Teduie company bought a new model of motor for its electric power generating plant in 2017. The useful life of the motor was 5 years and the investment was $30,000 in 2017's dollars. The following 5 table shows the savings obtained through the project in actual dollars and the consumer price index numbers for the time period between 2017 and 2022: End of Year Savings Price Index 250 2017 2018 250 2019 275 2020 $10,000 $12,100 $14,641 $19,326.1 $23,384.6 302.5 2021 363 2022 399.3 If the inflation-free interest rate is 15%, determine whether the investment was worthwhile.
Answers
To determine if the investment in the motor was worthwhile, we need to assess the present value of the savings obtained over the useful life of the motor.
To assess the worthiness of the investment, we calculate the present value of the savings obtained over the five-year period. The present value is calculated by discounting the future savings at the inflation-free interest rate of 15%.
Using the given savings data, we discount each year's savings using the corresponding price index and the inflation-free interest rate. Then we sum up the discounted savings to obtain the present value of the savings.
Year 2018:
PV2018 = $10,000 / (1 + 0.15)^1
Year 2019:
PV2019 = $12,100 / (1 + 0.15)^2
Year 2020:
PV2020 = $14,641 / (1 + 0.15)^3
Year 2021:
PV2021 = $19,326.1 / (1 + 0.15)^4
Year 2022:
PV2022 = $23,384.6 / (1 + 0.15)^5
Total present value of savings:
Total PV = PV2018 + PV2019 + PV2020 + PV2021 + PV2022
If the total present value of savings exceeds the initial investment of $30,000, then the investment in the motor is considered worthwhile.
By performing the calculations and comparing the total present value of savings to the initial GD investment , we can determine whether the investment in the motor was worthwhile given the inflation-free interest rate of 15%.
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Related Questions
Malaki ran 9,656 meters on Monday and 4,687 meters on Tuesday. How many more meters did she run on Monday than on Tuesday?
Answers
Answer: 4969 meters
Explanation: Here's what you do: 9,656 - 4,687 = 4969
Answer: 4969 meters
Explanation:
Help plz , needs to be turned in
Answers
Answer:that should be based on your class and teacher try checking your syllabus
Explanation:
Crane’s Custom Construction Company is considering three new projects, each requiring an equipment investment of $24,860. Each project will last for 3 years and produce the following net annual cash flows.
Year AA BB CC
1 $7,910 $11,300 $14,690
2 10,170 11,300 13,560
3 13,560 11,300 12,430
Total $31,640 $33,900 $40,680
The equipment’s salvage value is zero, and Crane uses straight-line depreciation. Crane will not accept any project with a cash payback period over 2 years. Crane’s required rate of return is 12%. Click here to view PV table.
(a)
Compute each project’s payback period. (Round answers to 2 decimal places, e.g. 15.25.)
Answers
compute each project's payback period, we need to determine the time it takes for the cumulative cash flows to recover the initial investment. Let's calculate the payback period for each project:
Project AA:
Year 1 cash flow: $7,910
Year 2 cash flow: $10,170
Year 3 cash flow: $13,560
Cumulative cash flows:
Year 1: $7,910
Year 2: $7,910 + $10,170 = $18,080
Year 3: $18,080 + $13,560 = $31,640
The cumulative cash flows reach the initial investment of $24,860 during Year 3. To determine the exact payback period, we need to find the fractional year by dividing the remaining cash flow by the Year 3 cash flow:
Fractional year = ($24,860 - $18,080) / $13,560 = $6,780 / $13,560 = 0.50
Therefore, the payback period for Project AA is 2.50 years (2 years + 0.50 years).
Project BB:
Year 1 cash flow: $11,300
Year 2 cash flow: $11,300
Year 3 cash flow: $11,300
Cumulative cash flows:
Year 1: $11,300
Year 2: $11,300 + $11,300 = $22,600
Year 3: $22,600 + $11,300 = $33,900
The cumulative cash flows reach the initial investment of $24,860 during Year 3. The fractional year calculation is not necessary since the cash flow exactly matches the investment in the third year.
Therefore, the payback period for Project BB is 3 years.
Project CC:
Year 1 cash flow: $14,690
Year 2 cash flow: $13,560
Year 3 cash flow: $12,430
Cumulative cash flows:
Year 1: $14,690
Year 2: $14,690 + $13,560 = $28,250
Year 3: $28,250 + $12,430 = $40,680
The cumulative cash flows exceed the initial investment of $24,860 during Year 2. To find the fractional year, we divide the remaining cash flow by the Year 2 cash flow:
Fractional year = ($24,860 - $14,690) / $13,560 = $10,170 / $13,560 = 0.75
Therefore, the payback period for Project CC is 2.75 years (2 years + 0.75 years).
