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loris [4]
3 years ago
5

Ten years ago, Jacobson Recovery purchased a wrecker for $285,000 to move disabled 18-wheelers. He anticipated a salvage value o

f $50,000 10 years after the initial purchase. During this time his average annual revenue totaled $52,000. (a) Was his investment economically justified at a 12% discount rate
Business
1 answer:
expeople1 [14]3 years ago
7 0

Answer:

NPV    =  $24,910.26  

The investment is economically justified because it increases the wealth pg Jacobson Recovery by   $24,910.26

Explanation:

To determine whether the investment is justifiable we will compute the the Net present Value of the project

The Net present value (NPV) is the difference between the Present value (PV) of cash inflows and the PV of cash outflows. A positive NPV implies a good and profitable investment project and a negative figure implies the opposite.  

NPV = PV of cash inflows - PV of cash outflows  

<em />

<em>PV of cash  average revenue = A × (1-(1+r)^(-n))/r</em>

A- average revenue, r- discount ate- 12% , n- number of years- 10

PV of reveue = 52,000 × (1-(1.12)^(-10)/0.12= $293,811.60

<em>PV of salvage value = F × (1+r</em><em>)</em><em>^(-n)</em>

                                 = 50,000 × 1.12^(-10)

                                  = 16,098.66183

NPV = $293,811.60 + 16,098.66183  - $285,000

         =  $24,910.26  

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Management of Mcgibboney Corporation has asked your help as an intern in preparing some key reports for November. The beginning
harkovskaia [24]

Answer:

$87,000

Explanation:

Calculation of the conversion cost for November.

Conversion cost can be defined as the combination of both direct labor costs and manufacturing overhead costs that are vital to help convert raw materials into product.

Using this formula

Total Conversion cost = Direct labor cost + Manufacturing overhead cost

Hence,

Direct labor cost $25,000

Add Manufacturing overhead cost $62,000

Total Conversion cost $87,000

Therefore the conversion cost for November is $87,000

4 0
3 years ago
Gross Investment 18
kkurt [141]

Answer:

c) $75.

Explanation:

<u>The disposable income is the amount of personal income after taxes</u>

we can solve for taxs using the savings identity:

<em>Savings = Private Savings + Public Savings</em>

where:

Private savings: personal income - personal consumption

and Public Savings = taxes - government spending

We plug the value in the formula and solve for T

5 = 85 - 70 + T - 20

5 = T - 5

T = 10

Now, we derive personal income:

85 income - 10 taxes = 75 disposable income

5 0
3 years ago
Noelle, assistant manager at Green Gardens Restaurant, is preparing a questionnaire to help her evaluate customer satisfaction.
wariber [46]

Hi there, i cannot find the complete question so that i can pick an option from so im going to do my best to answer your question.

Explanation:

Noelle can use the question: on a scale of 1 to 4, rate your level of satisfaction of the meal at Green Gardens Restaurant. 1 to 4 can be represented as shown below.

1- very bad

2- bad

3- good

4- very good

With this sort of question to customers, Noelle would be able to get an understanding of how bad or well the restaurant is doing in terms of customer satisfaction.

Cheers.  

7 0
3 years ago
You would like to buy shares of Sirius Satellite Radio (SIRI). The current ask and bid quotes are $4.30 and $4.27, respectively.
erica [24]

Answer:

$2,666

Explanation:

Given that:

  • Current ask price: $4.30
  • Bid quotes $4.27
  • Market buy order: 620 shares

So, the cost to buy these shares:

Number market buy order * Current ask price/share

= 620*$4.30

= $2,666

Hope it will find you well.

5 0
3 years ago
Swifty Corporation expects direct materials cost of $6 per unit for 150000 units (a total of $900000 of direct materials costs).
OLga [1]

Answer:

Explanation:

hope this helps

5 0
3 years ago
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