1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Charra [1.4K]
2 years ago
11

The equivalent annual cost method is most useful in determining: Group of answer choices the annual operating cost of an idle ma

chine that is currently owned by a firm. the tax shield benefits of depreciation given the purchase of new assets for a project. operating cash flows for cost-cutting projects of equal duration. which one of two machines to acquire given equal machine lives but unequal machine costs. which one of two machines to purchase when the machines are mutually exclusive, have differing lives, and will be replaced.
Business
1 answer:
jok3333 [9.3K]2 years ago
5 0

Answer:

which one of two machines to acquire given equal machine lives but unequal machine costs.

Explanation:

equivalent annual cost (EAC) is used in determining which investment to make when the investments have different life spans.

When investments have different life spans, the net present value(NPV)  cannot be used in making decisions on investment.

EAC= \frac{rNPV}{1-\frac{1}{(1+r)^n} }

where r = interest rate

n = number of years

The decision rule is to invest in the investment with the higher EAC

You might be interested in
The stockholders' equity section of Sheridan Company balance sheet at December 31, 2019, appears below:
dimulka [17.4K]

Answer:

Sheridan Company

1. Journal Entries:

Jan. 18 Debit Cash $1,920,000

Credit Common stock $800,000

Credit Paid-in capital in excess of par $1,120,000

To record the issuance of 80,000 shares of common stock at $24 per share.

Aug. 20 Debit Treasury stock $260,000

Debit Paid-in capital in excess of par $416,000

Credit Cash $676,000

To record the repurchase of 26,000 shares of Sheridan Company common stock at $26 per share to be held in the treasury.

Nov. 5 Debit Cash $1,600,000

Credit Common stock $500,000

Credit Paid-in capital in excess of par$1,100,000

To record the issuance of 50,000 shares of common stock at $32 per share.

2. Stockholders' Equity Section of Sheridan Company

Balance Sheet at December 31, 2019:

Paid-in capital

Common stock, $10 par value, 410,000 shares authorized;

330,000 issued and outstanding     $4,600,000

Paid-in capital in excess of par           3,054,000

Treasury stock                                      (260,000)

Total paid-in capital                             7,394,000

Retained earnings                                 900,000

Total stockholders' equity               $8,284,000

Explanation:

a) Data and Calculations:

Stockholders' Equity Section of Sheridan Company

Balance Sheet at December 31, 2019:

Paid-in capital

Common stock, $10 par value, 410,000 shares authorized;

330,000 issued and outstanding     $3,300,000

Paid-in capital in excess of par            1,250,000

Total paid-in capital                             4,550,000

Retained earnings                                  800,000

Total stockholders' equity                $5,350,000

b) Transaction Analysis:

Jan. 18 Cash $1,920,000 Common stock $800,000 Paid-in capital in excess of par $1,120,000

Aug. 20 Treasury stock $260,000 Paid-in capital in excess of par $416,000 Cash $676,000

Nov. 5 Cash $1,600,000 Common stock $500,000 Paid-in capital in excess of par$1,100,000

Common stock:

Dec. 31, 2019:  330,000 issued and outstanding     $3,300,000

Jan. 18, 2020:    80,000 issued of new shares             800,000

Nov. 5, 2020:    50,000 issued of additional shares    500,000

Dec. 31, 2020: 460,000 issued and outstanding    $4,600,000

Paid-in capital in excess of par

December 31, 2019            $ 1,250,000

Jan. 18 issue                           1,120,000

Aug. 20 treasury stock           (416,000)

Nov. 5 issue of new shares  1,100,000

December 31, 2020          $3,054,000

Retained Earnings:

December 31, 2019    $800,000

Net income for 2020    100,000

December 31, 2020  $900,000

6 0
2 years ago
Wel me following questions. Be sure to explain your thinking.
victus00 [196]

Answer: Idk but try downloading more apps it’s a lot easier to have more than one

Explanation:

6 0
3 years ago
List three strategies for seeing that your guests do not leave your home or residence while impaired
Sati [7]
<span>Have one person be the bartender, and keep track of how much people drink, and then limit the amount of alcohol people consume. Serve no alcohol or have only a limited amount available, while having a wide variety of nonalcoholic beverages available. Declare in advance that this will be an alcohol free event and that you will provide beverages that are nonalcoholic, and would like guests to respect that and not bring alcohol.</span>
5 0
3 years ago
Which of the following is not true about a community college
Ivenika [448]

Answer:

tuition is typically less and it does not earn any degree or certificate

7 0
2 years ago
Read 2 more answers
Baylor Bank believes the New Zealand dollar will appreciate over the next 15 days from $.90 to $.93. The following annual intere
maw [93]

Answer:

19 milion 86+15=91 19000091

5 0
2 years ago
Other questions:
  • Kahn Company paid $240,000 to purchase a machine on January 1, Year 1. During Year 3, a technological breakthrough resulted in t
    13·1 answer
  • Suppose you have taken out a $400,000 fully amortizing fixed-rate mortgage loan that has a term of 15 years and an interest rate
    12·1 answer
  • Well organized business writing uses short sentences and paragraphs. Please select the best answer from the choices provided T F
    14·2 answers
  • Delta diamonds uses a periodic inventory system. the company had five one-carat diamonds available for sale this year: one was p
    15·1 answer
  • Place the steps of the marketing research approach in the correct order. NOTE: The first step should be the top item in your lis
    13·2 answers
  • What's a good way to start this?. . Use a graph to show the impact on the price of Japanese cars sold in the United States if th
    10·1 answer
  • Microeconomics Test 1 Study Guide Chapter 1 1. Define Economics 2. Define the Scarcity Principle 3. Define the Cost-Benefit Prin
    7·1 answer
  • Which of the five competitive forces is influencing a passenger train line, when a new automobile manufacturer causes a reductio
    6·1 answer
  • you are forming a new company that delivers food to residents across college campuses. the primary focus is
    6·1 answer
  • Hello guys, it's me Mickey Mouse!
    5·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!