A simple, direct space heating system is currently being used in a professional medical office complex. An upgraded "variable air-volume system" retrofit can be purchased and installed for $200,000 (investment cost). Its power savings in the future will be 500,000 kilo-Watt hours per year over its estimated life of 8 years. The cost of electricity is $0.10 per kilo-Watt hour. If the firm’s cost of capital is 12% per year and the residual value of the system in 8 years is $20,000, should the new system be purchased? Use the present worth method.

Answers

Answer 1

Answer:

Since the present worth (PW) is $56,459.65 and positive, the new system should be purchased.

Explanation:

C = Cost of the upgraded "variable air-volume system" retrofit = $200,000

S = Residual value of the system = $20,000

n = Estimated life of the upgraded "variable air-volume system" retrofit = 8

r = cost of capital per year = 12%, or 0.12

P = Amount of power savings per year = Number of kilo-Watt hours per year * Cost of electricity per kilo-Watt hour = 500,000 * $0.10 = $50,000

Using the formula for calculating the present value (PV) or ordinary annuity, the PV of P can be calculated:

PV of P = P * ((1- (1/(1 + r))^n) / r) = $50,000 * ((1- (1/(1 + 0.12))^8) / 0.12) = $248,381.99

The PV of the residual value (PV of S) can be calculated as follows:

PV of S = S / (1 + r)^n = $20,000 / (1 + 0.12)^8 = $8,077.66

The present worth (PW) can now be calculated as follows:

PW = PV of P + PV of S - C = $248,381.99 + $8,077.66 - $200,000 = $56,459.65

Since the present worth (PW) is $56,459.65 and positive, the new system should be purchased.

Answer 2

Based on the various costs of the heating system, the savings it will bring, and the present worth method, the system should be purchased.

Why should the system be purchased?

It should be purchased if the Net Present Worth is above $0.

Net Present Worth = Present worth of inflows - Present of outflows

Inflows = Savings + Residual value

Savings are:

= 500,000 kilo-wat hours x 0.10 kilo-watt per hour

= $50,000

Net present worth:
= ( (50,000 x (P/A,12%,8 years)) + (20,0000 x (P/F, 12%, 8 years))) - 200,000

= $56,458

In conclusion, the NPW is more than $0 so this system should be picked.

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Related Questions

(16-25) more questions:)

Answers

Answer:

16. d?

17. probably b

18. a

19. hmmmmmmmmmm c?

20. b

21. d

22. d

23. c

24. c

25. a

Explanation:

Should all be right? a few im iffy on.... it's been a while

Bob is the vice-president of a medium sized company in a suburb of Seattle. He has two new cars, a large home with a sauna, new clothes, and takes many trips with his family. He also carries $21,000 of debt on his credit cards and struggles to make his payments. Bob would be considered part of which social class

Answers

Answer: None of the above

Explanation:

The options are:

-none of the above

-working poor

-working class

-underclass

The working poor are those that are working but their income is below the poverty line.

The working class consists of the people whom are semi skilled, unskilled or industrial workers.

Underclass is made up of the poor and the unemployed.

Based on the information above, Bob doesn't fit into any of the above description.

Long-term orientation encourages ______. a.neither thrift nor spending b.spending c.both thrift and spending d.thrift

Answers

Answer:

d

Explanation:

If a person has a Long-term orientation, they are more likely to save more than spend more. This is because they would be more concerned about meeting future expenses.

On the other hand, a short-term orientation encourages thrift

For example a person whose goal is to become a doctor is more likely to save than a person with a terminal illness with weeks to live

Clayborn Company deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of business on May 31, its Cash account shows a debit balance of $17,025. Clayborn's May bank statement shows $15,800 on deposit in the bank. Determine the adjusted cash balance using the following information:

Answers

Answer:

Adjusted bank balance $16,400.

Adjusted Cash balance $16,400.

Explanation:

Preparation of a bank reconciliation.

Bank Statement Balance ($15,800)

Add deposits in transit" ($5,200)

Deduct "outstanding checks" ($4,600)

Adjusted bank balance $16,400

Cash Account ($17,025)

Deduct charges/fees ($25)

Deduct NSF checks ($600)

Adjusted cash balance $16,400

In​ 1995, Mexico joined NAFTA. U.S. tariffs on imports from Mexico and Mexican tariffs on imports from the United States are gradually being removed. How have the quantity of U.S. exports to Mexico and the U.S.​ government's tariff revenue from trade with Mexico​ changed?

