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valina [46]
3 years ago
6

You are trying to pick the least-expensive car for your new delivery service. You have two choices: the Scion xA, which will cos

t $18,000 to purchase and which will have OCF of –$2,000 annually throughout the vehicle’s expected life of three years as a delivery vehicle; and the Toyota Prius, which will cost $27,000 to purchase and which will have OCF of –$1,050 annually throughout that vehicle’s expected 4-year life. Both cars will be worthless at the end of their life. You intend to replace whichever type of car you choose with the same thing when its life runs out, again and again out into the foreseeable future. If the business has a cost of capital of 13 percent, calculate the EAC.
Business
1 answer:
Slav-nsk [51]3 years ago
7 0

Answer:

Scion xA

Explanation:

Scion's EAC$ -7,028.89 ± 0.1%Toyota's EAC$ -7,234.69 ± 0.1%Which one should you choose?Scion xA Explanation:One iteration of each delivery car will consist of the following cash flows: Year01234Scion xA CFs–$14,000 –$1,200 –$1,200 –$1,200 Toyota Prius CFs–$20,000 –$650 –$650 –$650 –$ 650  

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Sole Purpose Shoe Company is owned and operated by Sarah Charles. The company manufactures casual shoes, with manufacturing faci
grandymaker [24]

Answer:

Sole Purpose Shoe Company

The reason for Sarah to want to use standard costs to compare with her actual costs is:

A) Management can evaluate the differences between standard costs and actual costs to focus on correcting the cost variances.

Explanation:

Standard costs provide a control technique for evaluating the Sole Purpose Shoe Company's performance at three levels: a standard performance level, a measure of actual performance, and a measure of the difference (variance) between standard and actual costs.  Sarah will use the variance resulting from the comparison of standard costs with actual costs to measure the non-financial performance of the entity.

7 0
3 years ago
What benefits do you expect to achieve from career exploration?
lidiya [134]
You expect to find and increase knowledge of  what really fits for you to do for the rest of your career life.
6 0
2 years ago
The Equal Employment Opportunity Act of 1972 strengthened the Equal Employment Opportunity Commission, an agency created by the
PilotLPTM [1.2K]

The equal opportunity Act of 1972 strengthened the Equal Employment Opportunity Commission by

  • issuing guidelines for employer conduct.
  • mandating specific record keeping procedures.

<h3>What is the Equal Employment Opportunity Act?</h3>

This is the act of the government that helps to ensure that all employers treat people of the US in all befitting ways regardless of their genders, race and skin.

The act talked against discrimination, it upheld compensation and the work condition of employees.

Read more on Equal Employment Opportunity Act brainly.com/question/14774625

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4 0
2 years ago
If the market risk premium increased to 6%, what would happen to the stock's required rate of return
Inessa [10]

Answer:

13%

Explanation:

As per the situation the solution of required rate of return first we need to find out the beta which is shown below:-

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

11% = 7% + Beta × 6%

Beta = 1

now If the market risk premium increased to 6% so,

The required rate of return = 7% + 1 × 6%

= 13%

Therefore for computing the required rate of return we simply applied the above formula.

7 0
2 years ago
In most high-tech industries, the fixed costs of developing a product are very _____, and the costs of producing one extra unit
topjm [15]

Answer:

Fixed costs are high, variable costs are low

Explanation:

The reason is that the fixed costs are high because these fixed costs are uncontrollable and their might not be an alternative which means we have to move with higher fixed costs. And this is because most of tasks in manufacturing are handled by the machines not humans. So the cost of maintenance, depreciation, etc are fixed costs which are uncontrollable.

Furthermore, the company has very small variable costs because the company enjoys economies of scales, fast paced manufacturing machines, etc. And this is controllable by investments in another more robust machinery.

7 0
3 years ago
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