Bloomswood hotel is situated in forkland, a picturesque town in the mountain region of a country. allen grabos works as a gourmet chef at the hotel that caters mostly to tourists. in a conversation with his wife, delia grabos, allen claims that he is underpaid. the hotel makes up to $500,000 per year but his annual salary is only around $28,000 a year. delia, howeveris of the opinion that since new hotels and inns are expected to open in forkland, the salaries paid to hotel staff in the area should increase.

although new hotels and inns did open up, the wages of the hotel staff did not increase as much as anticipated. which of the following, if true, can best explain this outcome?

a. tourism is one of the largest revenue earners for the government of this country.
b. inflation in this country is very high.
c. most of the townspeople in forkland were already employed in the hospitality industry.
d . many people from the nearby towns moved to forkland in search of job opportunities.
e. with an increase in tourism in the area, many fast-food chains have recently opened their outlets in forkland.

Shrieves casting company is considering adding a new line to its product mix, and the capital budgeting analysis is being conducted by sidney johnson, a recently graduated mba. the production line would be set up in unused space in the main plant. the machinery’s invoice price would be approximately $200,000, another $10,000 in shipping charges would be required, and it would cost an additional $30,000 to install the equipment. the machinery has an economic life of 4 years, and shrieves has obtained a special tax ruling that places the equipment in the macrs 3-year class. the machinery is expected to have a salvage value of $25,000 after 4 years of use. the new line would generate incremental sales of 1,250 units per year for 4 years at an incremental cost of $100 per unit in the first year, excluding depreciation. each unit can be sold for $200 in the first year. the sales price and cost are both expected to increase by 3% per year due to inflation. further, to handle the new line, the firm’s net working capital would have to increase by an amount equal to 12% of sales revenues. the firm’s tax rate is 40%, and its overall weighted average cost of capital, which is the risk-adjusted cost of capital for an average project (r), is 10%. define “incremental cash flow.” (1) should you subtract interest expense or dividends when calculating project cash flow?

Explain whether each of the following events increases, decreases, or has no effect on the unemployment rate and the labor-force participation rate. a. after a long search, jon finds a job. b. tyrion, a full-time college student, graduates and is immediately employed. c. after an unsuccessful job search, arya gives up looking and retires. d. daenerys quits her job to become a stay-at-home mom. e. sansa has a birthday, becomes an adult, but has no interest in working. f. jaime has a birthday, becomes an adult, and starts looking for a job. g. cersei dies while enjoying retirement. h. jorah dies working long hours at the office.

Camilo is a self-employed roofer. he reported a profit of $30,000 on his schedule c. he had other taxable income of $5,000. he paid $3,000 for hospitalization insurance. his self-employment tax was $4,656. he paid his former wife $4,000 in court-ordered alimony and $4,000 in child support. what is the amount camilo can deduct in arriving at adjusted gross income (agi)?