The ______ is particularly well-suited to both foraging societies and industrial economies because it allows for greater mobility and flexibility in order to adapt to changing economic or subsistence opportunities

For the first question, the overhead rates using activity-based costing are $0.18 per machine hour for the cutting cost pool and $0.39 per setup for the design cost pool. For the second question, the overhead allocated to the wool product line would be $180,000 and the overhead allocated to the cotton product line would be $385,000. For the third question, the overhead rate using the traditional approach is $2.11 per direct labor hour. For the fourth question, the amount of overhead allocated to the wool product line would be $225,500 and the overhead allocated to the cotton product line would be $719,500.

for such more questions on product

https://brainly.com/question/25922327

#SPJ11

The right technology. Business Process Management (BPM) requires buy-in from a broad cross section of the business, software to map processes that are performed manually, and highly effective change management processes in order to be successful. The correct answer is C.

The first part of successful BPM is buy-in from a broad cross section of the business. Buy-in ensures that all stakeholders are on board with the changes BPM will bring and understand their role in the process. It also ensures that the changes will be accepted and supported.

Software to map processes that are performed manually is necessary to gain a thorough understanding of existing processes. This helps identify and measure key performance indicators, highlight process bottlenecks and areas for improvement, and develop and streamline processes.

Change management processes are essential for successful implementation of BPM. It is important to have a well-defined process for change management, including training, communication, and monitoring. The right technology is not essential for successful BPM, although it can help to automate and streamline processes.

To learn more about BPM here:

https://brainly.com/question/29051143#

#SPJ11

The debt equality rate is 0.40, the company's weighted average cost of capital is 10.0%, and the weighted average cost of capital of 11.2.%.

a. The debt-equity ratio is calculated by dividing the market value of debt by the market value of equity:

Debt-equity ratio = $9.08 million / $22.7 million

= 0.40

b. The weighted average cost of capital (WACC) can be calculated using the formula:

WACC = (E/V) * Re + (D/V) * Rd * (1 - T)

where:

E = market value of equity

V = total market value of the firm (equity + debt)

Re = cost of equity

D = market value of debt

Rd = cost of debt

T = tax rate

In this case, since the company pays no taxes, T = 0.

Therefore, the formula becomes:

WACC = (E/V) * Re + (D/V) * Rd

Plugging in the given values:

E = $22.7 million

D = $9.08 million

V = E + D = $31.78 million

Re = risk-free rate + beta * (expected market return - risk-free rate) = 0.06 + 1.12 * (0.11 - 0.06) = 0.1168

Rd = 0.06 (since we are not given any information about the cost of debt)

WACC = ($22.7 million / $31.78 million) * 0.1168 + ($9.08 million / $31.78 million) * 0.06

WACC = 0.1000 or 10.0%

c. The cost of capital for an all-equity company can be calculated using the same formula as in part (b), but with D = 0 (since there is no debt):

Re = risk-free rate + beta * (expected market return - risk-free rate)

= 0.06 + 1.12 * (0.11 - 0.06)

= 0.1168

Therefore, the cost of capital for an all-equity company is 11.2%, which is the same as the cost of equity for Acetate, Inc.

Learn more about the cost of capital here:

https://brainly.com/question/27159534

#SPJ11

Tough Mudder offers a good compensation package which includes tangible indirect rewards. These rewards can include items such as: health and wellness package.

A tangible indirect reward is a non-monetary award given to an employee or worker. This award can take the form of prizes, such as vacations, tickets to a show, or a health and wellness package. It is not a monetary award, but rather something that has intrinsic value.

A health and wellness package is a set of benefits offered to employees by their employer. These benefits can include Unlimited vacation pay, gym memberships, access to a nutritionist, or an on-site wellness center. Health and wellness packages are designed to help employees maintain good physical and mental health.

They are a tangible indirect reward that can help increase employee retention and improve morale.

