Breezy Company is considering the replacement of equipment that has a current book value of $340,000. Breezy has an oppprtunity to sell the equipment for $240,000. The cost of replacing the old equipment with a new machine is $300,000. The cost of operating the new equipment is $20,000 per year less than the cost of operating the old equipment. The new equipment has a 5-year useful life. The amount of the sunk cost for this replacement decision is
Answers: 2
Business, 21.06.2019 23:30, Mikec123
Select the correct answer. joshua runs a large manufacturing business that is listed on the stock exchange. his company made good profits in the previous financial year. he now plans to reward his shareholders with handsome dividends. under which category of activities in the cash flow statement would the company’s accountants place this outflow of cash? a. investing activities b. operating activities c. financing activities d. non-operating activities
Answers: 3
Business, 22.06.2019 12:30, dtrdtrdtrdtrdrt1325
Suppose a holiday inn hotel has annual fixed costs applicable to its rooms of $1.2 million for its 300-room hotel, average daily room rents of $50, and average variable costs of $10 for each room rented. it operates 365 days per year. the amount of operating income on rooms, assuming an occupancy* rate of 80% for the year, that will be generated for the entire year is *occupancy = % of rooms rented
Answers: 1
Breezy Company is considering the replacement of equipment that has a current book value of $340,000...
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