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valina [46]
3 years ago
8

Blue Spruce Company is considering two new projects, each requiring an equipment investment of $101,800. Each project will last

for three years and produce the following cash flows:
Year Cool Hot
1 $40,400 $44,400
2 45,400 44,400
3 50,400 44,400
136,200 $133,200

The equipment will have no salvage value at the end of its three-year life. Blue Spruce Company uses straight-line depreciation and requires a minimum rate of return of 12%.

Present value data are as follows:
Period 12%
1 0.89286
2 0.79719
3 0.71178

Present Value of an Annuity of 1
Period 12%
1 0.89286
2 1.69005
3 2.40183

Required:
Compute the net present value of each project.
Business
2 answers:
Marrrta [24]2 years ago
7 0

Answer:

1.00.87.3

Explanation: i dont know

Lunna [17]2 years ago
5 0

Answer:

50,400 44,400

0.79719

1.69005

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Aircraft Products, a manufacturer of aircraft landing gear, makes 2,100 units each year of a special valve used in assembling on
ziro4ka [17]

Answer:

Increase by $31,500

Explanation:

Calculation to determine the operating income

First step is to calculate the Total relevant cost

DIFFERENTIAL ANALYSIS

MAKE BUY

Variable cost $144,900 $0

(2,100*$69)

Fixed cost $46,200 $0

(2,100*55*40%)

Purchase cost $0 (2100*76) = $159,600

Total relevant cost $191,100 $159,600

Now let determine the Increase or decrease of the company's operating income

Increase by =($191,100- $159,600)

Increase by = $31,500

Therefore Buying the valves from the outside supplier instead of making them would cause the company's operating income to: Increase by $31,500

4 0
3 years ago
The chairman of a welfare organization asks an employee to head a fundraising activity. The employee, however, embezzles $250,00
GenaCL600 [577]

Answer:

The answer is unethical and illegal

Explanation:

Unethical behavior is an action that falls outside of what is considered morally right or proper for a person, a profession or an industry.

Embezzlement is a type of fraud, which is defined as a "knowing misrepresentation of the truth or concealment of a material fact to induce another to act to his or her detriment."

3 0
3 years ago
45. Consider a small economy in which consumers buy only two goods: pretzels and cookies. In order to compute the consumer price
kakasveta [241]

Answer:

neither the number of pretzels nor the number of cookies bought by the typical consumer changes from year to year

Explanation:

a. the percentage change in the price of pretzels is equal to the percentage change in the price of cookies from year to year. b. the number of pretzels bought by the typical consumer is equal to the number of cookies bought by the typical consumer in each year. neither the number of pretzels nor the number of cookies bought by the typical consumer changes from year to year. d. neither the price of pretzels nor the price of cookies changes from year to year.

The consumer price index measures the changes in the price level of a basket of good. It is used to measure the rate of inflation.

Since the CPI measures changes in price level, it is assumed that quantities of goods purchased remains constant.

I hope my answer helps you

8 0
3 years ago
What is a tax return?
Lady_Fox [76]
C is the answer!!! Sorry if I’m wrong
4 0
2 years ago
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The New Fund had average daily assets of $2.2 billion in the past year. New Fund's expense ratio was 1.1% and the management fee
kvasek [131]

Answer: A. $15.4 Million

B. $8.8 million

Explanation:

a. What were the total fees paid to the fund's investment managers during the year?

This will be:

= Average daily assets × Management fee

= $2.2 billion × 0.7%

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b. What were the other administrative expenses?

The total expense that's incurred for managing the fund will be:

= $2.2 billion × 1.1%

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Therefore, the other administrative expenses will be:

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6 0
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