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Novay_Z [31]
3 years ago
6

Annual maintenance costs for a particular section of highway pavement are $2500. The placement of a new surface would reduce the

annual maintenance cost to $500 per year for the first 3 years and to $1000 per year for the next 7 years. After 10 years the annual maintenance would again be $2500. If maintenance costs are the only saving, what investment can be justified for the new surface? Assume interest at 5%.
Business
1 answer:
rewona [7]3 years ago
6 0

Answer:

The maximum investment is $6,360.111

Explanation:

Giving the following information:

The placement of a new surface would reduce the annual maintenance cost to $500 per year for the first 3 years and to $1000 per year for the next 7 years. After 10 years the annual maintenance would again be $2500.

We need to find the net present value. The maximum initial investment will be the amount that makes the NPV cero.

NPV=∑[Cf/(1+i)^n]

Cf= cash flow

<u>For example:</u>

Year 1= 500/1.05= 476.19

Year 3= 500/1.05^3= 431.92

Year 5= 1,000/1.05^5= 783.53

NPV= 6,360.111

The maximum investment is $6,360.111

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The owner has been considering ways to increase the sales volume. The owner thinks that 10 comma 000 pizzas could be sold per mo
almond37 [142]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

The owner thinks that 10,000 pizzas could be sold per month by cutting the selling price per pizza from $ 5.50 a pizza to $ 5.00.

Total revenues – Total costs = Monthly profit 5,000 pizzas 13750 – 8000 =

I will assume that at $5.50 the total sales in units are 5000. And that the variable cost per unit is $2.75 ($13750/5000) and fixed cost are $8000

Actual profit= (5000*5.5- 5000*2.75) - 8000= $5750

New price profit= (10000*5 - 10000*2.75) - 8000= $14500

7 0
3 years ago
If people believe their rights are being violated, they have the right to a fair and impartial hearing. This reflects the basic
igor_vitrenko [27]

Answer:

I believe its C

7 0
3 years ago
Which of the following kinds of price discrimination occurs when each customer is charged one price for the first set of units p
olasank [31]

Answer:

D

Explanation:

Price discrimination is when the same product is sold at different prices to customers in different markets

types of price discrimination

1. first degree price discrimination : here sellers charge each consumer at their willingness to pay in order to eliminate consumer surplus.

2. second degree price discrimination : here firms offer different prices depending on the quantity purchased. e.g. giving discounts for bulk purchases.  

3, third degree price discrimination : firms charge different prices to different groups of customers. e.g. having a certain price for senior citizens, students  

3 0
3 years ago
In January, Knox Company requisitions raw materials for production as follows: Job 1 $936, Job 2 $1,690, Job 3 $767, and general
oksano4ka [1.4K]

Answer:

Materials used in production go to Work in Process so;

= 936 + 1,690 + 767

= $3,393

The materials used in the general factory will go to Manufacturing Overhead.

Date                                                                         Debit                   Credit

Jan 31   Work in Process                                     $3,393

             Manufacturing Overhead                      $   667

             Raw Materials Inventory                                                    $4,060

5 0
3 years ago
Explain why e-Business scenarios are generally more complex than traditional business scenarios. Discuss the interrelationships
IRISSAK [1]

Answer:

The answer is because of the nature of each business and that is explained below.

Explanation:

On the one hand, when it comes to e-business scenarios the people who work in those places know that it is much more complex due to the fact that the managers are dealing with information that is wide range in terms of searching engine, clicks on the website, marketing approaches and more. The owners of this type of business must know how to work with all type of tools that could help the business grow and all that information can be difficult to read and to use sometimes due to the big changes that happen in the internet and in the general public movements every day that will affect your clientele.

On the other hand, the traditional business scenarios may be a little bit less complex due to the fact that they are workind with information that comes straight ahead from the sources, like sales and marketing campaign impacts and more. Therefore that this type of business use all the information that is has to keep the goals of the company at sight thanks to the organization that the managers have.

Finally, it is quite understood that the information technology will always be more difficult to manage in e-business becuase of all the variables and factors that influece the information and the decision making process of the company.

5 0
3 years ago
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