To know more about tangible indirect rewards, refer here:

https://brainly.com/question/25521323#

#SPJ11

Complete question:

Tough Mudder offers a good compensation package. Which item in the package is a tangible indirect reward?

Businesses will often self-insure against known risks by budgeting a certain amount for likely costs, while Insurance companies might also share extraordinary risks with other insurers through a process known as co-insurance. This is TRUE.

What is Co-insurance?

Co-insurance is a way for insurance companies to share risks with other insurance providers. The insurer must pay a certain proportion of any damages or losses the insured experiences. For example, if an insurance company's co-insurance rate is 20%, the insurance provider would have to pay 20% of the total sum of any loss or damage that the insured experiences.

Insurance providers use co-insurance to share the risk of significant losses. Rather than bearing the entire financial burden themselves, multiple insurers pool their resources to handle any damage or loss. Co-insurance provides insurance providers with additional resources to cover more significant losses when they occur.

learn more about Co-insurance here:

https://brainly.com/question/19518804

#SPJ11

The capitalized cost of the machine should be 56,900.

Capitalized cost is also called the historical cost of the asset. It is the actual cost of acquiring the asset along with all the necessary expenditures incurred to get the asset ready for use in the production process.

The different expenditures for the machine during its first year include:

The base purchase price, $50,000

Sales tax incurred at the time of purchase, $3,000

Installation charges for the machine, $2,000

Insurance costs incurred while the machine was being shipped, $200

Insurance costs for the first year of the machine's service life, $500

Ordinary repairs and maintenance costs during the first year of the machine's service life, $1,200

The capitalized cost of the machine will be the sum of all the expenditures,

$50,000 + $3,000 + $2,000 + $200 + $500 + $1,200 = $56,900

Thus, the capitalized cost of the machine is $56,900.

Learn more about capitalized cost here:

https://brainly.com/question/31066685

#SPJ11

Adjustments is an aspect of preparing an accounting worksheet typically requires the greatest involvement by the accountant. It is one of the most crucial task of an accountant.

Adjustments are accounting entries made at the end of the accounting period to adjust accounts for the effects of internal and external events that have not been recorded. They are necessary to ensure that the financial statements are accurate and complete.

Adjustments are classified into two types, namely accruals and deferrals. Accruals are revenues or expenses that have been earned or incurred but not yet recorded, while deferrals are revenues or expenses that have been recorded but not yet earned or incurred.

However, it is important to take the time to ensure that the financial statements are accurate, as errors or omissions can lead to serious consequences for the organization, such as legal problems or financial problems.

Know more about financial statements here:

https://brainly.com/question/14951563

#SPJ11

Maven is a project management and comprehension tool that provides developers a complete build lifecycle framework. Therefore, the correct option is "Both of the above.

"Maven: Maven is a project management and comprehension tool. Maven is built with Java, and it was created by Apache Software Foundation. Maven's key feature is the POM (Project Object Model). It's a metadata file for projects that specifies how they are constructed, their dependencies, and how they are to be constructed. Maven's central function is to construct projects by compiling source code, generating binary archives, and running unit tests, among other things.Maven provides developers a complete build lifecycle framework that includes project development, document creation, testing, and deployment. This framework includes a set of plug-ins that provide preconfigured scripts for different phases of the development lifecycle. The POM (Project Object Model) specifies the plug-ins to be used at each phase of the lifecycle.The correct option is "Both of the above." Maven is a project management and comprehension tool that provides developers with a complete build lifecycle framework.

Read more about management  here:https://brainly.com/question/28072798

#SPJ11

The statement "when a provider has market dominance, and hence can set its own prices (within reason), it is called a price taker" is false because that is called a price setter, not a price taker.

A price setter is a business or industry that has control over the market price of goods or services. This is achieved through the use of monopolistic competition, oligopoly, or a monopoly. In an oligopoly, for example, the top four firms account for 80% of the market. These businesses have considerable power over the market since their pricing and output strategies influence market conditions. The company can set its prices above those of its competitors due to its monopoly position. This will be to maximize profits by charging the highest price that consumers are willing to pay.

