a suburban taxi company is considering buying taxis with diesel engines instead of gasoline engines. the cars average 80000 km a year use an annual cash flow analysis to determine the more economical choice if interest is 6%

Answers

Answer 1

Answer:

Diesel engine taxis should be chosen.

Explanation:

Complete question "A suburban taxi company is considering buying taxis with diesel engines instead of gasoline engines. The cars average 80,000 km a year. Use an annual cash flow analysis to determine the more 447 6-49 economical choice if interest is 6%."

Useful life  = 5 years

Annual distance covered = 80000 km

For a diesel car

Annual fuel cost = (80000/16)*.88 = $4400

Present value of total cost = vehicle cost + present value of the fuel cost + present value of annual repair cost + present value of annual premium – present value of resale value  

Present value of total cost = 24000 + 4400*(1-1/1.06^5)/.06 + 900*(1-1/1.06^5)/.06 + 1000*(1-1/1.06^5)/.06 - 4000/1.06^5

Present value of total cost = $47548.86

Let, uniform annual cost = EUAC1

Then,  EUAC1 = 47548.86/((1-1/1.06^5)/.06)

EUAC1 = $11287.93

For a gasoline car

Useful life = 4 years

Annual fuel cost = (80000/11)*.92 = $6690.91

Present value of total cost = vehicle cost + present value of the fuel cost + present value of annual repair cost + present value of annual premium – present value of resale value

Present value of total cost = 19000 + 6690.91*(1-1/1.06^4)/.06 + 700*(1-1/1.06^4)/.06 + 1000*(1-1/1.06^4)/.06 - 6000/1.06^4

Present value of total cost = $43322.83            

Let, uniform annual cost = EUAC2

Then,  EUAC2 = 43322.83/((1-1/1.06^4)/.06)                          

EUAC2 = $12502.6

Conclusion: The diesel engine taxis should be chosen because it offers relatively lower uniform annual cost compared to the gasoline engine taxis


Related Questions

Select the correct answer.
Some social workers work in hospitals.
A. True
B. False

Answers

Answer:

A

Explanation:

The correct answer should be A
Hope that helps!!

A friend asks to borrow $635.52 today and promises to repay you $1,000 with interest compounded annually at 12%. How many years (compounding periods) will pass before you receive the payment

Answers

Answer:

4 years

Explanation:

We can calculate the years (compounding periods that) will pass before you receive the payment by calculating the PV factor at 12% as follows.

DATA

Amount borrowed = $635.52

future amount = $1,000

Interest rate = 12%

Time period (n) = ?

Solution

Amount borrowed = future amount x Present value factor (12%, n)

$635.52 = $1,000 x PV factor(12%, n)

0.63552 = PV factor(12%, n)

If you see in a discount table yu wi see 0.63552 in the fourth row of 12% rate that means it will take 4 years to receive the payment.

George bought 100 shares of ABC Corporation at $20/share. He held the shares for a year and then sold them at $22/share. The ABC Corporation realized _____.
A. a risk-return tradeoff of 10 percent
B. a capital appreciation of 10 percent
C. a standard deviation of 10 percent
D. a premium of 10 percent

Answers

d. a premium of 10 percent

Scott, the chief operating officer of Barcelona Restaurant Group, tells his managers that Barcelona's philosophy is to:

Answers

Answer:

the question is incomplete, so I looked for a similar one:

COO, Scott Lawton, discusses Barcelona’s philosophy on allowing restaurant managers to make their own decisions. They hire and train managers that they believe have the "creativity and brain power" to be successful.

Which type of role is Scott performing?

What type of management approach exists in Barcelona?

Scott is performing an interpersonal role since the question describes his actions regarding restaurant managers and how he allows them to basically operate as independent business units. Scott if the figurehead of Barcelona, but at the same time gives lower level managers a lot of freedom.

This type of management can be described as the humanistic perspective management since employees are empowered.

