1. IfXis $5,000, R-15% and BV is $50,000, what is AE?-5000-(15%*50000)-25002. IfXis $25,000, R-18% and BV is $125,000, what is AE?-25000-(18 % 125000)25003. Assume the firm in requirement 2 can increase x to $30,000 by instituting some cost-cutting measures. What is the new AE?-30000-(18 % 125000)75004. Assume the firm in requirement 2 can divest $25,000 of unproductive capital with X falling by only $2,000. What is the new AE?-25000-2000-(18% *(125000-25000))50005. Assume the firm in requirement 2 can add a new division at a cost of $40,000, which will increase X by $7,600 per year. Would adding the new division increase AE?-25000+7600-(18% *( 125000+40000))2900FALSEAssume the firm in requirement 1 can add a new division at a cost of $25,000, which will increase X by $3,500 per year. Would adding the new division increase AE?5000+3500-(15%*50000+25000)-2750FALSE

To answer these questions, we need to calculate the Adjusted Earnings (AE) based on the given…

Answered: 1. Ixis $5,000, R-15% and BV is…

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

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