Suppose Barry Is Maximising His Utility from Consuming Used Paperback

question 49

Multiple Choice

Suppose Barry is maximising his utility from consuming used paperback novels and audio books.The price of a used novel = $4 and the price of an audio book = $8.If the marginal utility of the last novel was 32 units of utility (utils) what was the marginal utility of the last audio book purchased?

• A)2 utils
• B)12 utils
• C)16 utils
• D)64 utils

Calculate annual depreciation expenses for various types of assets.

Calculate book value at the end of a given period using different depreciation methods.

Apply the concept of estimated scrap value in depreciation calculations.

Differentiate between methods of depreciation for various types of assets.

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Definitions:

Net Present Value

A valuation method that calculates the present value of all future cash flows of a project or investment, net of the initial investment cost.

Operating Cash Flows

Operating cash flows are the amounts of cash a company generates from its regular business operations, contrasting with cash flow from investing and financing activities.

Depreciated

The decrease in value of an asset over time, often due to wear, tear, or obsolescence.

Salvaged

Refers to assets that have been recovered, reused, or sold after being discarded or considered waste.