Answers

Answer:

a) Increase in export  

b) decrease in Tariff revenue

Explanation:

a) The Quantity of U.S exports to Mexico will increase due to the decrease in market price of goods imported from US to Mexico which is occasioned by the removal of Mexican tariffs on imports from the United states .  

b) The US  tariff revenue from trade with Mexico will decrease drastically  

Import Tariffs are one of the ways Government generates revenue for the economy hence when these tariffs are removed the revenue generated will be non-existent .

When a provider signs a contract to be a participating provider with an insurance payer they are agreeing to:

Answers

Answer:

Accept the fee schedules set by the insurance company.

Explanation:

A participating provider is defines as one who has entered into a written agreement with an insurance company to provide a given range of Medicare Part B services on an assigned basis.

Usually various fees are scheduled for each of the services provided.

The discount on services in this instance is not much and they are always obligated to provide service.

On the other hand preferred provider is one who provides services at a discount.

The Bureau of Labor Statistics produces data on unemployment based on the number of people collecting unemployment insurance. a. True b. False

Answers

Answer:

FALSE

Explanation:

A person is considered unemployed if he / she does not have a job and has searched for a job within the last 4 weeks

Unemployment rate = (number of unemployed / labour force) x 100

To collect data on unemployment, The Bureau of Labor Statistics conducts a survey every month known as the Current Population Survey (CPS).

types of unemployment

structural unemployment is an unemployment that occurs as a result of changes in the economy. These changes can be as a result of changes in technology, polices or competition. Structural unemployment tends to be permanent.  

The geologist lost his hob permanently due to increase in wages (polices)

Frictional unemployment:  the period of time a person is unemployed from the period he leaves his current job and the time he gets another job. Eg. when a real estate agent who leaves a job in Texas and searches for a similar, higher-paying job in California.

Voluntary unemployment: e.g. worker at a fast-food restaurant who quits work and attends college.

Cyclical unemployment: it occurs as a result of fluctuations in the economy. Unemployment would be high in a downturn and low in a boom  

Diminishing marginal product suggests that Group of answer choices marginal cost is upward sloping. Adding additional workers will lower total cost. The firm is at full capacity. Additional units of output become less costly as more output is produced.

Answers

Answer:

The marginal cost is upward sloping.

Explanation:

This is because the marginal product of labor decreases as additional labor is employed which increases the marginal cost.

A manufacturing firm produces goods in accordance with customer specifications, commencing production upon receipt of a purchase order. To accumulate the cost of each order, the company would use a:

Answers

Answer:

Job Cost Card/ Record

Explanation:

A Job cost record accounts for all costs related to the job or order. It is unique to specific order. Therefore, this is a useful tool to deal with situations where firms produce in accordance with customer specifications.

In an examination evaluation expert system, the _____ component of the expert system is responsible for stating why a loan applicant was approved or rejected.

Answers

Answer:

The missing phrase is Explanation Facility.

Complete Sentence:

In an examination evaluation expert system, the Explanation Facility component of the expert system is responsible for stating why a loan application was approved or rejected.

Explanation:    

An expert system is a computer system program that can do the job of a human expert whose role is to give professional opinions, judgments, or advice regarding an issue. These systems are associated with Artificial Intelligence.

In other to create this kind of system (which has the capacity to solve complex problems) AI programmers use a collection of knowledge stored or codified in if-then formats or rules

In expert systems, an explanation facility is a function that allows non-artificial users to query the veracity of the system's reasoning. Usually, the system would make reference to its frame of logical construct, its rules, and or goals.

Cheers

Under a fixed exchange rate regime, the government of the country is officially responsible for ___

Answers

Answer:

D. all of the above

Explanation:

THESE IS THE COMPLETE QUESTION BELOW;

Under a fixed exchange rate regime, the government of the country is officially responsible for

A) intervention in the foreign exchange markets using gold and reserves.

B) setting the fixed/parity exchange rate.

C) maintaining the fixed/parity exchange rate.

D) all of the above.

A fixed exchange rate can be regarded as regime that is been applied by either government or central bank , which is responsible for tieing official currency exchange rate of a country to that of another currency of a country or the price of gold. Government use fixed exchange rate system to keep within a narrow band the value of currency. It should be noted that Under a fixed exchange rate regime, the government of the country is officially responsible for;

✓ maintaining the fixed/parity exchange rate.

✓intervention in the foreign exchange markets using gold and reserves.

