Texmex food company is considering a new salsa whose data are shown below. the equipment to be used would be depreciated by the straight-line method over its 3-year life and would have a zero salvage value, and no change in net operating working capital would be required. revenues and other operating costs are expected to be constant over the project's 3-year life. however, this project would compete with other texmex products and would reduce their pre-tax annual cash flows. what is the project's npv? (hint: cash flows are constant in years 1-3.)wacc 10.0%pre-tax cash flow reduction for other products (cannibalization) -$5,000investment cost (depreciable basis) $80,000straight-line depreciation rate 33.333%annual sales revenues $67,500annual operating costs (excl. depreciation) -$25,000tax rate 35.0%a. $3,636b. $3,828c. $4,019d. $4,220e. $4,431

The federal reserve's organization while all members of the federal reserve board of governors vote at federal open market committee (fomc) meetings, only of the regional bank presidents are members of the fomc. the federal reserve's role as a lender of last resort involves lending to which of the following financially troubled institutions? u.s. banks that cannot borrow elsewhere governments in developing countries during currency crises u.s. state governments when they run short on tax revenues the federal reserve's primary tool for changing the money supply is . in order to decrease the number of dollars in the u.s. economy (the money supply), the federal reserve will government bonds.

Magic realm, inc., has developed a new fantasy board game. the company sold 15,000 games last year at a selling price of $20 per game. fixed expenses associated with the game total $182,000 per year, and variable expenses are $6 per game. production of the game is entrusted to a printing contractor. variable expenses consist mostly of payments to this contractor.required: 1-a. prepare a contribution format income statement for the game last year.1-b. compute the degree of operating leverage.2. management is confident that the company can sell 58,880 games next year (an increase of 12,880 games, or 28%, over last year). given this assumption: a. what is the expected percentage increase in net operating income for next year? b. what is the expected amount of net operating income for next year? (do not prepare an income statement; use the degree of operating leverage to compute your answer.)

Suppose the government enacts a stimulus program composed of $600 billion of new government spending and $300 billion of tax cuts for an economy currently producing a gdp of $14 comma 000 billion. if all of the new spending occurs in the current year and the government expenditure multiplier is 1.5, the expenditure portion of the stimulus package will add nothing percentage points of extra growth to the economy. (round your response to two decimal places.)