1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Alona [7]
2 years ago
12

"A forklift will last for only 2 more years. It costs $5,000 a year to maintain. For $20,000 you can buy a new lift that can las

t for 10 years and should require maintenance costs of only $2,000 a year." a. Calculate the equivalent cost of owning and operating if the discount rate is 4% per year? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. Calculate the equivalent cost of owning and operating if the discount rate is 12% per year? (Do not round intermediate calculations. Round your answer to 2 decimal places.) c. Should you replace the forklift?
Business
1 answer:
BabaBlast [244]2 years ago
5 0

Answer:

a. $2,465.82

b. $3,539.68

c. Yes, we should

Explanation:

Annual cost to maintain old forklift is $5,000

Equivalent Annual Cost (EAC) of new forklift = (Asset price x discount rate)/(1-(1+discount rate)-n), in which n is the number of year for usage of this forklift?

If discount rate is 4% per year, the EAC of new forklift is $2,465.82  

= ($20,000x4%)/(1-(1+4%)-10)

If discount rate is 12% per year, the EAC of new forklift is $3,539.68  

= ($20,000x12%)/(1-(1+12%)-10)

We should replace because with such above discount rate, the old forklift is more costly than the new one

You might be interested in
Zelenka Clinic uses client-visits as its measure of activity. During June, the clinic budgeted for 2,700 client-visits, but its
MatroZZZ [7]

Answer:

The administrative expenses in the planning budget for June would be closest to:

  • d. $5,670  ⇒ $5,400 + (2,700 x $0.10) = $5,400 + $270 = $5,670

The net operating income in the planning budget for June would be closest to:

  • c. $16,220  ⇒ ($47.80 x 2,700) - [$50,200 + (2,700 x $23.20)] = $129,060 - ($50,200 + $62,640) = $129,060 - $112,840 = $16,220

The medical supplies in the flexible budget for June would be closest to:

  • d. $18,440 ⇒ $1,700 x (2,700 x $6.20) = $1,700 + $16,740 = $18,440

5 0
2 years ago
You have a chance to buy an annuity that pays $550 at the beginning of each year for 3 years. You could earn 5.5% on your money
Oliga [24]

Answer:

$1,565

Explanation:

Enter the following inputs into financial calculator, we will have:

n = 3 years

Present value (PV): The amount that you should pay for the annuity. This is the missing value we need to calculate

Future value (FV): FV = 0, there is no future value of an annuity

PMT: The amount that annuity pays per year. ($850)

i/r = 5.5%: The interest you expect to receive from the annuity

PV = $1,484

Since the payment is made at the beginning of each year, you should multiply the PV amount by  (1+0.055)

The final answer would be 1,484 x 1.055 = $1,565

The most you should pay is $1,565

7 0
3 years ago
Esteem needs are the highest level in Maslow's hierarchy of needs. True False
Anit [1.1K]

Answer:

False

Explanation:

Maslow's hierarchy of needs is a motivational theory which passes through five types of needs that are presented below:

1. Physiological needs: These are the needs which are for survival i.e food, cloth, home, air

2. Safety needs: This need represents security and safety with respect to personal, financial, etc.  

3. Social needs: These needs depicts that an individual is interested in social groups or not. It helps the person not to feel isolated, alone, etc

4. Esteem needs: The esteem needs represent the respect he or she getting  

5. Self-actualization needs: As the name suggests, it is self-actualizing so that the person gets to know about his potential

The chart shows from 5 to 1 i.e self actualization to physiological needs

7 0
3 years ago
On January 1, a company issues 8%. 5 year, $300,000 bonds that pay interest semiannually. On the issue date, the annual market r
gladu [14]

Answer:

Detailed solution is given below:

7 0
3 years ago
According to hofstede's dimensions of cultural personality, cultures that are __________ are assertive and competitive.
ra1l [238]

<span>After thorough researching, according to Hofstede's dimensions of cultural personality, cultures that are masculine are assertive and competitive. The correct answer to the following given statement above is masculine. Masculine refers to the characteristics or attributes that have a connection with boys or men.</span>

3 0
2 years ago
Other questions:
  • Jaylan decided she no longer liked the car she was leasing and turned it in a year before her lease was up. what kind of fee wil
    12·2 answers
  • Sheridan Company purchased $1750000 of 10% bonds of Scott Company on January 1, 2021, paying $1650375. The bonds mature January
    15·1 answer
  • A company purchased a computer, office furniture, and office supplies by issuing a check for $5,000 and a note payable for $19,5
    10·1 answer
  • At Nanclet, a market research firm, whenever a particular team needs to hire people, the human resource (HR) department conducts
    12·1 answer
  • Which of the following is not part of the process for assessing security controls according to NIST SP 800 53A 1?
    8·1 answer
  • True of false the supreme court has ruled that the government can sometimes claim exigent circumstances if the exigency is creat
    15·1 answer
  • What is the latest actual share count reported in the 2013 Colgate-Palmolive 10-K? Please provide your answer without comma sepa
    14·1 answer
  • Watermelon, Inc. provides the following data: 20X9 20X8 Cash $41,000 $25,000 Accounts Receivable, Net 102,000 62,000 Merchandise
    11·1 answer
  • Avery Company has two divisions, Polk and Bishop. Polk produces an item that Bishop could use in its production. Bishop currentl
    7·1 answer
  • Which of the following caused readership of The Boston Globe to plummet?
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!