Choose the system of linear inequalities that represent the given scenario. Let a represent the number of adult tickets and let
2 answers:
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Answer: Esquire should purchase Machine B because it has a lower present value.
Explanation:
Present value cost of Machine A:
= Initial investment + Present value of costs - Present value of sales amount
Present value of cost = 900 * Present value annuity factor, 10 years, 8%
= 900 * 6.7101
= $6,039
Present value of sales amount = 2,835 / (1 + 8%)¹⁰
= $1,313.15
Present value cost = 27,000 + 6,039 - 1,313.15
= $31,725.85
Present value of Machine B:
= 22,500 + 3,600 / 1.08³ + 4,500 / 1.08⁶ + 5,400 / 1.08⁸
= 30,198.18
<em>Esquire should purchase Machine B</em>
Answer:
Net Increase in profit is $27,000
Explanation:
* The data was missing in this question, a similar question is attached with the answer, and answer is made accordingly. Please find it.
Sales ( $350,000 x 120% ) = $420,000
- Variable cost ( 40% ) = $168,000
- Traceable fixed cost( 175000+15000) = <u>$190,000</u>
Net Profit = $62,000
Net Increase in Net Income = $62,000 - ( 350,000 - (350,000 x 40%) - 175,000 ) = 27,000
