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jekas [21]
3 years ago
14

Carlisle Company has been cited and must invest in equipment to reduce stack emissions or face EPA fines of $18,500 per year. An

emission reduction filter will cost $75,000 and have an expected life of 5 years. Carlisle’s MARR is 10%/year.
a. What is the annual worth of this investment?
b. Is the filter economically justified? Why?
Business
1 answer:
Ahat [919]3 years ago
3 0

Answer:

equivalent annual cost: 19,784.81

The investment is not economically justified as it is cheaper to pay the fines than invest in the equipment to avoid them.

Explanation:

We calcualte the PMT of a 75,000 dollars equipment at 10%

PV \div \frac{1-(1+r)^{-time} }{rate} = C\\

PV 75,000

time 5

rate 0.1

75000 \div \frac{1-(1+0.1)^{-5} }{0.1} = C\\

C                 $ 19,784.811

EPA fines:    <u>   </u><u>$ 18,500.00  </u>

differential:          (1, 284.81)

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Sharon Corporation redeems 20 shares of Kevin's common stock. Kevin directly owned 50 shares prior to the redemption. Kevin is a
alexdok [17]

Answer:

75 shares

Explanation:

In this specific scenario, it seems that Kevin is treated to 75 shares prior to the redemption. This is calculated by adding the 50 shares that Kevin holds directly prior to the redemption itself as well as the 25 extra shares that are held by AMI. These 25 shares are 50% of the total 50 shares that AMI holds since Kevin is a 50% partner.

4 0
3 years ago
Sioux Corporation is estimating the following sales for the first four months of next year:January$210,000February$280,000March$
Serjik [45]

Answer:

$358,000

Explanation:

Calculation to determine how much cash should Sioux expect to collect during the month of April

April sales collected in April ($370,000 × 60%) $222,000

March sales collected in April ($340,000 × 40%) $136,000

Total cash collections in April $358,000

($222,000+$136,000)

Therefore the amount of cash that Sioux should expect to collect during the month of April is $358,000

6 0
3 years ago
When you are in a conflict that you are not passionate about, it is seen as gracious to sometimes ______.
Aleks [24]

When I am in a conflict that I am not passionate about, it is seen as gracious to sometimes nothing because it did not hurt me in any way because first and foremost, it is not my concern to start of. Conflicts maybe hard but as long as I am not affected, it does not matter.

8 0
3 years ago
Read 2 more answers
Barans Company purchased merchandise on account from a supplier for $12,900, terms 1/10, n/30. Barans Company returned $2,500 of
11Alexandr11 [23.1K]

Answer: See explanation

Explanation:

a. If Barans Company pays the invoice within the discount period, what is the amount of cash required for the payment?

The amount of cash required for the payment will be:

Purchases: = $12,900

Less: Returns = $2500

Less: Discount = ($12900 - $2500) × 1% = ($10400 × 1%) = $104

Cash required for payment = $10296

b. What account is credited by Barans Company to record the return?

Based on the information above, the merchandise inventory will be credited.

3 0
3 years ago
Gary is the founder of an animal shelter; he shares a special bond with animals. Hence, he prefers to employ people who care for
Harrizon [31]

Answer:

normative control

Explanation:

Normative control refers to using the values that the employees share as standards instead of using policies to influence the desired behaviors. According to this, the answer is that this is an example of normative control because Gary employs people that share certain values and behaviors and these become the standard to perform their jobs.

4 0
3 years ago
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