Hello!
If you choose the sum of 90000 dollars at an annual interest rate of 5% then that is 4500 annually on return on the 90000 sum. So if u choose 5000 a year forever but starting after 5 years then it will take roughly 5yrs plus 90000/5000 = 90/5 = 18yrs plus the 5yrs is 23yrs and that is to only get the initial 90000 sum that at this same point in time is now worth 90000 + 4500*23yrs = 193,500 dollars if stated invested that entire time. So we can determine that the initial lump sum with and annual 5% interest rate is the much better choice.
Hope this helps you! Thank you!!!
Answer:
The optimal total annual cost is ≈ $1274
Explanation:
Given:
- Demand (D): 907
- Holding cost (C): $1.82 per jug
- Ordering cost (O) : $17 per order
To find the optimal total annual cost when ordering based on the EOQ, we use the following formula to find the EOQ:
- EOQ =
![\sqrt{ \frac{2\times D\times O}{C}}](https://tex.z-dn.net/?f=%5Csqrt%7B%20%5Cfrac%7B2%5Ctimes%20D%5Ctimes%20O%7D%7BC%7D%7D)
= ![\sqrt{ \frac{2\times 907\times 17}{1.82}}](https://tex.z-dn.net/?f=%5Csqrt%7B%20%5Cfrac%7B2%5Ctimes%20907%5Ctimes%2017%7D%7B1.82%7D%7D)
= $130.16
=> annual holding cost (H): 4*EOQ / 2 = 4*130.16 /2 = $260.33
=> annual ordering cost (S) : O*D/EOQ = 1.82*907/130.16 = $12.6
So the optimal total annual cost is:
= 907*$130.16 / $260.33 + $130.16*$12.6/2
≈ $1274
Answer:
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Answer:
c. $334,650.
Explanation:
The computation of the capitalized cost of the land is shown below:
= Purchase value of land for building + demolished value of old building + cost of title insurance + attorney fees + property taxes - scrap value from the building
= $320,000 + $12,000 + $900 + $500 + 2,750 - $1,500
= $334,650
The property taxes would be
= Property taxes paid - covered amount
= $3,000 - $250
= $2,750
Answer:
E) Market Exchange
Explanation:
Market exchange refers to at least two people or firms trading one good or service for another. In this case, the theater group is trading a free show and other promotional activities (standup comedy nights, and volunteer work) in exchange for higher membership to their group or higher attendance to their shows.
A trade does not necessarily imply a money exchange, it can also include goods or services that provide utility for the other party. For example, an increase in group membership will help the theater group perform better.