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yulyashka [42]
3 years ago
12

A company purchased a van at a cost of $42,000 and expects it can be sold for $6,000 after 120,000 miles of service. Assuming th

e units-of-production method is used and the van is driven for 24,000 miles during the first year, the depreciation at the end of the first year would be
Business
1 answer:
scoray [572]3 years ago
8 0

Answer:

Annual depreciation= $7,200

Explanation:

Giving the following information:

A company purchased a van for $42,000 and expects it can be sold for $6,000 after 120,000 miles of service.

<u>To calculate the annual depreciation, we need to use the following formula:</u>

Annual depreciation= [(original cost - salvage value)/useful life of production in miles]*miles driven

<u>For 24,000 miles:</u>

<u></u>

Annual depreciation= [(42,000 - 6,000) / 120,000]*24,000

Annual depreciation= 0.3*24,000

Annual depreciation= $7,200

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Dog Up! Franks is looking at a new sausage system with an installed cost of $460,000. This cost will be depreciated straight-lin
Anton [14]

Answer:

The Net Present Value (NPV) of this project is <u>$93,405.59</u>.

Explanation:

Note: Find attached the excel file for the calculation of the NPV of this project.

Net present value (NPV) refers to the present value of cash inflows minus the present value of cash outflows over a specified period of time.

On its own, present value (PV) refers the value that a future sum of money or stream of cash flows has now or currently given a specified rate of return. The formula for calculating the PV is given as follows:

PV = FV / (1 + r)^n

Where,

FV = Future value

r = discount rate. This is given as 10% in this question

n = Relevant period, e.g. year

The above explanation and formula together with other stated formulae in the attached excel file is used in calculating the NPV of this project.

Download xlsx
7 0
3 years ago
What type of economy is an economic system in which private businesses can operate freely with minimal state control?Henry lives
Sonja [21]

Answer:

Private business freedom : Capitalist or Market Economy. Henry is more likely in Socialist Economy.

Explanation:

Economy type in which private sector has full freedom, un-intervened by government or state control is Capitalist or Market Economy. Profit maximisation motive & high consumer choice, sovereignity such economy's main features.

Henry's country which gives incentives to reallocate production choice 'what to produce' (from consumer goods to military goods). He has more efficient idea for work implementation, but lacks incentive (probably due to lack of creative & innovative ideas reward). These features characterise a Socialist Economy, in which government or state has supreme power over central economic decisions. Social welfare is considered priority, government monopoly curbs innovation & creativity, there is less consumer choice, sovereignity.

3 0
3 years ago
MC Qu. 74 If a firm's forecasted sales are... If a firm's forecasted sales are $238,000 and its break-even sales are $184,000, t
KonstantinChe [14]

Answer:

22.69%

Explanation:

Margin of safety = (forecasted sales -  break-even sales) / forecasted sales

( $238,000 - $184,000) / $238,000 x 1000 = 22.69%

3 0
2 years ago
From 1948 to 2003 the United States experienced an average real GDP growth rate of 3.5 percent and Guatemala had an average real
Luda [366]

Answer:

No, we can’t say

Explanation:

In this question, we are asked to decide if we can say that Guatemala’s standard of living grew more than that of the US’ standard of living between the years 1993 and 2003 given the pointers in the question.

We cannot say that this is correct because of the following reasons;

As observed from the question, the US growth rate was calculated between the years 1948-2003, which is indicative of a 55 year span. Now, comparing this with that of Guatemala, we can see that the span here is just 10 years I.e from 1993 to 2003.

Also, we were not provided with the population growth rate in both countries and this makes it difficult to judge which of the two countries have a better growth in terms of standard of living

5 0
2 years ago
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Mary wants to create a brochure for her new canoe rental business. What type of application software should she use?
xeze [42]
C publishing software
7 0
3 years ago
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