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WITCHER [35]
2 years ago
5

Management of Plascencia Corporation is considering whether to purchase a new model 370 machine costing $512,000 or a new model

220 machine costing $408,000 to replace a machine that was purchased 12 years ago for $455,000. The old machine was used to make product I43L until it broke down last week. Unfortunately, the old machine cannot be repaired. Management has decided to buy the new model 220 machine. It has less capacity than the new model 370 machine, but its capacity is sufficient to continue making product I43L. Management also considered, but rejected, the alternative of simply dropping product I43L. If that were done, instead of investing $408,000 in the new machine, the money could be invested in a project that would return a total of $57,000.
In making the decision to buy the model 220 machine rather than the model 370 machine, the differential cost was:_________

a. $455,000
b. $408,000
c. $512,000
d. $485,000
Business
1 answer:
Rudiy272 years ago
8 0

Answer:

Option d ($485,000) is the correct alternative.

Explanation:

When making the investment decision throughout the 220 model computer, the expense of the opportunity or chance seems to be:

= $485,000

As we know,

⇒ Opportunity cost = Return from alternative investment

i.e.,  $485,000

All other available options weren’t applied to the example mentioned. So, the solution above is the right one.

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In 2005, mandy and hal (mother and son) purchased land for $600,000 as joint tenants with right of survivorship. of the $600,000
Romashka [77]

Answer:

$500,000

Explanation:

Actual amount contributed by Hal to the land purchase = Contribution - Gift from mandy = $300,000 - $200,000 = $100,000

Hal's contribution weight in the land = 100,000 ÷ 600,000 = 1 ÷ 6

Hal's gross estate in the land = $3,000,000 × (1 ÷ 6) = $500,000

Therefore, as to the land, hal's gross estate must include $500,000.

4 0
3 years ago
Many former employees at AlphaEnergy, an energy trading and supply company, had a large
Virty [35]

Answer:

Letter A is correct.<u> </u><em><u>Unsystematic</u></em><em> </em>risk.

Explanation:

Unlike systematic risk, which is an inherent market risk, unsystematic risk is inherent in a specific sector or company.

The case in point concerns the investment of former AlphaEnergy employees, which is a unsystematic risk, as the investment risk in single-company shares includes regulatory changes, management changes, loss of market due to competition and withdrawal of the product from the market.

To reduce this type of risk, investors should seek diversification in their stock portfolio.

7 0
2 years ago
Of money's three functions, the one that distinguishes money from other assets is:
NNADVOKAT [17]

Answer:

Medium of Exchange

Explanation:

The main function that distinguishes money from other assets is that everybody accept the money as a medium of exchange, either for our job or to buy things that we are interested.

Always through history the main function of money was to be a medium of exchange because at the begining money didn't exist so you needed to use different things, first salt, then precious metal and today money as we know.

5 0
3 years ago
You are the chief financial officer for a firm that sells digital music players. Your firm has the following average-total-cost
Finger [1]

Answer:

False

Explanation:

Since for finding out whether the offer is accepted or not, first we have to determine the total cost at 600 number of players and for 601 number of players which is

The total cost of 600 players is

= 600 × $300

= $180,000

The total cost of 601 players is

= 601 × $301

= $180,901

Now the marginal cost is 601 player is $901 which is difference between the $180,000 and $180,901 that is higher than the offered price i.e $550

Therefore, the offer should not be accepted

6 0
3 years ago
A company should develop its marketing strategy and then determine the wants and needs of its customers.
Andrew [12]

Answer:

True

Explanation:

This is true as by doing this you will be able to understand what is in demand in order to gain loyal customers for the business' growth and fill a gap in the market industry.

3 0
3 years ago
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