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
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.

You might be interested in
Ejercicios para la actividad 7.
yanalaym [24]

Answer:

i hope all are safe and gappy in this time take care of youreself also health first thsn any work

6 0
3 years ago
Union Local School District has bonds outstanding with a coupon rate of 4.9 percent paid semiannually and 20 years to maturity.
RUDIKE [14]

Answer:

Ans. Price of the bond is $9,250.57

Explanation:

Hi, first we need to establish the semi-annual coupon of the bond and the semi-annual discount rate (YTM semi-annually)

Coupon=10000*(4.9%/2)= $245

To turn the annaul YTM to semi-annual, we have to use the following equation

YTM(semi-annual)=(1+YTM)^{\frac{1}{2} } -1

YTM(semi-annual)=(1+0.056)^{\frac{1}{2} } -1=0.0276

After all this, we are ready to find the price, here is the math of this.

Price=\frac{245((1+0.0276)^{39}-1) }{0.0276(1+0.0276)^{39} } +\frac{(245+10000)}{(1+0.0276)^{40} } =9250.57

Best of luck.

4 0
3 years ago
In response to dwindling sales of organic meats, Hain Celestial executives decided to promote the sale of organically grown nuts
3241004551 [841]

Answer:

Product substitute

Explanation:

Product substitute is defined as one that meets similar needs of the consumer. As demand for one of such goods rises the demand of the other tends to fall as the meet similar needs.

In the given scenario organic meats are seen as being substituted by organically grown nuts as a source of protein.

So when Hain Celestial has dwindling sales of organic meats they were considering organically grown nuts as a different product to give to customers

3 0
3 years ago
BR Trucking has total sales of $911,300, a total asset turnover of 1.1, and a profit margin of 5.87 percent. Currently, the firm
notsponge [240]

Answer:

$2.89

Explanation:

The formula and the computation of the earning per share is shown below:

Earning per share = (Net income - preference dividend) ÷ (Number of shares)

where,

Net income is

= $911,300 × 5.87%

= $53,493.31

And, the preference dividend is $0

and, the outstanding number of shares is 18,500

So earning per share is

= $53,493.31 ÷ 18,500 shares

= $2.89

3 0
3 years ago
Joseph is instructed by his employer, Helen, to go to the local donut shop during his lunch break and purchase six-dozen donuts
salantis [7]

Answer:

B. False.

Explanation:

Helen instructed Joseph during his active working hour does not matter if he is on his lunch break or not, so Joseph is entitled to workers compensation.

6 0
3 years ago
Other questions:
  • Delta Manufacturing has budgeted the following unit sales: 2019 Units April 25,000 May 40,000 June 60,000 July 45,000 Of the uni
    10·2 answers
  • What does a merchant wholesaler do?
    13·2 answers
  • Which of the following is NOT a role of production and distribution in a company?
    12·1 answer
  • When delivering bad news to customers, use an indirect strategy as you would with other bad news messages, and maintain a positi
    6·1 answer
  • Bottoms Up Diaper Service is considering the purchase of a new industrial washer. It can purchase the washer for $7,200 and sell
    15·1 answer
  • Unsystematic risk:
    15·2 answers
  • Suppose a banking system receives a new deposit of $1,000. If the reserve requirement is 20%, by how much can the total volume o
    14·1 answer
  • What is the basic aim of the National Labor Relations Act?
    6·1 answer
  • Which type of tax is based on the retail price of goods owned, possessed, or consumed within a state that were NOT purchased wit
    5·1 answer
  • I need help on creating my resume. I’m a high schooler currently in the 11th grade. I haven’t won any awards here at my high sch
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!