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Marizza181 [45]
3 years ago
5

A manufacturer purchased $14500 worth of equipment with a useful life of twelve (12) years. Assuming 8% interest, the equivalent

uniform annual cost of the equipment is ______________.
Business
1 answer:
Tom [10]3 years ago
8 0

Given Information:

P = $14,500

r = 8 %

Period = 12 years

Required Information:

Equivalent annual cost = ?

Answer:

Equivalent annual cost = $1,924

Explanation:

The equivalent annual cost EAC is often used to compare assets which have unequal useful life spans in order to make more cost effective decisions.

The equivalent annual cost can be found by using the following equation:

Equivalent annual cost = Present value*r / 1 - (1 + r)⁻ⁿ

Equivalent annual cost = 14,500*0.08/1 - (1+0.08)⁻¹²

Equivalent annual cost = $1,924

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On January 1, 2019, Wasson Company purchased a delivery vehicle costing $47,550. The vehicle has an estimated 7-year life and a
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Answer:

$35,660

Explanation:

the depreciable value of the vehicle = $47,550 - $4,500 = $43,050

depreciation expense per mile driven = $43,050 / 105,000 miles = $0.41

depreciation expense 2019 = $0.41 x 10,500 = $4,305

depreciation expense 2020 = $0.41 x 18,500 = $7,585

accumulated depreciation = $11,890

book value = $47,550 - $11,890 = $35,660

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3 years ago
A strategy of ____________ reciprocating both the frequency and magnitude of the other bargainer's concessions was found to be m
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Answer:

Always and less

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3 years ago
Why does the “rfm” rubric present the three key measures (recency, frequency, and monetary value) in that order?
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The order of the attributes in RFM conforms to the order of their importance in ranking customers. Recency is the most important factor. Recency alone won’t sort out your good customers from your new ones. You need frequency for that. Frequency measures the intensity of a customer’s relationship with your business. How much a customer spends on average or in total is the final measure of his or her monetary value.

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3 years ago
Art is a self-employed installer of home entertainment systems, and he drives his car frequently to installation locations. Art
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Answer:

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Cost of gasoline = (3,760 miles)($1,590/18,800 miles) = $318

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Adding the costs will give us an answer of $5118.

Answer: $5,118

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3 years ago
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