(10 Points) A company needs to make a choice between two options. Option 1 involves launching a new product line that will generate annual revenues of $165,000 over a fifty year period, requires an initial expense of $65,000 and annual maintenance and operating expenses of $6900. Option 2 involves providing services to the local city administration which will yield perpetual revenue of $16,000 following an initial expense of $65,000, and major repairs of $6,000 every 20 years. What option should the company pursue, based on the annual cash flow analysis method and assuming a MARR of 1%.
Answers: 1
Business, 21.06.2019 23:00, rosie20052019
Which of the following statements about the relationship between economic costs and accounting costs is true? multiple choice accounting costs are equal to or greater than economic costs. accounting costs must always equal economic costs. accounting costs are always greater than economic costs. accounting costs are always less than or equal to economic costs.
Answers: 2
Business, 22.06.2019 07:10, firdausmohammed80
mark, a civil engineer, entered into a contract with david. as per the contract, mark agreed to design and build a house for david for a specified fee. mark provided david with an estimation of the total cost and the contract was mutually agreed upon. however, during construction, when mark increased the price due to a miscalculation on his part, david refused to pay the amount. this scenario is an example of a mistake.
Answers: 1
Business, 22.06.2019 15:00, Jocelynrichards
Why entrepreneurs start businesses. a) monopolistic competition b) perfect competition c) sole proprietorship d) profit motive
Answers: 1
(10 Points) A company needs to make a choice between two options. Option 1 involves launching a new...
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