1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
sergeinik [125]
2 years ago
13

A firm is choosing between two machines. Machine X has a first cost of $5,000 and a useful life of 5 years. Machine Y has a firs

t cost of $8,000; useful life of 12 years; salvage value of $2,000; maintenance cost of $150. Assume the minimum attractive return is 8%, which machine would you choose
Business
1 answer:
koban [17]2 years ago
7 0

Answer:

Machine Y

Explanation:

Machine X

EUAC = 5,000(A/P, 8%, 5)

EUAC = 5,000 (0.2505)

EUAC = $1252.50

Machine Y

EUAC = 8,000(A/P, 8%, 12) - 2,000(A/F, 8%, 12) + Maintenance cost

EUAC = 8,000(0.13269) - 2,000(0.0526) + 150

EUAC = $1061.52 - $105.20 + $150

EUAC = $1106.32

Conclusion: Machine Y will be chosen because it has the lesser Equivalent Uniform Annual Cost than Machine X

You might be interested in
Retained earnings a.over time will have a direct relationship with the amount of cash on hand if the corporation is profitable.
Gwar [14]

Answer:

d.is the cumulative total of net income, minus net losses, and minus dividends.

Explanation:

As we know that

The stockholder equity statement involves the common stock and the retained earnings statement

It is prepared to find out the ending balance of common stock and the retained earning that is shown below:

The ending balance of retained earning = Beginning balance of retained earnings + net income or minus net loss - dividend paid

And, the ending balance of the common stock = Beginning balance of common stock + issuance of the shares

3 0
3 years ago
On January 2, 20Y4, Whitworth Company acquired 40% of the
Gelneren [198K]

Answer:

Journal entries needed for:

a. Purchase of stock

b. Share of Aloof income

c. Dividend

d. Sale of Aloof company stock

a. Purchase of stock

Date                  Account Title                                   Debit                      Credit

Jan 2, 20Y4      Investment in Aloof company       $340,000

                          stock

                         Cash                                                                          $340,000

b. Share of Aloof income

Date                  Account Title                                   Debit                      Credit

Dec 31, 2024     Investment in Aloof company       $72,000

                          stock

                         Income of Aloof Company                                        $72,000

<u>Working:</u>

= 40% * 180,000 income

= $72,000

c. Dividend

Date                  Account Title                                   Debit                   Credit

Dec 31, 2024     Cash                                             $4,000

                         Investment in Aloof company                                  $4,000

                         stock

<u>Working:</u>

= 40% * 10,000 dividend

= $4,000

d. Sale of stock  

Date                  Account Title                                   Debit                      Credit

Dec 31, 2024    Cash                                             $405,000

                          Loss on sales of Aloof                 $3,000

                         company stock

                         Investment in Aloof company                                  $408,000

                         stock

<u>Working:</u>

Value of stock = Purchase price + share of Aloof income - Share of dividend

= 340,000 + 72,000 - 4,000

= $408,000

6 0
2 years ago
Shannon Hill needed to buy an airline ticket to visit her parents. She went to several websites to compare rates and chose a fli
qaws [65]

Answer:

d. Shopping

Explanation:

Based on the scenario being described within the question it can be said that this flight is an example of a shopping product. This term refers to a product that consumers purchase very rarely, and because of this choose to compare prices between all the available options in the market because they do not know what a regular price range actually is for that product.

3 0
3 years ago
Airbnb, a room-sharing site, offers more rooms than Marriott. Goldman Sachs suggests that the supply of new rooms over the next
alexandr402 [8]

Answer:

C) The threat of new entrants.

Explanation:

Porter's Five Forces: It's an analysis helpful for the industries to get the understanding of the loopholes and their weaknesses. Porter suggested that anytime a company goes down, there would be one force involved among the following five forces.

  1. Threat of new entrants.
  2. Bargaining power of buyers.
  3. Threat of substitutes.
  4. Rivalry among existing competitors.
  5. Bargaining power of suppliers.

In our case:  

  • Threat of new entrants force is involved: There is always a threat to the existing companies of the new company entering the market. Some companies doesn't take them seriously and ends up getting damaged. And, as the Goldman suggests that new supplies of the rooms in coming years will hurt the existing companies. So they must act on this information and make a decision to change the event for their own better.  
4 0
3 years ago
Corporation a owns 15 percent of the stock of corporation
Liono4ka [1.6K]
B-$30,000 of ordinary income.
3 0
3 years ago
Other questions:
  • Which federal regulatory agency would most likely bring a civil suit against a business that broke securities laws?
    12·2 answers
  • In each of the following scenarios, explain and categorize the cost of inflation.a) Because inflation has risen, the J.Crew clot
    14·1 answer
  • Virtual teams are characterized by ________ in comparison to teams which interact face-to-face.A) low popularity among companies
    6·1 answer
  • The NIPP Call to Action is meant to guide the collaborative efforts of the critical infrastructure community to advance security
    5·2 answers
  • What does the international banking system consist of?
    12·1 answer
  • What percent of all businesses in the United States are corporations, and they account for 80% of the total business dollars gen
    15·1 answer
  • Which of the following statements is true of absorption​ costing? A. It considers variable selling and administrative costs as p
    15·1 answer
  • Daniel has decided to open his own bakery using locally sourced ingredients and supplies. He provides income and jobs to local s
    8·2 answers
  • Assume for Client X that inherent risk is assessed at 30%, control risk is assessed at 100%, audit risk is 5%, and detection ris
    10·1 answer
  • A company started the year with $1,500 of supplies on hand. During the year the company purchased additional supplies of $800 an
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!