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frosja888 [35]
3 years ago
11

The annual annuity stream of payments that has the same present value as a project's costs is referred to as which one of the fo

llowing?
a. equivalent annual cost.
b. erosion cost.
c. opportunity costs.
d. yearly incremental costs.
e. sunk costs.
Business
1 answer:
drek231 [11]3 years ago
6 0

Answer:

a. equivalent annual cost.

Explanation:

In the case when the annuity payment stream on annually basis contains the similar present value as compared with the initial investment of the project so this we called as equivalent annual cost

It is term as equivalent to devlop a cash flow in a cash flows stream via project life

Therefore the option a is correct

And, the rest of the options are incorrect

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Which of the following statements is most true of order-getting salespeople?
melisa1 [442]

Answer:they seek out possible buyers and sue an organized creative approach to present messages

Explanation:

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3 years ago
When a wealthy individual invests his or her own money into a business project or start-up company with little intention to infl
kaheart [24]

​The answer is: Angel investor

Angel investors only injected their capital with the businesses if they believe that the leaders are capable in making the decision by their own.

This hands-off approach in investments tend to be reall risky. But Angel investors tend to be wealthy enough to the point where they can afford the financial blow back even if a couple of their start up investments fail.

7 0
3 years ago
Verizon Manufacturing Company spent $400,000 in 2019 to inspect incoming components. Of the $400,000, $240,000 is fixed appraisa
eimsori [14]

Answer:

The question is incomplete, the option include:

  • $20,000 decrease.
  • $45,000 decrease.
  • $80,000 decrease.
  • <em>$160,000 decrease.  is Correct</em>
  • $320,000 decrease.

Explanation:

1. In 2019 the number of finished units with internal faults = $400,000 completed units * 0.05 = $20,000.

2. In 2020 the number of finished units with internal faults = $20,000* (1 -0.1) = $18,000.

3. In 2020, the projected cost of internal failure= $18,000 * $80= $1,440,000;

4. In 2019 the expense of internal failure= $20,000 * $80 = $1,600,000.

5. Projected shift in the cost of internal failure = <em><u>$1,600,000 - $1,440,000 = decrease of $160,000</u></em>

4 0
3 years ago
Shannon’s has developed a super-premium craft beer to be marketed as Shannon’s Irish Stout. The cost of production (brewing, can
Arte-miy333 [17]

Answer:

$4.48

Explanation:

If Shannon needs to make a 12% markup based on cost, to obtain her minimum selling price to her distributor Miller of Denton, simply multiply the production cost per unit by 100% plus the desired markup.

If it costs her $4.00 to produce a six pack, her selling price should be:

P=1.12*\$4.00\\P=\$4.48

She should charge $4.48 per six pack.

3 0
3 years ago
"I’m not sure we should lay out $250,000 for that automated welding machine," said Jim Alder, president of the Superior Equipmen
NikAS [45]

Answer:

1.

The annual net cost savings promised by the automated welding machine

Annual Costs savings in replacing 6 welders $108,000

Reduced Material costs $6,500

Total annual Costs savings = $114,500

Note there is a $3,000 annual maintenance cost that will then be taken off this savings amount to make up the Annual Net cash inflow of $111,500

2

A. The Net Present value is $72,227. Kindly refer to the attached document for the clear presentation

B. The project should be accepted because it delivers a positive NPV. Meaning the net benefit outweighs the cost of owning the new Assets.

3.

The Discounted net Cash flow for the 6 years (aside the initial outlay) is $402,227.

Annually this comes to $67,038.

The benefit the business gets in the switch to the automatic welders is approximately $67,038 annually.

7 0
3 years ago
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