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Zielflug [23.3K]
2 years ago
10

The manufacturing cost of an air-condioning unit is $544, and the full-replacement extended warranty costs $113. If the manufact

urer sells 506,970 units with extended warranties and must replace 20% of them as a result, how much will the replacement costs be? (Note: Assume manufacturing costs and replacement costs are the same.)
Business
2 answers:
Likurg_2 [28]2 years ago
7 0

Answer:

$11,457,522

Explanation:

If the full extended warranty costs are $113 per unit replaced, and 20% of the 506,970 units sold will be replaced, then the total warranty costs are:

total warranty costs = total number of units sold x percentage of units that need warranty replacement x cost per unit replaced

total warranty costs = 506,970 units x 20% x $113 per unit = $11,457,52

aleksley [76]2 years ago
6 0

Answer:

$11,457,522

Explanation:

If the full extended warranty costs are $113 per unit replaced, and 20% of the 506,970 units sold will be replaced, then the total warranty costs are:

total warranty costs = total number of units sold x percentage of units that need warranty replacement x cost per unit replaced

total warranty costs = 506,970 units x 20% x $113 per unit = $11,457,52

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Letter C is correct. Retention processes.

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3 0
2 years ago
If alan is risk-averse, then he will always
frutty [35]
I think the most appropriate answer would be D. Because it has a 50 percent chance of winning $X and a 50 percent chance of losing $Y.



I hope it helped you!
8 0
2 years ago
Bill Phillips is developing a Monte Carlo simulation to value a complex and thinly traded security. Phillips wants to model one
olchik [2.2K]

Answer: Both of them

Explanation:

The Monte Carlo Simulation is a forecasting technique that allows one to find out the probability of occurence of different outcomes which may be difficult to come up with because there are multiple random variables involved.

Monte Carlo simulations are used in many diverse fields such as Finance, Engineering and Science.

As earlier mentioned, this simulation allows for multiple random variables so Phillips can use it to model both the variables to have different characteristics.

5 0
2 years ago
Anna has $38,654 in a savings account that pays 2.3 percent interest. Assume she withdraws $10,000 today and another $10,000 one
tester [92]

Answer:

$20,676.53

Explanation:

The qeustion is to determine Future Value of the withdrawal Anna will make in 4 years

Amount in Savings - Amount Withdrawn today) x 1 + rate - Amount to be withdrawn a year from today ) x 1 + rate ∧3 years

$38,654 - $10,000 x 1.023

= $28,564 x 1.023

= 29,313.042‬- 10,000 =

19,313.042 x 1.023 ∧3

=19,313.042x 1.070599167

$20,676.53

This means that after withdrawing $10,000 to day and another $10,000 one year form today, from Anna's initial savings of $38,654, she will be able to withdraw her entire balance of $20,676.53 in 4 years time.

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2 years ago
Your Green Investment Tips subscription is about to expire. You plan to subscribe to the magazine for the rest of your life, and
pentagon [3]

Answer:

The answer is a. 14.33.

Explanation:

We apply the net present value (NPV) methodology to approach the two options.

+ The lifetime subscription's npv = $(850)

+ The annual subscription's npv = - 85 - [ 85/6% * [ 1 - 1.06^(-n) ], with n is the number of years the subscriber still lives.

To make a lifetime subscription a better buy, the NPV of this option should be higher than the NPV of annual subscription or:

85 + [ 85/6% * [ 1 - 1.06^(-n) ] > 850 <=> 1 - 1.06^(-n) > 0.54 <=> 1.06^(-n) < 0.46 <=> -n < -13.33 <=> n > 13.33.

So, the subscriber should live more than 14.33 years ( 13.33 + 1 years for another next year subscription) to make the lifetime subscription a better choice.

So, a is the correct choice.

4 0
2 years ago
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