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Dmitriy789 [7]
3 years ago
8

A library shelving system has a fi rst cost of $20,000 and a useful life of 10 years. The annual maintenance is expected to be $

2,500. The annual benefi ts to the library staff are expected to be $9,000. If the effective annual interest rate is 10 percent, what is the benefi t-cost ratio of the shelving system?
Business
1 answer:
Debora [2.8K]3 years ago
3 0

Answer:

The benefit cost ratio is 1.564

Explanation:

The benefit-cost ratio is the ratio of the present value of benefits to the present value of costs. It is thus calculated as follows.

Benefit-cost ratio = Present value of benefits / Present value of costs

Present value of costs = $20,000 + $2,500 (P/A, 10%, 10 years)

                                     = $20,000 + $15,361

                                     = $35,361

Present value of benefits = $9,000 (P/A, 10%, 10 years)

                                          = $9,000 x 6.145

                                          = $55,305

Benefit-cost ratio = $55,305 / $35,361

                             = 1.564

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Answer:

The solution of the given query is provided below in the explanation segment.

Explanation:

(a)

The diagram according to the given query is attached below.

(b)

Given:

Investor sells,

= 200 shares

at,

= $5.25

Strike price,

= $5

Premium,

= $0.50

If the price is less than $5 is $.75 per share,

The investor's gain will be:

= 200\times 0.75

= 150 ($)

(c)

The investor would earn under $5.25 upon expiry, as longer as the spot price becomes less.

3 0
3 years ago
Melba receives most of her income from wages from her job as a high school teacher. She also receives supplemental income from f
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Send a notarised letter to her employer requesting that they withhold additional amounts from her pay each month.

Option C

Explanation:

A certificate approved by a notary public is a notarised text. The notary public is a public officer who confirms the identity of everyone who signs the document, observes the signatures and seals the document.

If at the flat rate or the low marital rate they withhold.

Many deductions are claimed: any gain they claim decreases the amount deducted. In the case of a further refund: you will petition for a further amount of each paycheck that is withheld.

5 0
3 years ago
A grain elevator operator bought a futures contract for 5,000 kilograms of rice at $1.50 per kilogram. The initial margin is $4,
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Answer:

Given that,

Operator bought a futures contract = 5,000 kilograms of rice at $1.50 per kilogram

Initial margin = $4,000

Maintenance margin = $2,000

(a)

(i) Balance of Margin = Initial margin - maintenance margin

                                  = $4,000 - $2,000

                                  = $2,000 (loss)

(ii) Change in price = \frac{2,000}{5,000}

                               = $0.40

(b) Price per kilogram = Current price - Change in Price

                                     = $1.50 - $0.40

                                     = $1.10

So, change price per kg is $1.10

(c) Balance of Margin = Initial margin - maintenance margin

                                  = $4,000 + $2,000

                                  = $6,000 (loss)

Change in price = \frac{2,000}{5,000}

                               = $0.40

(d) Price per kg = Current price - change in price

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2 years ago
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Answer:

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Explanation:

The risk register includes Risk description, its impact in terms of probability and measures to mitigate such risk. There are many potential risks that are associated with the construction of the bus shelter. The risks are not acceptable as the highway disruption should be kept to minimum and any delay in the work is not tolerable. These risks are reduced by deploying extra labors so that the renovation work is completed on time.

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