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ki77a
2 months ago
9

The Hub is a business dedicated to providing rentable work spaces for local companies or self-employed individuals. As they begi

n to expand their business, they need to acquire a set of computers for an in-house computer lab. IBM offers the computers for a single payment of $55,000 due at the end of four years. Dell offers similar computers, but requires four annual payments of $13,000 due at the end of each year. The Hub could borrow the funds at 5%. Using discounted cash flows, determine which computers The Hub should purchase.

Business
2 answers:
soldi70 [3.6K]2 months ago
6 0
The question is somewhat vague concerning the cash flow specifics; however, it can be deduced that IBM likely has a favorable future investment outlook. The response relies on discounted cash flow results, regardless of which offer costs less. IBM's computers are available for a total of $55,000 due at the end of four years, which may influence the Hub's decision if the present value of the calculated cash flow exceeds the initial investment cost, indicating a viable option.
stepan [3.5K]2 months ago
4 0
Review the explanation. The question will be addressed using an Excel spreadsheet presentation where we will compute the present value of both the lump sum and the four annual payments to select the option with the lower present value.
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You are analyzing cost data for your boss related to a special order your company is considering from a large customer in Singap
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Answer:

In addressing the relevant response, it is inferred that units are measured in thousands for the request.  

Thus, the complete commitment would be:  

Sales = 49950  

Variable Costs = 10500  

Variable Selling Expenses = 18250  

Contribution Margin = 21200  

Considering the client's insistence on maintaining the commitment at a specific level, this would not benefit the organization as it would not yield the same level of $ 21200 as the commitment, especially since an additional $ 5000 would be required for the custom discharge despite eliminating selling costs; thus the revised figures would be:  

Sales = 23320  

Variable Costs = 10500  

Variable Selling Expenses = 0  

Contribution Margin = 12820  

Part 1: Accounting concerns:  

  • This situation would create a bookkeeping challenge to report sales at a price lower than what is charged to other clients.  
  • Accepting the order would lead to an accounting deficit.  

Ethical considerations:  

  • Other clients might be dissatisfied as they would be charged a higher rate for similar services.  
  • Furthermore, employees may also feel undervalued as the overtime expenses may not compensate for the extra time spent with the family
3 0
1 month ago
A visually evident condition that should alert a reasonably diligent real estate agent as to a problem is commonly referred to a
Katen [3525]
The previously mentioned response indicates a warning sign. This serves as a process or method to provide a reasonable explanation or notify someone when an issue exists.
4 0
1 month ago
A construction management company is examining its cash flow requirements for the next 7 years. The company expects to replace s
Nady [3600]

Answer:

Total cost= $104,022.6

Explanation:

Given the following data:

The company anticipates $6000 in expenditure after 1 year, $9000 after 3 years, and $10,000 annually from year 6 through year 10.

The annual interest rate is set at 12%.

We will apply this formula:

FV= PV*(1+i)^n

FV= 6000*(1.12)^9= 16,638.47

FV= 9000*(1.12)^7= 19,896.13

Total= $36,534.6

For the last three amounts, we shall use the formula:

FV= {A*[(1+i)^n-1]}/i

A= annual payment

FV= {10000*[(1.12^3)-1]}/0.12= 67,488

The cumulative cost is 67,488 + 36,534.6= $104,022.6

7 0
3 months ago
A manager can faithfully execute the decision making process but still end up with nothing of value if _________________________
stepan [3596]

A) he is unable to identify the proper problem

B) he neglects to assign numerical values to various criteria

C) he resolves the issue ineffectively

D) he does not correctly identify the procedure steps

Response:

A. He fails to identify the proper problem.

Clarification:

In option B, assigning numerical values to decision criteria could assist in the decision-making process, yet it's not essential for achieving a successful outcome.

Regarding option C, solving a problem ineffectively is not optimal, but it does hold some value.

As for option D, recognizing the procedure's steps doesn't significantly impact the success of the process.

This directs us to option A as the correct response; addressing a problem is futile if it's the incorrect one. Resolving an erroneous problem yields no benefit for the organization.

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Larkan & Tokodo is a financial institution that sells shares to investors. The funds resulting from the investments are pool
harina [3808]
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3 0
1 month ago
Read 2 more answers
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