Answer:
Total FV= $29,335.25
Explanation:
<u>First, we need to calculate the future value of the initial investment ($2,500) using the following formula:</u>
FV= PV*(1 + i)^n
PV= $2,500
i= 0.0075
n=10*12= 120 months
FV= 2,500*(1.0075^120)
FV= $6,128.39
<u>Now, the future value of the $1,500 annual deposit:</u>
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
We need to determine the effective annual rate:
Effective annual rate= (1.0075^12) - 1= 0.0938
FV= {1,500*[(1.0938^10) - 1]} / 0.0938
FV= $23,206.86
Total FV= $29,335.25
Answer:
The sofware-relate cost to capitalized will be 1,300,000
Explanation:
<u>The cost than a business can capitalize will stop once the testing phase is complete.</u>
The production cost, are cost of the period. It will not be capitalize through intangible asset software.
<u>Post-implementation.</u> The cost after the implementation of the software will be treated as expenses. The 275,000 maintenance and customer support will not be capitalized. It will be treated as expense
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The software amount will be 1,300,000 which is the value of the cost incurred in the testing phases
Answer:
Review labor costs downwards
Explanation:
Janet and Omar should consider revising their budget for labor downwards. In the current state, labor costs are $1000, which is approximately 57 percent of all costs. As a rule of thumb, labor costs should be between 25 to 35 percent of total costs. This implies that Janet and Omar's labor costs are very high in relation to the other costs.
Janet and Omar should aim for a profit. Ideally, a 25 to 30 percent profit is a good target for such a business. For this to happen, they need to cut down labor to between $300 to a maximum of $400.
Based on movies and books I've read, I noticed that the culture in South America is big on familial love. Their family spreads not only immediately, but even to cousins after cousins. You can see them living in family compounds and they greet each other as families.
Therefore, this could be a reason for the company's choice of a mechanistic structure. This structure is about the working together of single parts to create an efficient mechanism. Thus. familial relationship is very important. They have to invest in close family ties through social events.
<span>When employees feel like lose powers or tasks during the change process, it is important to keep them motivated. Offering financial or mental incentives can move employees into a positive direction. The employee can be offered incentives to leave the company early, their contracts may be adjusted or another job or promotion is offered. This method is actually called Negotiation and rewards.</span>