A $1,000 par value bond sells for $1,216. It matures in 20 years, has a 14 percent coupon, pays interest semiannually, and can be called in 5 years at a price of $1,100. The bond's yield to maturity is: (Round the answer to two decimal places.)

Answers

Answer:

The bond's yield to maturity is 11.26%

Explanation:

The computation of the yield to maturity is shown below:

Given that

Present value = PV = $1,216

Future value = FV = $1,000

NPER = 20 × 2 = 40

PMT = 1,000 × 14% ÷ 2 = $70

The formula is shown below:

= RATE(NPER;PMT;-PV;FV;TYPE)

After applying the above formula

The bond yield to maturity is

= 5.63% × 2

= 11.26%

If you want to put your customer service call center workers into small groups to provide more consistent customer service what type of group or team would you create

Answers

Answer: Venture team

Explanation:

A venture team could be described as a team set up with leaders with the responsibility of carrying out certain functions effectively. A venture team supervises and manages start-up businesses, attending to all details and ensuring business operations are ran effectively and optionally.

A fashion designer who creates pieces from start to finish for a Paris runway show has a job that has:________

Answers

Answer:

High task identity.

Explanation:

A task identity can be defined as a measure of the extent or degree to which a project or job requires the completion from the beginning of the project to the end rather than just a bit or a fraction.

A fashion designer who creates pieces from start to finish for a Paris runway show has a job that has high task identity.

In each of the following situations, list what will happen to the equilibrium price and the equilibrium quantity for a particular product, which is an inferior good. DRAW THEGRAPHS

a. The population decreases and productivity increases

b. Income increases and the price of inputs increase

c. The number of firms in the market decreases and income decreases

d. Consumer preference decreases and the price of a complement increases

e. The price of a substitute in consumption increases and the price of a substitute in production increases

Answers

Answer:

how to draw graf in this

If rent receivable decreases during the period, cash received from renters is _____ rent revenue reported on the income statement.

Answers

Answer:

Greater than

Explanation:

In the case when the rent receivable i.e. current asset decreased during the period and the cash received from renters would be more than the rent revenue i.e. reported on the income statement

This condition would be adverse in that case when the rent receivable increased and the cash received would be less than the rent revenue

Here cash received could be computed by deducting an increase or adding a decrease

Suppose that there is only one small clothing store in the remote village of Green Acres, and until fairly recently all of the townspeople bought most of their clothing there. As more people in Green Acres use the internet to shop for clothes, the price elasticity of demand for shirts at the Green Acres store will:_______

a. decrease because the Internet offers more substitutes.
b. remain the same, but the quantity demanded will decrease as more people shop online.
c. remain the same, but the demand will decrease as more people shop online.
d. increase because the Internet offers more substitutes.

Answers

Answer:

D)increase because the internet offers more substitutes

Explanation:

From the question we are are informed about a situation where there is only one small clothing store in the remote village of Green Acres, and until fairly recently all of the townspeople bought most of their clothing there. In the case that more people in Green Acres use the internet to shop for clothes, the price elasticity of demand for shirts at the Green Acres store will increase because the internet offers more substitutes.price elasticity of demand which is the degree to which there is a change in amount of quantity that is been demanded as a result in the change in price, so on this case as the Green Acres use the internet to shop for clothes the price elasticity of demand for shirts at the Green Acres store will increase and this is as a result of the substitute that is been provided by the internet.

Note that substitute in business means that both the shop online and the clothing stores in the village are offering same purpose. They are substitute.

An insurance policyholder must pay a _______________ for each ______________ service, before insurance covers the rest.

A. copayment; uninsured
B. deductible; uninsured
C. deductible premium; insured
D. copayment; insured

Answers

Answer:

D. copayment; insured

Explanation:

When the person takes insurance than the person called as insurance policyholder who is holding his or her own policy so he or she must have to pay the copayment i.e. fixed amount for the service covered prior to receiving the service for each insured service prior to the insurance that covers the rest

Therefore the correct option is D

And, the rest ones are incorrect  

The longest series of connections in the project network from the start to the end of the activities is also referred to as ________

a. the action path.
b. the critical path.
c. the master schedule.
d. float or slack.

