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Radda [10]
3 years ago
7

Galvanized Products is considering purchasing a new computer system for their enterprise data management system. The vendor has

quoted a purchase price of $130,000. Galvanized Products is planning to borrow 1/4th of the purchase price from a bank at 12.00 % compounded annually. The loan is to be repaid using equal annual payments over a 3-year period. The computer system is expected to last 5 years and has a salvage value of $5,200 at that time. Over the 5-year period, Galvanized Products expects to pay a technician $20,000 per year to maintain the system but will save $51,000 per year through increased efficiencies. Galvanized Products uses a MARR of 20.00 %/year to evaluate investments.
What is the present worth of this investment?
Business
1 answer:
alekssr [168]3 years ago
3 0

Answer:

The present worth of this investment = -$31,204.78

Explanation:

Note: See the attached excel file for the calculation of the present worth of this investment (in bold red color).

In the attached excel file, the following are used:

Loan from bank = Purchase price * (1 / 4) = $130,000 * (1 / 4) = $32,500

Initial cost = Purchase price - Loan from bank = $130,000 - $32,500 = $97,500

The annual required equal loan payments is calculated using the formula for calculating loan amortization as follows:

P = (A * (r * (1 + r)^n)) / (((1 + r)^n) - 1) .................................... (1)

Where,

P = Annual required equal loan payment = ?

A = Loan amount from bank = $32,500

r = interest rate = 12%, or 0.12

n = number of payment years = 3

Substituting all the figures into equation (1), we have:

P = Annual required equal loan payment = ($32,500 * (0.12 * (1 + 0.12)^3)) / (((1 + 0.12)^3) - 1) = $13,531.34

From the attached excl file, the present worth of this investment is equal to -$31,204.78

Download xlsx
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The two main purposes of a business plan are: a. to provide a document to keep employees focused and to seek outside funding. b.
Free_Kalibri [48]

Answer:  Option A

     

Explanation: In simple words, business plan refers to an outline of framework that guides an organisation regarding its operations in future.

        Business plan helps the organisation and its employees to set the chain of activities they need to perform for achieving their goals. Business plans also helps to determine the amount of capital needed to finance the projects that further helps the organisation to seek outside funding.

Hence from the above we can conclude that the correct option is A.

8 0
3 years ago
The financial statements report the cumulative impact of all transactions recorded as of the financial statement date. Input the
kompoz [17]

Answer:

Yes, financial statement is a cumulative record of all transactions.

Explanation:

  • A financial statement is a form of the formal record. Its reports the business, person or an entity. The relevant information is resented by discussion and analysis. Such as balance sheet, income statements, statements of equity, cash flow, and comprehensive statements. Thee by its includes all sorts of financial statements.
5 0
3 years ago
1) Illustrate how the type of work that he or she does influences a person's lifestyle. For example, contrast a farmer, a factor
steposvetlana [31]

Answer:1)The type of one job influences his lifestyle

2)No

3) value of self services in an economy includes improved customer services,more convenient , reduced overhead cost, customer satisfaction, increase productivity.

Explanation:Type of job tells a lot about people lifestyle,eg a person who spend very long hours at work hardly have adequate rest and social life.

Contrasting between farmers, school teacher and factory worker,the factory workers are semi skilled,teachers skilled and farmer could be non skilled ,the school teacher schedule is always fixed 8am to 4pm for instance so they are more organized,they are mostly in formal attire while a factory worker run shifts and may be see in safety boots and overall and may have little or erratic schedules .the farmer on the other hand has no schedule ,has relaxed routine,wear casuals and not necessarily tidy,does things when willed as most are self employed.

Even in their eating habits,farmers eat more of fresh food,while teachers eat processed foods and factory workers are more likely to eat junks or snacks.

While a school teacher may be seen with books ,a factory worker may be seen with machines and equipment and farmers with tools ,tractors etc

2)An economy can only thrive on goods and services,as both are needed for survival,a service person need commodities like foods,clothes etc to survive while a good traders cannot do without services like transportation,banking etc

3)the value of self service include overhead cost reduction,self service involves customer serving themselves with limited involvement of a third party or vendor e.g payment at pos at gas station, uses of ATM for cash withdrawal etc.

The organization uses less resources like staff,PCs to run self service this fund can be invested in other areas.

Increase customer service occurs as a result of self service , customer can do their trasaction at their pace and convenience.

4 0
3 years ago
Marshall owns and operates a construction firm. He uses inexpensive and low-grade building products and accepts inferior carpent
Kitty [74]

Answer:

The correct option is (d)

Explanation:

Ethics is considered above law as law requires just compliance of laws, rules and regulations. Ethics on the other hand establishes a standard of moral conduct. Being mere legal does not mean that something is ethical. Ethical responsibilities are not codified as it is expected from businesses to follow the same.

Here, Marshall, though complied with legal frameworks, he failed to fulfill his ethical obligations by using low-grade products that could harm the general public in future.

3 0
3 years ago
A company issued 6-year, 8% bonds with a par value of $750,000. The market rate when the bonds were issued was 7.5%. The company
balandron [24]

Answer:

$28,406.25

Explanation:

Calculation for how much is the amount of interest expense for the first semiannual interest period Using the effective interest method

Interest expense=$757,500 x .075 x ½ year

Interest expense= $28,406.25

Therefore the amount of interest expense for the first semiannual interest period is $28,406.25

7 0
2 years ago
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