What is a popular model for the formation of an atoll?

A local county is considering purchasing some dump trucks for the trash pickups. Each truck will cost $55,000 and have an operat

lianna [129]

Answer:

35,972

Explanation:

The equivalent annual cost can be calculated dividing NPV by the annuity factor

In order to find NPV first

Year1 Year2 Year3 Year4 Year5 Total

Operating and

Maintenance 18000 21000 24000 27000 30000 -

Discount factor(10%) 0.909 0.826 0.751 0.683 0.620 -

Discounted CFs 16362 17346 18024 18411 18600 88,713

Salvage 12000

Discount factor(10%) 0.620

Discounted salvage 7440 (7440)

Inital Cost (55,000) (55,000)

NPV 136,333

Calculation for EAC

NPV = 136,333

Annuity factor for 5 years = 3.790

Equivalent annual cost = NPV /Annuity factor

Equivalent annual cost = 136,333/3.790

Equivalent annual cost = 35,972

8 0

2 years ago

Hushovd Iron Works has collected the following data for its Thunderbolt line of products: Direct materials standard 15 pounds p

Hitman42 [59]

Answer:

The direct material quantity variance is $10,800 favourable. (the options in the question are not correct).

Explanation:

The direct materials quantity variance represents a difference between what was actually produced and the standard or idea that should have been produced especially with regards to the use of direct materials.

To calculate material quantity variance

Step 1:Calculate the Standard Usage of Material

Formula= (Actual Units of Finished goods Purchased x Standard Price of Material per unit)

= 4,000 units x 15 Pounds

= 60,000 Pounds

This means the standard material usage is 60,000 pounds

Step 2: Now calculate the Direct Material Quantity Variance

Formula= (Standard Material Usage - Actual Material Usage) x The Standard Price per Unit of Material

= 60,000 pounds (computed in step 1) - 40,000 pounds (given in the question)

= 20,000 pounds x $0.54

=$10,800

Since the standard Material is higher than the actual material usage, it means that the answer is as follows;

The direct material quantity variance is $10,800 favourable.

Kindly note that the multiple options in the question above are for a different set of figures and a different question.

6 0

2 years ago

If an entrepreneur can establish a strong and trustworthy management team, then the

Svet_ta [14]

Answer:

operational

Explanation:

bc it is

7 0

2 years ago

The publisher of an economics textbook finds that, when the book's price is lowered from $70 to $60, sales rise from 10,000 to 1

ankoles [38]

Answer:

Price elasticity of demand = 2.6

Explanation:

Given:

Old price (P0) = $70

New price (P1) = $60

Old sales (Q0) = 10,000 units

New sales (Q1) = 15,000 units

Computation of Price elasticity of demand(e):

Midpoint method

$e=\frac{\frac{Q1-Q0}{\frac{Q1+Q0}{2} } }{\frac{P1-P0}{\frac{P1+P0}{2} } }$

By putting the value:

$e=\frac{\frac{10,000-15,000}{\frac{10,000+15,000}{2} } }{\frac{60-70}{\frac{60+70}{2} } }\\e=\frac{\frac{-5,000}{\frac{25,000}{2} } }{\frac{-10}{\frac{130}{2} } }\\$

$e=\frac{\frac{-5,000}{12,500} }{\frac{-10}{65} }$

e = 2.6

7 0

2 years ago

If the minimum attractive rate of return is 7%, which alternative should be chosen assuming identical replacement (like kind exc

ira [324]

Answer:

The alternative that should be chosen assuming identical replacement is:

Alternative B.

Explanation:

a) Data and Calculations:

Alternatives:

A B

First Cost $5,000 $9,200

Uniform Annual Benefit $1,750 $1,850

Useful life, in years 4 8

Rate of return 7% 7%

Annuity factor 3.387 5.971

Present value of annuity $5,927.25 $11,046.35

Net cash flow $927.25 $1,846.35

b) Alternative B yields a higher return than Alternative A. Since the two alternatives are based on the same rate of return, Alternative B will bring in a higher annual benefit, even when discounted to the present value.

7 0

2 years ago