Answers

Answer:

b. the critical path.

Explanation:

Project management can be defined as the process of designing, planning, developing, leading and execution of a project plan or activities using a set of skills, tools, knowledge, techniques and experience to achieve the set goals and objectives of creating a unique product or service. Generally, projects are considered to be temporary because they usually have a start-time and an end-time to complete, execute or implement the project plan.

The fundamentals of Project Management are considered universal across most businesses and professions.

The fundamentals of Project Management includes;

1. Project initiation

2. Project planning

3. Project execution

4. Monitoring and controlling of the project

5. Adapting and closure of project.

It is very important and essential that project managers in various organizations, businesses and professions adopt the aforementioned fundamentals in order to successfully achieve their aim, objectives and goals set for a project.

The longest series of connections in the project network from the start to the end of the activities is also referred to as the critical path. It is typically used by project managers to do a proper scheduling of their project activity and work.

Why is understanding the relationship between the cash conversion cycle (CCC) and net working capital important to the contemporary business executive

Answers

Answer: To understand how businesses need money and how they can sustain themselves for a period of time to fund bills and still operate

Explanation:

Understanding the relationship between cash conversation cycle and contemporary business executive aims at knowing the business needs funds to operate and building strategic alliances, make money and propose ideas that will sustain and elevate it's strength for some time. Money is vital in running business operations, as organizations will foot bills and do some expenditure and sought out ways to earn more business.

The investor is worried that the beta of his portfolio is too high, so he wants to sell some stock C and add stock D, which has a beta of 1.0, to his portfolio. If the investor wants his portfolio to have a beta of 1.72, how much stock C must he replace with stock D

Answers

Answer: $36,000

Explanation:

First calculate the individual weights for the different stocks as this will help with the calculation of beta.

Total amount invested = 16,000 + 48,000 + 96,000 = $160,000

Stock A weight = 16,000/160,000 = 10%

Stock B weight = 48,000/160,000 = 30%

Stock C weight = 96,000/160,000 = 60%

Stock D is to be bought by replacing some of stock C which means that the weight of stock C in the new beta calculation will be exactly less than 60% by the weight of D.

Assuming the weight of d is x, beta is;

Portfolio beta = ∑(weight of stock * beta)

1.72 = (10% * 1.3) + (30% * 1.8) + ((60% - x) * 2.2) + ( x * 1)

1.72 = 0.13 + 0.54 + 1.32 - 2.2x + x

1.72 = 1.99 - 1.2x

1.2x = 1.99 - 1.72

x = (1.99 - 1.72) / 1.2

x = 0.225

Weight of stock D will be 0.225 which is how much of stock C will have to be sold.

The amount of stock C that should be replaced by D is therefore;

= 160,000 * 0.225

= $36,000

Riverbed Inc. purchased land, building, and equipment from Laguna Corporation for a cash payment of $327,600. The estimated fair values of the assets are land $62,400, building $228,800, and equipment $83,200. At what amounts should each of the three assets be recorded

Answers

Answer:

Land=$54,600, Building = $200,200, Equipment = $72,800

Explanation:

Total Asset Fair Value = Land + Building + Equipment

Total Asset Fair Value = 62,400 + 228,800 + 83,200

Total Asset Fair Value = 374,400

Recorder Amount

Land = 62,400 / 374,400 * 327,600 = $54600

Building  = 228,800 / 374,400 * 327,600 = $200200

Equipment = 83,200 / 374,400 * 327,600 = $72,800

_____ interviews are used to gain information as to what the employee liked at the organization, and what he/she believe should be improved.

a. Screening
b. Exit
c. Selection
d. Stress
e. Intake

Answers

Answer:

