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Yuki888 [10]
3 years ago
5

The Speedy-Delivery Company has two options for its delivery truck. The first option is to purchase a new truck for $14,000. The

new truck will have a useful life of 6 years and a residual value of $2000. Operating costs for the new truck will be $200. The second option is to overhaul its existing truck. The cost of the overhaul will be $8000. The overhauled truck will have a useful life of 6 years and a residual value of $0. Operating costs for the overhauled truck will be $800. Using Speedy's discount rate of 4%, which option is better and by what amount
Business
1 answer:
stellarik [79]3 years ago
5 0

Answer: Overhauling is a better option as it is cheaper by $1,273

Explanation:

Total cost of the new truck:

= Cost to purchase + Present value of operating costs - Present value of residual value

= 14,000 + (200 * present value of annuity factor, 4%, 6 years) - 2,000 / (1 + 4%)⁶

= 14,000 + (200 * 5.2421) - 1,581

= $13,467

Total cost of Overhauling truck:

= 8,000 + (800 * present value of annuity factor, 4%, 6 years)

= 8,000 + (800 * 5.2421)

= $12,194

Overhauling is a better option as it is cheaper by:

= 13,467 - 12,194

= $1,273

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Answer

$400

Step by step explanation

Step 1: Total  of the three deal = $40,000

Commission = 1% = 1/100 = 0.01

Step 2: Find the commission for $40,000

Commission earned for the month = 0.01 *$40000

= $400

I hope you will understand this.

Thank you.

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3 years ago
"A customer wishes to open an account at a FINRA member firm, but wishes his identity to remain hidden to the employees at the b
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A customer wishes to open an account at a FINRA member firm, but wishes his identity to remain hidden to the employees at the branch office. Which statement is TRUE?

Group of answer choices

A. The customer's request cannot be accommodated

B. The customer must apply to FINRA to open such an account

C. The customer must sign a statement attesting to account ownership for such a request to be honored

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4 years ago
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Dmitry [639]

Answer:

  Role                                  Example

  • Worker              →          Auto mechanic
  • Consumer         →          Car owner
  • Producer           →          Factory owner

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Three types of economic<em> roles</em> are <em>consumers, producers, and workers.</em>

The role of the <em>consumer</em> is to buy the goods and services. The sum of the consumptions of a good or a services constitute the demand of the product. Thus, the consumer purchases and use the products, which is a car owner does.

The role of the <em>producer </em>is to produce the good and services. The sum of the quantities produced of a good or service by the different producer of a same product constitute the supply of the product. Thus, the producer posseses the assets to make the products available, which is what a factory owner represents.

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