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RideAnS [48]
1 year ago
6

The XYZ Company has a choice between two warehouses. A lease at location A costs $1000 per month with a payment of $2000 up fron

t to guarantee the 3 year lease. Location B would cost $1200 per month and would be leased from month to month. The anticipated revenue in either location is $1500 per month. The estimated rate of return is 10% per year. Using net present value, determine which location would be the better choice.
Business
1 answer:
Vsevolod [243]1 year ago
3 0

Answer:

A is better choice because present value of the cost is lower

Explanation:

given data

lease A costs = $1000 per month

payment = $2000

lease  B cost = $1200 per month

revenue either =  $1500 per month

rate of return = 10% per year = \frac{0.10}{12}  = 0.00833

solution

we find here first Cost of first lease that is express as

Cost of first lease = 2000 + \frac{1000}{1+0.00833} +  \frac{1000}{(1+0.00833)^2}  +  \frac{1000}{(1+0.00833)^3}      .............  \frac{1000}{(1+0.00833)^{36}}

solve it we get

Cost of first lease =  $32,991.24

and

as that Cost of second lease is here

Cost of second lease =    \frac{1200}{1+0.00833} +  \frac{1200}{(1+0.00833)^2}  +  \frac{1200}{(1+0.00833)^3}      .............  \frac{1200}{(1+0.00833)^{36}}

solve we get

Cost of second lease = $37,189.48

so we can see that at A is better choice because present value of the cost is lower

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Slovac Company purchased a machine that has an estimated useful life of eight years for $7,500. Its salvage value is estimated a
saw5 [17]

Answer:

A. 1,406

Explanation:

Double-declining balance formula = 2 X Cost of the asset X Depreciation rate

The cost of asset =  $7,500

salvage value  = $500

estimated useful life = 8years

To calculate the depreciation value using Double-declining balance formula = 2 X Cost of the asset X Depreciation rate

Depreciation rate = 1/useful life *100 = (1/8) * 100 = 12.5%

Therefore

2 x $7500 x 12.5% =  $1,875 - year 1

for the second year the cost of asset will be$ 7,500 - $1,875 =  $5625

2 x  $5625 x 12.5% = $1,406.25

Therefore the answer is $1,406

8 0
1 year ago
Your entertainment price index (EPI) was computed based on three goods: movie tickets, popcorn, and limeade. If you change the q
DaniilM [7]

Answer:

Your entertainment price index (EPI), might fall or rise, contingent on both the quantity of the goods that you bought and the prices of these goods.

Explanation:

Price index is used extensively to estimate changes in prices overtime and are also used to measure differences in costs among different areas of countries.

4 0
1 year ago
Read 2 more answers
The variety of Riverside Ranger logo T-shirts includes 12 different designs. Setup between designs takes one hour (and $18,000),
cluponka [151]

Answer:

The production exhibit both scope economics and scale economics. They are not mutually exclusive.

Explanation:

Looking at the scenario critically, we will clearly see the tendency of a scope economics. Scope economics basically hinges on getting a competitive advantage, essentially because of producing in large quantities and numbers. Riverside Ranger logo T-shirts exhibits this as it produce its products in large numbers, producing 1000 pieces of a particular design in 1 hour.

In same breath, we also have the scale economics exhibited by the organization. Taking a deeper look at the cost representation, we will see that the average cost tend to reduce as the production increases. Thus, an economic of scale is achieved here by leveraging on the mass and swift production style of Riverside Rangers logo T-shirts.

7 0
1 year ago
Which are examples of copyrighted online materials? Check all that apply. an article from an Internet magazine lyrics for a song
agasfer [191]

Answer:

The correct options are;

Photos taken by a student in his blog

An illustration sold by an artist on her website

An excerpt from a novel published in 1913

Explanation:

With the copyright law the holder of a copyrighted material has the exclusive authority to grant permission to others to create from, copy, distribute, or display in public, the copyrighted material.

A copyright is said to have expired and to be in public domain (with automatic permission to use) when it has been up to 120 years since it was created. Government created material are not covered by the copyright law and can be used

Copyright material can only be used without the express permission of the copyright owner when it is covered by the TEACH Act of the usage must be taken as "fair use"

Therefore,

1) photos taken by a student in his blog

2) An illustration sold by an artist on her website

3) An excerpt from a novel published in 1913  are copyrighted online materials.

7 0
2 years ago
Read 2 more answers
H&M has adopted the inventory management system that delivers less merchandise on a more frequent basis than in traditional
EastWind [94]

Answer:

The correct answer is the option B: Quick response (QR)

Explanation:

To begin with, a <em>quick response inventory system</em> involves the intention of shorten the lead time from receiving an order to delivery of the products and increase the amount of cash flow. Moreover, this system focuses primarily in the reduction of the time that the stuff is stuck in the inventory in order to avoid the low stock rotation and in that way to try to increase the sales that the company has. And in that way the company can receive the merchandise in time in order to sale it or to use it for another product.

4 0
1 year ago
Read 2 more answers
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