept house in a growing neighborhood you need more information; what did it cost..

  Consider the market for fire extinguishersa why might fire

consider the market for fire extinguishers.a. why might fire extinguishers exhibit positive externalities?b. draw a

  Socially desirable level of pollution

There are only two polluting sources in the region, each of which generates 10 units of pollution for a total of 20 units released into the environment. The government determines that emissions must be reduced by 10 units across the region to achieve..

  Bicycle frames using two fiberglass materials

Applied Technology, Inc. (ATI) produces bicycle frames using two fiberglass materials that improve the strength-to-weight ratio of the frames. The cost of the standard grade material is $7.50 per yard and the cost of the professional grade mat..

  Find current gdp expenditures and express percentages in

growth in national health spending closely tracked growth in nominal gross domestic product gdp in 2010 and 2011 and

  Explain what did coase consider to be the efficient solution

Ronald Coase points out that a market failure does not arise simply because people ignore the external cost of their action. What other condition is necessary What did Coase consider to be the efficient solution to a negative externality

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd