Scholastic Co. is evaluating a machine with an initial cost of $300,000 and a five-year life that costs $75,000 per year to operate. The firm uses straight-line depreciation, and the applicable discount rate is 8%. The machine will have a salvage value of $70,000 at the end of the project's life. The firm has a tax rate of 21%.
Q9 Calculate the operating cash flow in year 1. (Enter a negative value)
Q10 Calculate the NPV of the project. (Enter a negative value and round to 2 decimals)
Q11 Calculate the EAC for the project. (Enter a positive value and round to 2 decimals)

Answers

Answer 1

Q9: The operating cash flow in year 1 can be calculated by subtracting the operating cost and depreciation from the machine's salvage value.

Operating cash flow in year 1 = Salvage value - Operating cost - Depreciation

= $70,000 - $75,000 - ($300,000 / 5)

= $70,000 - $75,000 - $60,000

= -$65,000

Therefore, the operating cash flow in year 1 is -$65,000.

Q10: The net present value (NPV) of the project can be calculated by discounting the cash flows and subtracting the initial cost.

NPV = Present value of cash inflows - Present value of cash outflows

The cash inflows consist of the salvage value at the end of the project's life, and the cash outflows consist of the initial cost and the operating costs. We need to discount these cash flows using the discount rate of 8%.

NPV = (-$300,000) + [($70,000 / (1 + 0.08)^5)]

- [($75,000 / (1 + 0.08)) + ($75,000 / (1 + 0.08)^2)

+ ($75,000 / (1 + 0.08)^3) + ($75,000 / (1 + 0.08)^4) + ($75,000 / (1 + 0.08)^5)]

Calculating the above equation will give us the NPV of the project.

Q11: The equivalent annual cost (EAC) for the project can be calculated by dividing the NPV by the present value annuity factor.

EAC = NPV / Present value annuity factor

The present value annuity factor can be calculated using the discount rate and the number of years in the project.

Calculating the above equation will give us the EAC for the project.

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Related Questions

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.

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is a measurement of standard of living that includes education and
clean running water.
A. Financial wealth
B. Access to necessities
C. Income
D. Material wealth

Answers

B. Access to necessities
B. Access to nessecites

This morning, you received a phone call alleging you owe a debt. If you dispute this debt, you must write to the debt collector and request verification of the obligation. How many days do you have to send this letter

Answers

Since this has to do with a debt that has been disputed by you, the number of days you have to send this letter is 30 days.

How Many Days Are Required to Send a Debt Dispute Letter?

Following the receipt of a phone call from a debt collector concerning a debt that has been disputed, the next action you must take is to write the debt collector a letter within 30 days after the initial contact.

After then, the debt collector must stop all collection attempts until the appropriate verification is acquired.

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The wealth effect refers to the fact that
a. when the price level falls, the real value of household wealth rises, and so will consumption.
b. when income rises, consumption rises.
c. when the price level falls, the nominal value of assets rises, while the real value of assets remains
the same.
d. all of the above

Answers

Answer:

a. when the price level falls, the real value of household wealth rises, and so will consumption.

Explanation:

A wealth gap is the difference between the richest and poorest citizens living in a geographical location based on the level of their assets and net worth i.e assets minus their debts. Also, these informations about the citizens when generated by the government are typically used for formulating economic policies, plan and financial budgets.

Wealth effect is a behavioral economics theory (psychological phenomenon) which states that an increase or decrease in the value of an asset such as bonds, stocks, property, etc., would result in an increase or decrease in consumer spending respectively.

This ultimately implies that, the wealth effect refers to the fact that when the price level falls, the real value of household wealth rises, and so will consumption. Thus, it is mainly focused on examining how a change (increase or decrease) in personal wealth of a household influences (affects) economic growth and by extension consumer spending over a specific period of time.

In conclusion, when there is an overall increase in the performance of an asset, consumer spending would rise and increase ultimately.

baltic logistics utilizes a rigorous interviewing and testing process for all prospective employees. the purpose of these two steps is to

Answers

These two procedures are used to determine which applications have the best chance of succeeding.

