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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

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During the year, Hamlet Inc. paid $24,000 to have bond certificates printed and engraved, paid $90,000 in legal fees, paid $15,0
Vitek1552 [10]

Answer:

$359,000

Explanation:

Total Bond issue costs  can be calculated by adding all the cost related to the issue of bond.

Bond Certificate printing cost        =    $24,000

Legal fees paid                                =    $90,000

CPA registration                               =    $15,000

Underwriting Commission                =   $230,000

Total Bond issue costs                      =   $359,000

After adding all the cost we reached at 359,000 and its closest to Option A 360,000

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3 years ago
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Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

6 0
3 years ago
Mistakes made by staff are affecting overall efficiency, so you have contacted the local community college to inquire about cust
Tamiku [17]

Answer:

sign up for either program

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By ensuring that the Staff participate in the training, it will enable the staff to minimize mistakes and improve overall efficiency. Efficiency is important to maintain operations.

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3 years ago
If conversion costs are added evenly throughout the production process and the unit have made it 50% of the way through the prod
mestny [16]

Answer: C. 50%

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3 years ago
The inclusion of all product and period costs necessary for making and marketing a product or service is a distinguishing featur
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Answer:

The correct answer is the option B: market price.

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