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Ksivusya [100]
3 years ago
6

A small company heats its building and spends ​$8 comma 000 per year on natural gas for this purpose. Cost increases of natural

gas are expected to be 9​% per year starting one year from now​ (i.e., the first cash flow is ​$8 comma 720 at EOY​ one). Their maintenance on the gas furnace is ​$340 per​ year, and this expense is expected to increase by 12​% per year starting one year from now​ (i.e., the first cash flow for this expense is ​$380.80 at the EOY​ one). If the planning horizon is 13 ​years, what is the total annual equivalent expense for operating and maintaining the​ furnace? The interest rate is 15​% per year.

Business
1 answer:
vitfil [10]3 years ago
5 0

Answer:

Annual equivalent expense= -14514.51

Explanation:

Please see attachment

                                           

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An investment project requires an initial investment of $100,000. The project is expected to generate net cash inflows of $28,00
Mamont248 [21]

Answer:

the payback period of the project is 3.57 years

Explanation:

The computation of the payback period is shown below;

Payback period:

= Initial investment ÷Cash inflows

= $100,000 ÷ $28,000

= 3.57 years

We simply divided the initial investment by the cash inflows so that the project payback period could come

Hence, the payback period of the project is 3.57 years

6 0
3 years ago
The bonds issued by Stainless Tubs bear an 8 percent coupon, payable semiannually. The bonds mature in 11 years and have a $1,00
GenaCL600 [577]

Answer:

8.69%

Explanation:

Face value (FV)=$ 1,000.00

Coupon rate=8.00%

Interest per period (PMT) =$30.00

Bond price (PV)=$ 952.00

Number of years to maturity 11

Number of compounding periods till maturity (N)                                                  22

Bond Yield to maturity RATE(NPER,PMT,PV,FV)*2 = 8.69 %

4 0
2 years ago
Company A entered the production of office software before its competitors. Because of this, the company's products are more fam
Vera_Pavlovna [14]

Answer:

First Mover Strategy.

Explanation:

First Mover strategy is referred to denote such a company's strategy, which is the first one to enter the market before any of its competitors. This gives an advantage to the company, as such companies are identified easily by its customers. Therefore, the answer is 'First mover strategy.'

3 0
2 years ago
Ben Palman owns an art gallery. He accepts paintings and sculpture on consignment and then receives 20% of the price of each pie
Elan Coil [88]

Answer:

1. The cost formula for the gallery's costs for a year would be Total cost=$80,000+$500X

2. The total cost for Ben in a year with 12 opening shows Using the cost formula developed is $86,000

Explanation:

1. According to the given data the cost formula for the gallery's costs for a year would be as follows:

Total cost=Fixed costs+Variable costs for the level of activity

Total cost=$80,000+$500*number of opening shows

Total cost=$80,000+$500X

2. The total cost for Ben in a year with 12 opening shows Using the cost formula developed above would be as follows:

Total cost=$80,000+$500X

Total cost=$80,000+$500*12

Total cost=$80,000+$6,000

Total cost=$86,000

3 0
3 years ago
Sketches Inc. purchased a machine on January 1, 2016. The cost of the machine was $29,000. Its estimated residual value was $9,0
ivolga24 [154]

Answer:

Annual depreciation= $4,000

Explanation:

Giving the following information:

The cost of the machine was $29,000. Its estimated residual value was $9,000 at the end of estimated 5-year life.

<u>To calculate the depreciation expense, we need to use the following formula:</u>

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

Annual depreciation= (29,000 - 9,000)/5

Annual depreciation= $4,000

8 0
3 years ago
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