In summary, the payback periods for the three projects are as follows:
- Project AA: 2.50 years
- Project BB: 3 years
- Project CC: 2.75 years
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1. A Dependable And Attractive Strategy For Managers To Use In Trying To Boost Their Company's EPS Is To o Market Branded Footwear With A 9-Star Or Higher S/Q Rating In All Four Geographic Regions And Strive To Be The Dominant Provider Of Private-Label Footwear In All Four Geographic Regions Every Year, The Aded Revenues And Profits On The Extra Sales Of Branded and private label tootwear worldwide will normally cause the company’s EPS to increase in most years.o Concentrate the company’s production of footwear at a large scale production facility in the Asia-Pasific—the resulting super-low production costs and the ability to produce 500 models/styles cheape than any other production facility in the world will typically yield consistent annual increases in total profits and EPS in step with the rising global demand for branded footwear.o Offer 500 models/styles of branded foowear in all four geographic regions and strive to win a sufficient number of contracts for celebrity endorsements to achive and maintain a celebrity appeal rating of 225 or higher in each geographic region; the resulting increases in sales and market share will boost EPS.o Spend at least $1 million to $3 million more on advertising than any other company in all four regions; the resulting annual increases in sales volumes, revenues, and profits will normally boost the company’s EPS. o Use debt to finance most all of company’s capital expenditures (to the extent that maintaining a B+ credit rating or higher will allow) and use most all of the company’s.
Answers
A dependable strategy for managers to use in trying to boost their company's EPS is to concentrate the company’s production of footwear at a large scale production facility. So, the suitable option will be option (b).
What is earnings per share (EPS)?The monetary value of earnings per outstanding share of common stock for a firm is known as earnings per share (EPS). It is a crucial indicator of organizational profitability and is frequently applied to stock pricing. The Financial Accounting Standards Board (FASB) in the United States mandates the inclusion of EPS data for the four main components of the income statement: continuing operations, discontinued operations, extraordinary items, and net income.
Common stock rights are subordinate to preferred stock rights. As a result, before calculating EPS, dividends on preferred shares are deducted. Annual dividends, whether declared or not, are subtracted from preferred shares when they are cumulative. Dividends paid in arrears have no bearing on EPS.
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Explanations of events in international relations that focus on domestic factors, such as the type of government or economic system a country has, are using which level of analysis
Answers
The state level of analysis deals with explanation of events in international relations that focus on domestic factors.
What is the state level of analysis?The state level of analysis deals with domestic matters arising within each state independently.
In conclusion, the state level of analysis deals with explanation of events in international relations that focus on domestic factors.
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Is competition good for business?
Is it good for consumers?
Answers
Answer:
yes and yes
Explanation:
If you had to make a real life decision involving debt,what would you do differently as a result of playing the game
Answers
Depending on his qualifications, the person can search for genuine work or perform part-time jobs. This enables the debt to be settled in installments or small sums, and refrain from playing any games that entail gambling.
Define a debt.Debt is an obligation that forces one person, the debtor, to pay another party, the creditor, money or another agreed-upon value. Secured debt, unsecured debt, revolving debt, and mortgages are the four basic categories of personal debt. Unsecured debt is primarily based on a person's creditworthiness, whereas secured debt involves some sort of collateral.
The sum that the borrower owes to the lender is the simplest definition of debt. A debt is an amount of money that is borrowed for a specific amount of time and must be paid back together with interest. Depending on his qualifications, the person can search for genuine work or perform part-time jobs. This enables the debt to be settled in installments or small sums, and refrain from playing any games that entail gambling.
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A graph titled Funding for House Elections 2011 to 2012 shows parties on the horizontal axis and dollars (hundreds of millions) on the vertical axis. Approximately 610 of Republican funding was total raised, 200 was P A C funding, and 350 was individual funding. Approximately 490 of Democratic funding was total raised, 165 was P A C funding, and 290 was individual funding.
Look at this graph, showing funding for campaigns for election to the House of Representatives, 2011–2012.
What is the most logical conclusion that can be drawn from this graph?
Both parties are dependent on raising huge sums of money to fund their House campaigns.
PAC spending is not a significant factor when it comes to raising money for House campaigns.
The Democrats will always raise more money for House campaigns from individuals than the Republicans will.
Campaign funding laws have reduced the amount of money needed to fund House campaigns.
Answers
Answer: Both parties are dependent on raising huge sums of money to fund their House campaigns.
