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astra-53 [7]
3 years ago
10

"A new machine, with a 4-year life, has an initial cost of $1,200 and annual costs of $380. The equivalent annual cost of this m

achine is best described as the"
Business
1 answer:
Oksana_A [137]3 years ago
8 0

Question

A new machine, with a 4-year life, has an initial cost of $1,200 and annual costs of $380. The equivalent annual cost of this machine is best described as the"

Assuming an interest rate of 10%

Note the interest rate was added by the tutor

Answer:

Equivalent Annual cost =  $758.56

Explanation:

The equivalent annual cost is the present value of cost of the new machine divided by the annuity factor.

PV of annuity cost = A× 1- (1+r)^(-n)/r

                          A- 380, r- 10% n- 4

PV of annual cost = 380 × (1- 1.1^(-4))/0.1=1,204.55

PV of total cost = 1,204.55 + 1,200 = 2,404.55

Equivalent annual cost = PV of cost /Annuity factor

Annuity factor =(1- 1.1^(-4))/0.1 = 3.1699

Equivalent Annual cost = 2,404.55 / 3.1699 = $758.5649

Equivalent Annual cost =  $758.56

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Hsung Company accumulates the following data concerning a proposed capital investment: cash cost $175, 846, net annual cash flow
alexira [117]

Answer:

NPV = $11400

As the NPV from the project is positive, the investment should be made.

Explanation:

The NPV or net present value is an important metric that is used for project and investment evaluation. The NPV is the present value of the series of cash flows provided by the project less the initial cost incurred to undertake the project. NPV can be calculated as follows,

NPV = (Annual Cash Flow * Present value factor) - Initial cost

NPV = (37300 * 5.02)  -  175846

NPV = $11400

As the NPV from the project is positive, the investment should be made.

6 0
3 years ago
These are selected account balances on December 31, 2017. Land $150000 Land (held for future use) 225000 Buildings 1200000 Inven
katen-ka-za [31]

Answer:

Option (A) is correct.

Explanation:

Given that,

Land = $150,000

Land (held for future use) = $225,000

Buildings = $1,200,000

Inventory = $300,000

Equipment = $675,000

Furniture = $150,000

Accumulated Depreciation = $450,000

Total amount of property, plant, and equipment:

= Land (location of the office building) + Office Building + Equipment + Office Furniture - Accumulated Depreciation

= $150,000 + $1,200,000 + $675,000 + $150,000 - $450,000

= $1,725,000

4 0
3 years ago
The full employment level of unemployment is considered to be between: * 6-7% 7-8% 3-4% 1-2%
Lesechka [4]

<u>Answer:</u>

<em>The full employment level of unemployment is considered to be between C. 3-4% </em>

<em></em>

<u>Explanation:</u>

America has given many individuals back something to do, and financial specialists concur that the economy is presently at or near full work.

To financial specialists, full employment implies that joblessness has tumbled to the least conceivable level that will not cause an expansion in America that was once thought to be a jobless pace of around 5 percent. American Central bank financial experts at present put this purported standard pace of joblessness at between 4.1 percent and 4.7 percent.

7 0
3 years ago
J.C Coats Inc. carefully develops standards for its coat making operation. Its specifications call for 2 square yards of wool pe
sattari [20]

Answer:

Standard cost= $88 per unit

Explanation:

Giving the following information:

Its specifications call for 2 square yards of wool per coat. The budgeted price of wool is​ $44 per square yard.

To calculate the standard cost per unit, we need to multiply the total direct material quantity per unit for its unitary cost.

Standard cost= 2sq*$44= $88 per unit

8 0
3 years ago
Laura is self-employed. She received a Form 1099-MISC from one of the firms for which she ployee compensation. The other firm fo
Zinaida [17]

Answer:

b)$24,600

Explanation:

please see attachment

7 0
3 years ago
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