Answer:
$32,000
Explanation:
Net advantage = Annual operating cost
Net advantage = [(Old machine - New machine)*10 life] - New machine cost + Old machine cost
Net advantage = [($320000 - $240000)*10] - $800000 + $32000
Net advantage = [($80000)*10 - $768,000
Net advantage = $800,000 - $768,000
Net advantage = $32,000
So, the net advantage of replacing the old machine is $32,000
. yes, because he didnt pay within the grace period
Answer: normal /upward sloping
Explanation:
The yield curve is a curve that shows the relationship that exist between interest rate and time to maturity. According to the expectation theory, it is stated that the yield curve will be upward sloping when there's increase in inflationary expectations.
The slope of the yield curve helps in giving a clue to know the direction of future interest rates. It should be noted that an upward sloping curve means that there is an expectation of higher interest rates in the future.
Therefore, when investors expect inflation to increase over the next 20 years and the maturity risk premium to increase over the next 5 years, the general yield curve will be upward sloping.
Answer and Explanation:
The matching is as follows:
1. Deferred revenue - the cash would be received in the present period and the same would be reported as a revenue for the future period
2. Accrued expense - It would be recorded as an expense for a present period but the cash would be paid in the future
3. Prepaid expense - The cash is paid or the obligation is to the pay the cash in the present period but the expense would be recorded in the future period
4. Accrued revenue - the revenue is recorded in the present period but the cash would be collected in a future period
Answer:
Make decisions that maximize benefits
Explanation:
The whole purpose of a cost-benefit analysis is to allow management to make the best decisions using the measurment of profitability in a specific project or system. The model calculates all the income and benefits as well as all the associated costs, substracting the costs from the benefits. This is how you can determine the opportunity cost for each project or system.
