Below are five items that would be included in the balance of payments for the United States. Sort each item into either the current account or the capital account. a. a Japanese citizen earns dividend income on shares of stock of a U. S. firm
b. a U. S. citizen buys a vacation home in Acapulco, Mexico
c. a U. S. citizen buys a BMW made in Germany
d. a Japanese citizen donates money to a U. S. charity

A4-year project has an annual operating cash flow of $59,000. at the beginning of the project, $5,000 in net working capital was required, which will be recovered at the end of the project. the firm also spent $23,900 on equipment to start the project. this equipment will have a book value of $5,260 at the end of the project, but can be sold for $6,120. the tax rate is 35 percent. what is the year 4 cash flow?

Why is efficiency an important economic goal?

You are in the market for a new refrigerator for your company’s lounge, and you have narrowed the search down to two models. the energy efficient model sells for $700 and will save you $45 at the end of each of the next five years in electricity costs. the standard model has features similar to the energy efficient model but provides no future saving in electricity costs. it is priced at only $500. assuming your opportunity cost of funds is 6 percent, which refrigerator should you purchase