A price taker, on the other hand, is a firm or industry that accepts the market price determined by supply and demand forces. Small businesses and startups are more likely to be price takers since they lack market power to set prices. The market price is the going rate for a product or service. Businesses that do not have a monopoly or oligopoly position are price takers, and they must accept the market price. They have no influence over the market price since their output is minor, and they must accept the market price to be competitive.

Market dominance is when a company or group of firms controls a significant portion of the market. A company that holds a significant portion of the market may have an unfair advantage over its competitors, which can lead to a monopolistic or oligopolistic market. When a company has market power, it can charge higher prices or reduce product quality without fear of losing customers. Governments frequently take measures to promote competition and prevent businesses from dominating the market, to protect consumers from paying excessive prices.

Learn more about price setter here: https://brainly.com/question/10572004

#SPJ11

Ms. Spencer should buy less B and more B (Option c). This is because the marginal utility of A is higher (16) than that of B (24), suggesting that the additional benefit she receives from consuming the next unit of A is greater than the benefit she receives from consuming the next unit of B.

Marginal Utility is the extra utility you receive by consuming one additional unit of any commodity. Marginal utility, according to the principle of diminishing marginal utility, decreases as a person consumes more and more units of a good over time.

Income is defined as the amount of money that a person or household earns in exchange for their labor and services, as well as investments, profits, and other sources. Income is generally used to purchase products that are used to meet people's needs and want.

For more info about the topic Marginal Utility check the below link:

https://brainly.com/question/15050855

#SPJ11

The necessary closing entries are as follows: Particulars Debit, Credit Income summary account $30,000 Services revenue $30,000 Wages expense $16,900 Rent expense $5,000 Income summary account $21,900 Income summary account $8,100 Retained earnings account $8,100 Dividends account $1,650 Retained earnings account $1,650

In order to prepare the necessary closing entries from the available information at December 31, we must follow certain steps which are as follows:

Step 1: Firstly, we need to transfer the balances of revenue accounts into the income summary account by making a debit entry in the income summary account equal to the total amount of revenue accounts and crediting the total amount of revenue accounts with individual accounts. Here, the revenue account is Services revenue.Particulars Debit Credit Income summary account $30,000 Services revenue $30,000

Step 2: Then, we need to transfer the balances of expense accounts into the income summary account by making a credit entry in the income summary account equal to the total amount of expense accounts and debiting the total amount of expense accounts with individual accounts. Here, the expense accounts are Wages expense and Rent expense.Particulars Debit Credit Wages expense $16,900 Rent expense $5,000 Income summary account $21,900

Step 3: Now, we need to transfer the net income/loss to the retained earnings account by making a credit entry in the income summary account and debiting the retained earnings account. Here, the income summary account has a credit balance of $8,100, which means that the company has net income of $8,100.Particulars Debit Credit Retained earnings account $8,100 Income summary account $8,100

Step 4: Then, we need to transfer the dividends account balance to the retained earnings account by making a debit entry in the retained earnings account and crediting the dividends account.Particulars Debit Credit Dividends account $1,650 Retained earnings account $1,650

For more questions on  Dividends

https://brainly.com/question/3198926

#SPJ11

The least effective condition for yield management is when the product can be kept for sale when demand is stronger.

When the need is weaker, the product must be sold to maximise revenue. Yield management entails pricing goods and services in a way that balances supply and demand to optimise revenue, which is crucial for businesses.

Yield management is a pricing approach that maximizes the revenue of an organization in the long term by examining customer behavior, product characteristics, and external market trends. Its primary goal is to manage the inventory demand for various items in the company's supply chain so that the best profit can be made by selling them.

Learn more about yields management at

https://brainly.com/question/29690649

#SPJ11

By creating a new product, companies can increase their margins by offering a product that is differentiated from competitors. This allows them to charge a premium price and increase their margins. Thus, this statement is True.

