The cost of the car after 5 years from then, will be $15652.99.
Given here, the depreciation every year(r) 7% or 0.07per year, asset cost (of the car) is $22,500 and time period (n) is 5 years.
The value after 5 years can be calculated as,
Depreciated value = asset cost ×(1-r) n
= 22500 × (1-0.07) 5
= 15652.99$.
Thus, the car worths 15652.99$ after 5 years.
The worth of an asset after its useful life is expired, as it is diminished over time by depreciation, is its depreciated cost. The asset’s worth is continuously diminished by figuring out how much it will cost to depreciate it, but the depreciated cost technique always permits accounting records to represent an item at its current value.
Depreciation is an accounting technique for spreading out the expense of a tangible item over the course of its useful life.
To learn more about Depreciation, refer this link.
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Answer:
$4.15.
Explanation:
The relevant to use in reaching the decision can be computed as follows:
Relevant cost = Direct materials + Direct labor + Variable overhead = $1.75 + $1.65 + $0.75 = $4.15.
Therefore, the relevant cost of manufacturing the motor to be considered in reaching the decision is $4.15.
Know that giving customers too many choices can overwhelm and lead to fewer sales the benefit of limited sharing options
Answer:
0.175 or 17.5%
Explanation:
The calculation of the cost of common equity is shown below:-
WACC = Weight of Equity × Cost of Equity + Weight of Debt × ( 1- Tax rate) × Cost of Debt
0.13 = (0.55 × Cost of equity) + ((0.45 × (1 - 0.25) × 0.10)
0.13 = (0.55 × Cost of equity) + 0.045 × 0.75
(0.55 × Cost of equity) = 0.13 - 0.03375
(0.55 × Cost of equity) = 0.09625
Cost of equity = 0.09625 ÷ 0.55
= 0.175
Therefore for computing the cost of equity we simply applied the above formula.
