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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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ivann1987 [24]

Answer:  $‭1,014,300‬

Explanation:

The company wants to maintain 20% of the next month's needs as ending inventory.

One Miniwap requires 2.5 kg of Jurision to be made.

Materials purchased is;

= Ending inventory + Materials used - Begining inventory

Ending Inventory;

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= 20% * 21,300 * 2.5

= 10,650 kg

Materials used

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= 56,500 kg

Materials Purchased = 10,650 + 56,500 - 10,800

= 56,350‬ kg

Cost of Jurision is $18 per kilo

= 56,350‬ * 18

= $‭1,014,300‬

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4 years ago
Valuetronics, an electronics company, is currently in the preproduction stage of launching one of its new stereo systems. In ord
Katyanochek1 [597]

Answer: Computer aided engineering(CAE) systems.

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3 years ago
Which of the following kinds of price discrimination occurs when each customer is charged one price for the first set of units p
olasank [31]

Answer:

D

Explanation:

Price discrimination is when the same product is sold at different prices to customers in different markets

types of price discrimination

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2. second degree price discrimination : here firms offer different prices depending on the quantity purchased. e.g. giving discounts for bulk purchases.  

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3 years ago
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6 0
2 years ago
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Answer and Explanation:

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Revenue                   $160,000                 $180,000

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If we choose alternative B so there would be decrease in the net income by $5,000

8 0
3 years ago
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