Define a two step interview.

A pre-planned dialogue called an interview involves questions from one side and answers from the other. The phrase "interview" is a colloquialism for a one-on-one talk between an interviewer and an interviewee.

Asking the applicant for specific examples of past successes and/or behaviors that demonstrate a necessary ability or behavior connected to the specific job vacancy is one of these techniques, sometimes known as situational or competence-based interviews.

Different interview formats consist of:

1) Making the call

2) The discussion on a panel

3) the test of compete

4) The virtual assessment center

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How can avoiding speeding tickets affect an automobile insurance policy?
O It can make it hard to file a claim.
O It can help keep premiums down.
O It can raise the price of premiums.
O It can make it difficult to share risk.

Answers

it can help keeps premiums down.

The avoidance of speeding tickets can affect an automobile insurance policy as It can help keep premiums down.

What is speeding ticket?

The term speeding ticket is known to be a form of ticket that is written as a  piece of paper that is said to be given only by a police officer to a person who was fount to be driving too fast and that tells the given amount of  fine that the driver will pay.

Note that when there is low rate or an avoidance of speeding tickets, it can influence an automobile insurance policy as It can bring about a reduction in premiums.

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what is a housefly plssss help

Answers

A fly that’s lives in your house

Answer:

a common small fly occurring worldwide in and around human habitation. Its eggs are laid in decaying material, and the fly can be a health hazard due to its contamination of food.

Please help, <3
Analyze two pricing strategies for their advantages and disadvantages and give reasons for a business to use each of those pricing strategies.

Answers

The advantages of a pricing policy lies in its ability to make your product appealing to customers, while also covering your costs

The disadvantages of pricing strategies come into play when they are not successful, either by not sufficiently appealing to customers or by not providing you with the income you need.

hope it helps

The elasticity of demand for a good is –0.75. A 4% increase in price will cause a:______.
A) 3% iecrease in quantity demanded.B) 5.33% decrease in quantity demanded.C) 5.33% increase in quantity demanded.D) 0.19% decrease in quantity demanded.

Answers

Answer:

A) 3% decrease in quantity demanded.

Explanation:

As we know that

The price elasticity of demand is

= Percentage Change in quantity demanded ÷ Percentage change in price

Since the elasticity of demand is -0.75

And, there is a price of 4%

Since, the price elasticity of demand is in negative that means the quantity demanded is decreased by 3% that comes from

= 4% × - 0.75

= -3%

Hence, the first option is correct

Name and briefly describe your first marketing communication channel

Answers

I can provide an overview of one common marketing communication channel used by businesses: email marketing.

Email marketing involves sending promotional messages or newsletters via email to a list of subscribers who have opted-in to receive communications from a business. This channel can be highly effective as it allows businesses to reach their target audience directly, and can be personalized and tailored to individual subscribers based on their preferences and behaviors.Email marketing can also be used to nurture leads and encourage customers to make repeat purchases. It can be cost-effective and can provide detailed analytics and metrics to measure the success of campaigns.However, it's important to use email marketing responsibly and avoid spamming subscribers with irrelevant or too frequent messages. The content of emails should be valuable and engaging to the recipient to build trust and loyalty over time.

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Suppose you make a one-time deposit of $500 in a savings account. The account has an APY of 0.5%. How much interest would you earn, in dollars, after one year? ( )

Answers

Answer:

I= $25

Explanation:

Giving the following information:

PV= $500

APY (i)= 0.05

The annual percentage yield (APY) is the real rate of return. It is the interest rate with the compound factor already incorporated.

To know the interest earned, we need to use the following formula:

I= PV*i

I= 500*0.05

I= $25

Answer:

2.50

Explanation:

edge answer

What is a “work point”?

Answers

Answer:

A work point is an independent entity whose location is defined in space.

Explanation:

Work points may be placed or projected onto part faces, linear edges, or onto an arc or circle. Work points can be constrained to the center points of arcs, circles, and ellipses.

