Parking Reading Quiz

Jarvis Company produces a product that has a selling price of $25 and a variable cost of $17 per unit. The company's fixed costs

Sholpan [36]

Answer:

The break-even point measured in sales dollars is $8

6 0

2 years ago

Allen Construction purchased a crane 6 years ago for $130,000. They need a crane of this capacity for the next 5 years. Normal o

Korvikt [17]

Answer:

For retaining of Old Machine Equipment

Price of old equipment 3 yrs ago = $130,000

O & M cost per year = $35,000

Using the Cash flow approach

End of year Cash flow 1 Old equipment

0 $0 Initial Cash flow

1 -$35,000 O & M cost per year

2 -$35,000 O & M cost per year

3 -$35,000 O & M cost per year

4 -$35,000 O & M cost per year

5 -$35,000 O & M cost per year

Hence, Annual worth = Initial cash flow + Annual cost

Annual worth = 0 - $35,000

Annual worth = -$35,000

For buying of new equipment

Cost of buying new crane = $150,000

Market value of old crane = $40,000

Time = 5 years

O & M cost per year = $8,000

Salvage value = $55,000

MARR = 20%

Using the Cash flow approach

End of year Cash flow 1 New equipment

0 $110,000 -$150,000 + $40,000

1 -$8,000 O & M cost per year

2 -$8,000 O & M cost per year

3 -$8,000 O & M cost per year

4 -$8,000 O & M cost per year

5 $47,000 -$8,000 + $55,000

Annual worth = Initial cash flow + Annual cost + Salvage value

Annual worth = -$110,000(A/P 20%,5) - $8,000 + $55,000(A/P 20%,5)

Annual worth = -$110,000*(0.334) - $8,000 + $55,000*(0.134)

Annual worth = -$36,781.77 - $8,000 + $7,390.88

Annual worth = -$37,908.88

Conclusion: We should retain the old machine as it is more favorable than purchase of new equipment

5 0

2 years ago

Why are financial intermediaries willing to engage in information collection activities when investors in financial instruments

d1i1m1o1n [39]

Answer:

C. Banks make private loans; their conclusions on who is creditworthy are not made public.

Explanation:

Investors in financial instruments who engage in information collection face a free-rider problem, which means other investors may be able to benefit from their information without paying for it.

Individual investors, therefore, have inadequate incentives to devote resources to gather information about borrowers who issue securities.

4 0

3 years ago

Each currency has a changing value relative to other countries. This is referred to as the country’s blank

alex41 [277]

Each currency has a changing value relative to other currencies. This is referred to as a "currency's exchange rate."

An exchange rate is the rate at which one currency will be exchanged for another, it is additionally viewed as the estimation of one nation's cash in connection to another currency.

Exchange rates are resolved in the foreign exchange market, which is available to an extensive variety of various sorts of purchasers and venders, and where money exchanging is ceaseless: 24 hours daily aside from ends of the week.

3 0

2 years ago

true or false and then EXPLAIN why. Assume the economy produces five goods. If the prices of three of the goods increase, then t

Ipatiy [6.2K]

Answer:

The correct answer is False.

Explanation:

The prices of goods and services are fundamentally determined by their demand and supply. When they increase or decrease, it is because one of these two variables has led to a change. Specifically, an increase in prices occurs especially for three reasons.

Case 1: Supply is maintained and demand increases :

In this situation, companies continue to offer the same amount of a good or service, but we all buy more of them. This can happen for many reasons, among them, an increase in the population (there are more people and more traffic jams and more bikes are sold for circulation on the urban road), it becomes somewhat fashionable, our incomes increase, etc.

It can also happen that the price of a substitute rises (goods that give us exactly the same, such as orange soft drinks of one brand or another). If the price of brand X increases, the demand for brand Y will surely increase, since it will cover the same need at a lower price.

Case 2: Supply falls and demand remains :

A reduction in the supply of companies will make it more expensive. It can happen for a wide range of reasons: from the number of companies with these offers decreasing until the technology of some firms becomes outdated and only a few remain on the market. It may also happen that the price of inputs increases and that manufacturers cannot produce the same quantity as before due to this increase in price.

Case 3: Supply falls and demand increases :

In this case, a ‘mix’ of the phenomena that we have seen previously would take place. However, there are other more specific variables that cause prices to vary. For example, on occasion, governments artificially increase their monetary base. In other words, they use the strategy of manufacturing and issuing money, with more money in circulation than an economy really needs.

8 0

2 years ago