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Valentin [98]
3 years ago
10

EDP is trying to decide between two different conveyor belt systems. System A costs $438,000, has a six-year life, and requires

$83,000 in pretax annual operating costs. System B costs $369,000, has a five-year life, and requires $92,000 in pretax annual operating costs. Both systems are to be depreciated straight-line to zero over their lives and will have a zero salvage value. Whichever system is chosen, it will not be replaced when it wears out. The tax rate is 23 percent and the discount rate is 14.2 percent. Which system should the firm choose and why?
Business
1 answer:
Liula [17]3 years ago
6 0

The firm should choose system A because it has a six-year life and a lesser annual operating cost.                                                                  

<u>Explanation</u>:

  • Even though system A costs $438,000 the quality of the system is good. The quality of system A has a six-year life. So the quality is pretty good. It has an $83,000 tax annual operating cost.
  • System B costs $369,000 . Compared to the cost of system A, system B is low. But it has a $92,000 tax annual operating cost. This tax is higher than A.
  • System A has a higher life compared to system B. So the firm should choose system A.                

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The establishment of lobster fishing season in the state of Florida is an example of:
SashulF [63]

Answer:

Government intervention in the economy.

Explanation:

The government in some cases take actions that affect the economy to have an impact and address inefficiencies. In this case, the intervention takes the form of a regulation that establishes a lobster fishing season in the state of Florida. Because of that, the answer is that this is an example of government intervention in the economy.

5 0
3 years ago
According to the textbook, which of the following is considered a reason that ERP implementations fail?
Mekhanik [1.2K]

A very good reason that leads to the failure of ERP implementation is the

  • Lack of communication within an organization

<h3>What is  ERP implementation?</h3>

This can be described as the integration of a great number of functions in the business environment.

Some of the functions that are integrated are:

  • Human resources
  • Financial management
  • Sales

ERP stands for Enterprise Resource Planning.

Read more on ERP implementation here:

brainly.com/question/16341677

6 0
2 years ago
Maria has to choose between driving and taking a train to destination A. Travelling by train will cost her $400 and will take 4
dlinn [17]

Answer:

None of the options are correct

Explanation:

The train would cost her, which is computed as:

= Cost + (Hours × Opportunity Cost)

= $400 + (4 hours × $15 per hour)

= $400 + $60

= $460

The driving would cost her, which is computed as:

= Cost + (Hours × Opportunity Cost)

= $250 + (6 hours × $15 per hour)

= $250 + $90

= $340

Savings = Train Cost - Driving Cost

= $460 - $340

=$120

None of the options are correct as the she would save $120.

4 0
3 years ago
The balance in Accounts Receivable at the beginning of the year amounted to $16,000. During the year, $64,000 of credit sales we
poizon [28]

Answer: $70,000

Explanation:

Accounts Receivable at the beginning of the year amounted to $16,000

During the year, $64,000 of credit sales were made to customers.

ending balance in Accounts Receivable amounted to $10,000, and uncollectible accounts expense amounted to $4,000,

The Amount to appear in the operating activities section of the cash flow statement is

$16,000+$64,000-$10,000= $70,000

8 0
4 years ago
Read 2 more answers
If a country's economy is to sustain long-run economic growth, the business environment must be conducive to the consistent prod
Aliun [14]

Answer:

True

Explanation:

One of the significant advantages of development is its commitment to monetary development. Basically, advancement can prompt higher profitability. As profitability rises more commodities and are delivered which improves the economic growth. Financial development just originates from expanding quality and amount of the fundamentals of generation, which comprise of four wide types: land, labour, capital, and entrepreneurship. The components of generation are the assets utilised in producing goods and services.

5 0
3 years ago
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