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explain the relationship between elasticity and revenue
following equations respectively:
Demand: P= 1400 - 2Qd
Supply: P = 200 + 10sI
1.1
Calculate the equilibrium price and quantity of shoes.
1.2
Assume that the price of shoes is R700. Use your answer in 1.1 to exp
the resulting situation in the market for shoes, and how equilibrium
be restored without government intervention, ceteris paribus.
Discuss the savings and portfolio decisions and employ empirical evidence to
back and/or refute its claims.
MCARTECH Pvt. Ltd. is considering two mutually exclusive capital investments. The project’s expected net cash flows are as follows:
Expected Cash Flows
Year Project A Project B
0 -500 -875
1 100 150
2 110 200
3 120 250
4 175 375
5 240 530
6 300 680
a. If you were told that each project’s cost of capital was 12%, which project should be selected using the NPV criteria?
b. What is the profitability index for each project if the cost of capital is 12%?
c. What is the regular payback period for these two projects?
(10 Marks)
Following emoluments are received by Ms Sangeeta during the previous year ended on 31.3.2021
Basic salary 250000
Dearness Allowance 10000
Commission 2500
Entertainment allowance 2000
Medical expenses reimbursed 25000
Professional taxes paid 2000(Rs1000 paid by employer)
Ms. Sangeeta contributes Rs 2000 towards the Recognized Provident Fund
She has no other income.
Compute the income from salary for A.Y 2021-22, and give reasons and explanations wherever required, If Ms. Sangeeta is a Government employee.
Expected Cash Flows
Year Project A Project B
0 -500 -875
1 100 150
2 110 200
3 120 252
4 175 375
5 240 530
6 300 680
a. If you were told that each project’s cost of capital was 12%, which project should be selected using the NPV criteria?
b. What is the profitability index for each project if the cost of capital is 12%?
c. What is the regular payback period for these two projects?
Assume that you plan to take a housing loan with a tenor of 20 year. The loan has to be repaid in equal monthly installments. Considering that the loan amount is Rs. 50 lakhs and the interest rate on loan is 9% p.a., what would be the equated monthly installment (EMI)?
Explain the following terms are applied in management accounting:
i) cost
ii) cost object
iii) cost estimate
iv) cost analysis
. Suppose that consumption depends on the interest rate. How, if at all, does this alter the conclusions reached in the chapter about the impact of an increase in government purchases on investment, consumption, national saving, and the interest rate?
QDA = 8000 - 1000Px, QSA= - 4000+2000Px
i) Find out the market clearing price and quantity.
ii) Plot, on one set of axes, the market demand curve and the market supply curve
for commodity A and show the equilibrium point.
iii) Is the equilibrium stable? Explain.
