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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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A registered investment adviser often recommends real estate limited partnership investments to her wealthy clients. The RIA's p
Levart [38]

Answer:

B.Her actions are inconsistent with the advice being given to her clients and this must be disclosed

Explanation:

A registered investment adviser often recommends real estate limited partnership investments to her wealthy clients. The RIA's personal financial statement and income are consistent with those of her wealthy clients, yet she never buys limited partnership units for her personal account. Which statement is TRUE

A real estate limited partnership (RELP) is a group of investors who pool their financial resources to invest in property purchasing, development, or leasing. Under its limited partnership status, This form of partnership  has a general partner who bears full liability and limited partners who are predispose  only up to the amount they contribute

The registered investment adviser does not practice what she teaches. She might just be in the profession for the money. She might also understand the risk associated with the real estate limited partnership investments and hence  would want to be risk averse herself. she should let her clients know the nitty gritty of the partnership and put a disclaimer across to them

4 0
3 years ago
What does Pa think is too close to the Ingallses' house?
AlekseyPX
C a well cause it will always be closer
7 0
3 years ago
The tax on a property with an assessed value of $ 68 comma 000 is $ 550. Using a​ proportion, find the tax on a property with an
Anika [276]

Answer:

The answer is $994.85

Explanation:

This can be calculated using the proportion method.

Unit $ worth of the property costs = $550 / $68,000 = 0.008088

$123,000 worth of property costs = 0.008088 * $123,000 = $994.85

3 0
3 years ago
Tri-coat Paints has a current market value of $50 per share with earnings of $5.97. What is the present value of its growth oppo
Gnesinka [82]

Answer: $0.25

Explanation:

Fron the question, we are informed that Tri-coat Paints has a current market value of $50 per share with earnings of $5.97. We are further told that the required return is 12%.

The present value of its growth opportunities (PVGO) will be:

= $50 - ($5.97/12%)

= $50 - ($5.97/0.12)

= $50 - $49.75

= $0.25

Therefore, the present value of its growth opportunities (PVGO) if the required return is 12% is $0.25.

6 0
3 years ago
A firm in a purely competitive industry has a typical cost structure. The normal rate of profit in the economy is 7 percent. Thi
Mrrafil [7]

Answer:

a. 9%

b. Yes, the firm earning an economic profit of 2%

c. Yes, Industry will see entry or exits

d. Rate of return of economy = 7%

Explanation:

a. Percentage rate of return = Earning ÷ Investment by founders × 100

= $18 ÷ $200 × 100

= 9%

b. Company rate of profit - Rate of profit of economy

= 9% - 7%

= 2% > 0

Yes, the firm earning an economic profit of 2%

c. Yes, Industry will see entry or exits because industry is competitive in nature and would to like to compete to others by satisfying the consumers . In perfect competitive markets there will be no entry or exits and critical characteristics reason companies are free for entry and exit for marginal profits.

d. Industry is competitive , there will be supplier to serve the market and its hard to decide the price of the product.

Hence, the rate of return long run equilibrium earned by firm = Rate of return of economy = 7%

4 0
3 years ago
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