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.
Answer:
Demand.
Explanation: Because the demand is how much or what they want while supply is how much they can give.
When the price of goods and services fall, there is a decline in the real GDP, and bakers experience a point in the business cycle referred to as a contraction. after the peak, this phase refers to when the GDP/total monthly income is lower, resulting in a slip of monthly pay and economic prosperity for the bakers
