Average distance 8 mile and per gallon cost is 83 cent how much is the journey cost

Nissan’s all-electric car, the Leaf, has a base price of $32,780 in the United States, but it is eligible for a $7500 federal ta

katen-ka-za [31]

Answer:

Nissan's all-electric car, the Leaf

PV cost of Leaf Purchase = $16,529

PV cost of Leasing = $12,944.78

The company should lease the car.

Explanation:

a) Costs incurred to purchase the Leaf:

Base price $32,780

less Federal tax credit ($7,500)

Charging station 2,200

less 50% tax credit (1,100)

Cash paid $26,380

Sales value after 3 yrs (9,851) ( $26,380 - 40% of base discounted to PV)

Net PV Investment $16,529

b) Calculation of Discounted Present Values of Payments under Leasing, using online financial calculator:

PV (Present Value) $12,944.78

N (Number of Periods) 3.000

I/Y (Interest Rate) 10.000%

PMT (Periodic Payment) $4,200.00

Starting Investment $2,500.00

Total Principal $15,100.00

Total Interest $2,129.50

c) The purchase of the Leaf would involve a present value cost of $26,380 after deducting all the savings from tax. The 40% sales value of the car at the end of 3 years = $13,112 ($32,780 x 40%). When this sales value is discounted to PV of $9,851, the PV of the car investments becomes $16,529 ($26,380 - $9,851). On the other hand, leasing will cost in PV the sum of $12,944.78

.

6 0

3 years ago

The following is the ending balances of accounts at December 31, 2018 for the Valley Pump Corporation Account Title Cash Account

Art [367]

Answer and Explanation:

The preparation of the classified balance sheet is presented below:

Valley Pump Corporation

Balance sheet

December 31, 2018

Assets

Current assets

Cash $30,000

Marketable securities $27,000

Account receivable $61,000

Inventory $91,000

Prepaid expense $37,000

Investments

Marketable securities $27,000

Land $25,000 $52,000

Property, plant & equipment

Land $105,000

Buildings $325,000

Equipment $85,000

Less:

Accumulated depreciation -$135,000

Net property, plant & equipment $380,000

Intangibles

Copyright $17,000

Total assets $695,000

Liabilities & shareholder equity

Current liabilities

Account payable $70,000

Interest payable $15,000

Unearned revenue $25,000

Note payable $110,000

Current maturities $55,000

Total current liabilities $275,000

Long term liabilities

Note payable $110,000

Shareholder equity

Common stock $250,000

Retained earnings $60,000

Total shareholder equity $310,000

Total liabilities & shareholder equity $695,000

Working notes

Accumulated depreciation = building + equipment

= $105,000 + $60,000

= $695,000

The note payable is

= $55,000 × 2

= $110,000

6 0

2 years ago

2. The case says that Kayem Foods is not meeting its profit targets. Why is it difficult for this firm to make money in this mar

swat32

Companies often set target for themselves. The reasons why it is difficult for this firm to make money is that;

As a result of poor demand for the products
It can be also be like due to the power or prestige gained over the years by the supermarkets is depreciating.
This can be due to the small price margin or the price competition from other manufacturers.
Losses encountered via the issue of Private Label
Poor marketing and advertisement strategy and poor budget allocation for it.

Kayem Foods is a very popular brand. It is known to be a 4th generation family owned business. It has it headquartered in Chelsea, MA.

It is commonly known in the world to be the biggest processed meat company that is found in New England. They are based on natural casing, fully cooked and fresh sausage etc.

Learn more about Food from

brainly.com/question/25884013

3 0

2 years ago

n the cash flow information for the Ping Kings project, Ping spent $300,000 for research and development of the golf clubs. Ping

Gre4nikov [31]

Answer: C. $0

Explanation:

When including initial costs in a project's cash-flow, the relevant costs are those that henceforth will be spent on the project. Sunk costs are not to be included because they have already been incurred and cannot be recovered.

Research and Development costs have already been incurred and so are sunk costs. Hence they are not to be included in the initial cash-flow for the project.

6 0

3 years ago

Suppose the European Central Bank (ECB) decides to use monetary policy to offset the possible inflationary effects of European e

Grace [21]

Answer:

the European Central Bank (ECB) should engage in a contractionary monetary policy

Explanation:

A contractionary monetary policy takes place when a central bank (or the Fed) reduces the money supply in order to cool down the economy, lower inflation rate or like in this case, wants to offset expansionary fiscal policy.

The central bank initially raises the interest rates and starts selling more securities in order to absorb cash from the markets.

7 0

2 years ago