A competitive advantage is a feature that enables a company to outperform its competitors. Competitive advantage enables a business to achieve superior performance or generate greater profits than its rivals, allowing it to develop more customers and gain a larger market share than its competitors.

When a business has a competitive advantage, it is in a more robust position to capture a larger market share than its competitors.

In this case, creating a new product to increase margin is an example of using product implementations to achieve a competitive advantage. One of the ways companies can gain a competitive advantage is by introducing new products into the market.

As a result, companies can use this method to introduce new products that will help them gain a competitive advantage over their rivals.

The introduction of a new product will assist the company in increasing its margin, which will enable it to outperform its rivals.

Learn more about margin here:

https://brainly.com/question/13248184

#SPJ11

The two factors that will decrease the market demand for a product are:

A decrease in the number of consumers who are interested in buying the product will lead to a decrease in the overall demand for the product.

Complementary goods are those that are often used together with the product in question. If the price of the complementary goods increases, then the demand for the product will decrease as the overall cost of using the product along with its complements will increase.

A rise in the population likely to buy the good in question will increase the market demand for a product. This is because an increase in the number of consumers who are interested in buying the product will lead to an increase in the overall demand for the product. Similarly, a drop in the price of complements will also increase the market demand for a product as it will become cheaper for consumers to buy both the product and its complementary goods.

To know more about complementary goods, visit :

https://brainly.com/question/28145273

#SPJ1

The correct entry to recognize bed debt expense would be:

Given, the following details of a company that uses the allowance method to estimate its bad debt expense: At the end of the year, the controller uses the aging-of-receivables method and estimates that $10,000 of accounts receivable will be uncollectible, and With a debit balance of $2,000 in the allowance for bad debts account. We are to find out the correct entry to recognize bed debt expense.

The aging method is a method used to estimate uncollectible accounts receivable by analyzing the receivables according to the age of each account. Thus, the Aging of Receivables Method estimates the portion of the current accounts receivable that will not be collected. The accounting entry to recognize bad debt expense is to debit Bad Debt Expense and credit Allowance for Doubtful Accounts.

The allowance method requires that an estimate of the expected losses from uncollectible accounts be made at the end of each accounting period. The estimated amount of losses is then charged to Bad Debt Expense and credited to Allowance for Doubtful Accounts. The following table shows the calculation of the required entry to recognize bed debt expense:

Accounts receivable that are 30 days past due$20,000×3%=$600

Accounts receivable that are 60 days past due$15,000×7%=$1,050

Accounts receivable that are 90 days past due$10,000×15%=$1,500

Accounts receivable that are 120 days past due$5,000×20%=$1,000

Total estimate of uncollectible accounts receivable$4,150

Less: Existing credit balance in Allowance for Bad Debts$(2,000)

Bad Debt Expense$2,150.

In other words, the amount of Bad Debt Expense should be $2,150, which is calculated as the total estimate of uncollectible accounts receivable ($4,150) less the existing credit balance in Allowance for Bad Debts ($2,000).Since the problem states that the controller estimates $10,000 of accounts receivable to be uncollectible, then the amount of the entry to recognize bad debt expense should be $10,000 − $2,000 = $8,000.

For more about bed debt expense:

https://brainly.com/question/14796598

#SPJ11

In the following question, among the conditions given, A non-excludable goods is defined as a good that 'is difficult (or very costly) to prevent consumption by those who do not pay for the good."

What is a non-excludable good? A non-excludable good is defined as a good that is difficult (or very costly) to prevent consumption by those who do not pay for the good. This makes it difficult for suppliers to sell and market these kinds of products, which results in the government having to provide or subsidize them. Because it is difficult to stop people from using them, these goods often result in market failure. Types of Non-Excludable goodsThere are two types of non-excludable goods: Pure Non-Excludable Goods: These goods are the ones that everybody has access to, even if they do not pay for them. National parks and oceans are examples of such goods. Partly Non-Excludable Goods: These goods are ones that are non-excludable, but only to a certain degree. Cable TV and private clubs, for example, fall into this category. Even if you do not pay for them, you will be excluded to a certain extent, such as not having access to particular features.

