1. Ixis $5,000, R-15% and BV is $50,000, what is AE? 5000-(15% 50000) -2500 2. IfXis $25,000, R-18% and BV is $125,000, what is AE? -25000-(18% 125000) 2500 3. 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) 7500 4. 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)) 5000 5. 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)) FALSE 6. Assume 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) -2750 2900 FALSE

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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1. IfXis $5,000, R-15% and BV is $50,000, what is AE?
-5000-(15%*50000)
-2500
2. IfXis $25,000, R-18% and BV is $125,000, what is AE?
-25000-(18 % 125000)
2500
3. 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)
7500
4. 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))
5000
5. 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))
2900
FALSE
Assume 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)
-2750
FALSE
Transcribed Image Text:1. IfXis $5,000, R-15% and BV is $50,000, what is AE? -5000-(15%*50000) -2500 2. IfXis $25,000, R-18% and BV is $125,000, what is AE? -25000-(18 % 125000) 2500 3. 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) 7500 4. 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)) 5000 5. 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)) 2900 FALSE Assume 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) -2750 FALSE
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