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3 years ago

Which of the following should be included in the acquisition cost of a piece of equipment?

Business

1 answer:

Mkey [24]3 years ago

6 0

The correct answer is choice d, all are correct.

When calculating the acquisition cost of a piece of equipment it should be the all inclusive cost of the equipment. The cost should include all transportation, installation, site preparation, sales or other taxes and testing costs prior to placing the equipment into production.

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Windhoek Mines, Ltd., of Namibia, is contemplating the purchase of equipment to exploit a mineral deposit on land to which the c

grin007 [14]

Answer:

Windhoek Mines, Ltd.

The net present value of the proposed mining project is:

= ($232,950).

Explanation:

a) Data and Calculations:

Cost of new equipment and timbers = $500,000

Working capital required = $100,000

Annual net cash receipts = $120,000

Cost to construct new roads in three years = $40,000

Salvage value of equipment in four years = $65,000

Estimated useful life of mine = 4 years

Working capital released in four years = $100,000

Required rate of return = 20%

Cash Flows PV factor Present Value

Cost of new equipment and timbers $500,000 1 -$500,000

Working capital required 100,000 1 -100,000

Annual net cash receipts 120,000 2.589 310,680

Cost to construct new roads in 3 years 40,000 0.579 -23,160

Salvage value of equipment in 4 years 65,000 0.482 31,330

Working capital released in 4 years 100,000 0.482 48,200

Net present value ($232,950)

4 0

3 years ago

The relationship between an employer and an employee can be thought of in terms of a(n) __________, a description of what an emp

myrzilka [38]

The answer is psychological contract.

A broken psychological contract may occur when an employee believes that working extra would be naturally rewarded. This, however, may not be business policy. If the person is salaried, they may not be compensated for the extra hours worked.

Daily acts and remarks made in the workplace, as well as how they are interpreted by all parties involved, have an impact on the contract.

In other words, it is a promise developed via regular workplace encounters in which the organization learns what is expected of each employee.

Psychological contracts evolve and adapt to the organizational working culture over time. However, they are generally difficult to change and can differ across individual party members and whole organizations.

To know more about employer and employee relationship click here:

brainly.com/question/13400621

#SPJ4

8 0

2 years ago

he Production Department of Hruska Corporation has submitted the following forecast of units to be produced by quarter for the u

Elodia [21]

Answer:

1. Total estimated direct labor cost = $148,800

2. Total estimated manufacturing overhead cost = $410,880

3. Total Cash disbursement for the fiscal year = $254,880

Explanation:

Please see attached detailed explanation of the above questions and answers.

8 0

3 years ago

which strategy for merging two distinct cultures is most effective when the two companies have relatively weak cultureswith over

nata0808 [166]

Answer:

integration strategy

Explanation:

In simple words, integration strategy can be defined as a set of activities that are implemented by organisations for combining the activities and operations of the business without making any conflict or chaos during the merger.

In such a strategy both the companies that are merging their business tries to control several different aspects both quantitative and qualitative for example integrating the sully chain management and taking care of work place ethics and codes that run in both the organisations.

7 0

3 years ago

Stock in CDB Industries has a beta of 1.10. The market risk premium is 7 percent, and T-bills are currently yielding 4 percent.

12345 [234]

Answer:

Cost of equity = 11.7%

Explanation:

<em>The capital asset pricing model is a risk-based model. Here, the return on equity is dependent on the level of reaction of the the equity to changes in the return on a market portfolio. These changes are captured as systematic risk. The magnitude by which a stock is affected by systematic risk is measured by beta.</em>

Under CAPM, Ke= Rf + β(Rm-Rf)

Rf-risk-free rate,-4%, β= Beta-1.10, (Rm-Rf) = 7% ,Ke = cost of equity

Using this model,

Ke=4% + 1.10×7%

= 11.7 %

Cost of equity = 11.7%

3 0

3 years ago