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
NISA [10]
3 years ago
11

The property appraisal district for Marin County has just installed new software to track residential market values for property

tax computations. The manager wants to know the total equivalent cost of all future costs incurred when the three county judges agreed to purchase the software system. The system has an installation cost of $150,000 and an additional cost of $50,000 at year 10. The annual software maintenance cost is $5,000 for the first 4 years and $8,000 thereafter. If the new system will be used for the indefinite future, find the equivalent present value at a discount rate of 5%.
Business
1 answer:
Mama L [17]3 years ago
4 0

Answer:

Equivalent annual cost = $16,502.89

Explanation:

Equivalent annual cost = Present Value of cost / Annuity factor

Present value of cost:

PV of additional cost  =50,000 ×1.05^(-10)=30,695.66

PV of maintenance cost

First four years= 5,000×  (1-1.05^(-4))/0.05=17,729.75

From year 5 to infinity = (8,000/0.05)× 1.05^(-4)=131,632.39

PV of maintenance cost =  17,729.75  + 131,632.396= 149,362.14

PV of costs = 150,000 + 30,695.66 + 149,362.14= 330,057.8112

Annuity factor = 1/r = 1/0.05= 20

Equivalent annual cost = 330,057.8112 /20=$16,502.89

Equivalent annual cost = $16,502.89

You might be interested in
The financial records of LeRoi Jones Inc. were destroyed by fire at the end of 2014. Fortunately, the controller had kept certai
Stolb23 [73]

Answer:

LeRoi Jones Inc

Income statement for the year 2014

Sales (100/8 × $100,000)                                                 $1,250,000

Less Cost of Sales

Beginning merchandise                                  $92,000

Add Purchases                                               $481,600

Less Ending merchandise ($92,000 - 20%) ($73,600)  ($500,000)

Gross Profit                                                                         $750,000

Less Expenses :

Sales Discounts                                                  $17,000

Interest expense                                               $20,000

Administrative expenses ($500,000 × 20%) $100,000 ($137,000)

Profit before tax                                                                  $613,000

Income tax expense at 30%                                             ($183,900)

Net Income / Loss                                                              $429,100

Earnings Per Share                                                                 $21.46

Explanation:

Notes on income statement preparation

Use the statistical data to fill in the line items of the Income Statement as shown above.

For the Calculation of Sales, first calculate the administrative expenses. Apply the 8% on the administration cost to find sales at 100%.

Earnings Per Share = Earnings attributable to holders of Common Stock ÷ Weighted Average Number of Common Stock

                                = $429,100 ÷ $20,000

                                = $21.46

8 0
3 years ago
Standard Quantities Allowed of Labor and MaterialsMiel Company produces ready-to-cook oatmeal. Each carton of oatmeal requires 1
jok3333 [9.3K]

Answer:

Part I :

1) Total amount of oats allowed = 960000*16 = 15360000 ounce

2) Total amount of labor hours allowed = 960000*.04 = 38400 Hours

<u>Part II : </u>

1) Total amount of oats allowed = 750000*17 = 12750000 ounce

2) Total amount of labor hours allowed = 750000*.04 = 30000 Hours

4 0
3 years ago
This year, Linda Moore earned a $112,000 salary and $2,200 interest income from a jumbo Certificate of Deposit.She recognized a
olya-2409 [2.1K]

Answer:

a) salary $112,000

Interest income $2,200

Capital gain on stock -

gross income $114,200

capital gains and losses

capital gain 10,500

capital loss 15,300

Net capital loss = 4800

net loss offset on Gross income = 3000

Net Gross income $111,200

capital loss that is carried forward = $1800

b) salary $112,000

Interest income $2,200

Capital gain on stock -

gross income $114,200

CAPITAL LOSSES/GAINS

capital gain 16000

capital loss 15300

Net Capital gain = 700  

ADD taxable capital gains on Gross income

c) salary $112,000

Interest income $2,200

gross income $114,200

capital losses/ gains

capital loss 15300

capital loss 17000

Total Capital LOSS = $ 32300

Set off against income = (3000)

Losses carried forward =$29300

Explanation:

Capital losses can be offset on normal Gross income but only up to $3000 per year

6 0
3 years ago
The traditional view of american diversity emphasized the concept of assimilation, which for many groups meant?
gregori [183]

The correct answer is true.

Minority communities have been forced to adopt Anglo-American culture and give up their traditions as a result of assimilation.

<h3>In terms of cultural plurality, what is assimilation?</h3>

In anthropology and sociology, assimilation refers to the process through which people or groups with different ethnic ancestries are assimilated into the dominant culture of a community.

<h3>What does assimilating into American society entail?</h3>

Assimilation is a hotly debated idea in which immigrant groups are urged, through social and cultural practices and/or political maneuvers, to embrace the culture, values, and social behaviors of the host country in order to gain full citizenship status.

To know more about Assimilation , visit:

brainly.com/question/14313590

#SPJ4

7 0
1 year ago
A firm has a return on equity of 20 percent. The total asset turnover is 2.8 and the profit margin is 7 percent. The total equit
kondor19780726 [428]

The net income of the firm is $1,200

<h3>What is net income?</h3>

Net income refers to the amount an individual or business makes after deducting costs, allowances and taxes.

Net profit is also amount of money a business earns after deducting all operating, interest, and tax expenses over a given period of time.

First, we know that:

Return on equity

= Net income / Total equity

Fixing the given values, we'll have

20% = Net income / $6,000

Net income = $6,000 * 20%

Net income = $1,200

Therefore, net income of the firm is $1,200

Learn more about computation of net income here: brainly.com/question/24836146

4 0
2 years ago
Other questions:
  • How many owners can own a partnership
    5·2 answers
  • Russia and china are both rich in natural resources and human resources, and both countries have a solid level of capital. yet,
    10·1 answer
  • Two conditions allow a single seller to become a monopolist. those two conditions are that the firm must:
    14·1 answer
  • HH is a 68 yo M who has been admitted to the medical ward with community-acquired pneumonia for the past 3 days. His PMH is sign
    15·1 answer
  • Calculating Average Operating Assets, Margin, Turnover, and Return on Investment East Mullett Manufacturing earned operating inc
    14·1 answer
  • ABC generally causes the least amount of cost distortion among products because indirect costs are allocated to the products bas
    8·1 answer
  • a. You wish to have $1,500,000 by the age of 60 (30 years from now). If you can earn 8% interest on your investments, how much d
    11·1 answer
  • Ironhorse Tools has used $700,000 from its total annual earnings of $1,650,000 to invest in upgrading its manufacturing faciliti
    10·1 answer
  • Brooks Company received proceeds of $188500 on 10-year, 8% bonds issued on January 1, 2018. The bonds had a face value of $20000
    8·1 answer
  • he concept of ______ is probably the best single measure of an industry's impact.A. total outputB. total spendingC. aggregate ma
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!