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
sertanlavr [38]
3 years ago
11

Mr. Smith at Acme Production, Inc. is trying to determine the true economic value (TEV) for a new computerized machine. This mac

hine costs $20 per hour to operate and can be used for a year before it needs to be replaced. A system crash costs $500,000, and the probability that the machine will crash is 5%. The next-best alternative has a price of $150,000. It can also be used for a year and costs $15 per hour to operate. The cost of a system crash for this alternative is also $500,000, and the probability that it will crash is 15%. Acme plans to operate this machine 8 hours per day, 365 days, over the next year. The true economic value (TEV) of the machine is: $185,400. $175,000. $154,000. $210,400.
Business
1 answer:
vesna_86 [32]3 years ago
3 0

Answer:

$185,400

Explanation:

Price of next best alternative = $150,000

Expected crash system saving:

= (Probability of crash × cost of a system crash) - (Probability of machine will crash × cost of a system crash)

= [(15% × 500,000) - (5% × 500,000)]

= $75,000 - $25,000

= $50,000

Added operating cost true economic value:

= (Number of hours in 365 days × machine cost per hour) - (Number of hours in 365 days × Next best alternative cost per hour)

= [(2,920 × $20/hr) - (2,920 × $15/hr)]

= $58,400 - $43,800

= $14,600

True economic value (TEV) of the machine:

= Price of next best alternative + Expected crash system saving - Added operating cost true economic value

= $150,000 + $50,000 - $14,600

= $185,400

You might be interested in
A manager of a store that sells and installs spas wants to prepare a forecast for January, February, and March of next year. Her
Andreas93 [3]

Answer:

JANUARY = 218.28

FEBRUARY = 184.8

MARCH = 207.36

Explanation:

Trend component of demand equation :

Ft = 90 + 6t, where t = 0 in June of last year

Seasonal relatives are ;

1.07 for January

0.88 for February

0.96 for March

Forecast for January, February and March of next year:

JANUARY :

last year June, 't' = 0,

[last year - this year - next year]

Therefore January of next year, 't' = 19

Ft = 90 + 6(19) = 204

Forecast = Ft × seasonal relative

Forecast = 204 × 1.07 = 218.28

FEBRUARY :

Therefore January of next year, 't' = 20

Ft = 90 + 6(20) = 210

Forecast = Ft × seasonal relative

Forecast = 210 × 0.88 = 184.8

MARCH:

Therefore January of next year, 't' = 21

Ft = 90 + 6(21) = 216

Forecast = Ft × seasonal relative

Forecast = 216 × 0.96 = 207.36

3 0
2 years ago
Fred and george have been in partnership for many years. the partners, who share profits and losses on a 60:40 basis, respective
Doss [256]
I'm not gonna tell u the answer but u have to set 60:40 as a ratio to set it as a ratio u put 60/40 and then simplify to simplify those two number u have to divide by ten and find the relationship of those two number after y simplify and get ur number u scale up or down so after All those u have a fraction and then do the steps all over to $10,000
6 0
3 years ago
If the current exchange rate is 1 euro to 1.5 U.S dollars, according to the theory of purchasing power parity, a haircut that co
STALIN [3.7K]

Answer: (1) 10 euros (2) 15dollars

Explanation:

S= P1 /P2

where:

S= Exchange rate of currency 1 to currency 2

P1 = Cost of good X in currency 1

P2 = Cost of good X in currency 2

(1) s = 1.5, P1 = 15 dollars, P2 = ???

so,

1.5 = 15 / P2

P2 = 15/1.5 = 10 euros

Hence, according to the theory of purchasing power parity,

The price of a haircut that cost 15 dollars in Dallas will be 10 euros in Paris.

(2) S = P1/P2

taking 1 euro to 1.5dollars exchange,

1.5 = P1/P2 but P2 = 10 euros

hence P1 = 1.5 x 10 = 15 dollars.

Hence, according to the theory of purchasing power parity,

A wheel of French cheese that costs 20 euros in Paris should cost 15dollars in Dallas

4 0
3 years ago
Listening involves understanding what is heard true false ?
8090 [49]

Answer:

true

Explanation:

8 0
2 years ago
Hilary had an outside basis in LTL General Partnership of $10,000 at the beginning of the year. LTL reported the following items
topjm [15]

Answer:

Hilary's adjusted basis at the end of the year $0

Explanation:

Hillary's base in general business income and tax-free income grows and then deducts . He understood the cash flow from his original cash disbursement and partnership debt reduction.  Hillary must report a capital gain of $ 12,000 on a zero interest basis in her partnership interest, since his actual and perceived cash distribution exceeds his base after raising it through a positive adjustment for the year.

$10,000 + $5,000 - $3,000 - $10,000 - $2,000  = 0

3 0
3 years ago
Other questions:
  • Donna Forrester's gross pay is $72,500 a year. The state income tax is 3% of taxable wages. Donna takes a married exemption of $
    10·2 answers
  • Innovative Consulting Co. has the following accounts in its ledger: Cash, Accounts Receivable, Supplies, Office Equipment, Accou
    15·1 answer
  • Robert makes $951 gross income per week and keeps $762 of it after tax withholding. How many allowances has Robert claimed?
    9·2 answers
  • ABC Medical Technology, a fast-growing global research firm, has accumulated so much client information that conventional databa
    5·1 answer
  • Foxx Corp.'s comparative balance sheet at December 31, 2018 and 2017 reported accumulated depreciation balances of $1,245,000 an
    6·1 answer
  • Employees cannot be discharged because of their race, national origin, gender, age, disabilities, or being members of __________
    11·1 answer
  • Gloria Rose works at College of Austin and is paid $ 30 per hour for a​ 40-hour workweek and​ time-and-a-half for hours above 40
    7·1 answer
  • A new client in the medical–surgical unit complains of difficulty sleeping and is scheduled for an exploratory laparotomy in the
    9·1 answer
  • Cost of goods sold budget Pasadena Candle Inc. budgeted production of 785,000 candles for the year. Each candle requires molding
    7·1 answer
  • The following happens when a composer shortens a musical idea by using only a part of it:
    8·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!