For more such questions on goods

https://brainly.com/question/25922327

#SPJ11


The number of drums that should be produced each month would be January: 40,380, February - 39,920, march - 50,160, and the total drums for the quarter 135,050.

A production Budget is a financial plan that summarizes a company's goals for the production of goods or services. The production budget is intended to assist businesses in determining the number of goods to be produced to fulfill consumer demand.

In this problem, the Production Budget for the first quarter of the year is required. January sales are 41,000 units, February sales are 38,000 units, and March sales are 50,000 units, totaling 129,000 units.

According to Patrick's policy, 25% of next month's sales will be held in inventory. So, the ending inventory for January is expected to be 10,250 units (25% of February's sales of 38,000), for February it will be 9,500 units (25% of March's sales of 50,000), and for March it will be 12,500 units (25% of April's sales of 51,000).

Thus, the total units needed to satisfy consumer demand and maintain the expected ending inventory level are 43,800 units for January, 41,000 units for February, 50,250 units for March, and 135,050 units for the quarter as a whole.

Learn more about production budget at:

https://brainly.com/question/29440822Learn

#SPJ11

The defense under strict product liability is the assumption of the risk.

Strict product liability is a legal doctrine that holds manufacturers, distributors, and sellers liable for any injuries or damages caused by their defective products without requiring the plaintiff to prove negligence or fault on their part. It is an essential consumer protection tool that incentivizes manufacturers to make safe products by holding them accountable for any defects or hazards that they produce.

Strict product liability holds the seller of a product strictly liable for any damages or injuries caused by the product, regardless of the seller’s level of fault or negligence. The assumption of the risk defense states that the plaintiff was aware of the risks and chose to use the product anyways, thus releasing the seller from liability.

Learn more about the assumption of the risk here:

brainly.com/question/21897362

#SPJ11

The total cost to be accounted for is $357,915 and the total cost accounted for is also $357,915.

The June 1 work-in-process inventory consists of 4,300 units with $15,240 in materials cost and $12,760 in conversion cost, making the total cost of the June 1 inventory $28,000 ($15,240 + $12,760).

During June, 36,800 units were started into production, costing a total of $151,215 ($114,000 for overhead + $37,215 for materials + $0 for direct labor).

The June 30 work-in-process inventory consists of 9,000 units with $18,000 in materials cost and $9,000 in conversion cost, making the total cost of the June 30 inventory $27,000 ($18,000 + $9,000).

Adding together the June 1 and June 30 Work in Process inventory totals gives us the total cost to be accounted for, which is

$357,915 ($28,000 + $151,215 + $27,000 = $357,915).

Since the Completed and Transferred to Finished Goods was the same as the total cost to be accounted for, the total cost accounted for is also $357,915.

To learn more about “total cost” refer to the https://brainly.com/question/25109150

#SPJ11

Strong property rights are important for modern economic growth because people are more likely to invest if they don't fear that others can take their returns on investment without compensation.

Property rights refer to the ownership and control of an economic resource. Ownership provides the right to use the resource as you see fit, while control refers to the right to receive income from the resource. Property rights, in essence, allow for the creation of wealth and incentivize individuals and businesses to use and develop their resources fully.

Economic growth refers to the increase in the amount of goods and services produced by a country or region over a given period. It is measured by the increase in real GDP, employment, and investment in physical and human capital.The importance of strong property rights for modern economic Growth

Strong property rights are critical to modern economic growth for several reasons.

