1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
vodka [1.7K]
3 years ago
14

The Unique Bookshelf Company is considering the purchase of a custom delivery van costing approximately $50,000. Using a discoun

t rate of 20%, the present value of future cost savings is estimated at $51,200. To yield the 20% return, the actual cost of the van should not exceed the $50,000 estimate by more than:
Business
1 answer:
masha68 [24]3 years ago
3 0

Answer:

$1,200

Explanation:

Given that

Purchase of a customer delivery van = $50,000

discount rate = 20%

Present value of future cost savings = $51,200

Yield = 20%

Based on the above information, as per the net present value the initial cost of the equipment should not be more than the present value of cash inflows  i.e. $51,200

So the more than amount is

= $51,200 - $50,000

= $1,200

You might be interested in
Suppose you have $1,500 and plan to purchase a 5-year certificate of deposit (CD) that pays 3.5% interest, compounded annually.
ryzh [129]

Answer:

$ 1,781.53  

Explanation:

The future value of the 5-year CD can be determined by using the future value formula stated below:

FV=PV*(1+r)^n

FV is the future value which is expected future amount after 5 years

PV is the initial amount used in purchasing the CD i.e $1500

r is the rate of return on the CD on an annual basis which is 3.5%

n is the number of years the investment would last which is 5 years

FV=$1500*(1+3.5%)^5

FV=$1500*1.187686306

FV=$ 1,781.53  

8 0
3 years ago
MC Qu. 151 Using the information below for... Using the information below for Sundar Company; determine the total manufacturing
Sphinxa [80]

Answer:

Manufacturing Cost = 94,100

Explanation:

Given that,

Direct materials used = $ 20,500

Direct labor used = 26,000

Factory overhead = 47,600

Beginning work in process = 12,200

Ending work in process = 12,800

Manufacturing Cost = Direct Material + Direct Labor + Factory Overhead

Manufacturing Cost = $20,500 + 26,000 + 47,600

Manufacturing Cost = 94,100

5 0
3 years ago
What are the two major energy sources obtained from the ocean floor?
djyliett [7]
D.) Oil and natural gas are the two major energy sources obtained from the ocean floor.

Drilling on the ocean floor has already been done and the most abundant oil and natural gas producers are North Sea, Gulf of Mexico, Atlantic Ocean (near Brazil and West Africa), Arabian Gulf, and South East Asian Seas.
7 0
3 years ago
Sandra is 19 years old and has her first job as an administrative assistant in a law firm. She wears very low-cut shirts, short
sashaice [31]

People might believe that shes trashy she must sleep around with alot of men she wants attention people give her nasty names because of the clothing she choses. Quick note: People will always judge you on how you look you can be the smartest person ever but what you wear is how they will judge you even if you say it will not bother you it will eventually catch up with you and start tearing you down little by little untill you have no confidence in your self no more thats the reality its nasty but its true

8 0
3 years ago
Read 2 more answers
Yummy donuts, an american company, signs a contract with olivia who will use yummy's secret recipes to produce and sell doughnut
bixtya [17]
It sounds like Olivia has a franchise since the donut recipe is the parent company secret and Olivia must pay a percentage of her earnings to that same company so that means she is attached to that company and must abide by its regulations.
6 0
3 years ago
Other questions:
  • Sydney wins a prize. She has a choice of receiving a payment of $160,000 immediately or of receiving a deferred perpetuity with
    7·1 answer
  • HURRY HURRY!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
    5·1 answer
  • You have determined you want to buy an advanced hybrid vehicle, and a visit to ford's website has revealed that the ford fusion
    10·1 answer
  • Jim is a college senior with $50,000 in student loans. he earned $2,000 last year. he has no savings so he charged a $5,000 vaca
    15·1 answer
  • Abiding by a foreign country's cultural norms during an international business transaction means a company has met a minimum sta
    11·2 answers
  • What happens when a price floor is imposed above the equilibrium price of a good?
    12·1 answer
  • A dry cleaner uses exponential smoothing to forecast equipment usage at its main plant. August usage was forecasted to be 50 per
    13·1 answer
  • Which of the following statements about depreciation is correct? When depreciation expense is incurred, cash balances are reduce
    11·1 answer
  • If you built a computer company in Africa and then found that your product was having difficulty being distributed to customers
    12·1 answer
  • On March 10, 2019, Dearden, Inc., purchased 11,200 shares of Jaffa stock for $47 per share as a long-term passive investment. De
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!