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Economics

1.A CNC machine for the manufacture of finished product costs P77,821 and have salvage value of 8.200 at the end of an estimated 13 year useful life. Compute the 5th year depreciation using sum-of-years-digit method.

2. One bag of flour is sold for $1.50 to a bakery, which uses the flour to bake bread that is sold for $4.00 to consumers. A second bag of flour is sold to a consumer in a grocery store for $2.00. Taking these three transactions into account, what is the effect on GDP? a. GDP increases by $1.50 b. GDP increases by $3.50 CGDP increases by $6.00 d. GDP increases by $7.50

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