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3 years ago

Calculate how much each of the following items is worth in terms of today's dollars using 180 as the price index for today.

Business

1 answer:

Yuri [45]3 years ago

7 0

Answer:

A. $3

B. $257.142

C. $2.25

Explanation:

A. In 1925, the CPI was 18 and the price of a movie ticket was $0.30.

The current CPI is 180.

The price today will be

= $\frac{Price}{CPI}\ \times\ Current\ CPI$

= $\frac{0.3}{18}\ \times\ 180$

= $3

B. In 1930, the CPI was 14 and a cook earned $20 a week.

The current CPI is 180.

The price today will be

= $\frac{Price}{CPI}\ \times\ Current\ CPI$

= $\frac{20}{14}\ \times\ 180$

= $257.142

C. In 1940, the CPI was 16 and a gallon of gas cost $0.20.

The current CPI is 180.

The price today will be

= $\frac{Price}{CPI}\ \times\ Current\ CPI$

= $\frac{0.2}{16}\ \times\ 180$

= $2.25

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3 years ago

Rugged Bicycles, Inc. collects 25% of its sales on account in the month of the sale and 75% in the month following the sale. If

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$412,500

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2 years ago

Given the following two potential locations to construct an urgent care, use incremental B/C ratio to determine which location,

White raven [17]

Answer:

The incremental benefit cost ratio is less than 1 therefore we must select site 1.

Explanation:

The incremental BCR can be determined using the following formula

$\Delta BC_R = \frac{AW_B-AW_D-AW_M}{AW_i}$

$AW_C=1,000,000(A/P,$ 8% , 10)

⇒ $AW_C= 1,000,000 \times \frac{0.08}{1-1.08^-^1^0}$

⇒ $AW_2=2,000,000(A/P,$ 8%, 20)

⇒ $AW_2= 2,000,000 \times \frac{0.08}{1-1.08^-^2^0}$

⇒ $AW_C_2$ = $203,704.42

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Incremental benefits = 580,000 - 520,000 = 60,000

Incremental O&M = 75,000 - 80,000 = - $ 5000

Incremental Disbenefits = 140,000 - 90,000 =$ 50,000

$\Delta BC_R = \frac{60,000-50,000-(-5000)}{54,674.93} \\\\\Delta BC_R=0.2743$

All solving using the present worth method also incremental benefit cost ratio comes out to be 0.2743.

The incremental benefit cost ratio is less than 1 therefore we must select site 1.

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2 years ago

Assume the Runnng Shoes division of the Shoes Corporation had the following results last year (in thousands). Management's targe

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Answer: 180%

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given Operating income=1,800,000

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Return on investment=1,800,000/1,000,00=1.8 X 100= 180%

4 0

3 years ago