Learn more about property rights at

https://brainly.com/question/29613081

#SPJ11

The expected value of this bet is $-0.10, meaning that if you were to make this bet 519 times, you would expect to lose $51.80. This is because the probability of drawing two spades from a standard deck is 0.0258, so for every 519 bets, you would expect 13 of them to be successful (0.0258 * 519). The expected value for each successful bet is 49, and for each unsuccessful bet, the expected value is -5. Therefore, the overall expected value is (13 * 49) + (-506 * 5) = -0.10.

In general, expected value is used to calculate the average winnings (or losses) of a bet over a large number of trials. It is calculated by multiplying the probability of a given outcome by the reward (or penalty) associated with that outcome, and then summing those values for all possible outcomes.

Know more about Probability here:-

https://brainly.com/question/29381779#

#SPJ11

The amount that needs to be deposited today to be able to withdraw $600 a year for 7 years at an annual interest rate of 6% is $3,349.43.

We can use the present value formula to calculate the amount that needs to be deposited today to be able to withdraw $600 a year for 7 years at an annual interest rate of 6%:

PV = PMT x (1 - (1 + r)⁻ⁿ) / r

where PV is the present value, PMT is the annual payment, r is the annual interest rate, and n is the number of years.

Substituting the given values, we get:

PV = $600 x (1 - (1 + 0.06)⁻⁷) / 0.06

PV = $3,349.43

Hence, the person needs to deposit $3,349.43

Learn more about present value here:

https://brainly.com/question/20557642

#SPJ11

True, the operating plan focuses on how the business plans to meet the goals and objectives contained in the strategic plan.

What is an operating plan? An operating plan is a business plan that specifies how to implement the strategies, initiatives, and activities described in the strategic plan. It is a tactical plan that outlines the specific actions, timelines, and resources required to accomplish the strategic goals and objectives. It serves as a guide for operational management by outlining how the company will meet its objectives through day-to-day operations.

As a result, it includes the specifics of the company's operations, such as hiring plans, production schedules, sales forecasts, and financial targets. The operating plan and the strategic plan are linked. The operating plan focuses on how a company will put the strategies outlined in the strategic plan into practice. It lays out the specific steps that will be taken to achieve the strategic plan's goals and objectives. They're both important in business planning because the strategic plan outlines what the company wants to accomplish, and the operating plan outlines how it will get there.

To learn more about the “operating plan” refer to the https://brainly.com/question/30319538

#SPJ11

An entrepreneur decided to leave a job that pays $50,000 a year to start a business. These lost wages would be considered an implicit cost. The correct answer is option c.

Implicit costs are expenses that are not directly paid out of pocket. They are non-monetary expenses, such as lost time, missed opportunities, or foregone earnings, that are frequently ignored in accounting records or financial statements.

Lost wages are an example of an implicit cost. When entrepreneurs begin a business, they must devote time and effort to it, which means they must give up the opportunity to earn money elsewhere. When an entrepreneur invests in their own company, their wages are used to finance the company's operations rather than to pay themselves. Implicit costs, also known as opportunity costs, can be difficult to quantify since they are subjective and vary depending on the individual's perspective.

Learn more about Implicit costs here: https://brainly.com/question/7824689

#SPJ11

The salaries of workers at a catered event is an example of a fixed cost. Salaries are a fixed cost in this case.

Fixed costs are costs that don't vary with production or sales levels, such as rent, salaries, and insurance premiums. Fixed costs are expenses that remain constant regardless of the quantity of goods or services produced/sold by the company. For example, salaries and rent. Variable costs, on the other hand, are costs that vary with the number of products sold or the level of production, such as raw materials or hourly wages.In this case, the salaries of workers at a catered event is an example of a fixed cost. Salaries must be paid to workers whether or not an event is taking place, and the amount of the salaries is not determined by the number of events or guests. This implies that salaries are a fixed cost in this case.

Learn more about fixed cost https://brainly.com/question/3636923

#SPJ11

Constant returns to scale occur when an increase in resources results in a proportional increase in output.

What are Constant returns to scale?

