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jeka57 [31]
3 years ago
5

A small business has determined that the machinery they currently use will wear out in 16 years. To replace the new machine when

it wears out, the company wants to establish a savings account today. If the interest rate on the account is 1.9 percent per quarter and the cost of the machinery will be $325,000, how much will the company have to deposit today
Business
1 answer:
Vlad [161]3 years ago
8 0

Answer:

The initial deposit should be of: $97,439.62

Explanation:

Giving the following information:

To replace the new machine when it wears out, the company wants to establish a savings account today. The interest rate on the account is 1.9 percent per quarter and the cost of the machinery is $325,000.

To calculate the initial investment required, we need to use a variation on the simple interest future value formula:

FV= PV*(1+i)^n

PV= present value

Isolating PV:

PV= FV/(1+i)^n

i= 0.019

n= 4*16= 64

FV= 325,000

PV= 325,000/ (1.019^64)= $97,439.62

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Rhea's company sets specific goals for product features and reliability, offers incentives for achieving goals, and regularly so
adell [148]

Answer:

Total quality management.

Explanation:

Since Rhea's company sets specific goals for product features and reliability, offers incentives for achieving goals, and regularly solicits employee feedback on the causes of customer issues. These activities are part of a total quality management system.

A total quality management (TQM) can be defined as a management tool used to attain customer's satisfaction and improved productivity leading to long-term success in the business. The starting point or first step of the total quality management (TQM) is customer focus.

<em>Hence, in order to achieve a long-term success in customer satisfaction, organizations should use the total quality management approach by involving all of its employees with high standards and work ethics</em>.

4 0
3 years ago
You are considering opening a new plant.
kotykmax [81]

Answer:

1. $275 million

Yes

2. 30%

Explanation:

Calculation for the NPV of the investment opportunity

NPV = –100 + 30/0.08

NPV= $275 million

Therefore the NPV will be $275 million

Yes, Based on the above Calculation they should make the investment

2. Calculation for IRR

IRR: 0 = –100 + 30/IRR

Hence,

IRR = 30/100

IRR = 30%

Therefore the IRR will be 30%

The IRR is great only in a situation where the cost of capital does not go beyond 30%.

6 0
3 years ago
A subsidiary ledger:(A) used in place of the general ledger if the general ledger is destroyed or stolen.(B) a group of accounts
gayaneshka [121]

Answer:

The correct option is C

Explanation:

Subsidiary ledger are those kind of the ledger which is stated as the group of the similar or common accounts, whose combined balances are equal to the balance in the particular account of general ledger.

The general ledger is the account that summarizes or provide detailed information of the account balances of the subsidiary ledger is recognized as the control account or the master account.

The subsidiary ledger are those group of accounts which have a similar characteristic and provide summarized information regarding the control account.

3 0
3 years ago
Activity-Based Costing for a Service Business Sterling Hotel uses activity-based costing to determine the cost of servicing cust
Sunny_sXe [5.5K]

Answer:

Total cost= $40.3

Explanation:

Giving the following information:

The activity rates associated with each activity pool are:

$8.30 per guest check-in

$20.00 per room cleaning

$4.00 per served meal (not including food).

Tara Washington visited the hotel for a 3-night stay. Washington had 6 meals in the hotel during her visit.

Total cost= 8.30*1 + 20*1 + 4*3= $40.3

8 0
3 years ago
What does a balanced lifestyle look like? choose a job you would like to have and describe how you could keep your life balanced
Stels [109]

Balance life is the ability to manage one's life effectively, given attention to all that is needed.

<h3>What is balance lifestyle?</h3>

Balanced lifestyle occurs when an individual is able to manage all aspect of life without affecting each other.

The individual is able to work effectively and still have a good time with his or her family.

An individual with a personal business can have a flexible schedule to accommodate all that matters to his lifestyle.

Therefore, Balance life is the ability to manage one's life effectively, given attention to all that is needed.

Learn more about balance life here,

brainly.com/question/17760650

#SPJ4

8 0
2 years ago
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