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
Minchanka [31]
3 years ago
11

A city government is planning to install a sewage line at a cost $10M with an estimated life of 50 years and an estimated salvag

e value of $2M. Assume that the line may be replaced at the same cost every 50 in perpetuity. Determine the capitalized cost if the interest rate is 9%Choose the most appropriate answer from the choices below.
A. $8.2M
B. $10.1M
C. $12M
D. None of these
Business
1 answer:
Alexxandr [17]3 years ago
6 0

Answer:

B. $10.1M

Explanation:

The capitalized cost of this investment is the present value of the cost that has just been incurred as well as the present of the replacement asset every 50 years.

The present value of cost incurred is the same as the amount incurred since it is stated in today's terms i.e $10M

The present value of replacement asset=replacement cost/50 year effective interest rate

In 50 years' time, the old sewage line would be sold for $2M and another bought of $10M, effectively replacement is $8M($10M-$2M)

the effective interest rate for 50 years=(1+9%)^50-1=7335.75%

capitalized cost of the sewage line=$10+$8/7335.75%

capitalized cost of the sewage line=$10.1M

You might be interested in
What is the standard for determining how well marketing works in a free
zlopas [31]

Answer:

d.

Explanation:

4 0
3 years ago
Read 2 more answers
As mentioned in the video, the US produces an annual "List of Goods Produced by Child Labor or Forced Labor." How effective do y
lina2011 [118]

Answer and Explanation:

By publishing the "List of Goods Produced by Child Labor or Forced Labor" the American government is able to raise awareness among the population that, although child labor is something inconceivable in American society, it still happens with great intensity in various places around the world. This allows the population to become aware of this situation and to stop buying products produced by companies that finance and allow child labor to happen. When they stop using these products, companies suffer a decrease in demand, which can cause significant changes in the production and in the lives of children who need to work.

While consumer pressure at companies that allow child labor is effective, pressure from political and commercial authorities is more effective in bringing about change and ensuring the protection of children, as these authorities can promote severe punishments for those who allow this to happen.

7 0
3 years ago
Lupe's recorded balance was off by $43, and she thinks that it’s because she made a mistake in her records. What mistakes did sh
nataly862011 [7]

Answer:

In the wrong column, Lupe recorded her paycheck. She had forgotten to report one of her purchases too.

Explanation:

As we can see in the picture that Lupe recorded her paycheck in the wrong column.

Moreover, She had forgotten to report one of her purchases too.

By this mistake, Lupe recorded balance was off by  $43 and she thinks the same that she made a mistake while recording the transactions with respect to purchasing, deposits, paycheck, etc

4 0
4 years ago
Read 2 more answers
You expect KT industries​ (KTI) will have earnings per share of $ 3 this year and expect that they will pay out $ 2.25 of these
shusha [124]

Answer:

4%

Explanation:

the growth rate (g) = retention rate (the amount of net income that the company keeps in order to grow, and therefore, does not distribute to stockholders) x ROI (return on investments)

  • retention rate = ($3 - $2.25) / $3 = 0.25
  • ROI = 16%

g = 0.25 x 16% = 4%

3 0
3 years ago
Mary has already won her case at the U.S. Court of Appeals. When the case is reviewed by the Supreme Court, only eight judges ar
belka [17]

Answer:

B. Mary will win the case as she had already won at the U.S. Court of Appeals.

Explanation:

When 8 judges review Mary's case and is split 4-4 she will win the case as she has won it in the lower court. However the case will not set a precedent for future cases.

This is a rare occurrence as there are usually 9 justices presiding in supreme court reviews.

6 0
3 years ago
Other questions:
  • How are investments different from savings accounts?
    6·1 answer
  • g Question 1 of 1010.0 Points A company's unethical behavior may result in the following except A. buyers will shun the company
    5·2 answers
  • Bodin Company manufactures finger splints for kids who get tendonitis from playing video games. The firm had the following inven
    13·1 answer
  • Which of the following statements are true about duration?
    7·2 answers
  • How do buyers choose between products in perfect competition?
    8·1 answer
  • Clara is extremely hungry after having a 3 hour meeting. she wants food as quickly as possible but is unsure of where to eat. be
    15·1 answer
  • ASAP! Giving brainliest for CORRECT awnser.
    15·2 answers
  • Treasury bills are currently paying 6 percent and the inflation rate is 3 percent. a. What is the approximate real rate of inter
    5·1 answer
  • If your body does not have enough nutrients, it will begin to
    5·1 answer
  • In general, improvements in technology that is used to produce a good will result in ___________.
    15·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!