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
Alex787 [66]
3 years ago
11

BD Corporation has purchased new computers to modernize the office. The increased efficiency from the computers will lead to inc

reases in productivity from the office staff. Estimates of the additional revenue from the productivity are $75,000 per year (end of year) for the next five years when the computers will need to be replaced. The new computers will cost $300,000. You will have to borrow from your local bank at a rate of 8% APR. Should you go ahead with the new computers
Business
1 answer:
Inessa [10]3 years ago
5 0

Answer:

BD Corporation should not purchase the new computers

Explanation:

initial outlay year 0 = -$300,000

increased productivity per year = $75,000 for years 1-5

discount rate = 8%

NPV = -$300,000 + $75,000/1.08 + $75,000/1.08² + $75,000/1.08³ + $75,000/1.08⁴ + $75,000/1.08⁵ = -$300,000 + $69,444.44 + $64,300.41 + $59,537.42 + $55,127.24 + $51,043.74 = -$300,000 + 299,453.25 = -$546.75

since NPV is negative, then the project should be rejected

we can also use an annuity factor to determine the present value of this annuity, PV = $75,000 x 3.9927 = $299,452.50

NPV = -$300,000 + $299,452.50 = -$547.50

You might be interested in
The total manufacturing cost variance consists of a.direct materials cost variance, direct labor rate variance, and factory over
Lostsunrise [7]

Answer: The total manufacturing cost variance is made up of direct material cost variance, direct labor cost variance and factory overhead cost variance. (Option C).

Explanation:

Some of the goals of manufacturing companies are to increase company’s revenue and profit. To achieve this, a company needs to know how to manage its costs and these may cause variances in manufacturing.

The total manufacturing cost variance is made up of direct material cost variance, direct labor cost variance and factory overhead cost variance. These costs are the differences between the actual cost incurred and the set cost. These variances help managers to know if the company is meeting up to the required standard.

7 0
3 years ago
A running shoe company wants to reach "avid marathon runners" instead of just "sports fans". which targeting method should this
fiasKO [112]
The correct answer:
Custom affinity audiences

Source, explanation and more answers: https://goo.gl/LkZN6c
3 0
3 years ago
Lisa agrees to sell Deb an electronic entertainment center worth $1,000 for $700 in order to have a rapid sale. Later Lisa insis
klemol [59]

Lisa agrees to sell Deb an electronic entertainment center worth $1,000 for $700 in order to have a rapid sale. Later Lisa insists that she may rescind this agreement since the agreed price was 30% below fair market value. Lisa may not rescind since Lisa and Debbie freely agreed.

A trade show for the video game industry is called E3. For the purpose of introducing and publicizing new games and game-related items to retailers and the media, the Entertainment Software Association organizes and presents E3, which is attended by a large number of developers, publishers, hardware, and accessory makers.

Internet-based entertainment that a user can view or hear: We anticipate that increased access to broadband will open up e-commerce and entertainment to everyone.

Learn more about Entertainment Software Association  here brainly.com/question/13615489

#SPJ4

6 0
1 year ago
At the high and low levels of activity during the month, direct labor hours are 90,000 and 40,000, respectively. The related cos
andre [41]

Answer:

The fixed cost at any level of activity is $48,000 while the variable cost per unit at any level of activity is $1.30

Explanation:

The total cost is a function of the fixed and variable cost. Whilst the fixed cost does not change at a certain range of activities level, the variable cost changes as the level of activities(units produced or sold).

Using the high and low levels of activities given, let the variable cost per unit be v and the fixed cost F

for the high level,

F + 90,000v = 165,000

For the low level

F + 40,000v = 100,00

Solving both equations simultaneously,

50,000v = 65,000

v = $1.30

F + 40,000($1.30) = 100,000

F = 100,000 - 52,000

F = $48,000

5 0
3 years ago
I GIVE BRAINLIEST! ASAP!!!!
marishachu [46]

Answer:

The government can influence interest rates, print money, and setting bank reserve requirements are all tools central banks use to control the money supply. Other tactics central banks use include open market operations and quantitative easing, which involve selling or buying up government bonds

4 0
2 years ago
Other questions:
  • Rafael earned a salary of 34,944 last year. How much did he earn a month
    13·2 answers
  • Manny’s Cookies, Ltd. is an online cookie subscription business started by a 7-year old (Manny) and his father. Manny’s Cookies
    7·1 answer
  • An increase in the expected price level shifts short-run aggregate supply to the
    14·1 answer
  • What is the definition of liability? the amount a consumer must pay after an incident before the insurance company starts paying
    12·2 answers
  • Wal-Mart was one of the most successful firms of the 1970s and 1980s. Much of Wal-Mart's success can be credited to its expansio
    14·1 answer
  • Jeanne is 54 years old. She had worked as a medical research librarian for ten years before quitting in her late forties. She wa
    9·1 answer
  • Which of the following statements is CORRECT? Assume that the project being considered has normal cash flows, with one outflow f
    12·1 answer
  • Why would a bank be more likely to make a loan to someone with a FICO score of 750 rather than someone with a score of 500? a) T
    12·2 answers
  • Assume the following: The standard labor rate per hour is $17.00. The standard labor-hours allowed per unit of finished goods is
    13·1 answer
  • A buyer particularly liked the ornate brass lighting fixtures in a seller's house and immediately made an offer, which the selle
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!