I need help with all those questions

I need help with all those questions

Answers

I can’t read that try typing them all out:)

what term did c wright mills coin to refer to the collection of peole who made the bid decisions in us society

Answers

C. Wright Mills coined the term "Power Elite" to refer to the collection of people who made the big decisions in US society. The Power Elite consists of individuals from the highest levels of political, military, and economic institutions who hold significant influence and decision-making power.

This group was made up of wealthy and influential individuals from the worlds of business, politics, and the military, who had significant influence over the direction and decision-making of the country. Mills argued that the power elite were able to maintain their position of power and control by shaping the policies and actions of the government, and by controlling the flow of information and resources in society. Wright Mills coined the term "power elite" to refer to the collection of people who made the big decisions in US society.

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seller dominoe lists her house with broker fred. fred then buys dominoe’s house, collects the agreed-upon commission, then lists the property at a higher price. this is an example of

Answers

self-dealing - Self-dealing occurs when a broker does not reveal a true value of a property to a seller and uses the proceeds on their own behalf.

Property[1] is a collective term for a bundle of rights that grants legal control over things and designates owners of those things. Depending on the sort of property, an owner may be allowed to use it as defined by the property rights that have been granted to them, modify it, share it with others, redefine it, rent it, pawn it, sell it, exchange it for another piece of property, give it away, or destroy it[2]. Any property owner may have the right to forbid others from doing any of these things, regardless of the type of property.In economics and political economy, there are three main categories of property: private property, public property, and communal property (also called cooperative property).a piece of property that is shared

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According to Michael Porter's Competitive Advantage of Nations, some of the industries in which British companies have an international advantage are advertising, auctioneering of antiques and artwork, distilled alcoholic beverages, hand tools, and chemical preparations for gardening and horticulture.

Some of the industries where US companies have an international competitive advantage are photo film, aircraft and helicopters, computer hardware and software, oil field services, management consulting, cinema films and TV programs, health care products and services, and financial services.

For EITHER the United Kingdom OR the United States, use Porter's National Diamond framework to explain the observed pattern of international competitive advantage.

Answers

Using Porter's National Diamond framework, the observed pattern of international competitive advantage in either the United Kingdom or the United States can be explained by multiple factors such as factor conditions, demand conditions, related and supporting industries, and firm strategy, structure, and rivalry.

What factors contribute to the observed pattern of international competitive advantage in either the United Kingdom or the United States?

Porter's National Diamond framework provides insights into the factors that contribute to a country's competitive advantage in specific industries.

In the case of the United Kingdom or the United States, several factors play a role in explaining their observed patterns of international competitive advantage.

Firstly, factor conditions refer to the availability and quality of key inputs such as skilled labor, infrastructure, natural resources, and technological capabilities.

Both the United Kingdom and the United States have developed a strong foundation in education and research, providing a skilled workforce and advanced technological capabilities that support industries like computer hardware and software, management consulting, and financial services.

Secondly, demand conditions influence the competitiveness of industries.

The United Kingdom's strength in advertising, auctioneering of antiques and artwork, and distilled alcoholic beverages may be attributed to a strong domestic demand and sophisticated consumer base, driving innovation and specialization in these sectors.

Similarly, the United States' large and diverse market has fostered the growth of industries like health care products and services, financial services, and computer hardware and software.

Thirdly, related and supporting industries play a role in shaping competitive advantage.

In both countries, the presence of well-developed supporting industries, such as specialized suppliers, research institutions, and infrastructure, has contributed to the success of industries like aircraft and helicopters, oil field services, and cinema films and TV programs.

Lastly, firm strategy, structure, and rivalry influence competitive advantage.

The United Kingdom and the United States have a history of strong competition and rivalry in various sectors, fostering innovation, efficiency, and continuous improvement.

This competitive environment has propelled industries like hand tools, chemical preparations for gardening and horticulture, and photo film.

In summary, the observed pattern of international competitive advantage in either the United Kingdom or the United States can be explained by factors such as favorable factor conditions, demand conditions, the presence of related and supporting industries, and a competitive business environment.

