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katrin2010 [14]
3 years ago
11

city is spending $20 million on a new sewage system. The expected life of the system is 40 years, and it will have no market val

ue at the end of its life. Operating and maintenance expenses for the system are projected to average $0.6 million per year. If the city’s MARR is 8% per year, what is the capitalized worth of the system? The study period is 100 years. (5.3)
Business
1 answer:
ValentinkaMS [17]3 years ago
6 0

Answer:

capitalized worth = $13,475,000

Explanation:

Capitalized worth = annual worth / interest rate

  • annual worth = [initial outlay x discrete compounding factor (A/P, 8%, 40 periods)] - annual maintenance cost = ($20,000,000 x 0.0839) - $600,000 = $1,678,000 - $600,000 = $1,078,000
  • interest rate = 8%

capitalized worth = $1,078,000 / 8% = $13,475,000

Capitalized worth measures the present value of a project that should last a very long time.

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KIM [24]
B.when you take a loan out for something the faster you pay it off the less interest you have to pay
8 0
2 years ago
Prepare a multiple-step income statement for Armstrong Co. from the following data for the year ended December 31. Sales, $755,0
Tatiana [17]

Answer:

See explanation

Explanation:

                       Armstrong Co.

          Multi-step Income Statement

  For the year ended, December 31, 20YY

Sales                                              $755,000

<u>Less: Cost of merchandise sold   (330,000)</u>

Gross Profit                                                    $425,000

Less: Operating expenses

Administrative expenses  $35,000

Selling expenses               $50,000

<em><u>Total operating expenses                               $85,000</u></em>

Income from operation                                 $340,000

Other revenue and expenses:

Rent Revenue                    $25,000

interest expense               ($30,000)

<u>Total other revenues (expenses)                      $(5,000)</u>

Income before taxes                                      $335,000

<u>Less: Income Tax                                                     0</u>

Net Income (loss)                                           $335,000

That is the appropriate way to prepare a multi-step income statement

3 0
2 years ago
Shaan and Anita currently insure their cars with separate companies, paying $650 and $575 a year. If they insure both cars with
icang [17]

Answer:

$1615

Explanation:

($575 + 650) 0.10 = $122.50

Find the future value of $122.50

Future value can be calculated using a financial calculator:

$122.50 = PMT

10 = N

6% = I/Y

Press compute then FV

Fv = $1615

I hope my answer helps you

3 0
3 years ago
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jekas [21]

Answer:

The correct answer is letter "B": develop a business plan.

Explanation:

Entrepreneurs who lack funds to start their ventures should develop a business plan so it can be presented to prospective investors who will decide if the venture is of their interest or not. The business plan should include the mission and vision of the business as well as a <em>SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis</em> explaining how the business will mitigate its risks and maximize its benefits.

The business plan should be innovative in Peppy's case since pizzerias are very common, thus, Pepe's Pizzazzeria must have a clear competitive advantage to face competitors.

8 0
3 years ago
The United States enjoys a free market economy in which _____.
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4 0
3 years ago
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