Business, 05.05.2020 08:31 arrichardson787

Problems 6.52–6.54 are based on the following cash flows and an interest rate of 10% per year. Alternative X Y First cost, $ −200,000 −800,000 Annual cost, $/year −60,000 −10,000 Salvage value, $ 20,000 150,000 Life, years 5 [infinity] 6.52 In comparing the alternatives by the annual worth method, the AW of X is determined by the following equation: (a) −200,000(0.10) − 60,000 + 20,000(0.10) (b) −200,000(A∕P,10%,5) − 60,000 + 20,000(A∕F,10%,5) (c) −200,000(A∕P,10%,5) − 60,000 − 20,000(A∕F,10%,5) (d) −200,000(0.10) − 60,000 + 20,000(A∕F,10%,5) 6.53 The annual worth of perpetual service for alternative X is represented by the following equation: (a) −200,000(0.10) − 60,000 + 20,000(0.10) (b) −200,000(A∕P,10%,5) − 60,000 + 20,000(A∕F,10%,5) (c) −200,000(A∕P,10%,5) − 60,000 − 20,000(A∕F,10%,5) (d) −200,000(0.10) − 60,000 + 20,000(A∕F,10%,5) 6.54 The annual worth of alternative Y is closest to: (a) $−50,000 (b) $−76,625 (c) $−90,000 (d) $−92,000

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 16:10

Aldrich and co. sold goods to donovan on credit. the amount owed grew steadily, and finally aldrich refused to sell any more to donovan unless donovan signed a promissory note for the amount due. donovan did not want to but signed the note because he had no money and needed more goods. when aldrich brought an action to enforce the note, donovan claimed that the note was not binding because it had been obtained by economic duress. was he correct? [aldrich & co. v. donovan, 778 p.2d 397 (mont.)]

Answers: 1

Answer

Business, 22.06.2019 00:50

cranium, inc., purchases term papers from an overseas supplier under a continuous review system. the average demand for a popular mode is 300 units a day with a standard deviation of 30 units a day. it costs $60 to process each order and there is a five−day lead−time. the holding cost for a paper is $0.25 per year and the company policy is to maintain a 98% service level. cranium operates 200 days per year.what is the reorder point r to satisfy a 98% cycleminus−service level? a. greater than 1,700 unitsb. greater than 1,600 units but less than or equal to 1,700 unitsc. greater than 1,500 units but less than or equal to 1,600 unitsd. less than or equal to 1,500 units

Answers: 1

Answer

Business, 22.06.2019 19:50

Our uncle has $300,000 invested at 7.5%, and he now wants to retire. he wants to withdraw $35,000 at the end of each year, starting at the end of this year. he also wants to have $25,000 left to give you when he ceases to withdraw funds from the account. for how many years can he make the $35,000 withdrawals and still have $25,000 left in the end? a. 14.21b. 14.96c. 15.71d. 16.49e. 17.32

Answers: 1

Answer

Business, 22.06.2019 20:10

Mikkelson corporation's stock had a required return of 12.50% last year, when the risk-free rate was 3% and the market risk premium was 4.75%. then an increase in investor risk aversion caused the market risk premium to rise by 2%. the risk-free rate and the firm's beta remain unchanged. what is the company's new required rate of return? (hint: first calculate the beta, then find the required return.) do not round your intermediate calculations.

Answers: 2

Answer

You know the right answer?

Problems 6.52–6.54 are based on the following cash flows and an interest rate of 10% per year. Alter...

Questions