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kakasveta [241]
3 years ago
12

A firm that purchases electricity from the local utility for $200,000 per year is considering installing a steam generator at a

cost of $290,000. The cost of operating this generator would be $150,000 per year, and the generator will last for five years. If the firm buys the generator, it does not need to purchase any electricity from the local utility. The cost of capital is 9%.
For the local utility option, consider five years of electricity purchases. For the generator option, assume immediate installation, with purchase and operating costs in the current year and operating costs continuing for the next four years. Assume payments under both options at the start of each year (i.e., immediate, one year from now,..., four years from now).
What is the net present value of the more attractive alternative?

Please round your answer to the nearest dollar. Report the NPV of cost as a negative number.
Business
1 answer:
Sonja [21]3 years ago
5 0

Answer:

-1,551,758.16

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Romashka [77]

Option A, in which supervisors must build mutual trust and be open to employee challenges, is the appropriate response to this.

<h3>What is feedback?</h3>

When a system's outputs are used again as inputs in a cause-and-effect circuit or loop, this is known as feedback. The system is said to feed back on itself in this case.

Educator, Sponsor, Coach, Counselor, and Director are the five primary supervisory responsibilities.

Hence, option A is correct.

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6 0
2 years ago
When a tax is placed on a product, it’s_________increases, so it’s_________ may decrease. People react to the higher prices by b
Ivan

Answer:

<em>The answer is product, sales, similar products.</em>

Explanation:

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4 0
2 years ago
Polaco Corporation makes a product that has the following direct labor standards: Standard direct labor-hours 0.4 hours per unit
SOVA2 [1]

The labor efficiency variance for May for Polaco Corporation is <u>$4,320 Favorable</u>.

<h3>What is the labor efficiency variance?</h3>

The labor efficiency variance shows the difference between the actual direct labor hours worked and budgeted direct labor hours,

The labor efficiency variance is computed as the Standard hours allowed for production (SH) – actual hours taken (AH) × standard rate.

<h3>Data and Calculations:</h3>

Standard direct labor-hours per unit = 0.4 hours

Standard direct labor rate = $24 per hour

Production in May = 8,500 units

Actual hours used = 3,220 hours

Standard hours allowed = 3,400 hours (8,500 x 0.4)

Labor efficiency variance = $4,320 (3,400 - 3,220 x $24)

Thus, the labor efficiency variance for May for Polaco Corporation is <u>$4,320 Favorable</u>.

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7 0
2 years ago
Upon completing an aging analysis of accounts receivable, the accountant for Rosco Works prepared an aging of accounts receivabl
alisha [4.7K]

Answer:

the bad debt expense is $6,830

Explanation:

The computation of the bad debt expense is shown below:

= Estimated uncollectible amount + debit balance of allowance for doubtful accounts

= $6,300 + $530

= $6,830

Hence, the bad debt expense is $6,830

We simply added the above amount as it represent the bad debt amount

The same is to be considered  

6 0
3 years ago
Why does the increased demand for more service make product management more difficult?
Rama09 [41]

Answer:

One of the hardest challenges in product management is getting people aligned—especially if they have different reporting lines and objectives. Here it helps to remember that our job is not to have all the answers—but to ask the best questions.

Explanation:

4 0
2 years ago
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