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bonufazy [111]
2 years ago
13

A manufacturer of industrial grade gas handling equipment wants to have $725,000 in an equipment replacement contingency fund 10

years from now. If the company plans to deposit a uniform amount of money each year beginning now and continuing through year 10 (total of 11 deposits), what must be the size of each deposit
Business
1 answer:
Amanda [17]2 years ago
7 0

Answer:

$41,354.98

Explanation:

Required future worth = Annual savings x FVIFA(r%, N) x (1 + r)

Required annual savings ($) = [Required future worth / FVIFA(r%, N)] / (1 + r)

= 725,000 / [FVIFA(10%, 10) * 1.1]

= 725,000 / (15.9374 * 1.1)

= 725,000 / 17.53114

= 41354.98318991235

= $41,354.98

Note: Since this is annuity due (deposit made at beginning of year), FV is divided by (1+r).

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barxatty [35]

Answer:

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Explanation:

The fact that both automobile makers incurs the same cost of $9,000 is just one of many factors to consider because the processes involved in manufacturing are not necessarily the same.

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It could also be that Sparrow Co. was able to achieve same level of cost with Bison Autos because it adopted modern cost reductions techniques such as Just-In Time which eliminates the need to keep inventory, thereby  eliminating excessive costs of holding inventory.

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3 years ago
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3 years ago
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3 years ago
What is the largest category calculated when using the expenditure approach to calculate GDP?
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When using the expenditure approach, we are looking at the total spending of a business that is included in the equation to compute for GDP. For this, I would say government purchases is the answer because government purchases would take up the biggest chunk of a country's revenue for development and imports.  
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