For some years, Mel has contracted with several major pizza retailers for home delivery services, He...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
For some years, Mel has contracted with several major pizza retailers for home delivery services, He uses a MARR of 12% per year in all business dealings. His current van, purchased 10 years ago for $75,000, can be used for 3 more years, with an AOC of $23,000 and an estimated $25,000 trade-in value. A better-equipped van will cost $147,500, have an economic life of 6 years, an estimated trade-in value of $45.000, an AOC of $32,000 per year, and will generate an estimated S21.000 per year additional revenue. On the basis of these estimates, what market value now for the current van will make the new van equally attractive? Solve by spreadsheet or factors. as requested by your instructor. On equating the AW values of the current van and the new van, to calculate the market value now for the current van, the spreadsheet tool that should be used is [(CCk to selecI) The market value now for the current van that wil make the new van equally attractive will be S For some years, Mel has contracted with several major pizza retailers for home delivery services, He uses a MARR of 12% per year in all business dealings. His current van, purchased 10 years ago for $75,000, can be used for 3 more years, with an AOC of $23,000 and an estimated $25,000 trade-in value. A better-equipped van will cost $147,500, have an economic life of 6 years, an estimated trade-in value of $45.000, an AOC of $32,000 per year, and will generate an estimated S21.000 per year additional revenue. On the basis of these estimates, what market value now for the current van will make the new van equally attractive? Solve by spreadsheet or factors. as requested by your instructor. On equating the AW values of the current van and the new van, to calculate the market value now for the current van, the spreadsheet tool that should be used is [(CCk to selecI) The market value now for the current van that wil make the new van equally attractive will be S
Expert Answer:
Related Book For
Posted Date:
Students also viewed these accounting questions
-
On the basis of these objectives, evaluate the perspectives about performance appraisal presented by the managers.
-
You must select between two options that have a MARR of 12%. Option Red has an initial cost of $50,000 and annual benefits of $13,000 for the next six years. Option Blue has an initial cost of...
-
Cellgene Biometrics, a small biotech company, uses a MARR of 40% per year when evaluating new investments. If the inflation rate is 9% per year, what will the real rate of return be, provided it...
-
(A) If the percent yield for the formation of urea in Example 4-13 were 87.5%, what mass of CO 2 , together with an excess of NH 3 would have to be used to obtain 50.0 g CO(NH 2 ) 2 ? (B) Calculate...
-
Suppose that an F-test (as described in this chapter using the p-value approach) has a p value of 0.04. a. What is the interpretation of p-value = 0.04 ? b. What is the interpretation of the...
-
You pour 108 cm3 of ethanol, at a temperature of -10.0oC, into a graduated cylinder initially at 20.0oC, filling it to the very top. The cylinder is made of glass with a specific heat of 840 J/kg. K...
-
The transactions for Crazy Curlz, Inc., for the month of June 2010 have been posted to the accounts as follows: Requirements 1. Prepare the journal entries that served as the sources for the six...
-
Child Corporation joined the Thrust consolidated group in year 1. At the time it joined the group, Child held a $2 million NOL carryforward. On a consolidated basis, the members of Thrust generated...
-
a) Calculate the future value of a regular annuity that requires monthly instalments for 7 years at an annual interest rate of 3.19%. For the first 4 years the monthly payments are $800 and for the...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Overview For this activity, you'll be evaluating marketing tools that support marketing strategies. You'll present that assessment as an infographic. Sharing information graphically and succinctly is...
-
Find the value of x which satisfies the following equation. log 2 ( x 1 ) + log 2 ( x + 5 ) = 4
-
An industrial Oven costs $13613 and if a sales tax is of 8% is applied to the cost. Find the Amont of the TAX. FORMULA = (PRICE * TAX AMOUNT%)
-
Explain how you would evaluate a social media post using the functional perspective. Explain how you would evaluate a social media post using the dynamic perspective. Explain how you would evaluate a...
-
If a farmer is worried the price of soybeans will decrease before harvest, what are two possible hedging strategies they might employ? Be explicit about which components of cash price risk (futures...
-
of each firm: Suppose there are 6 firms in an industry. The following table gives the total sales Total Firm # Sales 1 200 2 90 3 80 4 60 5 40 6 30 Calculate the HHI for this industry: HHI =
-
Flight Takeoff After takeoff, an airplane climbs at an angle of 30 at a speed of 210 ft/sec. How long does it take for the airplane to reach an altitude of 10,000 ft? (Round your answer to one...
-
Define cultural intelligence. Cite the books or journal articles you found in Capella's library. Explain why cultural intelligence is important for HR practitioners and other organizational managers.
-
Determine (a) The before-tax ROR, and (b) Approximate after-tax ROR for a project that has a first cost of $750,000, a salvage value of 25% of the first cost after 3 years, and annual (GI-OE) of...
-
A to Z Mortgages made a home equity loan to your friend. For a 4-year loan of $10,000 at 10% per year, what annual payment must he make to pay off the entire loan in 4 years if interest is charged on...
-
A presently owned machine can last 3 more years, if properly maintained at a cost of $15,000 per year. Its AOC is $31,000 per year. After 3 years, it can be sold for an estimated $9000. A replacement...
-
Typically most large scale commercial developments require an environmental impact assessment to be undertaken as part of the planning process. While more a regulatory requirement, such an assessment...
-
Use the data presented in 12.13. The probability of the monthly contribution from the new product exceeding 13 500 is: (a) 24.5% (b) 30.5% (c) 63.0% (d) 92.5% 12.13: A company expects to sell 1000...
-
Most businesses will try to minimize risk through a combination of risk assessment, risk management and, where possible, transfer the risk to another party. For businesses, risks like theft, fire...
Study smarter with the SolutionInn App