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lapo4ka [179]
3 years ago
9

Malika just got hired by Amazon to work in upper management. She currently lives in South Carolina, and has to move to Californi

a for the job. Which of the following would be a good economic reason for her to move her personal belongings on her own rather than hiring someone else?
a. Malika is in better physical shape than ever.
b. The bids from moving companies are a bit lower than expected Malika's hiring bonus from Amazon was higher than she expected.
c. Malika's job starts in one month, so she will have one month without work. Therefore, the opportunity cost of moving herself is low during this month
Business
1 answer:
zzz [600]3 years ago
4 0

Answer: Malika's job starts in one month, so she will have one month without work. Therefore, the opportunity cost of moving herself is low during this month.

Explanation:

From the question, we are informed that Malika just got hired by Amazon to work in upper management and that she currently lives in South Carolina, and has to move to California for the job.

A good economic reason for her to move her personal belongings on her own rather than hiring someone else is Malika's job starts in one month, so she will have one month without work. Therefore, the opportunity cost of moving herself is low during this month.

Since her job will start in a month, that means that she can use the available time she has to move her personal belongings. Assuming, she has something else to do or she'll be busy and will be hard for her to move it on her own, then it'll be logical to request for someone to help her move it but in this case, she can move it herself as the opportunity cost is low.

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3 years ago
Management team of Wolverine Corp. is considering the purchase of a new piece of equipment. They believe that new equipment is m
muminat

Answer:

Wolverine Corp.

a. The accounting rate of return = 50%

b. The payback period = 6 years ($200,000 * 6)

c. The net present value = ($39,600)

d. The net present value at 15% = ($237,200)

Explanation:

a) Data and Calculations:

Initial investment cost in new equipment = $1,200,000

Annual incremental net income from cost savings = $200,000

Salvage value of the new equipment = $200,000

Estimated useful life of equipment = 8 years

Hurdle rate = 10%

a. Accounting rate of return = (($200,000 * 8 + $200,000) - $1,200,000)/$1,200,000

= ($1,800,000 - $1,200,00)/$1,200,000

= $600,000/$1,200,000 * 100 = 50%

NPV at 10% hurdle rate:

Initial investment = $1,200,000 * 1 = $1,200,000

Annual incremental savings:

= $200,000 * 5.335 =                        $1,067,000

Salvage value = $200,000 * 0.467         93,400

Total benefits                                     $1,160,400

NPV =                                                    ($39,600)

NPV at 15% hurdle rate:

Initial investment = $1,200,000 * 1 = $1,200,000

Annual incremental savings:

= $200,000 * 4.487 =                           $897,400

Salvage value = $200,000 * 0.327         65,400

Total benefits                                      $962,800

NPV =                                                  ($237,200)

4 0
3 years ago
Which of the following is NOT considered to be one of the three primary functions that all organizations​ perform? A. research a
lidiya [134]

Answer: Research and development

Explanation: Primary functions are those functions which ensures that the essential requirements to operate the business efficiently are met. These require monitoring by the second level managers of the organisation.

Production, marketing and finance are the basic needs of an organisation for living in the market. Research and development is not an activity without which the business won't be able to run.

Thus, we can conclude that the right answer is Option A.

6 0
3 years ago
The Alpha Beta Corporation disposes a capital asset with an original cost of​ $170,000 and accumulated depreciation of​ $109,000
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Answer:

Option D) $54.400

Explanation:

When  a company disposes a capital asset, the cost of the asset it's the remanent value, that is the difference between the original cost less the accumulated depreciation, in this case $170.000 minus $109.000, remanent value is $61.000.

This value it's the cost of sale and the price it's $50.000 , the result of this transaction it's a loss of ($11.000) so the after-tax cash inflow it's ($4.400).

The total Cash Inflow it's the sum of $50.000 (gained from the sale) and the save on taxes for $4.400, because of the loss I get a payback on taxes, the total is $54.400.

8 0
4 years ago
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