Galvanized products is considering purchasing a new computer system for their enterprise data management system. the vendor has quoted a purchase price of $100,000. galvanized products is planning to borrow 1/4th of the purchase price from a bank at 12.00 % compounded annually. the loan is to be repaid using equal annual payments over a 3-year period. the computer system is expected to last 5 years and has a salvage value of $6,000 at that time. over the 5-year period, galvanized products expects to pay a technician $24,000 per year to maintain the system but will save $50,000 per year through increased efficiencies. galvanized products uses a marr of 15.00 %/year to evaluate investments. a) what is the present worth of this investment? b) should the new computer system be purchased?

Which of the following best explains why large companies have an advantage over smaller companies? a. economies of scale make it possible to offer lower prices. b. the production possibilities frontier is wider for a larger company. c. decreasing marginal utility enables more efficient production. d. increasing the scale of production leads to a reduction in inputs.2b2t

Vintage fun reproduces oldminusfashioned style roller skates and skateboards. the annual production and sales of roller skates is 950 units, while 1,750 skateboards are produced and sold. the company has traditionally used direct labor hours to allocate its overhead to products. roller skates require 2.5 direct labor hours per unit, while skateboards require 1.25 direct labor hours per unit. the total estimated overhead for the period is $114,300. the company is looking at the possibility of changing to an activityminusbased costing system for its products. if the company used an activityminusbased costing system, it would have the following three activity cost pools: the overhead cost per skateboard using the traditional costing system would be closest to: a. $9.31. b. $65.31. c. $25.05. your answer is not correct. d.

You plan to invest some money in a bank account. which of the following banks provides you with the highest effective rate of interest? hint: perhaps this problem requires some calculations. bank 1; 6.1% with annual compounding. bank 2; 6.0% with monthly compounding. bank 3; 6.0% with annual compounding. bank 4; 6.0% with quarterly compounding. bank 5; 6.0% with daily (365-day) compounding.