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IgorLugansk [536]
3 years ago
13

Hillsdale is considering two options for comparable computer software. Option A will cost $25,000 plus annual license renewals o

f $1,000 for three years, which includes technical support Option B will cost $20,000 with technical support being an add-on charge. The estimated cost of technical support is $4,000 the first year, $3,000 the second year, and $2,000 the third year. Assume the software is purchased and paid for at the beginning of year one, but that technical support is paid for at the end of each year. Interest is at 8%. Ignore income taxes.
Required: Determine which option should be chosen based on present value considerations.

Business
1 answer:
Jlenok [28]3 years ago
4 0

Answer:

Option a should be selected

Explanation:

After considering the PV of both options A and B the option that has been selected is A.

For option A:-

A total of the present value of option A= -25000-925.926-857.339-793.832 = -27577.097

Present value = 27577

For option B,:-

Total = -20,000-3703.704-2572.017-1587.664

= -27863.385

The present value of option B = 27863

From the calculations I have attached, it is evident that option A has lower present value compared to option B. Therefore option A should be selected.

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The expansionary phase of the business cycle is characterized by
Leokris [45]

Answer:

<u>increasing real output and reducing unemployment</u>

Explanation:

The expansionary phase of the cycle is business characterized by the i<em><u>ncreasing real output and reducing unemployment.</u></em>

<em> Business cycle refers to that cycle in which there is increase and decrease or fall and rise of output of goods and services.</em>

<em> Business cycle has main four stages expansion ,peak , contraction and trough.</em>

The main cause of business cycle is the forces of supply and demand , expectation of future and it availability of the capability may also cause the business cycle.

Economic cycle is another name of Business cycle . Business cycle plays a crucial rule in the economy as it influence the demand of the consumer.

4 0
2 years ago
Parents may claim a $2,000 child tax credit for a dependent child who is 22 years of age at the end of the year if the child is
Nataliya [291]

Parents may claim a $2,000 child tax credit for a dependent child who is 22 years of age at the end of the year if the child is a full-time student. The Child Tax Credit is a refundable tax benefit claimed by filing Form 1040 claim a tax credit of $2,000 per qualifying dependent child under age 17

<h3>What is Child Tax Credit?</h3>

Different nations offer parents with dependent children a tax advantage known as the child tax credit (CTC). The credit is frequently correlated with the number of dependent children a taxpayer has, as well as occasionally with their income. For instance, only families in the United States who earn less than $400,000 year are eligible to get the entire CTC. Similar to the United States, only families earning less than £42,000 a year are eligible for the tax credit in the United Kingdom.

The federal child tax credit (CTC) in the United States is a tax credit that is only partially refundable for parents of dependent children. Subject to an earned income level and phase-in, it offers $2,000 in tax relief per eligible kid (with up to $1,400 of that amount being refundable).

To learn more about Child Tax Credit from the given link:

brainly.com/question/17395659

#SPJ4

8 0
1 year ago
On September 3, 20X8, Jackson Corporation purchases goods for a U.S. dollar equivalent of $17,000 from a Swiss company. The tran
AfilCa [17]

Answer:

Foreign currency transaction loss : $1000

Account payable : $1000

Explanation:

4 0
3 years ago
3. Raymond decides to set up a lemonade stand every weekend for the next four weeks to save up for the latest X-Men comic. He ha
Vladimir [108]

Answer:

It should listen to his mother.

Explanation:

This week cash flow handled the fixed cost of 10 to Raymond's brother.

His father is not considering that so it thinks the business flops.

Now that fixed cost are paid the following weeks his gains will increase entirely based on the sales volume so, it is better to continue the business for the next three weeks.

6 0
3 years ago
Complete the sentence.
valentina_108 [34]

Answer:

Imagine that you have won $100 in the state lottery. You have a choice between spending the money on shopping now or putting it away in a

savings account for one year. You decide to spend the money now on shopping. Thus, you will lose the interest that you could have earned by

saving the money. The lost interest is the <u><em> opportunity cost</em></u> cost of spending money now.

Explanation:

The opportunity cost is the price you pay for not choosing best second alternative when you make a decision. In this case the person has two options:

1. Spending the money  

2. Save the money

Once the money is spending the opportunity costs is generated and it is measure by the interest rate lost for not keeping the money in a savings account that will generate an interest rate known as APY Annual Percentage Yield.  

5 0
3 years ago
Read 2 more answers
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