Answer: Cost of keeping old machine is $469,000
Cost of Purchasing New Machine is $271,000
Explanation:
Keeping the old machine.
When calculating the cost of keeping the machine you use the disposal value.
Cost = (Disposal Value - Residual Value) + Total Operating Costs for remaining lifetime
Cost = ( 88,000 - 15,000) + ( 36,000 * 11 years)
Cost = 73,000 + 396,000
Cost = $469,000
Cost of keeping old machine is $469,000.
Cost of New machine
Cost = (Disposal Value - Residual Value) + Total Operating Costs for remaining lifetime
Cost = (239,000 - 76,000) + (12,000 * 9)
Cost = 163,000 + 108,000
Cost = $271,000
Cost if New machine purchased,
= $271,000
Answer:
Exposure factor=20%
Explanation:
Exposure factor is percentage value of an asset that can potentially by lost if a particular risk is realized. Most risk managers use the exposure factor to determine if the purchase of certain property usually equipment or machinery is worth it. It can be thought of as comparing the value one would lose if a certain risk is attained to the original value of the property. For example in case the risk is realized and the value of the property is completely lost, the exposure factor would be 1.
It is calculated by taking the value of the property lost over the original value then converted to a percentage. This can be expressed as shown;
E.F=(Vl/Vo)×100
where;
E.F=exposure factor
Vl=value lost in case of the scenario
Vo=original value
In our case;
E.F=unknown
Vl=$2 million
Vo=$10 million
This can also be written as;
Exposure factor=(value lost/original value)×100
Replacing;
E.F=(2/10)×100=20%
The exposure factor=20%
Answer:
Shows the maximum attainable combinations of two goods that may be produced with available resources.
Explanation:
PPF stands for Production possibility frontier, which is a graph that is defined or indicates the numerous possibilities of the production of the two commodities or goods, when the resources are fixed.
This graph is referred or acknowledged as the product transformation curve or the production possibility curve.
Therefore, it is defined as the graph which states the maximum combinations of 2 goods which could be attainable, that might be produced with the available resources.
Note: The options are missing so providing the direct answer.
Answer:
A. 1. department team
2. cross-departmental team
3. administrative team
B. Louise needs to pay close attention to the individuals who are all "quite different." Louise must monitor each staff member accordingly to ensure that that team stays productive.
Explanation:
Answer:
FRANCE has a comparative advantage in the production of cheese and SWEDEN has a comparative advantage in the production of oil.
- Comparative advantages result form the lowest opportunity costs. In this case, France's opportunity cos tot produce cheese is lower, while Sweden's opportunity cost of producing oil is lower.
France can gain from specialization and trade as long as it receives more than 3 BARRELS of oil for each pound of cheese it exports to Sweden. Similarly, Sweden can gain from trade as long as it receives more than 1/11 POUNDS of cheese for each barrel of oil it exports to France.
Based on your answer to the last question, which of the following terms of trade (that is, price of cheese in terms of oil) would allow both Sweden and France to gain from trade?
- a. 6 barrels of oil per pound of cheese
- c. 4 barrel of oil per pound of cheese