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charle [14.2K]
3 years ago
12

Sigma is thinking about purchasing a new clam digger for $14,000. The expected net cash flows resulting from the digger are $9,0

00 in year 1, $7,000 in year 2, $5,000 in year 3, and $3,000 in year 4. Should Sigma purchase this digger if its cost of capital is 12 percent
Business
1 answer:
AlekseyPX3 years ago
6 0

Answer:

Yes, it should be purchased

Explanation:

The computation is shown below;

Net present value = $9,000 ÷ 1.12 + $7,000 ÷ 1.12^2 + $5,000 ÷ 1.12^3 + $3,000 ÷ 1.12^4 - $14,000

= $5,081.53

As we can see that the net present value comes in positive so sigma should purchased the digger

Therefore the same would be considered and relevant

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ElenaW [278]

Answer: B. Jean

Explanation:

Having Absolute Advantage in the production of a good means that you can produce more of that good given the same resources or at least the same Quantity as others given lower resources.

From the scenario above therefore, Jean has the Absolute Advantage in producing Cakes as Jean can bake 12 cakes in an hour while Vincent can only bake 10.

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3 years ago
​________ is the extent to which a selection tool produces consistent results over time.
shusha [124]
This answer would be reliability.
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Straight-Line Depreciation Irons Delivery Inc. purchased a new delivery truck for $42,000 on January 1, 2019. The truck is expec
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Answer:

Annual depreciation= $7,996

Explanation:

Giving the following information:

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<u>To calculate the annual depreciation under the straight-line method, we need to use the following formula:</u>

Annual depreciation= (original cost - salvage value)/estimated life (years)

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5 0
3 years ago
In which of the following cases is outsourcing likely to be the best solution to the firm's data processing needs? a) Peterson I
Alex73 [517]

Answer:

a) Peterson International is a trenchcoat wholesaler to retailers around the world. Sixty percent of sales orders are taken during the months of August and September. Peterson needs a system to manage online ordering and fulfillment.

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5 0
3 years ago
MacCloud Industries has two divisions-Standard and Premium. Each division has hundreds of different types of tennis racquets and
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Answer and Explanation:

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We simply applied the above formula so that the correct value could come

And, the same is to be considered

3 0
3 years ago
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