Explanation:
Campaigning for office is no cheap endeavour as many politicians have seen and noted. Money needs to be spent on everything from renting venues to buying stationary and so the politicians turn to donors to help.
Regardless of party affiliation, this is the reality for political campaigns which is why both parties rely on huge sums of money to fund campaigns like for the U.S. House of Reps. This is confirmed by the graph described above that shows the hundreds of millions of dollars being used to campaign for the House.
Answer:
A
Explanation:
Aiden has a gross income of $63,000 and takes the standard deduction. Their total taxes due are $6,922. What is their marginal tax rate
Answers
Answer:
922Explanation:
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I need help with the Helmes case would anyone kindly help me with the answer for this question.
How can planning ensure that Hermès continues to meet its delivery targets in the future and at times when there is bad weather or high peak-demand?
Answers
A microwave oven costs $124.85 before it is marked down. if it is marked down by 63%, what is its new price, to the nearest cent? a. $78.66 b. $61.85 c. $58.68 d. $46.19
Answers
A microwave oven costs $124.85 before it is marked down. if it is marked down by 63%, the new price, to the nearest cent, is $46.19.
How to calculate the percentage of an amount?The percentage represents a value divided by 100. In this way, saying 25% of a value is the same as saying 25 out of 100, that is, 25 divided by 100.
In this case we have:
\(\$124.85 * (100\% - 63\%)\\= \$124.85 * 37 \%\\= \$124.85 * 0.37\\= 46.1945\\= \$46.19\)
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Click this link to view O*NET's Work Context section for Marriage and Family Therapists. Note that common contexts
are listed toward the top, and less common contexts are listed toward the bottom. According to O'NET, what are some
common work contexts for Marriage and Family Therapists? Select four options.
o exposed to hazardous conditions
spend time bending or twisting
o contact with others
indoors, enpironmentally controlled
face-to-face discussions
telephon
Answers
Answer:
c,d,e,f
Explanation:
Answer:
C,D,F
Explanation:
__________ visually shows that the total revenue curve and the total cost curve intersect at a point of zero profit.
A) break-even chart
B) Gantt chart
C) sales response function
D) cross tabulation
E) demand curve
Answers
Answer:
C it would be hope this helped
30 POINTS :D
If someone you don't know asks where you go to school, what should you do?
A. Don't respond
B. See if they're a friend of a friend
C. Ask why they want to know
D. Lie to them
Answers
the statement of cash flows for a proprietary fund contains three sections: (1) operating, investing and financing. group of answer choices true false
Answers
True. Operating activities, investment activities, and financing activities are the three elements that make up the statement of cash flows for a proprietary fund.
What is a proprietary fund's statement of cash flows?A statement of net assets, a statement of revenues, expenses, and changes in fund net assets, as well as a statement of cash flows, are necessary proprietary fund statements.
What financial statements must a proprietary fund have?Financial accounts for both the government as a whole and the fund should include information on capital assets of proprietary funds. Only the statement of fiduciary net position should include capital assets of fiduciary funds. General capital assets are all of the government's other assets.
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Indicate whether the following events would cause an "increase or a decrease in demandLOADING..." or an "increase or a decrease in the quantity demanded" for cable-based Internet access service, which is a normal good. a. Firms providing wireless (an alternative to cable) Internet access services reduce their prices. This will cause a(n) A. increase in demand. B. increase in quantity demanded. C. decrease in demand.
Answers
Answer:
A. increase in demand.
Explanation:
In this specific scenario, a reduction in the prices of these services would cause an increase in demand. This is because the prices will become very competitive to those already in the market, which will ultimately entice customers to want the service as they will be saving a large percentage of money and still acquire the internet services that they require.
What is a sales quote?
Answers
Answer:
Explanation:
A sales quote allows a prospective buyer to see the costs that will be involved for desired work.
Of the following, the controls that are often difficult for internal auditors to evaluate because of the lack of criteria or standards are A. Preventive controls. B. Corrective controls. C. Operating controls. D. Financial controls.
Answers
The controls that are often difficult for internal auditors to evaluate due to a lack of criteria or standards are preventive controls. Option A
Preventive controls are designed to deter or prevent errors or fraud from occurring in the first place. They are often put in place to mitigate risk and include procedures such as segregation of duties, physical access controls, and authorization processes.
The challenge with evaluating preventive controls is that there may not be a clear standard or criteria for what constitutes an effective preventive control. This can make it difficult for internal auditors to determine whether a preventive control is working as intended or if it needs to be improved.
