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fenix001 [56]
4 years ago
7

Consider adopting a cost-reducing technology that lowers annual production costs by $1000 per year (into perpetuity, starting in

year 1). If your opportunity cost of time is captured by a discount rate of 5%, what is the present) value of adopting the technology?
Business
1 answer:
Korvikt [17]4 years ago
6 0

Answer:

$20,000

Explanation:

Present Value of Perpetuity = Annuity / ( Interest rate-Growth rate). Where Annuity=1000, Interest rate=5%, Growth rate=0

Present Value of Perpetuity = $1,000/(0.05-0)

Present Value of Perpetuity = $1,000/0.05

Present Value of Perpetuity = $20,000

So, the present) value of adopting the technology is $20,000.

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Pfister Corporation has Long-term Assets of $485,000, Current Liabilities of $150,000, Long-term Liabilities of $220,000 and Own
Stels [109]

Answer:

$205,000

Explanation:

Total liabilities=current liabilities+long-term liabilities

total liabilities=$150,000+$220,000

total liabilities=$370,000

total owners'equity plus liabilities=$320,000+$370,000=$690,000

long-term assets+current assets=liabilities+owners'equity

long-term assets=$485,000

current assets are unknown

liabilities+owners'equity=$690,000

let CA represent current assets

$485,000+CA=$690,000

CA=$690,000-$485,000

CA=$205,000

3 0
3 years ago
Why should a firm stop producing when its marginal revenue is less than its average variable cost?
Sholpan [36]

Answer:

There is no profit so they would be loosing money.

Explanation:

7 0
3 years ago
According to the contingency model: Question 4 options: 1) organic organizations are better able to deal with a complex environm
Ivan

Answer:

1) organic organizations are better able to deal with a complex environment.

Explanation:

An organic organization is one that is flexibile, and that can adapt easily, and quickly, to a changing enviroment.

According to the contingency model, organizations are better off when they are flexible, keep their options open, and adapt rapidly to changes. In other words, organic organizations are better able to deal with a complex enviroment.

This is because of the lack of rigidity inside an organic organization. The organic organization will prioritize pragmatism over rules or hierarchy, allowing it to respond more quickly to a dramatic shift, than a mechanistic, rigid organization.

4 0
3 years ago
An example of a frictionally unemployed individual is a. Sylvia, who quit her job to spend more time with her children b. Rod, t
mote1985 [20]

Answer:

e. Samantha, who quits her job to look for a better one

Explanation:

This is a topic in economics and business that seeks to test your understanding of business cycles. This particular question is on frictional unemployment.

The main feature of frictional unemployment is that there is someone or a group of people who are actively looking for work. They remain unemployed until they find work.

The other answers in the question point to people who are not looking for work and thus do not make up part of the frictionally unemployed population group.

E.g Sylvia quit her job to spend more time with the kids, the college student who quit work to return to school etc... all these are not actively looking for job.

I hope this helps you understand the question better and you can solve similar questions

8 0
4 years ago
Activity-Based Costing for a Service Business Sterling Hotel uses activity-based costing to determine the cost of servicing cust
Tatiana [17]

Answer:

Total allocated cost= $146.4

Explanation:

Giving the following information:

Julie Stone visited the hotel for a 6-night stay.

Julie had 3 meals in the hotel during the visit.

guest check-in= $8.40 per guest check-in

room cleaning= $21.00 per room cleaning

meal service= $4.00 per served meal

<u>To allocate costs based on the activity, we need to use the following formula:</u>

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

guest check-in= 8.40*1= 8.4

room cleaning= 21.00*6= 126

meal service= 4.00*3= 12

Total allocated cost= $146.4

3 0
3 years ago
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