Answer:
D) $4,200
Explanation:
Martin's expenses on land = taxes of $2,800 + mortgage interest of $900 a+ liability insurance of $500 = $4,200
Throughputs are the materials and resources as they are…
Answer:
1. Kim:
Debt payments-to-income ratio with the college loan
= 23%
2. Carl:
Percentage spent on home and car
= 65.3%
3. Debt payment to income ratio
= 40%
Explanation:
Kim's Data and Calculations:
Gross income = $1,760
Income taxes -199
After Tax Income $1,561 per month
Credit card debts = $189 per month
School loan = $172 per month
Total Debt payments = $361
Debt payments-to-income ratio with the college loan
= $361/$1,561 = 23%
Carl:
House payment = $1,640
Car payment = $482
Total payments = $2,122
Take-home pay = $3,250
Percentage spent on home and car = 65.3% ($2,122/$3,250 * 100)
3. My monthly net income = $2,850
Monthly debt payments = $1,140
Debt payment to income ratio
= $1,140/$2,850 * 100
= 0.4
= 40%
Getting loans, buying things that you have to pay off.. Etc..
Answer:
1. In a Year 20,367 20,017
2. In a Year 21,333 21,917
3. In the case of NPW analysis Selected Target is best option because it is the better and cheaper investment while EUAM analysis states Walmart kit is better option,
4.Target is the best option because the cost difference is only around $600 which will last for 6 Years while in walmart case we will need to replace all the furniture in 3 Years .
Explanation:
1. Using NPW Analysis
Walmart Kit Target
Intial Cost 40000 65000
AMC 10000 12000
Salvage Value 12000 25000
Life Years 3 6
Total Cost
Intial Cost 40000 65000
Less Salvage 12000 25000
Balance 28000 40000
5% Interest 6000 19500
AMC PV 2.71 5.05
Amc 27100 60600
Total Cost 61100 120100
In a Year 20,367 20,017
2. Using EUAW Analysis
Walmart Kit
Target
Intial Cost 40000 65000
AMC 10000 12000
Salvage Value 12000 25000
Life Years 3 6
Total Cost
Intial Cost 40000 65000
Less Salvage 12000 25000
Balance 28000 40000
5% Interest 6000 19500
AMC 30000 72000
Total 64000 131500
In a Year 21,333 21,917
In the case of NPW analysis Selected Target is best option because it is the better and cheaper investment while EUAM analysis states Walmart kit is better option,
Target is the best option because the cost difference is only around $600 which will last for 6 Years while in walmart case we will need to replace all the furniture in 3 Years .
Hence Target product will be the best option we would advice the management to go for.
