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3 years ago

What is an advantage of government bonds?

1 answer:

6 0

Government bonds provide a means for investors to lend money to governmentsin exchange for interest payments, it fixes payments and coupons holders for every 6 months.

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Allen Construction purchased a crane 6 years ago for $130,000. They need a crane of this capacity for the next 5 years. Normal o

Korvikt [17]

Answer:

For retaining of Old Machine Equipment

Price of old equipment 3 yrs ago = $130,000

O & M cost per year = $35,000

Using the Cash flow approach

End of year Cash flow 1 Old equipment

0 $0 Initial Cash flow

1 -$35,000 O & M cost per year

2 -$35,000 O & M cost per year

3 -$35,000 O & M cost per year

4 -$35,000 O & M cost per year

5 -$35,000 O & M cost per year

Hence, Annual worth = Initial cash flow + Annual cost

Annual worth = 0 - $35,000

Annual worth = -$35,000

For buying of new equipment

Cost of buying new crane = $150,000

Market value of old crane = $40,000

Time = 5 years

O & M cost per year = $8,000

Salvage value = $55,000

MARR = 20%

Using the Cash flow approach

End of year Cash flow 1 New equipment

0 $110,000 -$150,000 + $40,000

1 -$8,000 O & M cost per year

2 -$8,000 O & M cost per year

3 -$8,000 O & M cost per year

4 -$8,000 O & M cost per year

5 $47,000 -$8,000 + $55,000

Annual worth = Initial cash flow + Annual cost + Salvage value

Annual worth = -$110,000(A/P 20%,5) - $8,000 + $55,000(A/P 20%,5)

Annual worth = -$110,000*(0.334) - $8,000 + $55,000*(0.134)

Annual worth = -$36,781.77 - $8,000 + $7,390.88

Annual worth = -$37,908.88

Conclusion: We should retain the old machine as it is more favorable than purchase of new equipment

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3 years ago

Carmel Corporation is considering the purchase of a machine costing $41,000 with a 8-year useful life and no salvage value. Carm

Andru [333]

Answer:

E. $20,500

Explanation:

The average investment is defined as the average between the initial investment and the salvage value of the equipment.

In this situation, Carmel Corporation had an initial investment of $41,000 for the machine and its salvage value is zero. Therefore, Carmel's average investment is:

$AI = \frac{\$41,000+0}{2} \\AI = \$20,500$

The answer is alternative E. $20,500

3 0

4 years ago

The Work Breakdown Structure (WBS) is normally developed by listing deliverables - major deliverables first and then progressive

AURORKA [14]

Answer:

The correct answer is True.

Explanation:

The steps to follow to create a work breakdown structure are as follows:

1. Organize a meeting and share with the main stakeholders: team members are one of the most valuable assets in the process of creating the work breakdown structure. They have the knowledge, experience and creativity necessary to define each deliverable reaching the most specific details.

2. Complete the definition of all project deliverables: it is about going one step beyond the level reached in the planning and 100% complete the information on all project deliverables, including internal and external, associating each one with its estimated completion time.

3. Break down each deliverable into smaller, more manageable parts: it is about achieving a realistic level of work planning by the project manager, which ensures that, without interfering with the total estimated project deadline and the overall plan, it can be completed by the work teams. It is about determining work packages. These units constitute the lowest level of the EDT and are pieces of work that are specifically assigned to a person or a team of people to be completed, under the supervision of the Project Director. It is recommended that they focus on a single point of responsibility. The work packages will be used later to define the activities and tasks in which the project is divided.

4. Review the results obtained: with the stakeholders, both at the time of finalizing the elaboration of the work breakdown structure, and when modifications or updates are included, if applicable. It is essential to avoid overlaps.

7 0

4 years ago

The _____ was established by Congress to encourage American firms to focus on quality improvement in order to improve their glob

V125BC [204]

Answer:

The correct answer is: Baldridge Performance Excellence Program.

Explanation:

To begin with, the "Baldridge Performance Excellence Program" is the name given to the program that was established by the United States of America in order to encourage the companies of the country to improve their performance regarding the economy and the globalization that was happening at the time the program was created. It receives its name from the ex secretary of commerce Malcom Baldridge and the award gives to the company selected the recognition of having performance excellence in the its field

5 0

3 years ago

Charismatic leaders ________

AfilCa [17]

Answer:

Explanation:

one it makes sense & it fits in the context of the sentence

7 0

4 years ago