Allen Construction purchased a crane 6 years ago for $130,000. They need a crane of this capacity for the next 5 years. Normal operation costs $35,000 per year. The current crane will have no salvage value at the end of 5 more years. Allen can trade in the current crane for its market value of $40,000 toward the purchase of a new one, which costs $150,000. The new crane will cost only $8,000 per year under normal operating conditions and will have a salvage value of $55,000 after 5 years. If MARR is 20 percent, determine which option is preferred. a. Use the cash flow approach (insider’s viewpoint approach). (11.2.1) b. Use the opportunity cost approach (outsider’s viewpoint approach). (11.3.1)
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Business, 21.06.2019 22:50
The following data pertains to activity and costs for two months: june july activity level in 10,000 12,000 direct materials $16,000 $ ? fixed factory rent 12,000 ? manufacturing overhead 10,000 ? total cost $38,000 $42,900 assuming that these activity levels are within the relevant range, the manufacturing overhead for july was: a) $10,000 b) $11,700 c) $19,000 d) $9,300
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Business, 22.06.2019 23:30
How does the federal reserve stabilize and safeguard the nation’s economy? (select all that apply.) it distributes currency and oversees fiscal conditions. it implements american monetary policy. it regulates banks and defends consumer credit rights. it regulates and oversees the nasdaq stock exchange.
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Business, 22.06.2019 23:30
Sole proprietorships produce more goods and services than does any other form of business organization.
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Allen Construction purchased a crane 6 years ago for $130,000. They need a crane of this capacity fo...
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