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Fofino [41]
3 years ago
15

Giancarlo has received an inheritance from his rich uncle and is contemplating the purchase of a Suzuki XL7. In an attempt to ma

ke a rational decision, Giancarlo has identified the following cash flow estimates: Negotiated price of new Suzuki XL 7 $24,675 Taxes and fees on a new car purchase $1,732 Proceeds from the trade-in of old car $9,285 Estimated value of the Suzuki XL7 in 5 years $7,285 Estimated value of old car in 5 years $3,572 Estimated annual repair cost on Suzuki XL7 $350 Estimated annual repair cost on old car $925 What would be Giancarlo’s initial investment in the Suzuki XL7?
Business
1 answer:
Effectus [21]3 years ago
8 0

Answer:

Giancarlo’s initial investment in the Suzuki XL7 is $17,122

Explanation:

The computation of the initial investment is shown below:

= Negotiated price of new Suzuki + Taxes and fees charges on purchase of a new car -  proceeds from the old car

= $24,675 + $1,732 - $9,285

= $17,122

The estimated value of the old, new car and the annual repair cost is not relevant for computing the initial investment. Hence, we ignore it and not considered this cost.

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Suppose independent truckers operate in a perfectly competitive constant cost industry. If these firms are earning positive econ
Deffense [45]

Answer:

The price of trucking services would fall until equilibrium prices are reached. Only normal profit would be earned in the long run

Explanation:

A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.  

In the long run, firms earn zero economic profit.  If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.  

Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.  

8 0
3 years ago
Minimum-wage laws can keep wagesa.a) above equilibrium and cause a surplus of labor.b) above equilibrium and cause a shortage of
Airida [17]

Answer:

The correct answer is option a.

Explanation:

Minimum wages can be defined as the minimum level of wages that an employer is supposed to pay to workers for their work. It cannot be reduced through an individual contract or collective agreement.  

Minimum wages are fixed above the equilibrium level of wages. At this level, the demand for labor is lower while supply is more because of high wages. This creates surplus labor in the market.  

4 0
3 years ago
To reconcile the number of physical units using the weighted average method of process costing, one must determine whether the u
Shkiper50 [21]

For one to be able to reconcile the number of physical units using the weighted average method of process costing, one must determine if the units were completed or still in process at the end of the period.

<h3>What is weighted average method?</h3>

The weighted average cost method is known to be a kind of process that tends to divides the cost of goods that is available using the sale by the number of units that is present for sale.

Conclusively, To find a weighted average, one has to multiply all the number by its weight, then add all the results together.

learn more about weighted average method from

brainly.com/question/26595359

8 0
1 year ago
____ can be produced independently of the consumer and then stored and shipped.
sergey [27]
The answer is goods :)
8 0
3 years ago
Lois has a balance of $970 on a credit card with an APR of 24.2%, compounded monthly. About how much will she save in interest o
Aleks04 [339]

Answer:

Lois will save $152.51 when she wil transfer her balance.

Explanation:

Amount to be paid in 1 year for original credit card is given as

P_1^{'}=P*(1+r_1)^t

Here P^{'}_1 is the amount to be paid after P is the balance which is 970, r_1 is the APR for first credit card which is 24.2% and t is compounding frequency which is 12 so

P_1^{'}=P*(1+r_1)^t\\P_1^{'}=970*(1+\dfrac{24.2}{12}\%)^{12}\\P_1^{'}=970*(1.0207)^{12}\\P_1^{'}=970*1.2707\\P_1^{'}=\$1232.61

Similarly for the second one the values are calculated as

P_2^{'}=P*(1+r_2)^t\\P_2^{'}=970*(1+\dfrac{10.8}{12}\%)^{12}\\P_2^{'}=970*(1.108)^{12}\\P_2^{'}=970*1.1135\\P_2^{'}=\$1080.10

The differnce of the two values is calculated as

P_1'-P_2'=1232.61-1080.10\\Difference=\$ 152.51

The difference is $152.51 which she could save.

7 0
2 years ago
Read 2 more answers
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