✓setting the fixed/parity exchange rate.

True or false: Strategists should consider how quickly they expect a product or technology to become popular when deciding whether to pursue a first-mover advantage. True false question. True False

Answers

Answer:

TRUE

Explanation:

The first-mover advantage is the leverage a company gets to be the first to enter a market with a product and the term "first-mover" does not mean the first company to invent a product.

Being a first-mover is important for strategists to identify the correct marketing mix, so as to be better than their competitors, also it creates a medium to allow strategists to study the market, perfect their products or services before other market entrants.

Since being a first-mover expose the risk of products being improved upon by competitors, strategists should consider how quickly they expect a product or technology to become popular when deciding whether to pursue a first-mover advantage.

If the number of suppliers increase, the supply curve will shift to the ________ and the price will ________.

Answers

Answer:

Rightwards; Fall

Explanation:

Rightwards; Fall

The increased number of sellers or suppliers will increase the supply in the market. Resulting the supply curve will shift rightwards and with the shift in the supply curve, the price will fall because of the more availability of goods in the market.

You are working several plans and community organizations to sponsor an educational event. When putting together advertisements for this event, what should you do

Answers

Answer: Ensure that the advertisements indicate it is an educational event

Explanation:

Defining an advert and tailoring it's message to the exact plan you want is really important. where this can be implemented well is with the contents the advert is done. The content drives home the message, if the content is not designed to meet what you want or it's target audience well, it would drive a different message.

When putting together advertisements for this event, you should ensure that the advertisements indicate it is an educational event unless it would be seen as a marketing program, you can ensure this by the content through the content displayed

hat sets one organization apart from others and provides the firm with a distinctive edge for meeting marketplace needs is known as _____ a target market b decentralization c competitive distinction d competitive advantage e core competency

Answers

Answer:

d competitive advantage

Explanation:

The Target market refers to the customers that the company wants to sell its products or services. Therefore this option is incorrect.

Decentralisation is basically a transfer of authority to several branches of an organisation instead of only one. This option is also incorrect.

The competitive distinction is defined as the difference between what the organisation offers in comparison to its competitors. This option is also incorrect as it does not provide any distinctive edge in the marketplace for the organisation.

Competitive advantage defines the factors that help a company produce goods or services in a way that is cheaper and/or better than its competitors. This is the correct option as it is providing factors that would be helpful for firms to have a distinctive edge in the marketplace.

Core competency refers to the fact that the organisation must define its resources and capabilities in order to have a strategic advantage over its competitors. This option is mainly suggesting to define its advantages over the competitors. Hence, this option is also not correct.

Expansionary fiscal policy is generally designed to ____________ aggregate demand and thus ____________ real GDP and employment in the economy.

Answers

Answer:

increase

increase

Explanation:

Discretionary fiscal policies are deliberate steps taken by the government to stimulate the economy in order to cause the economy to move to full employment and price stability more quickly than it might otherwise.

Discretionary fiscal policies can either be expansionary or contractionary

Expansionary fiscal policy is when the government increases the money supply in the economy either by increasing spending or cutting taxes.

Expansionary fiscal policies increases money supply which increases aggregate demand, as a result output  or real GDP increases

Contractionary fiscal policies is when the government reduces the money supply in the economy either by reducing spending or increasing taxes

The supply chain area that is responsible for determining what to buy, how much to buy, and how to manage the suppliers is known as _____.

Answers

Answer:

Procurement

Explanation:

The supply chain area that is primarily concerned with what to buy, how much to buy, and how to manage suppliers for optimum service delivery is known as procurement.

The supply chain generally refers to the processes and resources involved in the supply of products or services to the final consumers.  It includes procurement, planning, and logistics.

The procurement has to the with the purchase of materials. It includes the quantity of materials to buy and at what price as well as how to manage relationships with suppliers for the benefit of the firm.  Planning has to do with synchronizing the supply of material with production in relation to the demand for the final product while logistic has to do with optimizing the delivery process to minimize cost and time.

