high returns to capital at low levels of capital * When capital stock is low, huge positive returns to capital but this is not true at very high levels of capital. * Less and less returns at high level of capital * Growth comes naturally from perfect competitive markets * There is no need to do anything. If you are on the left hand side of k*, the economy will grow. * True only for perfect competitive markets meaning * If needed human capital is available at
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growth is 12%, per annum Pg 4, HBS 9-280-102 Plant Life is 10 years Pg 1, Assessed work Sheet Plant Salvage Value is zero Pg 1, Assessed work Sheet EBIT is flat after 1984 Pg 1, Assessed work Sheet Capital Expenditures: $600,000 per annum after 1984 Pg 1, Assessed work Sheet Net Working Capital Remains flat after 1984 Pg 1, Assessed work Sheet Definition of “Flat” Pg 4 http://www.imf.org/external/pubs/ft/wp/2006/wp06218.pdf 6.5% is the Equity Risk Premium Slide 21, Risk and Return, class notes-
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bbls =5400 bbls EMPTY=5400/600=9 hr. 9+7:00P.M. =4:00A.M. BIN INVENTORY=3200 bbls (12-7)= 5 (450/75)=6 5*6=30trucks TRUCK INVENTORY=30*75=2250 bbls 4. What are the possible capital investments considered by NCC? One of the possible capital investments considered by NCC was to buy some new equipment. NCC’s overtime costs were out of control and the growers were upset that their trucks and drivers had to spend so much time waiting to unload process fruit
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point in annual unit sales of the new product if Martinez Company uses Capital Intensive Method and Labor Intensive Method is described in the following table below. The Martinez Company should use the Capital-intensive manufacturing method if the goal is to produce more product. Therefore, this method is associated with production in high levels and this method adapts to change better than the labor intensive method. Capital intensive production requires more machinery, equipment and sophisticated
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of capital is 2% per year? Should Marian take it?NPV = \frac{4000}{1.02}+\frac{4000}{1.02^{2}}+\frac{4000}{1.02^{3}}-\frac{5000}{1.02^{2}}-1000 = 5,729.69 Since the NPV>0 , Marian should take it. 2. (7) Your factory has been offered a contract to produce a part for a new printer. The contract would last for three years and your cash flows from the contract would be $5 million per year. Your upfront setup costs to be ready to produce the part would be $8 million. Your cost of capital for
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Fries treated these cost as “repair and maintenance” expenditures in its operating budget. The costs associated with OSHA compliance can be treated as capital expenditures or the repair and maintenance costs. On December 23, 2011, the IRS provided guidance by issuing temporary and proposed regulations, and these regulations help to clarify what is capital as opposed to what would be considered a repair and routine maintenance. Under below situations, the costs can be treated as repair costs: improvements
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three fundamental elements: the social ones, patrimonial and the formal ones: • Personal element: It is constituted by the partners, people who contribute and reunite their efforts (goods, capitals or works) • Patrimonial element: It is formed by the set of goods that are contributed to form the share capital, the goods, work, etc. • Formal element: It is the set of rules regarding the form or solemnity with which one is due to have to the contract that gives rise to the society like a right individuality
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to adopt technology which is consistent with the country’s comparative advantage and makes them profitable in an open, free and competitive market. * Lower learning costs (when industrial policy conform to comparative advantage) * Slow capital accumulation & industrial upgrading process (when industrial policy defy comparative advantage) Main Arguments – Chang, H * Welcomes the importance of industrial upgrading with comparative advantage as a baseline * Assumptions of Heckscher-Ohlin-Samuelson
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Guest Speaker: Antonio Paolo Jimenez Why People Invest In Stocks? Why people invest in stocks? A very good question from the people who don’t know what matter it is? Stocks can appreciate in price, creating capital gains, or an increase in the value of your asset, which grow your wealth. Stocks have offered the most potential for growth, you can ride out the ups and downs of stocks and you don’t need to invest all your
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Tax Incentives and Facilities in Bangladesh Exemption and allowances according to ITO, 1984: Tax rebate: An assesse shall be entitled to a credit from the amount of tax payable on his total income of an amount equal to fifteen percent of the sums specified in paragraphs of the said Part B of ITO, 1984. The aggregate of the allowances admissible of the Sixth Schedule Part B shall not exceed- (a) One crore and fifty lakh taka (b) exceed thirty per cent of the total income of the assesse. Tax
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