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kirill [66]
3 years ago
5

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:
Georgia [21]3 years ago
8 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

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luda_lava [24]

Answer: True

Explanation: The retained earnings are recorded after closing the accounts of the income statement, the surplus called profit or the missing called loss is transferred to equity through the non-distributed profit item.

This undistributed profit account also closes during the accounting period, to clarify how much was generated in a period, they are not like the balance sheet accounts that are cumulative.

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Answer:

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Cause and effect what is likely to happen when consumers hear reports that make them worry about a products safety ? Explain the
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4 0
3 years ago
Read 2 more answers
Write the ways of getting information of the foreign employmen​
stealth61 [152]

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7 0
2 years ago
Whippet Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2017, at a co
Jet001 [13]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Whippet Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2017, for $100,000. Over its 4-year useful life, the bus is expected to be driven 160,000 miles. Salvage value is expected to be $8,000.

Compute the depreciation cost per unit.

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Prepare a depreciation schedule assuming actual mileage was: 2017, 40,000; 2018, 52,000; 2019, 41,000; and 2020, 27,000.

Annual depreciation= [(original cost - salvage value)/useful life of production in units]*units produced

2017= 0.575*40,000= 23,000

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2020= 0.575*27,000= 15,525

8 0
3 years ago
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