Fujitsu Siemens Computers is a legally independent company of which Fujitsu and Siemens each own 50 percent. This collaboration is an example of a(n) __________, which is effective at transferring __________.
A. joint venture; explicit knowledge
B. joint venture; tacit knowledge
C. equity strategic alliance; tacit knowledge
D. nonequity strategic alliance; explicit knowledge

Answers

Answer:

B. joint venture; tacit knowledge

Explanation:

A joint venture (JV) is a business arrangement where two or more persons are agreed to pool their resoruces in order to attain a particular task. It can be the new project or any kind of business activity

So as per the given situation since both owns 50% perceny that means they are engaged in the joint venture also in this, the tacit knowledge are considered to be effective

So the option b is correct

Scope describes the full length of time required to complete a project. Group of answer choices True False

Answers

Answer:

False

Explanation:

Project scope can be regarded as part of project planning which involves determining as well as documenting listed particular project , tasks, deadlines as well as goals and the cost and deliverables. The documentation of scope of a project is is called a scope statement, this elaborate the boundaries of the project as well as establishment of responsibilities that is required by each team member, then

sets up procedures for verification and approval of of completed work. The scope shed light clearly on project goals which are measurable

realistic and obtainable, it it gives a clear vision and specifies about what is expected as well as when it is expected, and the exoected cost, it also specifies the deliverables as well as milestones and needed resources.

A company purchased equipment for $50,000 on January 1 of its first year. The equipment’s original estimated useful life is 8 years and its estimated salvage value is $10,000. The company uses the straight-line method of depreciation. On December 31 of its second year, before year-end adjusting entries have been recorded, the company decides to shorten the estimated useful life by 3 years giving it a total life of 5 years. The company did not change the salvage value and continues to use the straight-line method. How much depreciation expense should be recorded for the second year?

Answers

Answer:

$7000

Explanation:

The following steps would be taken to determine the answer

1. Calculate depreciation expense given the initial information  

2. Determine the book value  

3. calculate the depreciation expense using the new information and the book value

Straight line depreciation expense = (Cost of asset - Salvage value) / useful life

($50,000 - $10,000) / 8= $5,000

Book value = $50,000 - $5,000 = $45,000

(45,000 - 10,000) / 5 = $7000

 

The company should record $8,750 as the depreciation expense for the second year.

Data and Calculations:

Cost of equipment on January 1 = $50,000

Estimated useful life = 8 years

Estimated salvage value = $10,000

Depreciable amount = $40,000 ($50,000 - $10,000)

Annual depreciation expense based on Straight-line method = $5,000 ($40,000/8)

Net book value = $45,000 ($50,000 - $5,000)

Re-estimated total useful life = 5 years

Remaining useful life after the first year = 4 years (5 - 1)

Estimated salvage value = $10,000

Depreciable amount = $35,000 ($45,000 - $10,000)

Annual depreciation expense based on Straight-line method = $8,750 ($35,000/4)

Thus, the depreciation expense for the second year is $8,750.

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If company XYZ observes a drop in performance following a human resource management decision to eliminate a Friday free lunch for the employees, then this would be an example of a lack of ______ to perform.

Answers

Answer:

Motivation

Explanation:

The drop in performance in company XYZ following the elimination of the Friday free lunch is caused by the lack of motivation.

Employees of an organization tends to be more productive given a favourable working condition such as subsidized health care, provision of housing facilities, bonuses etc

The free Friday lunch which the human resource management eliminated is a form of motivation for the employees to work hard. So, productivity declined due to the elimination of the free Friday lunch.

Under the Uniform Commercial Code (UCC), in a simple delivery contract, once goods are identified in a contract the contract is considered _____.

Answers

Answer:

executed

Explanation:

Under the Uniform Commercial Code (UCC), in a simple delivery contract, once goods are identified in a contract the contract is considered executed.

What is Uniform Commercial Code (UCC)?

The Uniform Commercial Code (UCC), a comprehensive body of legislation, governs all business transactions in the United States. It is a state law that has been uniformly enacted rather than a federal law. Uniformity of law is critical in this field for interstate business transactions. Businesses can enter into contracts knowing that the terms will be upheld consistently by courts in every American jurisdiction thanks to the UCC's widespread adoption. Because commercial connections are more secure as a result, businesses may expand and the American economy does well. The UCC has been referred to as "the backbone of American commerce" for this reason.

The Uniform Commercial Code (UCC) is a standardized set of business laws and regulations. The UCC code was created in 1953 as it became increasingly difficult for businesses to transact business across state lines due to differing state laws. 1

The Uniform Commercial Code (UCC) is significant because it provides a standard legal and contractual framework that allows companies from different states to transact with one another. The UCC laws have been fully adopted by the majority of states in the United States. Although there are some minor differences between states, the UCC code is divided into nine articles. The UCC articles cover a wide range of transactions, including banking and lending.