Option B: Exit

Explanation:

Organization has several reasons for conducting an exit interview it includes:

1. Source of information for the organisation: questions asked includes What went well and what did not go as planned, What could have made the employee stay and others leave. And the LSD technique is used and it can lead to a Win-win situation for both parties

2. The owner and the organization can learn and take retention initiatives for the rest of the workforce.

3. Building company image.

At the end of the year, Sheffield Co. has pretax financial income of $616,000. Included in the $616,000 is $78,400 interest income on municipal bonds, $28,000 fine for dumping hazardous waste, and depreciation of $67,200. Depreciation for tax purposes is $50,400. Compute income taxes payable, assuming the tax rate is 30% for all periods.

Answers

Answer:

$173,820

Explanation:

pretax financial income $616,000

- interest income on municipal bonds ($78,400)

+ depreciation ($67,200 - $50,400) = $16,800

+ fine for dumping hazardous materials $25,000

taxable income = $579,400

income taxes payable = $579,400 x 30% = $173,820

Fines are not tax deductible, and since depreciation for tax purposes is lower than accounting depreciation, you must add them. But since municipal bonds are not taxable, they must be subtracted.

QUESTION 9 of 10: A popular act commands $250,000 for a single appearance plus 20% of ticket sales and 10% of concession receipts. If
ticket sales are $1,250,000 and concession receipts are $400,000, what will the act be paid for their performance?
оооо
a) $250,000
b) $290,000
c) $540,000
d) $1,900,000

Answers

Answer:

c) 540,000

Explanation:

The total amount the popular act will be paid for their perfomance is $540,000.

What will the act be paid for their performance?

The total amount that would be paid is the sum of the single apperance fee, the 20% of ticket sales and the 10% of concession receipts.

Total amount = $250,000 + (20% x 1,250,000) + (10% x $400,000) = $540,000

To learn more about percentages, please check: https://brainly.com/question/25764815

#SPJ2

Benjamin put together a committee that included his colleagues. This committee had the sole task of monitoring the effect of the current marketing campaign of the company. The committee will be dissolved after the task is completed. What type of committee did Benjamin put together

Answers

Answer:

Benjamin put together a ad hoc committee

Explanation:

A stock has an HPR of 9%. The expected dividend yield is 3%.

a. True
b. False

The expected price appreciation is 12%.

a. True
b. False

Answers

Answer:

b. False

Explanation:

holding period return = [dividends received + (ending value - initial value)] / initial value

9% = [dividends received + (ending value - initial value)] / initial value

dividend yield = dividend / ending value

3% = dividend / ending value

price appreciation = (ending value / initial value) - 1

1.12 =  ending value / initial value

ending value = 1.12 initial value ⇒ WE REPLACE IN THE HPR ANN DY FORMULAS

3% = dividend / 0.12 initial value

dividend = 0.36 initial value

9% = [dividends received + (1.12 initial - initial value)] / initial value

9% = dividends received + (0.12 initial value / initial value)

9% = dividends received + 12%

9% = 0.36 initial value + 12%

-3% = 0.36 initial value ⇒ THIS CANNOT BE TRUE, SO THE QUESTION MUST BE FALSE

Sledge Co. manufactures a product requiring 1.5 lbs. of raw material for each finished unit. The beginning inventory of raw materials in March was 5,000 lbs. The company wants an inventory of 2,500 lbs at the end of March. Production for March will be 4,000 units. How many lbs. of raw material must be purchased in March

Answers

Answer:

Purchases= 3,500lbs

Explanation:

Giving the following information:

Production= 4,000*1.5= 6,000 lbs

Beginning inventory= 5,000 lbs

Ending inventory= 2,500 lbs

To calculate the direct materials purchase, we need to use the following formula:

Purchases= production + desired ending inventory - beginning inventory

Purchases= 6,000 + 2,500 - 5,000

Purchases= 3,500lbs

Answer:

Sledge Co./

3,500 Ibs. of raw materials must be purchased in March.

