Three alternative machine models are being considered for an ongoing operation. The three alternatives will be used in the production of the same product. Therefore, the selection among the three will be based on total costs.

Model A costs $54,000 and will last 4 years. Its real operating cost is $8,300/year.

Model B costs $65,000 and will last 5 years. Its real operating cost is $8,200/year.

Model C costs $72,000 and will last 6 years, Its real operating cost is $8,000/year.

It is determined that the real opportunity cost of capital is 6.75%. Rank the three models from the best choice to the least choice.

a. Best A, B, C Least

b. Best A, C, B Least

c. Best B, A, C Least

d. Best B, C, A Least

e. Best C, A, B Least

f. Best C, B, A Least

Rental property that is leased : If you have a rental property that is leased for $1,000 a month for the next 20 years, what could an investor pay for the property if their required rate of return was 11% (assume rent is collected at the end of each month)? |

How is the irs able to determine the amount of tips : Anita Leland, a waitress in Atlantis Casino, reported tips of $467 to her employer last year. Two months after she filed her federal income tax return, Leland received a letter from the IRS informing her that she had earned $5,260 in tips rather than.. |

What is the opportunity cost of capital : Eastern Electric currently pays a dividend of about $1.96 per share and sells for $33 a share. If investors believe the growth rate of dividends is 4% per year, what is the opportunity cost of capital? If investors' opportunity cost of capital is 10%.. |

Discontinued operations : discontinued operations-extraordinary items earnings per share date |

Machine models are being considered for ongoing operation : Three alternative machine models are being considered for an ongoing operation. The three alternatives will be used in the production of the same product. Therefore, the selection among the three will be based on total costs. |

Find the amount of work done by the boy : A body of mass m1 standing on a smooth plane of ice throws a ball of mass m2 horizontally on the surface of ice. If x be the distance between them after a time t, then find the amount of work done by the boy in throwing the ball? |

Break-even financial : It will cost $3000 per year to maintain the vehicle, which includes all relevant costs. How much will the WCHC need in foundation grants this year to make the purchase break-even financial |

Justin holmes an ex-employee is entitled to a taxable : Justin Holmes, an ex-employee, is entitled to a taxable fringe benefit during the first part of this year. Because he wasn't paid any wages this year, can his employer report the taxable fringe benefit on Form 1099? |

Calculate the term of a mortgage assuming an interest rate : Calculate the term of a mortgage assuming an interest rate of 7.75%, a monthly payment of $2,212.76, and an original loan amount of $280,000. |

## What is the estimated amount of purchases for quarterAbbott & Costello has the following estimated sales: first quarter $8,100, second quarter $8,600, third quarter $9,500 & fourth quarter $11,200. Purchases are equal to 75 percent of the following quarter's sales. What is the estimated amount of purch.. |

## What is the value of rolens preferred stockSeveral years ago, Rolen Riders issued preferred stock with a stated annual dividend of 10% of its $100 par value. Preferred stock of this type currently yields 8%. Assume dividends are paid annually. What is the value of Rolen's preferred stock? |

## Explain after-tax rate of return on assets before retirementTara, age 44, plans to retire at age 67. Her life expectancy, accounting for family medical history, is age 97. Tara is single and currently earns $56,000 per year as a university librarian. |

## Compensation-net present value-internal rate of returnDetermine how much compensation (return) you expect to earn and how long will it take to pay back the return on this investment. Use the financial formulas, Net Present Value (NPV), Internal Rate of Return (IRR), and Payback. |

## Why mrs qe might prefer one trial court over the otherMrs. QE has decided to contest a $28,650 tax deficiency. She understands that she can initiate the litigation in district court or the Tax Court. Identify any reasons why she might prefer one trial court over the other. |

## Differences between monopolistic and perfect competitionExplain why product differentiation leads to differences between monopolistic competition and perfect competition. |

## Calculate DCFROR and NPV project lifeConsider an investment of $500,000 at time zero for machinery and equipment to be depreciated using 8 year straight line depreciation starting in year 1 to year 8. Salvage value of the machinery and equipment is expected to be zero. The minimum DCFRO.. |

## Exercise the option or use the spot transactionAssume you import 1 million Euro of computer from Europe from France and you have to make the payment in Euro and pay in September. To hedge against rate uncertainty, you can buy a September option. If you buy the option, on the maturity date, the sp.. |

## When information is important enough to the informed userWhen information is important enough to the informed user, so that if it was omitted or erroneous, it would make a difference in the user's decision, it is: |

## What is the yield to maturity of a bond that sellsWhat is the yield to maturity of a bond that sells for $1,045 today and pays $30 every six months and matures in 12 years if bonds issued today are paying $40.00 annually? |

## Use this sales figure to compute the profit levelSurmec, Inc. has sales of $2.1 million last year. The company’s primary business line is manufacturing of nuts and bolts. Since this is a mature industry, the analysts are certain that the sales will grow at a steady rate of 7 percent a year for as f.. |

## What is the future value of an annuityWhat is the future value of an annuity where $3,000 is deposited every 6 months for 8 years, and earns interest at 12 percent compounded semi-annually? |

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd