Answer: Rework the phones
Explanation:
The phones have already been produced so the cost price of $70 does not matter as it is a sunk cost.
The decision the company makes between scrap and reworking will depend on which option bring in more money.
Scrap = $39
Reworking:
= Price after reworking - Cost to rework
= 146 - 82
= $64
Incremental income of reworking over scrap:
= 1,075 * (64 - 39)
= $26,875
<em>Signal makes an incremental income of $26,875 if they rework the phones so they should do that. </em>
Ecology is a systematic relationship of all living things with each other and their interaction with the environment that they live in. All living things in the world are connected with each other in terms of energy. So, it affects child development in ways of eating food from plants and animals. Moreover, the child could be molded by social interactions within the community.
<span>This is a negative externality. Since the cost of the traffic being in the community is not being borne by the theatre company itself, it is negative. The community as a whole is having to pay for the extra $5 in costs that will be accrued as a result of selling each ticket.</span>
Answer:
A subsequent expenditure for an asset increases the future benefits of the asset if it extends the asset's useful life.
Answer:
Nominal annual rate of interest(r) = 2.5% (Approx)
Explanation:
Given:
Present value (P) = $1,200
Future value (F) = $1,618.62.
Number of year = 1year = 12 months
Find:
Nominal annual rate of interest(r)
Computation:
Nominal annual rate of interest(r) = ![\sqrt[12]{\frac{1,618.62}{1,200} }-1](https://tex.z-dn.net/?f=%5Csqrt%5B12%5D%7B%5Cfrac%7B1%2C618.62%7D%7B1%2C200%7D%20%7D-1)
Nominal annual rate of interest(r) = ![\sqrt[12]{1.34885}-1](https://tex.z-dn.net/?f=%5Csqrt%5B12%5D%7B1.34885%7D-1)
Nominal annual rate of interest(r) = 0.02525
Nominal annual rate of interest(r) = 2.5% (Approx)