1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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  

You might be interested in
For each of the following accounts indicate the effect of a debit or a credit on the account and the normal balance.
mestny [16]

Answer:

dont be lonely

Explanation:

5 0
3 years ago
Rehmer Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.06 direct labor
Phoenix [80]

Answer:

Results are below.

Explanation:

Giving the following information:

Each unit of output requires 0.06 direct labor-hours.

The direct labor rate is $8.00 per direct labor-hour.

The production budget calls for producing 5,300 units in June and 5,800 units in July.

<u>Direct labor budget June:</u>

Direct labor hours= 5,300*0.06= 318

Direct labor cost= 318*8= $2,544

<u>Direct labor budget July:</u>

Direct labor hours= 5,800*0.06= 348

Direct labor cost= 348*8= $2,784

3 0
3 years ago
Assume that at the end of the next year, Company A will pay a $2.00 dividend per share, an increase from the current dividend of
Bezzdna [24]

Answer:

The  value of the stock is $28.57

Explanation:

Data provided in the question:

Dividend paid at the end of the year, D1 = $2.00 per share

Increase in dividend = $1.50 per share

Growth rate, g = 5% = 0.05

Required rate of return = 12% = 0.12

Now,

Price with constant Dividend Growth model = D1 ÷ ( r - g )

= $2 ÷ ( 0.12 - 0.05 )

= $28.57

Hence,

The  value of the stock is $28.57

4 0
3 years ago
Refer to the following lease amortization schedule. The five payments are made annually starting with the beginning of the lease
babymother [125]

Answer and Explanation:

Lease   Cash    Effective           Decrease in               Outstanding

Payment   Payment   Interest           Balance                   Balance

                                                                                                       $ 34,600

1                $ 8,000     $ 3,460*       $ 4,540**                        $ 26,600

2          $ 8,000     $ 2,660        $ 5,340                       $ 21,260

3          $ 8,000     $ 2,126        $ 5,874                       $ 15,386

4         $ 8,000    $ 1,539                $ 6,461                       $ 8,925

5          $ 8,000    $   893                $ 7,108                        $ 1,818***

6        $ 2,000    $   182              $ 1,818                             $    -  

*34600 x 10%

**8000-4540

***8000-7108

Interest rate = interest on second lease payment/outstanding balance after 1st payment x 100

Interest rate = 2660/26600 x 100

Interest rate = 10%

5 0
3 years ago
Match each certification to its purpose
sveta [45]
First one7,6,65,and last 3
5 0
3 years ago
Read 2 more answers
Other questions:
  • When an economy operates at its long-run potential output level,?
    12·1 answer
  • What is usually paid on a biweekly or monthly basis for professional employment.
    7·1 answer
  • Jimmi wants a new cellular phone that many other people also want to buy. There are not enough phones produced to fill the deman
    8·1 answer
  • Bendel Incorporated has an operating leverage of 7.3. If the company's sales volume increases by 3%, its net operating income sh
    13·1 answer
  • A _______ is a cluster of complementary products and services that are closey related in the minds of consumers but are spread a
    14·1 answer
  • Court Inc. produces two types of products - Gizmos and Gadgets. The following information is available related to each product:
    14·1 answer
  • Jessica and her friends are 16 years old like to shop at Aeropostale, which is a clothing store targeted to teens and young adul
    6·1 answer
  • Mofro's Computer Repair Shop started the year with total assets of $300,000 and total liabilities of $200,000. During the year,
    7·1 answer
  • A farmer grows wheat and sells it to the miller for $84. The miller turns the wheat into flour and sells it to the baker for $10
    11·1 answer
  • A pharmacy has monthly sales of $278,000, inventory purchases of $186,000, salaries and wages of $49,000, utilities of $2,000, i
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!