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Irina18 [472]
3 years ago
12

Two methods can be used for producing solar panels for electric power generation. Method 1 will have an initial cost of $550,000

, an annual operating cost of $160,000 per year, and $125,000 salvage value after its three-year life. Method 2 will cost $830,000 with an annual operating cost of $120,000. and a $240,000 salvage value after its five-year life. The company has asked you to determine which method is better, but it Wants the analysis done over a three-year planning period. The salvage value of Method 2 will be 35% higher after three years than it is after five years. If the company's minimum attractive rate of return is 10% per year, which method should the company select?
Business
1 answer:
Natasha_Volkova [10]3 years ago
5 0

Answer:

the company should choose method 1

Explanation:

                                                  Method 1                Method 2

Initial outlay                              $550,000               $830,000

operating costs (years 1,2,3)    $160,000                $120,000

salvage value                            $125,000               $324,000

we must determine which alternative has the lowest present value:

method 1 = $550,000 + $160,000/1.1 + $160,000/1.1² + $160,000/1.1³ - $125,000/1.1³ = $550,000 + $145,455 + $132,231 + $120,210 - $93,914 =  <u>$853,982</u>

method 2 = $830,000 + $120,000/1.1 + $120,000/1.1² + $120,000/1.1³ - $324,000/1.1³ = $830,000 + $109,091 + $99,174 + $90,158 - $243,426 = $884,996

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Which activity is a violation of intellectual property rights
Genrish500 [490]

Answer:

Violation of intellectual property rights is known as infringement. The most common infringements are appropriating someone else's property rights without authorization and using something else's property without paying for it.

For example a patent infringement happens when a company uses someone else's patent for producing their owns products or services, e.g. copy cell phone technologies.

Another common example is copyright infringement that happens when someone downloads a movie, song or software from the internet without paying a fee.

7 0
3 years ago
Fixed cost per unit is inversely proportional to the volume of units produced.
Levart [38]
True. Fixed cost per unit is inversely proportional to the volume of units produced.

Fixed costs per unit are inversely proportional to the volume produced because depending on the amount of units made, the amount spent on fixed costs is then based. Because they are related to one another, this statement is true.  
5 0
3 years ago
Assume a drought in the Great Plains reduces the supply of wheat. Noting that wheat is a basic ingredient in the production of b
tatyana61 [14]

Answer: a. rise, the supply of bread to decrease, and the demand for potatoes to increase.

Explanation:

According to the Economic law of SUPPLY AND DEMAND, less supply means HIGHER prices simply because the good is becoming scarce not unlike fuel during global oil shortages.

Now, we are told that the drought reduced the supply for wheat which means the SUPPLY of wheat has DECREASED and this will translate to the SUPPLY of Bread DECREASING as well. According to the aforementioned law, prices of Bread will therefore RISE.

Since Bread prices have risen, people will seek alternatives to bread as they may not want to pay the high price. This will lead them to choosing the alternative to bread which in this case are Potatoes which would therefore INCREASE the DEMAND for potatoes.

3 0
3 years ago
Use the following comparative figures for Apple and Google. Google 12.662 $ Key Figures Net income (in millions) Cash dividends
azamat

Answer and Explanation :

Few information is missing in the question kindly find the attachment

As per the data given in the question,

The formula and the computation is shown below

1) Book value per share = Equity applicable to share ÷ share outstanding

                                             Apple Google

Equity  common share a $134,047 $152,502

Common share outstanding b 5,126.201 694.783

Book value per common share a ÷ b $26.15 $219.50

2)Basic EPS = Net income ÷ weighted Avg common share outstanding

                Apple Google

Net income a $48,351 $12,662

weighted Avg common share outstanding b 5217.242 693.049

Basic EPS a ÷ b $9.27 $18.27

3)Dividend yield = Cash dividend per common share ÷ Market price per share

                                              Apple Google

Cash dividend per common share a 2.4 0

Market price per share b $154.12 $1046.4

Dividend yield a ÷ b 1.56% 0.00%

4) Price earning ratio = Market price per share ÷ Basic EPS

                                  Apple Google

Market price per share a $154.12 $1046.4

Basic EPS b 9.26754 18.26999

Price earning ratio a ÷ b 16.63 57.27

5) A higher PE ration indicates that investors want to pay a higher share price because of growth expectation in near by future

Therefore Google has higher PE ratio

Hence, investors have greater expectation of performance of Google in future.

4 0
3 years ago
Gilberto Company currently manufactures 84,000 units per year of one of its crucial parts. Variable costs are $2.90 per unit, fi
RoseWind [281]

Answer:

Cost to make $337,600

Cost to make $344,400

The company should make the product

Explanation:

Calculation to determine the total incremental cost of making 84,000 and buying 84,000 units

COST TO MAKE

Relevant per unit Relevant fixed cost Total relevant cost

Variable cost per unit $2.90 - $243,600(84000*$2.90)

Fixed manufacturing costs - $94,000 $94,000

Cost to make $337,600

($243,600+$94,000)

COST TO BUY

Relevant per unit Relevant fixed cost Total relevant cost

purchase per unit $4.10 - $344,400[$4.10*84000]

Cost to make $344,400

Based on the above calculation the cost of buying is higher than the cost of making therefore the company should MAKE the product.

5 0
3 years ago
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