Uniform Commercial Code (UCC) laws govern personal property sales and other transactions. If you've ever bought a business or a car, you've probably signed a UCC-1 statement. The lender retains ownership of the title until the loan is paid off.

The Uniform Commercial Code (UCC) policies are primarily concerned with the activities of small businesses and entrepreneurs. Part of the goal is to clear up any confusion about how each state might regulate such operations separately.

To learn more about Uniform Commercial Code(UCC), click here

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The base rate of managerial incompetence is estimated at 25 to 30 percent. Group of answer choices True False

Answers

Answer:

The answer is "False".

Explanation:

Incompetence in Leadership Managerial incompetence can be defined as an inability to carry out its leadership tasks and responsibilities successfully. Managers execute several tasks, mainly of supervisory character, in any conventional organization.

There are six main reasons for managerial incompetence. Derailment is indeed a loss of self, a lack of understanding of conditions, a lack of intellect and technical knowledge.

Crane Co. pays its employees twice a month, on the 7th and the 21st. On June 21, Crane Co. paid employee salaries of $4930. This transaction would decrease net income for the month by $4930. be recorded by a $4930 debit to Salaries and Wages Payable and a $4930 credit to Salaries and Wages Expense. increase owner's equity by $4930. decrease the balance in Salaries and Wages Expense by $4930.

Answers

Answer:

Crane Co.

This transaction would decrease net income for the month by $4930.

Be recorded by a $4,930 debit to Salaries and Wages Expense and a $4,930 Credit to Cash.

Explanation:

a) Data and Analysis:

June 21: Salaries Expense $4,930 Cash $4,930

b) The transaction that affects the Salaries and Wages Payable is the unpaid salaries and wages expense that are accrued but not yet paid to employees.  However, the above transaction will increase the amount in the Salaries and Wages Expense by $4,930 and decrease the Cash by the same amount.  It will also reduce the net income for the month by $4,930.

who benefits from a loan?
A - only the person who is given the loan by a bank?
B - only the bank who gives the loan to a person
C - both the person who gets the loan and the bank that loans the money
D - no one benefits when a loan is given out

Answers

Answer:

C

Explanation:

The person gets money to spend, then over time the bank will earn that money back from the same person. So I'd say both benefit.

Suppose that the price of good X rises from $12.00 to $12.90, and as a result the quantity demanded of good X falls from 5,000 units to 4,600 units. The (absolute value of) price elasticity of demand for good X is ___________________, indicating that good X is price ___________________. This increase in price caused total revenue to ________.

Answers

Answer:

The price elasticity of demand is 1.14.

The price is Elastic.

Elasticity is more than one so total revenue will fall.

Explanation:

Given the initial price of good x = $12

Final price of good x = $12.90

% change in price = [(12.90 - 12) / 12] x 100 = 7.5 %

Initial quantity = 5000

Final quantity = 4600

% change in quantity = [(4600 - 5000)/5000] x 100 = -8%

Elasticity = % change in quantity / % change in price

Elasticity = 8% / 7%

Elasticity = 1.14

The price elasticity of demand is 1.14.

The price is Elastic.

Since elasticity is more than one so total revenue will fall.

The Federal Reserve mandates banks to deposit a certain percentage of their ______ as required reserves at their regional Federal Reserve Bank.

Answers

Answer:

deposits

Explanation:

Institutions that help to match one person's saving with another person's investment are collectively called the

Answers

Answer:

Financial system

Explanation:

If the number of consumers in the market for good A decreases, what will happen to the equilibrium price and quantity of good A?
a. The equilibrium price and quantity will both decrease.
b. The equilibrium price and quantity will both increase.
c. The equilibrium price will increase and equilibrium quantity will decrease.
d. The equilibrium price will decrease and equilibrium quantity will increase.

Answers

Answer:

A, The equilibrium price and quantity will both decrease.

Explanation:

The less consumers the lower the equilibrium price and quantity goes.

Stress and crisis management how do you write the essay

Answers

Answer:

Crisis management is the systematic attempt to prevent or manage organizational crises, that is, a serious emergency in which the functioning of an organization is seriously disrupted.  

Crisis management encompasses methods to predict, assess, analyze and prevent emergency situations. A step prior to crisis management is to prevent technical and human failure. The response is then discussed: agreements are made about how command structures and lines of communication operate in the event of a crisis. In particular, the onset of a crisis is often chaotic and plans are drawn up for this until recovery and normalization of the situation occurs.

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