How many times does a dollar bill change hands?

When originally purchased, a vehicle costing $25,740 had an estimated useful life of 8 years and an estimated salvage value of $

Rudiy27

Answer:

Annual depreciation= $5,660

Explanation:

Giving the following information:

Purchase price= $25,740

Salvage value= $3,100

<u>First, we need to calculate the accumulated depreciation before the change in useful life:</u>

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (25,740 - 3,100) / 8

Annual depreciation= $2,830

Accumulated depreciation= 2,830*4= $11,320

<u>Now, we can calculate the new depreciation expense:</u>

<u></u>

Annual depreciation= (25,740 - 11,320 - 3,100) / 2

Annual depreciation= $5,660

4 0

3 years ago

Sheffield’s Manufacturing Company can make 100 units of a necessary component part with the following costs: Direct Materials $1

larisa [96]

Answer:

Company Save $37000 by Buying

Explanation:

given data

make component part = 100 units

Direct Materials = $122000

Direct Labor = 34000

Variable Overhead = 55000

Fixed Overhead = 30000

purchase the component = $200000

fixed costs = $4000

to find out

make or buy decision

solution

first we find here Total Cost for Making component part

total cost = Direct Materials + Direct Labor + Variable Overhead + Fixed Overhead ..............1

put here value

total cost for make = $122000 + 34000 + 55000 + 30000

total cost for make = $241000

and

now we find here Total Cost for buying component part

total cost = Purchase Price + fixed costs ............2

put here value we get

total cost for buying = $200000 + $4000

total cost for buying = $204000

so

we can say Company Save = $241000 - $204000 = $37000 by Buying

5 0

3 years ago

The common stock of the P.U.T.T. Corporation has been trading in a narrow price range for the past month, and you are convinced

mariarad [96]

Answer:

A) according to put call parity:

price of put option = call option - stock price + [future value / (1 + risk free rate)ⁿ]

put = $8.89 - $120 + [$120 / (1 + 8%)¹/⁴] = $8.89 - $120 +$117.71 = $6.60

B) you have to purchase both a put and call option ⇒ straddle

the total cost of the investment = $8.89 + $6.60 = $15.496, this way you can make a profit if the stock price increases higher than $120 + $6.60 = $126.60 or decreases below than $120 - $6.60 = $113.40

3 0

3 years ago

What is the highest level of message AWARENESS that can be reached with the UNIVERSITY STUDENT based on a selection(s) of POSITI

Ivahew [28]

The highest level of message AWARENESS that can be reached with the UNIVERSITY STUDENT based on a selection(s) of POSITIONING messages is 50%.

<h3>What is positioning messages?</h3>

Positioning messages can be defined as message that contain detailed and concise information about how a product are and how such product tend to meet customers expectations or needs.

Positioning messages as well help to described how a product are including the satisfaction or benefit a consumer can derive from the product.

Therefore based on a selection(s) of POSITIONING messages is 50%.

Learn more about positioning messages here:brainly.com/question/14293602

#SPJ1

8 0

2 years ago

Cazden Motors' stock is trading at $30 a share. Call options on the company's stock are also available, some with a strike price

slava [35]

Answer:

d. If Cazden's stock price rose by $5, the exercise value of the options with $25 strike price would also increase by $5.

Explanation:

A call option confers a right, not an obligation upon the call buyer to buy a security at a pre determined price, known as exercise price or strike price at a future date.

A call buyer would exercise his right only in the scenarios wherein the strike price is lesser than the current market price on maturity.

Profit of a call buyer is given by = CMP as on expiry - Exercise/Strike price - Option premium paid

wherein CMP= Current Market Price

A call option is "in the money" when it's strike price is less than it's current market price. In the given case, it means if the CMP today represents CMP upon expiry, call buyer would exercise his right and his gain would be $5 i.e $30 - $25.

Since the $25 exercise option is "in the money", an increase in stock price by $5 will also increase the strike price by $5.

8 0

3 years ago