These factors create an environment conducive to innovation, specialization, and excellence in specific industries.

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Factors that will affect a person's real wages​

Answers

Answer:

The growth in the business and the amount of work given to the person and also the number of hours he/she works

I am MrBeast and if you can guess what number I am thinking of between 1 and 100 I will give $10,000. Comment or answer.

Answers

Answer:

58

ohhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhh

it's fake

This is fake!!! It's not even the real MrBeast!!

Please help I'm about to fail my class and i will be grounded for life, 100 pts for it! its financial literacy

Part One–Research
Imagine you bought 100 shares of stock three years ago and are selling it today. Select a company and research its stock prices. You can start with websites like Nasdaq and Fidelity. Determine the stock's price three years ago, or the purchase price, and its price today, or the selling price.

Part Two–Determine the Real Return
Calculate the real return of your stock investment using the following information:

Purchase price of 100 shares of stock
Selling price of 100 shares of stock
10% tax rate
3% inflation rate
2% administrative fee on the selling price of the stock
Part Three–Evaluate
Analyze your research and calculations, and answer the following questions:

What company did you select to buy stock in? Why did you select the company?
Consider the real return of the stock investment. Do you consider it a wise investment? Why or why not?

Answers

1. I imagine buying 100 shares of Amazon.com Inc. on January 3, 2020, when the stock price was $93.75, investing $9,375.  

Today, October 31, 2022, the stock price of Amazon.com Inc. is $102.44.

2. The real return on my investment in Amazon.com Inc was a net loss of  7.12% or $667.60.

3. The company I selected to buy its stock three years ago was Amazon.com Inc.

4. I decided on Amazon.com Inc., hoping to earn spectacular returns since it is a multinational technology company.

5. When I consider the actual return on the stock investment in Amazon.com Inc., I think it was an unwise investment.

6. The investment returned a negative real value because I realized less than I initially invested; I actually lost about $667.60 overall.

What is the stock investment?

Stock investment is the purchase of shares for an ownership interest in a publicly-listed company.

The investor makes the investment with the hope that the investee will grow and perform well over some period, enabling the investor to earn some real returns (in the form of dividends and capital appreciation).

Purchase of 100 shares Jan. 3, 2020 = $9,375 (100 x $93.75)

Sales of 100 shares Oct. 31, 2022 = $10,244 (100 x $102.44)

Tax (10%) = $1,024.40 ($10,244 x 10%)

Inflation (3%) = $307.32 ($10,244 x 3%)

Administration fee on sales (2%) = $204.88 ($10,244 x 2%)

Real Returns in dollars = $8,707.40 ($10,244 - $1,024.40 - $307.32 - $204.88)

Loss on returns = $667.60 ($8,707.40 - $9,375)

Loss percentage = 7.12% ($667.60/$9,375 x 100)

Unfortunately, Amazon.com Inc. did not pay any dividends during the period of my investment, and I really lost funds to taxes, inflation, and administration fees when I sold it.

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Who determines the interest rate for the nation?

Answers

the Federal Open Market Committee

the type of pay raise in which the employee can receive the entire amount of the increase at the beginning of the year is called a(n)

Answers

A lump-sum salary increase is the kind of pay raise where the employee can get the full amount of the raise at the start of the year.

An increase in salary is substituted with a lump sum payment. It is not added to the base wage that is fixed. It is distributed as one lump sum of cash. It is also referred to as a lump sum bonus for this reason.

While lump sum merit increases have additional applications, their best usage is as a salary increase alternative for employees whose fixed base salaries have already reached their maximum levels for that particular position.

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Thurow argues that the elderly do not want their benefits cut, but the alternative is raising taxes. Thurow presents that today's 15 percent social security tax rate would have to be boosted to _______________to provide promised benefits. A. 20 percent by the year 2029 B. 30 percent by the year 2029 C. 40 percent by the year 2029 D. 45 percent by the year 2029

Answers

Tax rate would have to be boosted to 20 percent by the year 2029.The percentage at which a person or business is taxed is known as tax rate. The United States (both the federal government and numerous states) employs a progressive tax rate system, where amount of tax levied rises as taxable income for an individual or company does.

