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
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

You might be interested in
Which of the following is a distinguishing characteristic of oligopoly? Question 1 options:_____
julsineya [31]

Answer:

B. Natural barriers cannot prevent the entry of new firms.

Explanation:

Natural barriers cannot prevent the entry of new firms as firms should be free to enter and exit the industry. Every firm's actions or dealings influence the profits of all the other firms.

3 0
3 years ago
Which of the following individual achievements is not suitable to include in a college application?
satela [25.4K]

Answer:

Grade 6 spelling bee champion

Explanation:

it is not relevant by the time you are applying for college, and does not say very much about you as a person & what you like to do.

7 0
2 years ago
Anderson Enterprises, an advertising firm, planned to make its communication process more effective and interviewed employees to
Yuri [45]

Answer:

C. Social network analysis

Explanation:

According to my research on different company intercommunication techniques, I can say that based on the information provided within the question the approach being used here is called a Social network analysis. This is a form of analyzing certain individual sectors or people and observing the relationships between them.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

6 0
3 years ago
Which of these is an example of advertising?
professor190 [17]

Answer:

the answer is D.a bill board

5 0
3 years ago
Read 2 more answers
Relix, Inc., is a domestic corporation with the following temporary timing differences for the current year. The building deprec
Rina8888 [55]

Answer:

Computation of Provision for income tax expense

Particulars                                                      Amount

Pre tax financial income                                $4,800

Add: Non deductible business meal            $780

Less: Tax exempt interest                            -$2,375

Less: Book tax difference in depreciation  -$16,800

of building and Furniture & fixtures

Add: Accured litigation expenses                 <u>$16,000</u>

Taxable Income                                              <u>$2,405</u>

Provision for income tax Expense

Current Tax (21% of $2,405)                      $505

Deferred tax liability                                   $3,528

Deferred tax asset                                     -<u>$3,360</u>

Total Provision for income tax expense  <u>$673</u>

<u />

Computation of book net income after tax

Particulars                                                    Amount

Book net income before taxes                   $4,800

Less: Provision for income tax expense   -<u>$673</u>

Net Income after tax                                   <u>$4,127</u>

3 0
3 years ago
Other questions:
  • Line of customers waiting to pay. The first customer asks you for directions to the airport.
    9·2 answers
  • Monica was hired by the Misty Mount Corporation to take over as the new chief executive officer. Her initial impression is that
    12·2 answers
  • Which of the following statements is true? a.The sales budget includes both units and dollars. b.The direct labor budget uses an
    13·1 answer
  • The following data from the just completed year are taken from the accounting records of Mason Company: Sales $ 524,000 Direct l
    5·1 answer
  • A firm is offered trade credit terms of 2/8, net 45 days. The firm does not take the discount. It pays after 58 days. What is th
    8·1 answer
  • Warren Supply Inc. is evaluating its capital budget. The company finances with debt and common equity, but because of market con
    8·1 answer
  • Geo Co. purchased a building for $400,000. In addition, Geo paid $35,000 closing fees (including title and lawyer fees). Geo als
    11·1 answer
  • Martinez, Inc. acquired a patent on January 1, 2017 for $42,000 cash. The patent was estimated to have a useful life of 10 years
    14·1 answer
  • Select the correct answer
    15·1 answer
  • Ked what would you do if one of the customers began making off-color jokes that other customers in the bar could hear? rosario m
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!