Replace an existing asset: You have a 2000 Nissan that is expected to run for another three years, but you are considering buyin
g a new Hyundai before the Nissan wears out. You will donate the Nissan to Goodwill when you buy the new car. The annual maintenance cost is $1,500 per year for the Nissan and $200 for the Hyundai. The price of your favorite Hyundai model is $18,000, and it is expected to run for 15 years. Your opportunity cost of capital is 3 percent. Ignore taxes. When should you buy the new Hyundai?
1 answer:
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Answer:
0.0642 or 6.42%
Explanation:
The period 't' between the year when the coin was issued, 1794, and 1971 is:
If the coin had a value of $5 and after a period of t=177 years it was worth $305,000, the annual tax rate by which the coin appreciated is determined by:
The annual rate was 0.0642 or 6.42%.
Answer:
Actual Price paid for materials = $4.2136 2,200 = $9,270
Actual price per unit = $4.2136
Explanation:
Provided information,
Standard Material per unit = $4
Total cost = $8,400
Standard Quantity = $8,400/$4 = 2,100 units
Provided Material Price variance = $470 unfavorable = - $470
Material Quantity Variance = $400 Unfavorable = - $400
Using Material Quantity Variance
- $400 = (2,100 - Actual Quantity) $4
-$400/$4 = 2,100 - Actual Quantity
Actual Quantity = 2,100 + 100 = 2,200 units
Now, putting this value in Material Price Variance we have,
- $470 = ($4 - Actual Price) 2,200
-$470/2,200 = $4 - Actual Price
- $0.214 = $4 - Actual Price
Actual Price = $4 + $0.2136 = $4.2136
Final Answer
Actual Price paid for materials = $4.2136 2,200 = $9,270
Actual price per unit = $4.2136