Answer and Explanation:
The computation of the depreciation expense using straight line method is shown below:
Formula to be used:
= (Purchase cost - salvage value) ÷ (estimated service life)
For 2021
= ($35,000 - $5,000) ÷ (10 years)
= $3,000
For 4 months, it would be
= $3,000 × 4 months ÷ 12 months
= $1,000
And, for the year 2021, it would be the same i.e. $3,000
False. Accountants crunch the numbers and report to financial managers who make the decisions.
Answer:
a. Internal Rate of Return
Annual Cash Inflows = (Net Savings - Depreciation) * ( 1 - Tax Rate) + (Depreciation * Tax Rate)
Net savings = Delivery Costs - Operating and Maintenance Costs with the Used Truck
= 32,000 - 21,000
= $11,000
Depreciation = (Cost of used truck - Salvage value) / Useful life
= (13,000 - 2,000) / 3
= $3,667
Annual Cash inflows = $7,000 as there are no taxes.
Use Excel to calculate IRR as shown in the attachment.
The cost of the truck is the outflow and the savings and the salvage value are inflows which means that the last inflow will be $13,000 because salvage value is added in the last year.
IRR = 69.408%
b. If the IRR is greater than the cost of capital or required rate of return, the project should be chosen.
c. The IRR of 69.408% is greater than the MARR of 34% so Nancy should buy the truck.
Answer:
Brand development index.
Explanation:
Brand development index is a tool that is used to compare the performance of a product between different markets. For example perform of Rolex in the 20-35 year market and in the 40-60 year market. It measures the relative strength of products between markets.
Regal Foods Corp. wants to determine the percentage of Umber coffee sold in a geographic area as compared to the percentage of the total population in this market. So the BDI is used to compare Umber coffee sales in a geographic location and for the total population.
BDI is calculated as
BDI= (Percentage of market brand sales/percentage of population)*100
Answer:
The correct answer is the well-being of each person in an economy.
Explanation:
Also known as the "Standard of living", this is something that cannot be reflected from the per capital income, whether it's nominal or real. The reason is when you divide the GDP from the population, the assumption is all the GDP is distributed among the population equally.
But this is not the case in the real world and there are many variances, discrimination, discrepancies and inequalities when the wealth and resources are distributed.