With a progressive tax rate, more money is taken in from taxpayers with boosted incomes. Government receives a portion of the taxpayer's wages or financial contributions. Progressive nature of the U.S. government  is seen in the marginal tax rate it uses.

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Homelife, a national chain of high-end furniture stores, employs nearly 800 workers. In the past few years, the company's market share has dropped significantly, and employee turnover has increased. Upper management is considering the implementation of a new compensation policy in its efforts to turn the company around. Historically, the company has paid all employees similarly with some variation for seniority but no distinction between high and low performers. Which one of the following questions is LEAST relevant to Homelife's decision to develop an aligned reward strategy?

a. What compensation programs should Homelife use to reinforce necessary employee behaviours?
b. How well does Homelife's current compensation program match the company's strategic aims?
c. What were the results of the most recent Homelife customer review ratings?
d. What compensation programs should Homelife use to reinforce desired employee behaviours?

Answers

The option that's least relevant to develop the reward strategy is C. What were the results of the most recent Homelife customer review ratings?

A reward strategy simply means the designing and implementation of reward policies that are vital in supporting the objectives of an organization.

In this case, it's important to know the compensation programs that should be used to reinforce necessary employee behaviors and how well Homelife's current compensation program matches the company's strategic aims.

It should be noted that the results of the most recent Homelife customer review ratings don't matter in the reward strategy.

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Why might you be willing to make a loan to your neighbor by putting funds in a savings account earning a​ 5% interest rate at the bank and having the bank lend her the funds at a​ 10% interest rate rather than lend her the funds​ yourself?.

Answers

Why might you be willing to make a loan to your neighbor by putting funds in a savings account earning a 5% interest rate at the bank and having the bank lend her the funds at a 10% interest rate rather than lend her the funds yourself?

a. Your neighbor suffers from information asymmetry.

b. There will always be a moral hazard problem in lending to a friend or neighbor.

c. There is no way to diversify your savings except with the help of a bank.

d. The costs of writing up the loan contract might exceed the 5% difference between your deposit rate and the bank lending rate.

C. There is no way to diversify your savings except with the help of a bank

The money is deemed to be safest once it has been deposited with a bank. This is so that the commercial bank can restore the money to the depositors at their request. The neighbor, on the other hand, carries a larger risk because there would be no means to recover the money if the neighbor defaulted on the loan. For this reason, the person would be quite eager to deposit the money at the bank so that their neighbor might borrow money from the institution.

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Terms of trade that are beneficial to both parties are those terms, or prices, that are ___ the two parties opportunity cost

Answers

Terms of trade that are beneficial to both parties are those terms, or prices, that are below the two parties' opportunity cost.

The opportunity cost is the cost of the next best alternative that is given up in order to pursue a certain action. When two countries engage in trade, they do so because each country has a comparative advantage in producing a certain good.

Comparative advantage means that a country can produce a good at a lower opportunity cost than another country. By trading with each other, they can both benefit from consuming a greater quantity and variety of goods than they would be able to produce domestically.

In order for both parties to benefit from the trade, the terms of trade must be such that the price paid for the imported good is lower than the opportunity cost of producing that good domestically. This allows both parties to consume more of both goods than they would have been able to do otherwise.

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What are the three basic functions of money ?

Answers

Answer: Money has three primary functions. It is a medium of exchange, a unit of account, and a store of value: Medium of Exchange: When money is used to intermediate the exchange of goods and services, it is performing a function as a medium of exchange.

The three basic functions of money are store of value, unit of account, and medium of exchange.

What is money?

The exchange of commodities and services is referred to as "money." The currency is the country's currency. Different countries use various currencies. Money is typically represented by paper notes and coins. When compared to the batter system, money is more convenient.

