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
Ivan
3 years ago
7

A city government is considering two types of​ town-dump sanitary systems. Design A requires an initial outlay of ​$405 comma 00

0 with annual operating and maintenance costs of ​$51 comma 000 for the next 14 ​years; design B calls for an investment of ​$251 comma 000 with annual operating and maintenance costs of ​$89 comma 000 per year for the next 14 years. Fee collections from the residents would again be ​$95 comma 000 per year. The interest rate is 7​%, and no salvage value is associated with either system.
Business
1 answer:
SIZIF [17.4K]3 years ago
5 0

Answer:

Desing A is a better deal as the equivalent annual cost is lower than desing B

Anywa, bot desing cost are above the city collections thus, it cannot afford the sanitary systems unless it raises taxes

Explanation:

<em><u>Desing A </u></em>

F0 405,000

operating and maintenance cost 51,000 for 14 years

Present value of the operating and maintenance cost:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C = $ 51,000.00

time = 14 years

rate = 0.07

51000 \times \frac{1-(1+0.07)^{-14} }{0.07} = PV\\

PV $446,018.8673

net worth: $ 851,081.87

equivalent annual cost:

PV \div \frac{1-(1+r)^{-time} }{rate} = C\\

PV 851,082

time 14

rate 0.07

851081.87 \div \frac{1-(1+0.07)^{-14} }{0.07} = C\\

C  $ 97,316.904

<u><em>Desing B</em></u>

F0 251,000

operating and maintenance cost 89,000 for 14 years

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 89,000.00

time 14

rate 0.07

89000 \times \frac{1-(1+0.07)^{-14} }{0.07} = PV\\

PV $778,346.6507

net worth: $ 1,029,346.65

equivalent annual cost:

1029346.65 \div \frac{1-(1+0.07)^{-14} }{0.07} = C\\

C  $ 117,700.580

You might be interested in
In 2-5 paragraphs, describe how you plan to use at least one technology you learned about in the course in order to work more ef
Wewaii [24]

I will use one the technology to boast my work output so that i can be more efficient in my business dealings and boast productivity.

<h3>What is the role of technology?</h3>

The use of technology is one that has helped a lot of business professionals to be more and more efficient in their work output.

Therefore, I will use one the technology to boast my work output so that i can be more efficient in my business dealings and boast productivity as it also helps to  keep employee information safe.

Learn more about technology from

brainly.com/question/11265745

#SPJ1

5 0
2 years ago
Water and air are examples of _____ resources while people are considered to be _____ resources
kiruha [24]

Answer:

the answer is natural;human

7 0
2 years ago
You are the manager of a clothing store. You must decide how many of your employees to put on the sales floor, and how many to p
Fiesta28 [93]

Answer:

c. 60 on the sales floor, 24 on the register.

Explanation:

Given that

The total number of employees to manage is 84

and w assume that the no of employees on the sales floor after having division be x

also the given condition is that there should be minimum of 2 employees for every 5 employees that worked on the sales floor

So that means

x ÷84 = 5 ÷ (5 + 2)

after solving this x = 60

So the no of employees on register is

= 84 - 60

= 24

7 0
2 years ago
Consider two companies in a world with no taxes that are alike except in borrowing choices. Company 1 has no debt​ financing, an
Alekssandra [29.7K]

Answer:

Company 1 = $2 per share

Company 2 = $2.50 per share

Explanation:

Given that,

EBIT for both companies = $1,000

Number of shares outstanding for company 1 = 500

Number of shares outstanding for company 2 = 300

Interest paid by company 2 = $250

EPS for company 1:

= (Total income - Preferred dividend) ÷ Shares outstanding

= ($1,000 - $0) ÷ 500

= $2 per share

EPS for company 2:

= (Total income - Preferred dividend) ÷ Shares outstanding

= ($1,000 - $250) ÷ 300

= $750 ÷ 300

= $2.50 per share

6 0
2 years ago
Jurisdiction- James Clayton Allison, a resident of the state of Mississippi, was employed by the Tru-Amp Corporation as a circui
Nikolay [14]

Answer:

The US District Court ruled that this case must be served by a court in Tennessee because:

  • Allison was injured while working in Tennessee
  • The place where Allison got involved with the defendant is Tennessee, so their relationship took place there.

If the lawsuit had been for a higher amount (at least $75,000), then the case could have been tried by a federal court.

3 0
3 years ago
Other questions:
  • Grason Corporation is preparing a budgeted balance sheet for 2018. The retained earnings balance at December 31, 2017 was $533,5
    12·1 answer
  • Write each item listed below to the appropriate category . GOODS SERVICES Cutting Hair Doctor Computers Cleaning Business Tasks
    9·1 answer
  • The use of a freight forwarder that consolidates shipments from several organizations into efficient lot sizes usually increases
    10·1 answer
  • Assume that a Parent owns 80 percent of a Subsidiary that has 6 percent preferred stock outstanding with a reported par value of
    11·1 answer
  • A set of financial states made every 3 months is called a .
    12·1 answer
  • When a business is worth more if its assets are sold than if it continues to operate, then the business is liquidated, and the p
    9·1 answer
  • The bond, which has a $1,000 face value and a coupon rate equal to 10 percent, matures in six years. Interest is paid every six
    8·1 answer
  • NeeeeeD HeeellllP !!!!!!!!!!!!!!!!
    11·1 answer
  • As a member of the media audience, what are some ways you can control the persuasive process? Explain who you think has more pow
    12·1 answer
  • Identify which statement is true of specialty products. a. They are made directly available to a consumer through direct mail. b
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!