why is cost-benefit priciple higher in used car than a new car that consumers have to wait a year to purchase?
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D2
why is cost-benefit priciple higher in used car than a new car that consumers have to wait a year to purchase?
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- Vd3 You are trying to pick the least-expensive car for your new delivery service. You have two choices: the Kia Rio, which will cost $16,500 to purchase and which will have OCF of −$1,700 annually throughout the vehicle’s expected life of three years as a delivery vehicle; and the Toyota Prius, which will cost $24,000 to purchase and which will have OCF of −$900 annually throughout that vehicle’s expected 4-year life. Both cars will be worthless at the end of their life. If you intend to replace whichever type of car you choose with the same thing when its life runs out, again and again out into the foreseeable future. If the business has a cost of capital of 13 percent, calculate the EAC. Note: Negative amounts should be indicated by a minus sign. Do not round your intermediate calculations. Round your answers to 2 decimal places.Question A4 Freda is looking to sell her Bike that has been sitting in the garage unused for some time. The bike cost Freda £650 when she purchased it from a local bike shop. She is keen to recover as much as possible for the bike and is disappointed to see similar used bikes are currently selling on eBay for around £250. If Freda considered relevant costing in arriving at a selling price for her bike, what would the £650 be described as? A A past cost B A relevant cost C An incremental cost D A sunk costUSE FORMULA OR CALCULATOR APPROACH ONLY (NO EXCEL) (a) What is the present value of benefits of owning that car, I.e, saving on rental expenses and selling the car? (b) Should you buy the car?
- Q7. a) Explain the difference between full-absorption costing and direct costing and how does absorption costing help an entrepreneur make better decision? b) “A start-up entrepreneurship does not need to develop a business plan when launching a new enterprise. All he/she need is a business idea and money to start operating.” Evaluate this statement supporting your answer with facts d) What options does an entrepreneur have if he or she becomes unhappy with the growth of the company?1. What is the profit per day of Machine A? 2. What is the profit per day of Machine B? 3. What would the percent of parts rejected have to be for Machine B to be as profitable as Machine A?H2. A clothing manufacturer is considering whether to add hoodies to its range of products. The hoodies would sell for $45 each and the company expects to sell 10,000 units per year. Selling hoodies, however, would cause sales of conventional jumpers to decrease by 1,000 units per year. The jumpers sell for $43 per unit. The variable costs of production are $25 per unit for hoodies and $20 per unit for jumpers. If the company adds hoodies to its range of products, fixed costs will increase by $56,000 per year and annual depreciation will increase by $21,000. What is the incremental operating cash flow from selling hoodies, if the corporate tax rate is 30%? Please show proper step by step calculation
- Your Question: QUESTION: 1. Work Related Car Expenes (3800 Km + 500 Km) * $0.72 per Km? May know which method are you choose cents per km method or logbook method? which method better? 2. why no medical levy ? 3. Work-related mobile phone expense? How to calculate? 4.Work-related car expense?How to calculate?A real estate investor specializes in "flipping" rental houses (he buys a building, and turns around re-sells it for profit). He said his investment objective is "to buy at 10.0", and "to sell at 7.0", which suggests his expected gross profit margin is___%. (large positive or negative profit margin is possible) Write your answer without %. E.g. if your answer is 21.5%, just write 21.5. Show work.22. Basiclang Company is assessing whether to sell its unused car parts for P27,000. The parts were previously purchased for P100,000. The company will incur refurbishing costs of P15,000 to be able to sell them. Which alternative should the company pursue? Group of answer choices b. a. The company is indiferrent c. Sell, there is an incremental benefit of P12,000 d. Sell, there is an incremental benefit of P27,000 e. Don’t sell, it will incur a loss of P73,000
- D 2) Contribution Margin The following information is supplied about one of the company’s main products and management wants to analyse the contribution that this product is making to the overall profitability of the company. (d) If the company wishes to increase its total dollar contribution margin by 40% in the next year, by how much will sales need to be increased if all the other costs remain the same.1.what is the financial advantage per quarter of discontinuing racing bikes ? 2. should the production and sale of racing bikes be discontinued?Car Rentals The cost C, in dollars, of a one-day car rental ismodeled by the function C1x2 = 0.35x + 45, where x is thenumber of miles driven.(a) What is the cost if you drive x = 40 miles?(b) If the cost of renting the car is $108, how many miles didyou drive?(c) Suppose that you want the cost to be no more than $150.What is the maximum number of miles that you candrive?(d) What is the implied domain of C?(e) Interpret the slope.(f) Interpret the y-intercept.
