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3 years ago

A disadvantage associated with obtaining goods and services externally includes:

Business

1 answer:

erastovalidia [21]3 years ago

4 0

The answer is non-trivial search costs to be borne by the firm.

The brainiest answer would be greatly appreciated.

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You are considering investing $65,000 in new equipment. You estimate that the net cash flows will be $18,000 the first year, but

Alina [70]

Answer:

a. The annual capital cost is $9,798

b. The equivalent annual savings is $27,495

c. The decision is wise

Explanation:

a. In order to calculate the annual capital cost (ownership cost) for the equipment we would have to calculate the following formula:

annual capital cost=P(A/P,i,n)-F(A/F,i,n).........

annual capital cost=$65,000(A/P,9%,10)-$5,000(A/F,9%,10)

=$65,000(0.1558)-$5,000(0.0658)

=$10,127-$329

=$9,798

b. In order to calculate the equivalent annual savings (revenues) we would have to calculate the following formula:

equivalent annual savings=A+G(A/G,i,n).........

equivalent annual savings=$18,000+$2,500(A/G,9%,10)

=$18,000+$2,500(3.798)

=$18,000+$9,495

=$27,495

c. The decision is wise becauste the equivalent annual savings are greater than the annual costs of the equipment.

6 0

3 years ago

Electronic Superstore's inventory increases during the year by $4.5 million, and its accounts payable to suppliers increases by

Gnom [1K]

Answer:

$38.0 millions

Explanation:

Cash paid to suppliers of merchandise = Cost of Goods Sold + Increase in inventory - Increase in accounts payable

Therefore, we have:

Cash paid to suppliers of merchandise = $40.0 millions + $4.5 millions - $6.5 millions = $38.0 millions

7 0

3 years ago

A __________ is a set of possible pay rates defined by a minimum, maximum, and midpoint of pay for employees holding a particula

photoshop1234 [79]

A pay range is a set of possible pay rates defined by a minimum, maximum, and midpoint of pay for employees holding a particular job or a job within a particular pay grade, whereas a pay grades is a set of jobs having similar worth or content, grouped together to establish rates of pay.

4 0

3 years ago

The current price of a certain non-dividend-paying stock is $120.00. The future 2 pri ce is characterized by the following proba

rjkz [21]

Answer:

Non-Dividend-Paying Stock

i) Calculation of the expected future price:

EVENT PROBABILITY FUTURE PRICE P RETURN R

A 0.18 $180 $32.40

B 0.09 $108 $9.72

C 0.3 $90 $27.00

D 0.25 $81 $20.25

E 0.18 $225 $40.50

Total 1.0 $129.87 $129.87

Future price = the expected returns = $129.87

ii) Calculation of the return in each of the five events:

EVENT PROBABILITY FUTURE PRICE P RETURN R

A 0.18 $180 $32.40

B 0.09 $108 $9.72

C 0.3 $90 $27.00

D 0.25 $81 $20.25

E 0.18 $225 $40.50

iii) Calculation of the expected return:

EVENT PROBABILITY FUTURE PRICE P RETURN R

A 0.18 $180 $32.40

B 0.09 $108 $9.72

C 0.3 $90 $27.00

D 0.25 $81 $20.25

E 0.18 $225 $40.50

Total 1.0 $129.87

Explanation:

a) Data & Calculations:

EVENT PROBABILITY FUTURE PRICE P RETURN R

A 0.18 $180 ?

B 0.09 $108 ?

C 0.3 $90 ?

D 0.25 $81 ?

E ? $225

If stock A does not pay dividend, it will attract capital appreciation which compensates for the unpaid dividends since the company has increased assets over liabilities. When the assets grow more than the liabilities from the reinvestment of the profits, the net value of the business which is the equity increases. This capital growth belongs to the stockholders and is distributable to them in the form of the future price of the stock, which appreciates with the capital growth.

3 0

3 years ago

Zippy had cash inflows from operations of $78,500; cash outflows from investing activities of $63,000; and cash inflows from fin

Semmy [17]

Answer:

Net change in cash $56,500

Explanation:

The computation of the net change in cash is shown below;

cash inflows from operations $78,500

cash outflows from investing activities -$63,000

cash inflows from the financing $41,000

Net change in cash $56,500

We simply added the cash inflows and deduct the cash outflows so the net change in cash could come

3 0

2 years ago