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Helen [10]
3 years ago
10

Champion Bakers uses specialized ovens to bake its bread. One oven costs $689,000 and lasts about 4 years before it needs to be

replaced. The annual operating cost per oven is $41,000. What is the equivalent annual cost of an oven if the required rate of return is 13 percent?
A. ​-$272,638
B. ​-$248,313
C. ​-$232,407
D. ​-$200,561
E. ​$196,210
Business
1 answer:
Strike441 [17]3 years ago
5 0

Answer:

A. ​-$272,638

Explanation:

Firstly, we need to calculate the total present value of initial investment plus all operating cost of the project. Then we will use that amount to solve for equal-amount annual operating cost.

Total present value of the project is -689,000 - 41,000/(1+13%) - 41,000/(1+13%)^2 + ... + 41,000/(1+13%)^4, or -810,953.32 (negative sign mean cost).

So, the equivalent annual cost of an oven is -272,638.

The equation solving problem can be made easily using Excel or BA II plus calculator.

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xeze [42]

Answer:

Problem Analysis

Explanation:

Problem analysis also known as 'root cause' analysis ensures that “root causes,” not just the symptoms of the problem, are identified and subsequently addressed.

This step comes after the problem identification stage of problem solving.

Therefore as stated in the scenario ''When Glenn analyzes the underlying causes of the paper-jam problem, he is performing the function of problem analysis

5 0
4 years ago
Select the best answer for the question.
BlackZzzverrR [31]

Answer:

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Explanation:

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4 0
3 years ago
If a firm decides it is in the best interest to collaborate on a development project, how would you recommend the firm choose a
Ahat [919]

Answer:

We live in a related world more so now than any time in recent memory before.In this scenery no business can have all the assets to take an interest completely in the worldwide commercial center without key unions, coordinated efforts and organizations.  

Effective endeavors are continually searching for assets to ceaselessly enhance their ebb and flow tasks and have the accepted procedures to stay ahead in the race.  

Joint effort is a vehicle to supplement the assets of an association and addition abilities to meet certain all around characterized targets. The substance might be deficient with regards to specific assets like money related quality, aptitudes and deliberately it might not have any desire to put resources into their zones of "shortcoming" for some an explanation.  

The firm might need to investigate for an imminent accomplice from its realized business system to begin with. Business and informal communities can furnish leads by taking part in conversations with them. Different zones for prospecting could be from the databases of mechanical improvement offices. Tried and true outsider specialist co-ops - offices right now be locked in to discover reasonable possibilities.  

By the day's end, organizations are about connections. Common regard for one another and shared qualities are important to have an effective organization to meet every others key business targets through such a joint effort. Essentially each ought to be expertly dedicated to such a dare to guarantee goals are met in soul and word.  

The Collaboration ought to be reported in an itemized way that would show the particular jobs of the separate gatherings.  

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3 0
3 years ago
When a perfectly competitive firm (that sells its good for $20 per unit) hires 1 unit of factor X it produces 70 units of output
Gelneren [198K]

Answer:

d)  $300

Explanation:

<em>Marginal revenue is the extra revenue from a resource the extra revenue earned from the use of additional  unit of a given resource for production purpose. It is calculated as the increase in total revenue as a result of utilizing one additional unit of a factor of production.</em>

Marginal revenue = total revenue from 85 units - total revenue from 70 units

Marginal revenue = ($20 × 85) - ($20× 70)

                           = $300

5 0
3 years ago
Read 2 more answers
Population growth: Suppose the world population today is 7 billion, and sup- pose this population grows at a constant rate of 3%
Alika [10]

Given Information:

Current Population = P₀ =  7 billion = 7x10⁹

Growth rate = r = 3 %

Period = t = 100 years

Required Information:

(a) Population after 100 years = ?

(b) Population after t = 0, 1, 2, 10, 25, 50 years = ?

(c) Population vs time graph = ?

Explanation:

The human population growth can be modeled as an exponential growth,

P = P_{0} e^{rt}

where P₀ is the current population, r is the growth rate and t is the time period

(a) What would the population equal 100 years from now?

P = 7x10^{9} e^{0.03*100}

P = 140.6x10⁹  

(b) Compute the level of the population for t = 0, t = 1, t = 2, t = 10, 25, and t =50

<u>t = 0</u>

P = 7x10⁹e⁰

P = 7x10⁹  

<u>t = 1</u>

P = 7x10⁹e^0.03*1

P = 7.213x10⁹

<u>t = 2</u>

P = 7x10⁹e^0.03*2

P = 7.423x10⁹

<u>t = 10</u>

P = 7x10⁹e^0.03*10

P = 9.45x10⁹

<u>t = 25</u>

P = 7x10⁹e^0.03*25

P = 14.82x10⁹

<u>t = 50</u>

P = 7x10⁹e^0.03*50

P = 31.37x10⁹

(c) Make a population versus time graph

Attached as image

5 0
3 years ago
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