On the other hand, corrective controls are designed to identify and correct errors or fraud that have already occurred. Operating controls are processes or procedures used to ensure that business operations are conducted effectively and efficiently.
Financial controls are designed to ensure the accuracy and reliability of financial reporting. These types of controls often have established criteria or standards that can be used to evaluate their effectiveness, making them easier for internal auditors to assess.
In summary, while preventive controls are important in mitigating risk, they can be difficult for internal auditors to evaluate due to a lack of clear standards or criteria for what constitutes an effective control.
Internal auditors should work with management to establish clear objectives and criteria for preventive controls to ensure they are able to effectively evaluate their effectiveness. So Option A is correct.
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Help me stuck on this!!!!!
Explain THREE reasons why some entrepreneurs may prefer to keep their businesses small.
Answers
Answer:
It may provide more money, less people will try to buy your store, and it also helps with your credit
Explanation:
krysta wants to take piano lessons. she asked a teacher how many new pieces she could expect to learn each month. the teacher gave an estimate of 3. write an equation that shows how the total number of pieces krysta would learn, y, depends on the number of months of piano lessons, x.
Answers
The required equation is y = 3x which represents the total number of pieces Krysta would learn, where x months of piano lessons.
What is the Linear equation?A linear equation is defined as an equation in which the highest power of the variable is always one.
Krysta wants to learn to play the piano. She inquired with an instructor about the number of new pieces she could anticipate studying each month. The teacher estimated three.
Let y represent the total number of pieces Krysta would learn,
And x represent depends on the number of months of piano lessons,
According to the given situation, we can write the equation would be as:
⇒ y = 3x
Therefore, the required equation is y = 3x which represents the total number of pieces Krysta would learn.
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reflect on your own organization and address the various aspects of knowledge management, continuous innovation, and competitive advantage and how they integrate with one another
Answers
Integration between knowledge management, continuous innovation, and competitive advantage is essential for organizational success, as it enables effective utilization of knowledge for ongoing innovation and gaining a competitive edge.
How does the integration of knowledge management, continuous innovation, and competitive advantage contribute to organizational success?As an AI language model developed by OpenAI, I don't have an organization or physical presence. However, I can provide an explanation of the concepts you mentioned.
Knowledge management refers to the processes and strategies used to create, capture, organize, and share knowledge within an organization. It involves activities such as knowledge creation, storage, retrieval, transfer, and application to support decision-making and innovation.
Continuous innovation is the ongoing process of introducing new ideas, products, services, or processes to improve an organization's performance and stay ahead of competitors. It involves fostering a culture of innovation, encouraging creativity, and implementing mechanisms for idea generation, evaluation, and implementation.
Competitive advantage refers to the unique strengths, capabilities, or resources that allow an organization to outperform its competitors and achieve superior performance. It can be achieved through various means such as cost leadership, differentiation, technological innovation, customer focus, or operational efficiency.
Integration between knowledge management, continuous innovation, and competitive advantage is crucial for organizational success. Knowledge management provides the foundation by ensuring that relevant knowledge and information are accessible and utilized effectively to drive innovation.
Continuous innovation, fueled by knowledge management practices, helps organizations stay competitive by developing new products, improving processes, and identifying opportunities for growth. The resulting innovation can lead to a sustainable competitive advantage, as it allows organizations to offer unique value propositions that are difficult for competitors to replicate.
By leveraging knowledge management to support continuous innovation, organizations can continuously learn, adapt, and improve their offerings, leading to enhanced competitive advantage in the marketplace.
Effective knowledge sharing and collaboration enable organizations to capitalize on internal expertise, external insights, and market trends, fostering a culture of learning and innovation. Ultimately, the integration of these aspects enables organizations to remain agile, responsive, and ahead of the competition in today's dynamic business environment.
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Which type of product advertisement can be used to sell a company’s product when two or more other companies are selling the same product?
Answers
Answer:competitive advertising
Explanation:
I’m not for sure but I think that might be the answer
Answer: competitive advertising
Explanation:
if on online course it is what was right
can you guys make me instagram famous? plz i need help
Answers
Answer:
sis what
Explanation:
make a public account post good pics ✋put a lot of hastagstag ppltas it
what are some basic marketing strategies
Answers
Claim Your Business Online.
think positively.ALWAYS THINK POSITVE!!!
promote it n social media.
be loud to people to everybody be aware of your buisness.
Advertise Online.
HOPE this helps
take care have a good day
John from sales has just sent you an e-mail. He needs a decision made on the Johnson account as soon as possible. You can make the decision, but you feel like you’d like to ask your boss for her advice. Unfortunately, she is in a business meeting, and the decision needs to be made very soon. You decide to take the initiative and ______.
a.
