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S_A_V [24]
3 years ago
8

Precision Dyes is analyzing two machines to determine which one it should purchase. The company requires a rate of return of 15

percent and uses straight-line depreciation to a zero book value over the life of its equipment. Ignore bonus depreciation. Machine A has a cost of $462,000, annual aftertax cash outflows of $46,200, and a four-year life. Machine B costs $898,000, has annual aftertax cash outflows of $16,500, and has a seven-year life. Whichever machine is purchased will be replaced at the end of its useful life. Which machine should the company purchase and how much less is that machine's EAC as compared to the other machine's? B; $23,156.82 A; $17,404.04 A; $24,321.02 B; $17,521.94 B; $16,791.08
Business
1 answer:
Sonja [21]3 years ago
3 0

Answer:

$24,321.02

Explanation:

For computing the EAC first we have to determine the net present value for both machines which are shown below:            

For Machine A

Net present value = Annual cash outflows × PVIFA factor for 15% at four years - initial cost

= -$46,200 × 2.8550 - $462,000

= -$131,901 - $462,000

= -$593,901

Now the EAC is

= -$593,901 ÷ 2.8550

= -$208,021.37

For Machine B

Net present value = Annual cash outflows × PVIFA factor for 15% at seven years - initial cost

= -$16,500 × 4.1604  - $898,000

= -$68,646.60 - $898,000

= -$966,646.60

Now the EAC is

= $966,646.60 ÷ 4.1604

= -$232,344.63

The different amount in EAC is

= $24,323.26

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Answer:

the supply will decrease causing an increase in pricing on mattresses.

Explanation:

Monopolism occurs when only one supplier produces a product with no other competitors. They control the supply and price of commodities.

Since other mattresse sellers have closed shop, the final seller will have monopoly of the mattresse market.

In order to maximise revenue he will reduce supply and increase prices so that customers will have no choice but to buy the scarce mattresse at higher price.

8 0
3 years ago
The year-end adjusted trial balance of Hilltoppers Corporation included the following account balances: Cash, $3,600; Equipment,
Galina-37 [17]

Answer:

Explanation:

The preparation of the post-closing trial balance is presented below:

                                        Hilltoppers Corporation

                                     Post-closing trial balance

Particulars                                      Debit                        Credit  

Service revenue                                                               $14,600  

Cash                                               $3,600

Accounts Payable                                                           $1,600

Utilities expense                            $2,600

Salaries expense                           $9,600

Equipment                                      $15,600

Common stock                                                                 $12,000

Retained earnings                                                            $4,400

Dividend                                         $1,200                                    

Total                                               $32,600                     $32,600

4 0
3 years ago
Human resource​ (HR) management includes activities such​ as: A. Analyzing competitors B. ​Disciplining, promoting,​ transferrin
natita [175]
Answer:
The answer is B. Disciplining, promoting, transferring, and demoting.

Hope This Helps!
Can I get Brainliest?
8 0
3 years ago
According to the principles of scientific management, the best way to improve productivity is to Multiple Choice give employees
Korolek [52]

The best way to improve productivity would be to find the best method of doing each job, then teach those methods to employees.

<h3>What is productivity?</h3>

In the business environment, the notion of productivity has to do with the ability of employees to carry out tasks in the work environment in a more efficient, faster and better way.

To increase productivity, it is important that the workers are taught the best way to carry out their jobs.

Read more on productivity here:brainly.com/question/2992817

5 0
2 years ago
Suppose a three-person comittee is formed for a culb by drawing names out of a hat. If the expected number of women is 2 and the
tangare [24]

Answer: 20 women

Explanation:

Making the total number of women in the club 'x', we can then do the following,

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therefore total number of names in the hat N=x+10

We need to select 3 people so sample size = 3

Using the Hypergeometric Distribution then we can then use the formula,

Expected number of women on the Committee = k * n / N

Where k is the total number

2 = x * 3 / (x + 10)

2 = 3x/(x +10)

3x = 2x +20

x = 20

There are 20 women in the club.

8 0
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