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Sergio [31]
3 years ago
7

Suppose that a mechanic owns a building and is renting part of the building's space to a library. Further suppose that because t

he mechanic is the owner, he has the right to make noise during the day while he fixes cars. While the library cannot insist on a quiet environment, it could move to a quieter building. However, rent in the next best building is $350/month more than rent in the noisy building. The mechanic can adopt a new technology that eliminates the noise for $275/month. Given this situation, can the library find a private solution with the mechanic that will make both better off?
Business
2 answers:
jonny [76]3 years ago
8 0

Answer:

The both can share the cost.

Explanation:

Since librarian is the person who is most affected by the noise made by mechanic work. And choosing other place will cost him $350 extra so therefore if librarian will share the most burden of $275 it will benefit both of them.  In this case the librarian does not have to spend $350 and the mechanic will be having a noise free workstation.

tankabanditka [31]3 years ago
7 0

Answer:

The correct answer is letter "B": Yes, but there is only a range of payments that the library will pay the mechanic to make them both better off.

Explanation:

The library must analyze the benefit/cost of the possible solution for the noise problem. A library itself cannot provide a noisy atmosphere to readers. Moving the library to the next best building implies spending $350 monthly more for rent. However, the mechanic can eliminate the noise with a device that costs $275 per month. Thus, the library should share the expenses with the mechanic for the noise-elimination device to reduce the costs of having a noise-free environment obtaining the benefit desired.

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Answer:

Responsibility

Explanation:

5 0
3 years ago
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Present and Future Values for Different Periods:
DiKsa [7]

Answer:

1. $636

2. $674.16

3. $566.04

4. $534

Explanation:

PV = FV ÷ (1 + r/n)^(t × n)........(1)

PV = present value

FV = Future value

r = rate per period

t = number of years

n = number of compounded period per year

FV = P(1 + r/n)^(t×n)...............(2)

FV = Future value

P = principal

r = rate per period

n = number compounded period per year

t = number of year

NO 1.

P= $600

t = 1

n = 1

r = 6% = 0.06

Using equation 2

FV = 600(1 + 0.06/1)^(1 × 1) = $636

NO 2

P = $600

n = 1

t = 2

r = 0.06

Using equation 2

FV = 600(1 + 0.06/1)^(2 × 1) = $674.16

NO 3.

FV = $600

r = 0.06

t = 1

n = 1

Using equation 1

PV = 600 ÷ (1 + 0.06/1)^(1 × 1) = $566.04

NO 4.

FV = $600

r = 0.06

n = 1

t = 2

Using equation 1

PV = 600 ÷ (1 + 0.06/1)^(2 × 1) = $534

8 0
3 years ago
Which example best demonstrates the capabilities of e-mail?
musickatia [10]

Question: Which example best demonstrates the capabilities of e-mail?

Answer: An executive sends a file to a team of collaborators in Asia.

Explanation: email capabilities send an email to an address at your domain that doesn't exist

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5 0
3 years ago
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Pepe Pieman believes that pizza is a much more versatile meal than most people realize. As the national marketing manager for Pi
solniwko [45]

Answer: entrepreneur; self disciplined

Explanation:

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An entrepreneur is one who goes into a business despite knowing that there'll be risk along the way and uses the resources available to achieve his aim.

2. Pepe remains confident and enthusiastic even though his colleagues have poked fun at his ideas. This shows that Pepe is self disciplined. He knows what he wants and won't let any negative comments from anyone affect him.

6 0
3 years ago
You must evaluate a proposed spectrometer for the R&D department. The base price is $190,000, and it would cost another $47,
kolbaska11 [484]

Answer:

See the explanation for the answers.

Explanation:

(a)

                                                     Year

                                        0                      1                   2             3

Cost of Equipment=   237500              0                   0            0

Base price +

Modification

Cost

Working Capital          13000             0                 0           -1300

Saving in                        0               57000         57000      57000

Labor Cost

Depreciation(%)            0              33%               45%            15%

Depreciation                 0             78375           106875      35625

.Book Value            237500       159125           52250         16625

.Salvage Value            0                  0                  0               57000

.After Tax                     0                  0                  0               40850

Salvage Value  

.Cash Flow           -250500         65550         76950         102300

.Discounted Cash -250500     57500          59210.5    69049.59

Flow at 14%  

NET VALUE                -64739.89            

(a)

Initial Investment / Cash Flow in year 0   = Cost of Equipment + Increase in working capital

                               = 237500 + 13000

                               =$250,500

Cash Flows in Years 1 and 2   = (Saving in Labor Cost - Depreciation) * (1 - Tax Rate) +  Depreciation

Cash Flow in year 3   = (Saving in Labor Cost - Depreciation) * (1 - Tax Rate) + Depreciation + Recovery of Working Capital + After Tax Salvage Value

After Tax Salvage Value = Salvage Value - (Salvage Value - Book Value) * Tax Rate

                                        = 57000 - (57000 - 16625) * 0.4

                                       = $40,850

(b)

Year       Cash Flow

1         $65550

2         $76950

3         $102300

(c)

If WACC is 14%, the net present value of the project is -$64,739.89. Since NPV is negative, the barometer should not be purchased.

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