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Zarrin
28 days ago
10

EDP is trying to decide between two different conveyor belt systems. System A costs $438,000, has a six-year life, and requires

$83,000 in pretax annual operating costs. System B costs $369,000, has a five-year life, and requires $92,000 in pretax annual operating costs. Both systems are to be depreciated straight-line to zero over their lives and will have a zero salvage value. Whichever system is chosen, it will not be replaced when it wears out. The tax rate is 23 percent and the discount rate is 14.2 percent. Which system should the firm choose and why?
Business
1 answer:
Mariulka [3.1K]28 days ago
6 0

The company should opt for system A, as it boasts a six-year lifespan and lower annual operating expenses.

Rationale:

  • Despite system A's price of $438,000, it is of good quality and lasts for six years. Thus, its quality is quite sufficient. It incurs an $83,000 tax operating cost annually.
  • Conversely, system B has a lower cost of $369,000, but its $92,000 tax operating cost per year is higher than that of system A.
  • System A outlasts system B, making it the preferable choice for the firm.

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If an undergraduate student was considering getting a tattoo and stopped to ask herself what her parents would think of such beh
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Answer: The right answer is "subjective norm".

Explanation: If a college student contemplating a tattoo pauses to consider her parents' opinions regarding such an action, this thought process would reflect her subjective norm, as it specifically hinges on her parents' potential views about her behavior.

3 0
14 days ago
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On January 1, 2021, Jalen Company purchased land costing $800,000. Instead of paying cash at the time of purchase, Jalen plans t
Mariulka [3182]

Answer:Jalen journal $

Date

Jan 1,2021

Land Dr. 860,887

Note payable Cr. 860,887

Narration. Issuance of note for the above amount, payable in four installments for land purchase.

June 30,2021

Note payable Dr 215,221.64

Cash Cr. 215,221.64

Narration. Payment of the first installment for the land acquisition.

December 31,2021

Note payableDr 215,221.64

Cash.Cr. 215,221.64

Narration. Payment of the second installment for the land acquisition.

2. Remaining balance on note payable as of December 31, 2021 is $400,000

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Explanation:

The land account is debited to reflect its purchase, while the notes payable account is credited to recognize the liability.

Payments made in the first and second periods debit the respective installment amounts.

The note payable balance indicates the outstanding principal payments of $800,000, whereas the interest expense denotes the additional amount beyond the principal.

6 0
1 month ago
n important consideration in the selection of a strategy is the ability of each alternative to satisfy agreed-upon objectives wi
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Response: the VRIO framework

Clarification:

VRIO represents value, rarity, imitability, and organization. These four components are utilized to assess if a business possesses a competitive edge over other firms

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3 0
10 days ago
You buy 50 stocks of Company A, 30 of Company B, and 20 of Company C. The annual returns of these companies are 8%, 12%, and 10%
stepan [3001]

Response:

The yearly average return stands at 9.6 %

Clarification:

Calculating the average return

Assuming the price per share is 100

                                                       Initial    Growth             Final

                                                         Value            %                   Value

Company A  50 % at 100                5,000              8 %                 5,400

Company B 30 % at 100                 3,000              12 %                3,360    

Company C 20 % at 100                  2,000             10 %                2,200

Total amounts                             10,000                                     10,960

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3 0
22 days ago
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marusya05 [3096]

Answer:

The organization will incur $5,100 for each employee regarding separation fees should these exit interviews take place next year

Explanation:

Information provided in the question:

Expected reduction in staff = 15% = 0.15

Cost of conducting exit interviews = $100

Standard separation cost = $5,000

Now,

Total separation cost for each employee = Cost of exit interviews + Standard separation cost

= $100 + $5,000

= $5,100

Therefore,

The organization will incur $5,100 for each employee regarding separation fees should these exit interviews take place next year

3 0
1 month ago
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