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lawyer [7]
3 years ago
12

Chris Co. is considering replacing an old machine. The old machine was purchased for $100,000 and has a book value of $40,000 an

d should last four more years. Chris Co. believes that it can sell the old machine for $50,000. The new machine cost $80,000 and will have a 4-year life and a $10,000 salvage value. Currently, it cost $20,000 annually to operate the old machine. The new machine is more efficient and should reduce operating cost by 50%. Based on quantitative analysis, calculate the relevant costs and indicate if Chris Co. should replace the old machine?
a. No, because the relevant cost of the new machine is $10,000 more than the cost of the old machine.
b. Yes, because the relevant cost of the new machine is $10,000 less than the cost of the old machine.
c. No, because the relevant cost of the new machine is $20,000 more than the cost of the old machine.
d. Yes, because the relevant cost of the new machine is $20,000 less than the cost of the old machine.
Business
1 answer:
Natali5045456 [20]3 years ago
3 0

Answer:

The answer is letter A.

Explanation:

No, because the relevant cost of the new machine is $10,000 more than the cost of the old machine.

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Recently I conducted a presentation to an audience composed mostly of teenager about the importance of team work. It took place at the American Corner of the State Library. It comprised of about 50 teenagers from various states.

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Because they were teenagers, I used words that were more suited to their generation.

Because it was a pseudo (or semi) formal presentation, I was free to use words such as;

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The auditors were well informed about what I was doing so they welcomed it a a good idea.

The objective was to  be able to communicate to them in a way that showed that the presenter understood them.

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Assume you were an employee at an organization like IKEA, and Fortune surveyed you for it's 100 Best Companies to Work For list.
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Explanation:

The internal policies of a company with a high reputation in the market and in society help to shape the skills and attitudes of employees as a whole, creating a culture based on ethical values ​​that help to create solid relationships between employees, an environment of positive work that makes the employee feel engaged and motivated to act more and more in accordance with the company's good practices.

A company like IKEA for example, whose values ​​are based on social and environmental positioning and commitment to society, creates in the employee strong feelings of identification and pride in working in a company that generates positive impacts on the world, which contributes to shaping their attitude towards valuing your work and your skills.

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Government policies that heavily tax some activities while subsidizing others and that fix or control interest rates will result
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Answer: Government policies that heavily tax some activities while subsidizing others and that fix or control interest rates will result in lower productivity of investment.

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City Foods, is a firm that is experiencing rapid growth. The firm just paid a dividend of $2.00 yesterday. They expect to see th
slega [8]

Answer:

The maximum that should be paid for the stock today is $45 per share.

Explanation:

To calculate the current share price or the maximum that should be paid for the stock today, we will use the dividend discount model approach.

The dividend discount model (DDM) estimates the value of a share/stock based on the present value of the expected future dividends from the stock. We will use the two stage growth model of DDM here as the growth in dividends of the stock is divided into two stages.

The formula for current price under two stage growth model is,

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Where,

g1 is initial growth rate

g2 is the constant growth rate

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So, the price of the stock today will be,

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P0 = $45

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If the owner of a company withdrew 200 during a period the closing entry for the owner withdrew account would show a
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Answer:

Explanation:

2

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