There are the three basic money functions such as medium of exchange to currency, it was the paper note into the monetary term. Money was the basic purpose of the buying and selling. It was the easily to the store and spend on as per the conveniently.

As a result, the significance of the three basic functions of money are the aforementioned.

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Firms in a competitive market face a market demand curve given by \( \mathrm{P}=130-2 \mathrm{Q} \). Each firm's marginal cost curve crosses the average cost curve when \( A C=10 \) and \( q=5 \). The

Answers

In an aggressive market situation, the overall amount provided is 20, the equilibrium fee is 90, and there are 4 companies. However, whilst the marketplace will become a monopoly, the amount decreases to 30, and the fee decreases to 70.

A) In an aggressive scenario, each corporation's marginal cost (MC) curve represents the supply curve. We realize that the common cost (AC) is the same as 10 while the amount (q) is five. Since AC = MC at their intersection factor, we will determine that MC = 10 while q = 5 for every organization. Therefore, the total quantity furnished inside the aggressive state of affairs is the sum of the amount supplied by means of every company.

Since there is no constant price and every organization operates at an identical value level, the whole quantity furnished is 5 instances of the number of firms.

B) In a competitive market, the equilibrium rate is decided by means of the intersection of the market call-for curve and the entire deliver curve. The marketplace demand curve is given by P = 130 - 2Q. The total supply curve is the sum of the person corporation's supply curves, that's equal to five times the character company's supply curve (since there are 5 firms).

Therefore, the equilibrium charge can be determined by way of placing the overall amount furnished identically to the quantity demanded: 130 - 2Q = 5(10). Solving this equation, we discover Q = 20, and substituting this again into the call for curve, we can calculate the equilibrium fee: P = 130 - 2(20) = 130 - 40 = 90.

C) In a competitive marketplace, the number of firms can be decided by dividing the whole quantity furnished by means of the quantity supplied by way of each person firm. Since the total quantity provided is 5 instances the amount furnished by every corporation, and the whole amount furnished is 20 (as calculated in part a), we can finish that there are four companies inside the marketplace.

D) When the market will become a monopoly, the marginal revenue (MR) curve will fluctuate from the market call-for curve. MR is given by means of MR = 130 - 4Q. In a monopoly, the equilibrium amount and fee are determined wherein MR equals marginal cost (MC). We recognize that MC is regular at 10. So, putting MR the same as MC, we've got 130 - 4Q = 10. Solving for Q, we find Q = 30.

Substituting this value returned into the demand curve, we are able to calculate the monopoly price: P = 130 - 2(30) = 130 - 60 = 70.

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The correct question is:

"Firms in a competitive market face a market demand curve given by P=130−2Q. Each firm's marginal cost curve crosses the average cost curve when AC=10 and q=5. The firms incur no fixed cost. If all firms were owned by the same owner, the resulting monopoly would have a constant marginal cost curve at MC=10. a) What is the total quantity supplied in the competitive scenario? b) What is the equilibrium price when the market is competitive? c) How many firms are there when the market is competitive? d) Knowing that MR=130−4Q, what are price and quantity after the market becomes a monopoly?"

SEC, a Semiconductor (fabrication) Equipment Company, has a central spare parts warehouse to support its chip fabrication plant customers located around the world. As new generations of fab equipment are introduced, the installed base of older models declines and ultimately disappears. As a consequence, SEC must at some point retire support for the older model. Once a model has been scheduled for retirement, SEC makes a "final buy" for service parts that are required to maintain support of the equipment until the retirement date. If inventory of a part runs out before retirement, then an emergency order is placed with the part vendor. Inventory remaining in the warehouse at the retirement date is scrapped for salvage materials. Consider one model that has 50 machines installed throughout the world and SEC has just announced the model will be retired in one year. Focus on part A in this machine. Part A's current cost to purchase is $10,000. The expected cost for an emergency order of part A after the final buy is $25,000. Part A's estimated salvage value is $2,000 and its total annual demand (across the 50 machines) is estimated to be Poisson with mean 3.5. Suppose there are currently 2 of these parts in inventory (a) If SEC does not order any of these parts in the final buy, what fraction of demand until retirement will be filled without the use of an emergency order? (6) (b) How many part A's should SEC order in the final buy to minimize its expected cost? (6)

Answers

If SEC does not order any of these parts in the final buy, only about 10.2% of the demand until retirement will be filled without the use of an emergency order.