Explanation:

a) Data and Calculations:

Purchases of raw materials:

Expected ending inventory =                     2,500 Ibs.

Production for March (4,000 x 1.5 Ibs.) =   6,000 Ibs.

Raw materials available for production =  8,500 Ibs.

Less beginning inventory =                        5,000 Ibs.

Purchases =                                                 3,500 Ibs.

b) The units to be purchase is the difference between raw materials expected to be available for production and the beginning inventory.  Since the expected ending inventory is 2,500 Ibs. and the units to be produced during March is 4,000 units, which will use 6,000 Ibs (4,000 * 1.5 Ibs.), therefore, the total units of raw materials required is 8,500 Ibs.  When the inventory of raw material is taken away, the difference is the Purchases of materials to be made during March.

Melaney has had a bad year with her investments. She lent a friend $8,000; the friend did not repay the loan whenit was due and then declared bankruptcy. The loan is totally uncollectable. Melaney also was notified by her broker that Oak corporate bonds she owned became worthless on October 13, 2015. She had purchased the bonds for $22,000 on November 10, 2014. Melaney also had a $60,000 loss on the disposition of Section 1244 corporate stock that she purchased several years ago. Melaney is single.

a. What are the nature and amount of Melaney's losses?

b. What is Melaney's AGI for 2015 assuming that she has $65,000 of ordinary gross income from sources other than those discussed?

c. What are the nature and amount of Melaney's loss carryforwards?

Answers

Answer:

a. The nature and amount of Melaney's losses is shown below

  Type of loss                   Nature of loss                Amount of loss

1  Bad debts of $8,000   Short-term capital loss    $8,000

2. Bond of Oak Co.          Long-term capital loss    $22,000

3. Section 1244                 Ordinary loss                   $50,000

    Corporate stock

4. Section 1244                 Long-term capital loss    $10,000

   Corporate stock            (60,000- 50,000)

Note: Non business debt of $8,000 is treated as Short-term capital loss, The loss of $50,000 is treated as ordinary loss for single tax payers. Ordinary loss is fully deductible in the current years.

b. The ordinary loss and net capital loss would be deducted from the ordinary income to get the AGI.

AGI = $65,000 - ($50,000 + $3,000)

AGI = $65,000 - $53,000

AGI = $12,000

So the AGI of Malaney is $12,000

c. Malenay can claim the deduction for net capital losses of $3,000 in the current year. The short term capital loss of $5,000 ($8,000-$3,000) and the Long term capital loss of $32,000($22,000+$10,000) would be carried forward to future years.

A global organization headquartered in London that represents over 200 consumer groups in more than 100 nations is called: Multiple Choice Consumers Union. Consumers International. Public Interest Research Group. Public Citizen.

Answers

Answer:

Consumer international

Explanation:

Consumer international is am organisation that have members that are consumer groups around the world.

Presently they have members of 250 consumer groups in 120 countries around the world.

The headquarters not the organisation is in London. While it has branches in Latin America, Asia Pacific, Africa, and the Middle East.

They focus on consumer protection. Ensuring that member groups get the best products at the cheapest rates

Under a divorce decree executed in 2019, Duron is required pay $800 of alimony and $400 of child support each month for the next 10 years. In addition, Duron makes a voluntary payment of $200 per month. How much of the total monthly payments are deductible by Duron

Answers

Answer:

The total monthly payments that are deductible by Duron are:

$1,200 each month for the next 10 years.

Explanation:

According to the IRS rules, if Duron pays his ex partner payments each month which are not documented by the court, the money is not tax deductible. Therefore, it is beneficial for Duron to receive a court order to pay the additional alimony if Duron plans on enjoying a tax deduction for the additional spousal support of $200.

How should an organization think about cyber defense? What are the limits of a ‘perimeter-oriented’ security posture?

Answers

Answer:

In the explanation is a short point of view about the cyber defense and the perimeter oriented posture.

