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qwelly [4]
2 years ago
11

(Prob. 5.32) The industrial engineering department for Invade Air Fresheners has found that a new packing machine should save $4

5,000 for each of the next 8 years. The machine will require a major overhaul at the end of 5 years costing $12,000. The machine’s expected salvage value after 8 years is 7.5% of its original cost. If money is worth 5%, determine the amount Invade should be willing to pay for the machine.
Business
1 answer:
cluponka [151]2 years ago
3 0

Answer:

It will be willing to pay up to $297,853.46

Explanation:

First, we calculate  present value of the cash saving

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 45000

time 8

rate 0.05

45000 \times \frac{1-(1+0.05)^{-8} }{0.05} = PV\\

PV $290,844.57

Then, the present Value of the salvage value

\frac{Salvage}{(1 + rate)^{time} } = PV  

Maturity   7.50 %

time   8.00

rate   0.05

\frac{7.5}{(1 + 0.05)^{8} } = PV  

PV   5.08 %

This is calculate as a percent, because we are not given with a cash value.

Last, the 12,000 major overhaul

\frac{Overhaul}{(1 + rate)^{time} } = PV  

Maturity   -12,000.00

time   8.00

rate   0.05

\frac{12000}{(1 + 0.05)^{8} } = PV  

PV   -8,122.07

This PV is negative as it is a cash out-flow

Lastly, we add them all:

290,844.57 + 0.0508PV - 8,122.07 = PV

<u>And solve for PV</u>

290,844.57 - 8,122.07 = PV - 0.0508PV

282,722.5‬ = 0.9492PV

282,722.5/0.9492 = PV

PV = 297,853.455541 = 297,853.46

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Under which conditions, according to the Porter five-forces model, can a supplier group gain power?
Tasya [4]

Answer:

b. When there is a lack of importance of the buyer to the supplier group

Explanation:

According to Porter there are five forces that can cause rivalry in a production industry. These are supplier power, threat of new entrants, buyer power, threat of substitutes, and degree of rivalry.

Supplier power is when suppliers are able to benefit from the producers by increasing prices of inputs and gaining some industry profit. Since suppliers supply input and labour to the producer they have a greater control of there is lack of importance of the buyer to the supplier group.

This means that the supplier group has more control on price and quality it supplies to the buyer with buyer having little choice but to buy.

If however buyer is more important to the supplier it means they can control price and quality of inputs

8 0
2 years ago
M. Bot Corporation has 10,000 shares of 8%, $100 par value, cumulative preferred stock outstanding at December 31, 2022. No divi
Andru [333]

Answer:

$135000

Explanation:

Given: Outstanding cumulative preferred stock of 10000 shares of 8% at $100

            Dividend paid= $375000.

Now, calculating preferred stock.

Preferred stock= (10000 shares\times $100\times 8\%)= \$ 80000

∴ Preferred stock= $80000

Cumulative dividend paid to shareholder= (80000\times 2 + 80000) = \$ 240000.

∴ Cumulative dividend paid to shareholder= $240000

Next, computing the amount of dividends will common stockholder receive.

Total dividend paid= $375000.  

Dividend received by common stockholder= (\textrm {Total dividend paid - cumulative dividend paid})

⇒ Dividend received by common stockholder= (375000-240000)= \$ 135000

∴ $135000 dividend will be received by common stockholder.    

7 0
2 years ago
You are working on a brochure about your business. The type for the body text will be black and that for the section headings wi
OlgaM077 [116]

Answer:

The correct answer is Contrast and repetition.

Explanation:

Contrast: it has to do with sensory stimuli that allow highlighting elements or areas in a composition through the opposition or difference between them, that is, in a graphic design, a contrast is generated when there is a notable difference between two elements.

Repeat: the repetition is nothing more than identical identical forms that appear more than once in the design, that is to say, it would be a question of using the same element several times and distributed throughout the composition.

It is very important to resort to repetition especially when we are designing a graphic product that consists of several pages (catalog, magazine, etc.).

The repetition gives unity to the whole design, consistency and cohesion. Sometimes even on single page products, such as a diptych or triptych, it gives the feeling of continuity and that everything is "well tied". However, it should not be exceeded in its use. Repeating one or two graphic patterns is fine, but after three it would not be correct.

8 0
2 years ago
To help developing countries expand their industrial base, some industrial countries have reduced tariffs on designated manufact
anzhelika [568]

Answer:

The correct answer is letter "B": generalized system of preferences.

Explanation:

Generalized System of Preferences or GSP is a set of preferential tariffs developed countries set to developing countries usually at a lower rate to boost the trade among those countries which mainly helps developing countries to increase the quality and number of their manufacturing companies.

3 0
2 years ago
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Luba_88 [7]

Answer:

Mrs Smith either shut down the business or invest in efficient equipements that lowers the total cost to below $7

Explanation:

The reason is that the you can not make profit if you product is sold in the market at a higher price than the competitor who offers the same product with the same features. So here, Smith can not make profits by selling the product at $8 because here total cost is $8.25 per unit.

So either she should invest in the business equipments which bring efficiencies and keeps the total costs to below $7 or she should shut down her business because the business is turned into loss making machine.

3 0
2 years ago
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