The salvage value applied in this case is B. $20,000.
For year 3, the depreciation amounts to $80,000 calculated using the sum of the Years' Digits method on an asset with a purchase price of $500,000 and a useful life of 8 years. The salvage value taken into account for the depreciation calculations stands at $20,000.
A Decision Support System (DSS) is an interactive information framework comprising hardware, software, data, and mathematical and statistical models designed to aid decision-makers within an organization. The components of a DSS include a database, model base, and a user interface. DSS requirements stipulate that it must be interactive, integrate the human factor along with hardware and software, and utilize both internal and external data.
Answer:12.81%
Explanation:
PMT (the monthly investment amount) is $500
n = 35 years = 35 x 12 = 420 months
The future value (FV) of the account over 35 years is $4,000,000
Present value (PV) = 0
i/r =?
By inputting these values into a financial calculator, we arrive at:
i/r = 1.07%/month
--> The annual rate of return computes to 1.07% x 12 = 12.81%
Answer:
The answer is C.
Explanation:
According to the provided details:
Hudson Co. is manufacturing 1,000 units of a vital component at the cost of $54,400 for direct materials, $24,000 for direct labor, $14,400 for variable overhead, and $16,000 for fixed overhead. If they opt to buy the component instead, Hudson could eliminate $9,600 of fixed overhead expenses. The company aims to reduce expenses and prefers to obtain the component externally.
Make in house:
Variable cost per unit = (54,400 + 24,000 + 14,400)/1000= 92.8
Total expenses = 92.8*1000 + 9600= $102,400
