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cricket20 [7]
3 years ago
10

If Angela's $98,760 home appreciates three percent a year, will she have enough appreciation to try to sell the home for a $15,0

00 profit in five years?
Business
1 answer:
Mama L [17]3 years ago
7 0

Answer:

Yes, she will (total profit of $15,730)

Explanation:

We must determine the future value of Angela house:

future value = present value (1 + appreciation rate)ⁿ

  • present value = $98,760
  • appreciation rate = 3%
  • n= 5

FV = $98,760 (1.03)⁵ = $98,760 x 1.1592740743 = $114,490

now the difference between the future value and the present value = $114,490 - $98.760 = $15,730

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Compare and contrast the product vs. process layouts. What are the advantages & disadvantages? List examples of products tha
Contact [7]

Answer:

Explained below.

Explanation:

With a product layout, equipment breakdown has serious implications because the separate pieces of equipment are closely tied together. If one piece of equipment fails, the line will quickly come to a halt. Consequently, preventive maintenance to reduce the failure rate is advisable. In contrast, a process layout often contains duplicative equipment so that if one particular piece of equipment fails, the work can usually be shifted to another piece of equipment. Consequently, there is less need for preventive maintenance and less need for repair of equipment when it does break down. Moreover, process layouts utilize more skilled workers who tend to take better care of the equipment than the lower-skilled workers do in a product layout system.

* The main advantages regarding the product layouts include:

a. A potentially huge rate of output.

b. Lowering unit costs.

c. Low training costs and a broad span of supervision due to specialization.

d. The low unit price concerning material administration.

e. High utilization of labor and tools.

f. Routing as well scheduling are being built into the design.

g. Accounting, purchasing, including inventory control are routine.

* The main disadvantages regarding the product layouts include:

a. Specialization can lead to dull, repetitive jobs with little opportunity for personal satisfaction or creativity.

b. Workers may have little interest in maintaining equipment or in the quality of output.

c. The system is not particularly adaptable to changes in process design or changes in the volume of output.

d. The system is highly susceptible to shutdowns caused by equipment failure or excessive absenteeism.

e. Preventive maintenance costs and the capacity for quick repairs are necessary to ensure high utilization.

f. Incentive plans tied to individual output are impractical.

* The main advantages regarding the process layouts are:

a. They can manage a variety of processing requirements.

b. They are less vulnerable to equipment failures than product layouts are.

c. The general-purpose tools used often are less costly than the specialized equipment used in product layouts. It is also usually easier and less costly to manage and repair.

d. Specific stimulation systems are possible.

* The main disadvantages regarding the process layouts are:

a. Work-in-process inventory costs can be high (in manufacturing).

b. Routing and scheduling must be done for each new job.

c. Equipment utilization valuations are habitually low.

d. Material handling is slower, less efficient, and more costly per unit than is the case in a product layout.

* Example of product layout includes self-service cafes, car assembly as well as car valeting.

* Example of process layout are milling, drilling, grinding, hydraulic presses, as well as lathes)

7 0
3 years ago
Lynn Ally, owner of a local Subway shop, loaned $40,000 to Pete Hall to help him open a Subway franchise. Pete plans to repay Ly
Juliette [100K]

Answer:

Lynn will receive $63,754 at the end of 8 years.

Explanation:

Future value is the sum of value of principal invested and compounded return received over the investment period.

Using following formula of future value to calculate the required interest rate.

FV  = PV x ( 1 + r )^n

PV  = Present value = $40,000

n = number of years = 8 years

r = Interest rate = 6%

FV = Future value = ?

FV  = $40,000 x ( 1 + 6% )^8 = $63,754

8 0
3 years ago
Read 2 more answers
Money is neutral in:___________
babunello [35]

Answer:

C

Explanation:

Money neutrality is a theory which submits that money supply only affect nominal variable and not real variables.

Nominal variables include price, wages and exchange rate

real variables include employment and real GDP

Money is only neutral in the long run and not in the short run because of money illusion. Money illusion causes economic agents to respond to money supply changes.

Money is neutral only in the long run

8 0
2 years ago
Cash flows from investing activities LO P3 Equipment with a book value of $65,300 and an original cost of $133,000 was sold at a
bekas [8.4K]

Answer:

$221,100

Explanation:

Given that,

Book value of equipment = $65,300

Sold at a loss = $14,000

Purchase of a new truck = $89,000

Sale of land = $198,000

Sale of Long term investment = $60,800

Cash flows from investing activities:

= Sale of Equipment - Purchase of a new truck + Sale of land + Sale of Long term investment

= ($65,300 - $14,000) - $89,000 + $198,000 + $60,800

= $51,300 - $89,000 + $198,000 + $60,800

= $221,100

8 0
3 years ago
Don Howard is a trader who likes to make money based on changes in the foreigncurrency exchange market. Currently the spot rate
IrinaVladis [17]

Answer:

Don profit in the forward market can be USD 48,152.37

Explanation:

Spot rate currently is at 24.0239 MXN/USD

Sell USD forward at 26.5693 MXN/USD

Profit on settlement after 3 months = (Selling price - buying price)*Number of units

Profit on settlement after 3 months = (26.5693 - 25.3487)*1,000,000

Profit on settlement after 3 months = MXN 1,220,600

The exchange rate is expected to move to 25.3487 by Clint

Hence, 1,220,600/25.3487 = USD 48,152.37

Don profit in the forward market can be USD 48,152.37 if hewants to trade USD 1,000,000

3 0
3 years ago
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