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
Softa [21]
3 years ago
7

You are the manager of a large​ crude-oil refinery. As part of the refining​ process, a certain heat exchanger​ (operated at hig

h temperatures and with abrasive material flowing through​ it) must be replaced every year. The replacement and downtime cost in the first year is ​$175 comma 000175,000. This cost is expected to increase due to inflation at a rate of 77​% per year for sixsix years​ (i.e. until the EOY 77​), at which time this particular heat exchanger will no longer be needed. If the​ company's cost of capital is 1515​% per​ year, how much could you afford to spend for a higher quality heat exchanger so that these annual replacement and downtime costs could be​ eliminated?
Business
1 answer:
lubasha [3.4K]3 years ago
5 0

Answer:

The company could pay up to 866,965.89 dollars today to solve the current heat exchanger situation

Explanation:

We have to determinate the present value of 7 year annuity which increase at a rate of 7% when the cost of capital is 15% being the first quota 175,000 dollars

\frac{1-(1+g)^{n}\times (1+r)^{-n} }{r - g}  

grow rate 0.07  

required return 0.15

Cuota 175,000

n 7

PV =  866,965.89  

You might be interested in
The level of difficulty a manufacturer experiences in getting retailers to purchase its products is determined by the degree to
lesya692 [45]

The difficulty level that a manufacturer experiences in getting retailers to purchase its products is determined by the degree to which the channel is vertically integrated.

<h3>What is vertical integration?</h3>

It should be noted that vertical integration simply means the process of acquiring business operations towards identical production.

In this case, the difficulty level that a manufacturer experiences in getting retailers to purchase its products is determined by the degree to which the channel is vertically integrated.

Learn more about vertical integration on:

brainly.com/question/19815172

4 0
3 years ago
For the year ended December 31, Depot Max's cost of goods sold was $56,900. Inventory at the beginning of the year was $6,540. E
il63 [147K]

Depot Max's inventory turnover for the year is 8.3

Given

Cost of goods sold = $56900

Begining Jovenstory = $6540

Ending Inventory = $7250 .

Average inventory = opening inventory + closing inventory  / 2

= $6 540 + $-7250 / 2

Average inventory = $6895

cost of goods old

.: Inventory turnover = cost of goods sold / Average inventory

56900 / 6895

= 8. 252 times

He Depot Max's Inventory 8.3 times (approx ).

Learn more about turnover here: brainly.com/question/25623677

#SPJ4

3 0
2 years ago
Consider the telecommunications, networking, and wireless technologies you use today as a consumer and student. Does your comfor
kati45 [8]

Answer:

Yes, people´s comfort level with changes in technology in their personal lives has a great influence over how comfortable they can be with adapting to new technologies in the workplace.

Explanation:

Telecommunications, networking, and wireless technologies are used regularly by most students, as those who are in studying years have grown with those technologies already developed. However, the rapid changes in technology that are common these days can become quite overwhelming, as they require users to constantly readapt to them. For example, our use of email has changed so much in the past years, with so many new lines of communication and new softwares that one has to learn how to use. And the more we get used to readapting, the more comfortable we can be when those changes become part of the workplace. It´s important to be prepared and to have the proper training to ensure the effective use of technology in such a fast-paced technological era.

7 0
3 years ago
Mark would like to apply for a loan. He should
Lapatulllka [165]

Answer:

of course, he should.

7 0
3 years ago
Read 2 more answers
The credit balance in cash short and over at the end of an accounting period is reported as?
AVprozaik [17]

The credit balance in cash short and over at the end of an accounting period is reported as an expense on the income statement.

Income is the consumption and savings opportunity that a business captures within a specific time frame, usually expressed in money. Income is difficult to define conceptually and definitions vary by region.

The definition of income is the amount of money received by an individual, group or business during a specified period. An example income is an annual salary of $70,000.

Income is money received by an individual or business in return for providing work, producing goods or services, or investing capital. While individuals usually earn their income through wages or salaries, businesses generate income from the sale of goods or services that exceed their production costs.

Learn more about income here:brainly.com/question/25745683

#SPJ4

7 0
1 year ago
Other questions:
  • In order to assure better management acceptance, the flow of input data for budgeting should begin with the
    9·1 answer
  • If the type of departmentalization used by an organization tends to emphasize departmental units rather than the organization as
    8·1 answer
  • ABO purchased a truck at the beginning of 2018 for $140,000. They sold the truck at the end of 2019 for $95,000. If the expected
    7·1 answer
  • The ending inventory of finished goods for each quarter should equal 20% of the next quarter's budgeted sales in units. The fini
    14·1 answer
  • Stream outflow is important to coastal landscapes because streams provide ________ to the coastal environment.
    6·1 answer
  • An essential element of being receptive to messages is to have an open mind<br> True or False
    8·2 answers
  • A ________ is an unsecured bond, and most of the bonds sold today in the United States are of this type.A) mortgage bondB) deben
    8·1 answer
  • All of the following statements characterize the traditional personal selling approach EXCEPT: a. Traditional selling focuses on
    11·1 answer
  • Within an organizational structure, the person most likely to be evaluated in terms of controllable costs would be:
    13·1 answer
  • All of the following are competitive forces in Porter's model except: Group of answer choices customers disruptive technologies
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!