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maks197457 [2]
3 years ago
15

Hotco oil burners, designed to be used in asphalt plants, are so efficient that Hotco will sell one to the Clifton Asphalt plant

for no payment other than the cost savings between the total amount the asphalt plant actually paid for oil using its former burner during the last two years and the total amount it will pay for oil using the Hotco burner during the next two years. On installation, the plant will make an estimated payment, which will be adjusted after two years to equal the actual cost savings.
Which of the following, if it occurred, would constitute a disadvantage for Hotco of the plan described above?
A) Another manufacturer’s introduction to the market of a similarly efficient burner
B) The Clifton Asphalt plant’s need for more than one new burner
C) Very poor efficiency in the Clifton Asphalt plant’s old burner
D) A decrease in the demand for asphalt
E) A steady increase in the price of oil beginning soon after the new burner is installed
Business
1 answer:
dlinn [17]3 years ago
5 0

Answer:

Hotco

If it occurred, this would constitute a disadvantage for Hotco of the plan described above:

E) A steady increase in the price of oil beginning soon after the new burner is installed.

Explanation:

A steady oil price increase commencing soon after the new burner is installed will obliterate the actual cost savings from which Clifton Asphalt would be paying Hotco for the oil burners.

This is buttressed by the fact of the payment terms that totally depends on the cost savings.

Even the adjustment after two years may not benefit Hotco if the steady increase in the price of oil persists.

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An investor purchases one municipal and one corporate bond that pay rates of return of 8% and 10%, respectively. If the investor
Alinara [238K]

Answer:

rate of return will be 8% and 8%

Explanation:

given data

municipal bond = 8%

corporate bond = 10 %

marginal tax = 20 %

solution

we know that here

Municipal bond no taxes are levied

hence after tax rate of return will be 8%

and

Corporate bond

after tax rate of return will be

rate of return   = 10% × ( 1 - 0.20 )

rate of return   = 8 %

5 0
2 years ago
Wendell’s Donut Shoppe is investigating the purchase of a new $40,000 donut-making machine. The new machine would permit the com
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<u>Solution and Explanation:</u>

<u> Answer:1</u> The total annual cash inflows associated with the new machine for capital budgeting purposes is:

=\$ 5200+(2000 * \$ 2.40 \text { per dozen })

=$10000

<u>Answer:2 </u>The internal rate of return promised by the new machine to the nearest whole percent is:

Particulars  Year  Amount ($)

Cash outflow  0  -40000

Cash inflow  1  10000

                2  10000

               3  10000

                4  10000

               5  10000

              6  10000

IRR   13%

=13% using IRR function in excel.

<u>Answer:3</u> IRR=17%

with salvage value

Particulars  Year  Amount ($)

Cash outflow  0  -40000

Cash inflow  1  10000

                 2  10000

                3  10000

               4  10000

                5  10000

              6  22000

IRR   17%

using IRR function in excel.

5 0
3 years ago
  Kameela says that a good choice of wine to pair with cheese is a Zinfandel. Annette says that a better choice to pair with che
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B both women are correct 
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3 years ago
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Although it does not explicitly endorse traditional gender roles, which sociological perspective implies that dividing tasks bet
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The functionalist perspective is the sociological perspective that implies that dividing tasks between spouses is beneficial for the family unit even though it does not explicitly endorse traditional gender roles.

<h3>What is a functionalist perspective?</h3>

This refers to the social view that our society is a relatively stable and orderly system composed of interdependent and interrelated parts

The key points about functionalist perspective are:

  • It view social change as a strain on the system
  • It attempts to explain social stability.

Hence, because the Functionalists believe that society is held together by social consensus where members of the society agree upon and work together to achieve, then, it is the sociological perspective that implies that dividing tasks between spouses is beneficial for the family unit even though it does not explicitly endorse traditional gender roles.

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3 0
2 years ago
1) Markets and competition In a perfectly competitive market, all producers sell___________ goods or services. (perfectly identi
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Answer:

The answers are,

1) Perfectly Identical

2) many

3)takers

4)false

Explanation:

Lettuce is a commodity that can't be differentiated much based on the product. It can be however, differentiated from branding, packaging, etc.

But since the Lettuce is a broad category, we can assume that it is a competitive market.

Perfectly competitive markets do not really exist in the real world and are more of a hypothetical scenario. However, knowing the concept allows businesses and governments to make sound economic decisions regarding production and consumption.

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3 years ago
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