Interrupt your boss to make the decision
b.
Ask a coworker to make the decision
c.
Wait to make the decision
d.
Make the decision
Answers
Answer:
D. Make the decision
Explanation:
The decision needs to be made as soon as possible. Answers B and C both require extra time, which is not an option here. That leaves A and D as possibilities. Answer A makes the least sense of the 4 options (as it would be extremely unprofessional to interrupt a meeting), leaving D as the only reasonable choice.
Why is the relationship between opportunity costs and Capital
Asset Pricing Model pertinent?
Answers
The relationship between opportunity costs and the Capital Asset Pricing Model (CAPM) is important because opportunity costs are a fundamental concept in finance that helps determine the required return on an investment, which is a key input in the CAPM.
Opportunity cost refers to the value of the best alternative foregone when making a decision. In finance, it plays a crucial role in assessing investment opportunities. The CAPM, on the other hand, is a widely used model for estimating the expected return on an investment and determining its riskiness. The CAPM takes into account the risk-free rate of return, the market risk premium, and the systematic risk of the investment.
Opportunity costs are relevant to the CAPM because they help investors assess whether the expected return on a particular investment is sufficient to compensate for the risk involved. By considering opportunity costs, investors can compare the potential returns from different investment options and decide whether to pursue a specific opportunity or opt for an alternative with potentially higher returns.
The CAPM incorporates the concept of opportunity costs by factoring in the risk-free rate of return. The risk-free rate represents the return an investor could earn by choosing a risk-free alternative, such as a government bond. If an investment has a lower expected return than the risk-free rate, it may not be worth pursuing as it fails to compensate for the opportunity cost of choosing a risk-free alternative. On the other hand, if an investment offers a higher expected return than the risk-free rate, it may be attractive to investors as it provides a higher compensation for the opportunity cost of forgoing the risk-free alternative.
In summary, opportunity costs are relevant to the CAPM as they help investors assess the expected return needed to compensate for the risk of an investment. By considering the alternative options and their potential returns, investors can make informed decisions based on the relationship between opportunity costs and the inputs of the CAPM.
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is a short-term investment that is considered highly liquid.
a. stock
b. bond
c. cash equivalent
d. mutual fund
Answers
Answer:
c. cash equivalent
Explanation:
highly liquid means can be made into cash quickly
Cash equivalent examples are money market funds Treasury bills. Treasury notes. Commercial paper.
in 2008 a problem with money market funds signaled a banking crisis. banks were giving mortgages to people with bad credit histories. on top of that those mortgages were insured so if someone couldn't pay the mortgage the insurers would pay. but at that time there were too many people who couldn't pay mortgages
a. stock is a share of ownership in a company. can't make it into cash unless you sell it.
d. mutual fund : basically a stock of stocks. company gathers money to buy a bunch of different stocks. whole thing is called a portfolio. company sells stocks of that portfolio. those stocks are mutual funds.
b. a bond is basically a loan. bond lasts for a period of time. can't sell it until that period is over. otherwise there is a penalty.
.
hedge funds : the words hedge in hedge means to reduce risk. they make it for people with more money. it combines risky, non risky, long term, & short term investments to hedge or reduce risk.
What's the difference between product and brand?
Answers
Answer:
A product is made by a company and can be purchased by a consumer in exchange for money while brands are built through consumer perceptions, expectations, and experiences with all products or services under a brand umbrella. For example, Toyota's product is cars. ... Without a product, there is no need for a brand.
Inflation can cause difficulty in many ways. Which group would have the greatest problem during periods of high inflation?
Answers
Answer:
Inflation can cause difficulty in many ways. Which group would have the greatest problem during periods of high inflation that last several years? Older, working couples saving for retirement. Older people living on fixed retirement income.
Ryan attends a seminar on environmental conservation, and afterward decides to contribute to the conservation of the environment. What can Ryan do to achieve his objective?
Answers
Answer: 1) Planting trees around him 2) Using bio and solar powered appliances
Explanation:
They are many ways to conserve the environment. Conserving the environment helps the earth and nature to grow better. Amongst all Ryan would have learnt from the training, here are some things he would do when he's back;
- Planting of trees; this helps preserve and purify the air around, reducing cabon monoxide as the plant takes it in, then gives oxygen.
- Use bio and solar powered appliances; fuel(petrol) has had a long run in the industry for energy, although it has it's advantages but it's disadvantages is more as it's the major contributor to the depreciation of the environment based on lots of toxic element it emits to the society