Answer:
I believe that this problem is about determining the equivalent annual cost of leasing option A:
lease cost year 1 = $36.25/sf
lease cost year 1 = $37.25/sf
lease cost year 1 = $38.25/sf
lease cost year 1 = $39.25/sf
lease cost year 1 = $40.25/sf
there are two ways to calculate this solution and the answer will vary significantly depending on which assumption you take:
a) lease payments are paid at the beginning of the year
the PV = $36.25 + $37.25/1.06 + $38.25/1.06² + $39.25/1.06³ +$40.25/1.06⁴ = $170.27
equivalent annual cost = ($170.27 x 6%) / [1 − (1 + 6%)⁻⁵
] = $10.2162 / 0.2527 = $40.42/sf
b) lease payments are paid at the end of the year
the PV = $36.25/1.06 + $37.25/1.06² + $38.25/1.06³ + $39.25/1.06⁴ +$40.25/1.06⁵ = $160.63
equivalent annual cost = ($160.63 x 6%) / [1 − (1 + 6%)⁻⁵
] = $9.6378 / 0.2527 = $38.13/sf
Answer: CPM and PERT use different activity time estimates.
Explanation:
Program (Project) Management and Review Technique (PERT) is appropriate when the project time needed to complete different activities are unknown while the Critical Path Method or CPM is fitted for recurring projects in nature. PERT deals with activities that are not predictable but CPM deals with repetitive activities. PERT focuses/concentrates on time while CPM focuses on time-cost & trade-off. Also, PERT requires three-time estimate while CPM requires one-time estimate. PERT uses a probabilistic model and on the other hand, CPM uses a deterministic model. In PERT, a technique of planning and controlling time is used but CPM uses a technique to control cost and time.
Answer:
b. $194,492
Explanation:
Note: The present value factors is attached as picture below
Multiple Choice
<em>$205,607. $194,492. $200,000. $22,032. $172,460.</em>
<em>00,000 </em>
Calculation of Bond issue price
PV factor at 2.50%
Pv value of bond 200,000 0.8623 172,460
Pv of interest at 2%, 6 4,000 5.5081 <u>22,032</u>
semi annual installment
Present value of the Bond <u>$194,492</u>
Answer:
These are the cost advantage that an organization obtains due to their scales of operation . Diseconomies are the cost disadvantages that firms build up due to an increase in firm size or output . This result in the production of goods and services at increased per unit costs . Economics of scale leads to cost reduction .
Explanation:
Thaats what upp
That is "True".
They are known as powers since they increment your ability to prevail in all everyday issues. Awareness Power is the capacity to consider our lives, made up of abilities, qualities, and assets. Social Power is interfacing with others and making a great informal community and Solution Power is utilized to comprehend difficulties and conquer deterrents, worked through inventiveness, influence, and adaptability. That is Success GPA.