Explanation:

To begin with, the concept known as "Cibersecurity" refers to the process of protection of computer systems and everything related to them like softwares, hardwares or any electronic data that could be harmful and sensitive for the company. The reason why this type of practice has been rising up the last years is due to the fact that the "internet of things" has been growing up as well and everyday the companies need to protect their information more and more. Moreover, the "perimeter-oriented" security posture implicates the focus on the external networks as being bad and on the other side the internal networks as being good and stable. So the reason why the companies should consider the cyber defense important is because they need to protect all the information that could be use against them.

Everything else held constant, an autonomous (i.e. discretionary) expansionary monetary policy (i.e. lowering interest rates) ________ aggregate ________.

a. decreases; demand
b. increases; supply
c. decreases; supply
d. increases; demand

Answers

Answer: d. increases; demand

Explanation:

Autonomous expansionary policy by the Central bank of a nation is what happens when the central bank is engaging in actions that are increasing the amount of money in the nation.

With more money available for spending, people will want to buy more of the things they want which will increase aggregate demand.

Companies as well as people will also be able to access loanable funds at cheaper interest rates and so will borrow more for investment which will also increase aggregate demand.

Angie and Brad form Cats Are Us, Inc. Angie contributes $120,000 cash for 60% of the stock. Brad contributes an asset with an FMV of $90,000 and an adjusted basis of $30,000 for 40% of the stock. Brad also receives $10,000 cash from the corporation. What is the corporation's basis in the asset received from Brad?

Answers

Answer:

$40,000

Explanation:

Calculation for the corporation's basis in the asset that was received

Using this formula

Corporation'sbasis in the asset received = Stock Adjusted basis + Cash received

Let plug in the formula

Corporation'sbasis in the asset received = $ 30,000 +$10,000

Corporation'sbasis in the asset received = $ 40,000

Therefore the Corporation'sbasis in the asset received will be $40,000

Amy is considering investing in a project that is expected to return $75,000 five years from now. How much is she willing to pay for this investment if she wants a 10% return

Answers

Answer:

$46,569.10  

Explanation:

The worth of the project today is the present value of the return expected in 5  years using the interest rate of return of 10% as the discount rate as computed below:

PV=FV/(1+r)^n

PV=today's worth of the project which is unknown

FV=future amount expected=$75,000

r=interest rate=10%

n=the time before the return is received=5 years

PV=$75,000/(1+10%)^5

PV=$75,000/(1.1)^5

PV=$75,000/1.61051

PV=$46,569.10  

The taxpayer's spouse died at the beginning of 2019. He has no qualifying child. Which status should the taxpayer select when filing his tax return?

Answers

Answer:

single (no child)

Explanation:

In the given scenario the taxpayer's spouse died so the first assumption is that he will file as a widower.

However to file tax as a widower one has to have lost their spouse and have dependants or children. Then he file for standard deduction of married couple in the first year and as a widower in subsequent years.

In this case the taxpayer will file as single with no child and not as a widower.

When the interest rate is 10% per year, all of the following are equivalent to $5,000 now except: A) $4,545 one year ago B) $5,500 one year later C) $4,012 two years ago D) $6,050 two years later

Answers

Answer:

$4,021 two years ago

Explanation:

Given that

The Rate of interest is 10%

And as we know that

PV = FV × (1 + i)^(-n)

And

FV = PV ÷ (1 + i)^n

where,  

PV = prsent value,

FV = future value ,

i = interest rate,

n = years

Now

a)

FV = $4,545 × (1.1)

= $4,999.5

b)

PV = $5,500 ÷ (1.1^-1)

= $5,000

c)

FV = $4,021 × (1.1^2)

= $4,865.41

d)

PV = $6,050 × (1.1^-2)

= $5,000

hence, the correct option is c. $4,021

It is wrongly written as $4,012

Answer:

$4,012 two years ago

Explanation:

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