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LuckyWell [14K]
2 years ago
15

A homeowner in a sunny climate has the opportunity to install a solar water heater in his home for a cost of $2900. After instal

lation the solar water heater will produce a small amount of hot water every day, forever, and will require no maintenance. The homeowner's water bill is thus lowered by a fixed amount every year, forever. How much must the homeowner save on water heating costs every year if this is to be a sound investment? (The interest rate is 5% per year.) A. $145 B. $160 C. $175 D. $190
Business
1 answer:
quester [9]2 years ago
8 0

Answer:

correct option is A. $145  

Explanation:

given data

investment cost = $2900

interest rate = 5% per year

solution

formula for present value of perpetuity is

investment cost = fixed cash saving per year ÷ interest rate    ..................1

put her value we get fixed cash saving per year that is

saving per year cost =  $2900 × 5%

saving per year cost =  $2900 × 0.05

saving per year cost =  $145

so correct option is A. $145  

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ctivity-Based Costing Casual Cuts Inc. has total estimated factory overhead for the year of $225,000, divided into four activiti
VMariaS [17]

Answer:The activity rate for each activity of Company CC is:

Activity rate for cutting is $60 per dlh.

Activity rate for sewing is $15 per dlh.

Activity rate setup is $80 per setup.

Activity rate for inspection is $65 per inspection.

Explanation: Activity based costing trace overhead cost to each activity and absorbed at a rate for each activity rather than a rate per direct labour hour

Calculate activity rate for cutting

Cutting = cost of cutting/ Number of labour hours

$90,000/1500 = $60 per direct labour hour

Calculate the cost of sewing

Sewing= cost of sewing/ Number of labour hours

$22,500/1500 = $15 per direct labour hour

Calculate the cost of set up

Setup = cost of set up/ number of set ups

$80,000/ 1000 = $80 per set up

Calculate the cost of inspection

Inspection = cost of inspection/ number of inspection

$32,500/ 500 = $65 per inspection

5 0
3 years ago
Seth Silver had the following items of income during the taxable year: Interest income from a checking account $1,000 Interest i
34kurt

Answer:

c. $3,800

Explanation:

Calculation for the amount of taxable income

Using this formula

Taxable income =Interest income from a checking account+Interest income from corporate bonds +Interest income from federal bonds

Let plug in the formula

Taxable income =$1,000+$2,050+$750

Taxable income=$3,800

Therefore on his current year tax return the amount of his taxable income will be $3,800

6 0
2 years ago
Sydney wins a prize. She has a choice of receiving a payment of $160,000 immediately or of receiving a deferred perpetuity with
Mamont248 [21]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

She has a choice of receiving a payment of $160,000 immediately or of receiving deferred perpetuity with $10,000 annual payments, the first payment occurring in exactly four years.

A) i= 5%

First, we need to determine the value of the perpetuity four years from now.

Perpetuity= 10,000/0.05= 200,000

Now, we can calculate the present value:

PV= 200,000/(1.05^4)= $164,540.50

B) i= 6%

Perpetuity= 10,000/0.06= $166,666.67

PV= $166,666.67/1.06^4= $132,015.61

C) She should consider her necessities of cash and the value of the products she can purchase now.

5 0
3 years ago
When the stock market crashed people _____________?
OLEGan [10]
When the stock market crashed people panicked
6 0
3 years ago
How do scarce resources influence you personally?
posledela
On many levels on a personal level lack of food makes me sad.
hope this helps
5 0
3 years ago
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