The following data relate to a firm’s purchase of a machine used in the manufacture of its product: invoice price $34,000 applicable sales tax 2,000 cash discount taken for prompt payment 400 freight paid 260 cost of insurance coverage on machine while in transit 125 installation costs 2,000 testing and adjusting costs 475 repair of damages to machine caused by the firm’s employees 750 prepaid maintenance contract for first year of machine’s use 400 determine the acquisition cost of the machine.

The treasurer for pittsburgh iron works wishes to use financial futures to hedge her interest rate exposure. she will sell five treasury futures contracts at $139,000 per contract. it is july and the contracts must be closed out in december of this year. long-term interest rates are currently 7.30 percent. if they increase to 9.50 percent, assume the value of the contracts will go down by 20 percent. also if interest rates do increase by 2.2 percent, assume the firm will have additional interest expense on its business loans and other commitments of $149,000. this expense, of course, will be separate from the futures contracts. a. what will be the profit or loss on the futures contract if interest rates increase to 9.50 percent by december when the contract is closed out

Post test question number 9 for entering the job market

Demand increases by less than supply increases. as a result, (a) equilibrium price will decline and equilibrium quantity will rise. (b) both equilibrium price and quantity will decline. (c) both equilibrium price and quantity will rise