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Pavlova-9 [17]
3 years ago
5

Metropolitan Water Utilities purchases surface water from Elephant Butte Irrigation District at a cost of $100,000 per month in

the months of February through September. Instead of paying monthly, the utility makes a single payment of $800,000 at the end of each calendar year for the water it used. The delayed payment essentially rep- resents a subsidy by Elephant Butte Irrigation Dis- trict to the water utility. At an interest rate of 0.25% per month, what is the amount of the subsidy
Business
1 answer:
Morgarella [4.7K]3 years ago
8 0

Answer:

The amount of the subsidy is $6,000.

Explanation:

Since the payment is made at the end of each calendar year and the months of usage are the months of February through September, this implies the payment was due at the end of September but dalayed for 3 months from the end of September to the end of December.

The amount of subsidy can therefore be calculated as follows:

Subsidy amount = Total utility bill * Interest rate per month * Number of months the payment is delayed = $800,000 * 0.25% * 3 = $6,000

Therefore, the amount of the subsidy is $6,000.

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Martine developed a filing system to keep track of potential and current customers. Which qualification has she demonstrated?
77julia77 [94]
Organization

Explanation: she developed the filing system which is a way of organizing the costumers that come in.

I hope this helped! ^^
6 0
3 years ago
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An asset has an adjusted cost basis of $2,400 with a $600 salvage value at the end of its depreciable life of 8 years. Using str
Bingel [31]

Answer:

depreciation per year: 225

Explanation:

straight-line depreciation: the depreciation expense will be equally distributed over the assets life.

Also, we must remember that we can only depreciate for the difference between the csot adn the salvage value.

<u>The formula for annual depreciation expense is:</u>

\frac{cost - salvage \: value}{useful \: life}

2,400 - 600 = 1,800 amount subject to depreciaiton

1,800 / 8 = 225

8 0
4 years ago
You are thinking about investing $ 4 comma 650 in your​ friend's landscaping business. Even though you know the investment is ri
Zina [86]

Explanation:

The computation of present value of the return is shown below:-

Present value of the return = Expected return ÷ (1 + r)^n

= $5,637 ÷ (1 + 0.09)^n

= $5,637 ÷ (1.09)^1

= $5,637 ÷ 1.09

= $5,171.56

Since as we can see the present value is more than the investing amount. So, the investment can be done in this project.

6 0
4 years ago
Required
Marina86 [1]

Answer: See explanation

Explanation:

• Natural resources occur in the environment.

This is true. In our environments, we can see natural resources. They include coal, tin, limestone, iron ore etc.

• Example of services are teaching, banking, insurance, tailoring etc. In an economy, services are regarded as the intangible parts as they can't be touched. It is an important part of every nation.

• Example of goods are clothes, pens, cars etc.

Goods are physical and tangible items. They include laptops, chairs, phones etc.

• A renewable resource cannot be exhausted.

This is true. A renewable resource cannot be exhausted e.g. sunlight.

6 0
3 years ago
"In deciding how to spend an hour of his time, John has identified four activities he can choose from. The opportunity cost of c
mezya [45]

Answer:

False

Explanation:

Since John could not possibly partake in all of the remaining three activities, the opportunity cost cannot be the benefit received from all of the other activities. Instead, the opportunity cost is the benefit he would have received from the next best alternative alone.

5 0
4 years ago
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