When an alternative decision rule disagrees with the net present value (npv), the npv should be followed?

A local county is considering purchasing some dump trucks for the trash pickups. Each truck will cost $55,000 and have an operat

lianna [129]

Answer:

35,972

Explanation:

The equivalent annual cost can be calculated dividing NPV by the annuity factor

In order to find NPV first

Year1 Year2 Year3 Year4 Year5 Total

Operating and

Maintenance 18000 21000 24000 27000 30000 -

Discount factor(10%) 0.909 0.826 0.751 0.683 0.620 -

Discounted CFs 16362 17346 18024 18411 18600 88,713

Salvage 12000

Discount factor(10%) 0.620

Discounted salvage 7440 (7440)

Inital Cost (55,000) (55,000)

NPV 136,333

Calculation for EAC

NPV = 136,333

Annuity factor for 5 years = 3.790

Equivalent annual cost = NPV /Annuity factor

Equivalent annual cost = 136,333/3.790

Equivalent annual cost = 35,972

8 0

3 years ago

Farmers Produce Inc. and Growers Market enter into a contract for the delivery of vegetables. Some of the produce spoils before

Tamiku [17]

Answer:

A. Not fully integrated.

4 0

3 years ago

Dividend Company is a are company that as been profitable and growing for a long time. In the most recent shareholders report, t

Vlad1618 [11]

Dividends= $ that people who bought stock in a company receive. Generally, these increase when the company is doing well.
Stock= becomes more expensive the better a company is doing and has been doing for a while because it is in higher demand.

I predict that the company's stock will rise because it is in higher demand based upon it's consistently doing well. Make sense?

4 0

3 years ago

In periods of low demand, companies can use direct marketing to target ________ customers and produce quick results.

KiRa [710]

There are different types of marketing. In periods of low demand, companies can use direct marketing to target known customers and produce quick results.

Direct marketing is simply known to be a form of advertising that focus on targets of a person or company so as to generate new business, raise the profile of an organization or product and for sale.

This type of marketing channel are emails, online adverts, flyers, database marketing, promotional letters, newspapers, etc.

Learn more from

brainly.com/question/2632159

3 0

2 years ago

Mr. Deli wants to start a small sandwich shop in his neighborhood. He has enormous amounts of cash that he inherited from his Un

Brilliant_brown [7]

Answer:

sole proprietorship

Explanation:

A sole proprietorship is a type of business that is owned by one person

Characteristics

1. it is owned by one person

2. the business has unlimited liability

3. the business has limited access to capital

4. the business usually lacks continuity. this type of business usually ceases to exist when the owner dies

5. the business is usually not separated from the owner

8 0

2 years ago