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KatRina [158]
3 years ago
7

Kristen Lu purchased a used automobile for $16,750 at the beginning of last year and incurred the following operating costs:

Business
1 answer:
Molodets [167]3 years ago
4 0

Answer:

The average operating cost is $0.46 per mile

In deciding whether to to her use her own car or rent a car the costs are analysed below:

Variable operating cost is a relevant cost

Depreciation is not relevant as it is already cost and also it is sunk cost

insurance is not relevant as well

automobile tax and license is not relevant as it would be paid regardless of the option chosen

Explanation:

The average cost comprises of the variable operating cost per mile as well as the fixed operating cost per mile

variable operating cost per mile is $0.06

fixed cost operating cost=fixed costs/total miles driven=($3,350+$1,700+$900+$450)/16000=$6400 /16000=$0.40

average cost per mile=$0.06+$0.40=$0.46

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What are the concerns in cash management, and how does cash management iss help financial managers?
PtichkaEL [24]

The cash management can help financial managers in the  collecting and managing cash flows from the activities of the firm.

<h3>How can cash management can help financial managers ?</h3>

Cash management, which is a treasury management,  can be of help to the financial managers by helping them to be able to manage cash flows from the operating activities of the firm.

This could range from the  investing, and financing activities of the firm and it help in achieving the financial goal of of the organization.

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4 0
1 year ago
What a primary cause of inflation​
lesantik [10]

Excess aggregate demand (AD)

Quick economic growth.

5 0
3 years ago
Big Equipment Company sold a tractor-scraper to Ace Paving for $125,000. Ace made a down payment of $25,000 and agreed to pay th
miv72 [106K]

Answer:

a. Reformation

Explanation:

In the given instance, it is clearly observed that the Vehicle Identification Number is not correctly written in the contract, and that happened due to typing errors, and was not intentional.

In these cases the courts order to reform the contract, and then the reformed contract shall reflect the intentions of both the parties as what they intend.

In the given case also, reformation will take place as the error is not due to intentionally, fraud with the other party. Thus correct option is:

a. Reformation

7 0
2 years ago
A firm is evaluating a project with an initial investment at time 0 of $640,000. The present value of the levered cash flows is
monitta

Answer:

Using the flow-equity method of valuation the borrowed is $67600,option B.

Explanation:

In order to determine the amount borrowed in executing the project, we make use of the below formula which shows that we are working  backwards.

Amount borrowed=present value of cash inflows-levered cash flows

present value of cash inflows=net present value+initial investment

present value of cash inflows=$157000+$640000

present value of cash inflows=$797000

levered cash flows=$729400

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amount borrowed =$67600

8 0
3 years ago
All of the following except
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Answer:

C

Explanation:

3 0
2 years ago
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