Answer: $36,000 increase.
Explanation:
Cost of keeping Current Truck.
The cost of keeping the current truck will be the Opportunity Cost of not purchasing the New truck.
The New truck is capable of reducing Manufacturing costs by $25,000 a year for 5 years so,
Cost of Keeping Current Truck = 25,000 * 5
= $125,000
Cost of buying new truck
It is given that if the company trades in the old truck they get a $31,000 reduction.
The Cost Price of the new truck is therefore,
= 120,000 - 31,000
= $89,000
The difference between the costs will be,
= 125,000 - 89,000
= $36,000
If buying a new truck will reduce expenses by $36,000 then that means it will increase income by $36,000.
The correct answer should be depositing since depositing money is a collocation when it comes to banks.
Answer:
c. 30-year term policy
Explanation:
If I am 35 years old now, and want to purchase life insurance which will cover my spouse for my lost income in the event of your death; and if I want this policy to last until what would be your normal retirement age of 65.
Based on the given information, the best policy to buy is a 30-year term policy because logically that adds up as 30 + 35 = 65 years.
A 30-year term policy means the policy expires 30 years after it began. Generally, a 30-year term is the maximum length of coverage offered, and is usually available to those within the ages 18 to 50.
Answer:
$213,500.
Explanation:
Retained earnings balance at the beginning of the year $ 166,000
- Cash dividends declared for the year 52,000
+ Net income for the year 99,500
