Given Information:
P = $14,500
r = 8 %
Period = 12 years
Required Information:
Equivalent annual cost = ?
Answer:
Equivalent annual cost = $1,924
Explanation:
The equivalent annual cost EAC is often used to compare assets which have unequal useful life spans in order to make more cost effective decisions.
The equivalent annual cost can be found by using the following equation:
Equivalent annual cost = Present value*r / 1 - (1 + r)⁻ⁿ
Equivalent annual cost = 14,500*0.08/1 - (1+0.08)⁻¹²
Equivalent annual cost = $1,924
Answer: (B) Preventive Control
Explanation:
According to the given question, the Preventive control is one of the type of control procedure that helps in preventing from occurring of any loss and error as it is responsible for recording all the cash receipts and the transaction in an organization.
The main objective of the preventive control is to protect all the assets and the transaction in the company. The main advantage of using this type of control procedure in the company design is to conserve the organizational's assets and also increase its life expectancy.
Hence, the company design is implementing the preventive control process for the purpose of protecting the all the transaction. Therefore, Option (B) is correct answer.
Answer:
5.61%
Explanation:
Rate of return can be calculated by finding the IRR.
IRR is the discount rate that equates the after tax cash flows from an investment to the amount invested.
IRR can be calculated using a financial calculator.
Cash flow in year zero = $-180,000
Cash flow each year from year one to nineteen = $13,500
Cash flow in year twenty = $13500 + $60,000 = $73,500
IRR = 5.61%
To find the IRR using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
I hope my answer helps you
Answer: Five factors can affect a plan's monthly premium: location, age, tobacco use, plan category, and whether the plan covers dependents. FYI Your health, medical history, or gender can't affect your premium.
Explanation:
Answer:
Diego is: (A) not liable, because Denise breached the good faith duty of cooperation.
Explanation:
"This is because every contract contains an implied duty of good faith and fair dealing in the performance and enforcement of the contract. Most executives and companies—and even attorneys—however, do not realize that this duty may require that parties not interfere with or fail to cooperate in the other party’s performance. This is important because even if your contract does not explicitly require you to cooperate or if your contract does not explicitly state that you must not interfere, the duty of good faith and fair dealing may require you to do so or else you risk breaching the agreement."
Reference: Pastrikos, Catherine. “What You Should Know about the Implied Duty of Good Faith and Fair Dealing.” American Bar Association, 2016
