Answer:
The one time fee that the owner should charge is $1764.71
Explanation:
To calculate the one time fee, we take this as a perpetuity and calculate the value or price of the perpetuity based on the fututre cash flows discounted to today's price by a certain dicount rate.
The discount rate is taken as 8.5% which is also the market interests rate.
The formula for the value/price of the perpetuity is,
Value / Price = Cash flow / Discount rate
Value / Price = 150 / 0.085
Value / Price = $1764.705 rounded off to $1764.71
Answer:
A university's decision to add a new residence hall. A trucking firm's decision to move to a smaller facility.
Explanation:
Short run decision affects variable factor only. Adding a new facility is a long run decision. Hence a firm's decision to decrease the amount of electricity used in day-to-day operations by encouraging employees to adopt conservation strategies is a short run decision.
Hence, the correct answer would be:
A university's decision to add a new residence hall. A trucking firm's decision to move to a smaller facility.
Answer:
The answer is: A) expropriation
Explanation:
Expropriation is the seizure of private property by a government entity or government agency for the purpose of public interest. Usually owners that lose property due to expropriations, receive some type of compensation for their loss. It also can refer to private property being taken away by another private entity with the authorization of a government entity or agency. A common example of expropriation is land being taken away for building roads or dams.
In this case the Quality Dragon plant was expropriated by a private entity who was authorized by the government and the owner was received a monetary compensation for his loss.
Answer:
a.$7.43 per machine hour
Explanation:
The computation of the single plant wide rate is shown below:
Single plant wide rate = Total overhead cost ÷ Machine hours
where,
Total overhead cost = $84,000 + $72,000 = $156,000
And, the machine hours is
= 1,000 units × 5 + 2,000 units × 8
= 5,000 + 16,000
= 21,000 machine hours
So, the single plant wide rate is
= $156,000 ÷ 21,000 machine hours
= $7.43 per machine hour
<u>Solution and Explanation:</u>
<u>Computation of service years
</u>
Year Jim Paul Nancy Dave Kathy Total * Cost Amortization
2014 1 1 1 1 1 5 * 3000 15000
2015 1 1 1 1 1 5 * 3000 15000
2016 1 1 1 1 1 5 * 3000 15000
2017 1 1 1 1 4 * 3000 12000
2018 1 1 1 3 * 3000 9000
2019 1 1 2 * 3000 6000
72000
<u>Future years of service </u>
Jim 3
Paul 4
Nancy 5
Dave 6
Kathy 6
24