(a) If SEC does not order any of these parts in the final buy, the fraction of demand until retirement that will be filled without the use of an emergency order can be calculated using the Poisson distribution. The expected demand during the remaining one-year period until retirement is:

Expected demand = mean demand per year * remaining time in years

= 3.5 * 1

= 3.5

The probability of having enough inventory to fulfill the demand without an emergency order is given by the cumulative distribution function (CDF) of the Poisson distribution:

P(X ≤ 2) =\(e^(-λ) * [λ^0/0! + λ^1/1! + λ^2/2!]\)

=\(e^(-3.5) * [1 + 3.5 + (3.5^2)/2]\)

≈ 0.102.

(b) To minimize its expected cost, SEC should order the quantity of parts that balances the cost savings from the final buy with the expected cost of emergency orders. Let X be the number of parts ordered in the final buy. The expected number of emergency orders is:

Expected emergency orders = P(demand exceeds inventory) * expected number of emergency orders per demand

The probability of demand exceeding inventory is given by:

P(X > Y) = P(Y ≤ X - 1) = 1 - P(Y ≤ X - 2)

where Y is the inventory level at the time of demand. The probability distribution of Y can be obtained by simulating the inventory level over the remaining one-year period until retirement. Let Y_t denote the inventory level at the beginning of month t, where t = 0, 1, ..., 12 (assuming a monthly time unit). Then:

Y_t = max(Y_{t-1} - D_{t-1}, 0) + X

where D_{t-1} is the demand in month t-1, and max(a, 0) is the maximum of a and 0. The initial inventory level Y_0 is given as 2. The expected number of emergency orders per demand is:

Expected emergency orders per demand = P(demand exceeds inventory | inventory = 0)

The probability of demand exceeding inventory when the inventory level is 0 is:

P(D > 0 | Y_0 = 0) = 1 - P(D = 0 | Y_0 = 0)

≈ 0.787

where P(D = 0 | Y_0 = 0) is the probability of zero demand during the first month, given that the initial inventory level is 0. This probability can be obtained from the Poisson distribution as:

P(D = 0 | Y_0 = 0) =\(e^(-λ) * λ^0/0!\)

=\(e^(-3.5)\)

≈ 0.030

Therefore, the expected number of emergency orders per demand is:

Expected emergency orders per demand = P(D > 0 | Y_0 = 0) * 1 + (1 - P(D > 0 | Y_0 = 0)) * P(D > 1)

≈ 0.787 * 1 + 0.213 * (1 - P(D = 1))

≈ 0.840.

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Learning Task 7: Find the function and create a formula that will calculate the total number of fruits in the workbook below. Write the formula on cell B7.

Answers

Answer:

=SUM(B2:B6)

Explanation:

Given

See attachment for workbook

Required

The function that calculates the total number of fruits

The number of fruit for each fruit is represented by cell B2 through B6.

So, we need to create a function that adds up the values in B2 to B6. To do this, we make use of the SUM function.

So, enter the following formula in cell B7

=SUM(B2:B6)

The above formula will add B2 to B6

Learning Task 7: Find the function and create a formula that will calculate the total number of fruits

Ten years ago, Ann was gifted a bond. If the investment earned an annual interest of 3.2% compounded quarterly for the life of the bond and it is worth $4,805.02 today, how much was the original gifted bond worth?

Answers

The original worth of the bond is $1363.04.

What was the original value of the bond?

The formula that can be used to determine the original value of the bond is:

PV = FV ÷ (1 + r)^nm

Where:

PV = present value FV = future value r = interest rate n = number of years m = number of compounding

4,805.02 ÷ (1.032)^(4x10) = $1363.04

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