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
statuscvo [17]
3 years ago
9

A car dealer leases a small computer with software for $5,000 per year. As an alterative he could buy the computer for $7,500 an

d lease the software for $3,500 per year. Any time he would decide to switch to some other computer he could cancel software lease and sell the computer for $500.
If he buys the computer nad leases the software, what is the payback period?
a. 3 years
b. 4 years
c. 5 years
d. 6 years
If he kept the computer and software for 8 years, what would be the benefit-cost ratio, based on a 5% interest rate.
a. 1.5
b. 1.4
c. 1.3
d. 1.2
Business
1 answer:
Vilka [71]3 years ago
3 0

Answer:

1. The payback period is:

= 3 years

2. The benefit-cost ratio is:

= 1.1

Explanation:

a) Data and Calculations:

                                   Leasing Computer    Buying Computer &

                                        with Software       Leasing Software

Annual lease payment     $5,000                      $3,500

Cost of computer                                                $7,500

Salvage value of computer                                   $500

Usage period                       8 years                   8 years

Interest rate                         5%                           5%

Present value annuity factor 6.463                    6.463

Present value factor for salvage                        0.677

Present value of annuity    $32,315                $29,782 ($22,621 + $7,500 - 339)

$22,782 = ($3,500 * 6.463 + $7,500 - ($500 * 0.677))

Benefit-cost ratio = $32,315/$29,782 = 1.1

You might be interested in
Television channel operating profits vary from as high as 45 to 55 percent at MTV and Nickelodeon down to 12 to 18 percent at NB
Xelga [282]

Answer:

Explanation:

MTV and cable channels can have higher operating profits largely because they have lower costs and can reach very specific demographic groups quite easily. MTV and Nickleodeon are typically not paying high and uncertain prices for their shows. They air mainly reruns of proven shows or relatively low-cost reality shows. This means that they have more cost certainty.

In addition, they have very clear target audiences where the networks do not. MTV is clearly aimed at teens and young adults while Nickleodeon is a kids' channel. Advertisers are attracted to channels with such clear demographics.

As far as Porter's five forces go, the most likely reason for the higher cable profits would have to do with brand equity and the lower propensity among buyers to substitute.

These would mean that cable channels have a lower threat of new competition and a lower threat of substitute products. It is true that it is easy for a new cable channel to be created, but it is much harder for such a channel to get the name recognition and brand equity that MTV and Nickleodeon have.

4 0
3 years ago
Assume that Thomas can afford to buy as many candy bars and ice cream cones as he wants. He would continue to consume both candy
deff fn [24]

Answer:

Marginal utility of each becomes negative

Explanation:

Utility is defined as the level of satisfaction that a person gets from consuming a product.

The person keeps on consuming the item until the level of marginal utility for the product becomes less than zero.

That is there is no satisfaction anymore in consuming the product.

In the given instance Thomas will continue to consume both candy bars and ice cream until the level of satisfaction (marginal utility) is now less than zero or negative

3 0
3 years ago
2. At a consumer optimum, for all goods purchased, marginal utility per dollar spent is equalized. A high school student is deci
Greeley [361]

Answer:

The high school student should analyze the point at which the marginal cost equals the marginal benefit.

In other words, he or she should see if the increased costs of attending Petesburg University are more or less equal to the increased benefit that is gained from graduating from a more prestigious university.

The student should also analyze the possible opportunity cost in the future. Attending amore renowned college can result in better job prospects than doing otherwise. Higher salaries in the future could be given up if he or she chooses the cheaper option.

4 0
3 years ago
Some spending and taxes increase or decrease with the business cycle. This event often has an effect on the economy that is simi
spayn [35]

Answer: Automatic stabilizers

Explanation:

 The automatic stabilizers are one of the type of fiscal policy that which are design for the economical fluctuation. It is mainly authorized by the government and also by the policy makers.

The automatic stabilizer is also known as the economical policy and the activity is done without any government intervention. In this system, the income and taxes are get decreased or increased in the business cycle.

Therefore, Automatic stabilizers is the correct answer.

6 0
2 years ago
An economy that has government collecting taxes and making regulations is called a
Zina [86]

Answer:

If I recall it may be called Revenue.

Explanation:

If this is not the answer you were looking for, please don't hesitate to comment below so I can get back to you as soon as I can. Have a nice Day/Night! :)

Also, it will be greatly appreciated if you can take out your time and bless me with the brainliest button! :)

3 0
3 years ago
Other questions:
  • The unequal distribution of wealth, income, power, and poverty is called
    11·1 answer
  • If the dollar falls by 20% against the euro and rises by 10% against the yen, which of the following values for European and Jap
    9·1 answer
  • A Statement of Financial Position is a formal statement presenting the three accounting elements which are?
    12·1 answer
  • How will trumps Muslim ban affect the economy?
    13·2 answers
  • What is operating leverage, and how does it affect a firm's business risk?a. Show the operating break-even point if a company ha
    12·1 answer
  • At the end of 2016, Splish Brothers Inc. has accounts receivable of $675,100 and an allowance for doubtful accounts of $24,370.
    9·1 answer
  • Pearl Company has been having difficulty obtaining key raw materials for its manufacturing process. The company therefore signed
    10·1 answer
  • Last week, the logistics employees at Run River got together to determine the best way to ship products overseas. Each employee
    15·1 answer
  • Question + answers in photo, please help!
    8·1 answer
  • Your Competitive Intelligence team reports that a wave of product liability lawsuits is likely to cause Digby to pull the produc
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!