Constant returns to scale are a feature of a production system in which an increase in all factors of production leads to a proportionate increase in output. This means that, as all inputs in production are increased by the same factor, output also rises by the same factor. The marginal product remains the same throughout the production process, despite the increase in output. This may be interpreted as the amount of additional output produced by a unit of labor or capital added to the production process.

The long-run average total cost curve slopes downward for constant returns to scale. This suggests that as the size of the production process increases, the per-unit cost of output remains constant. Therefore, we can conclude that constant returns to scale occur when an increase in resources results in a proportional increase in output.

learn more about Constant returns to scale here:

https://brainly.com/question/27402839

#SPJ11

Answer: The degree to which decision-making authority is retained at higher managerial levels is known as centralization. Centralization is the practice of retaining decision-making authority at higher managerial levels, as opposed to decentralization which is the practice of distributing decision-making authority across lower levels of an organization. The other terms in your question (specialization, unification, and formalization) are not related to this concept.

Explanation: The degree to which decision-making authority is retained at higher managerial levels is referred to as Centralization.

This process refers to the extent to which the decision-making power is vested with the top management, and the lower-level employees are not given much control over the decision-making process.

The centralization can be of various forms, and it depends on the size, structure, and the culture of an organization. The degree of centralization varies from organization to organization, and it depends on the nature of the decision being made.

Some of the factors that determine the extent of centralization in an organization are as follows:

The decision-making process should be designed in such a way that it involves both the top management and the lower-level employees. This process can lead to the success of the organization because it brings different perspectives to the decision-making process.

Learn more about decision-making authority here:

https://brainly.com/question/29665318

#SPJ11

Wasteful spending includes overpaying for items that couple be purchased for less, purchasing inferior merchandise that does not last, and buying things one does not really need.

Wasteful spending is the use of resources (usually finances) on things that aren't needed or aren't needed as much as other things. Wasteful spending is the worst thing that can happen when it comes to managing your finances. It's when you use your money without really thinking about it or because you think you have to. It's the way people who have a lot of money end up losing it all or people who don't have a lot of money end up spending everything they have.

The following are examples of wasteful spending:

Overpaying for items that can be purchased for less.

Purchasing inferior merchandise that does not last.

Buying things one does not really need.

Buying things just to keep up with the latest trends or fashions.

Paying too much for the convenience of having someone else do something for you that you could do yourself.

Buying something just because it's on sale.

Learn more about Wasteful spending here: https://brainly.com/question/27511385

#SPJ11

The capitalized cost of perpetual service is $4,201,394.23 at i=7%.

To compute the capitalized cost of perpetual service, we need to find the present value of all future costs associated with the system.

Step 1: Calculate the present value of the initial cost of designing and building the system:

PV of initial cost = $830,000

Step 2: Calculate the present value of the recurring maintenance costs:

PV of recurring maintenance costs = $120,000 / 0.07 = $1,714,285.71

Step 3: Calculate the present value of the gear replacement cost at the end of the fifth year:

PV of gear replacement cost = $80,000 / 1.07^5 = $58,099.47

Step 4: Calculate the present value of the annual operating costs for the first 15 years:

PV of annual operating costs for first 15 years = $70,000 x [(1 - (1 / 1.07^15)) / 0.07] = $579,963.94

Step 5: Calculate the present value of the annual operating costs after the first 15 years:

PV of annual operating costs after 15 years = $100,000 / (0.07 - 0.03) / 1.07^15 = $1,019,045.11

Step 6: Add up all the present values to find the capitalized cost of perpetual service:

Capitalized cost of perpetual service = PV of initial cost + PV of recurring maintenance costs + PV of gear replacement cost + PV of annual operating costs for first 15 years + PV of annual operating costs after 15 years

= $830,000 + $1,714,285.71 + $58,099.47 + $579,963.94 + $1,019,045.11

= $4,201,394.23

Therefore, the capitalized cost of perpetual service is $4,201,394.23 at i=7%.

To know more about perpetual service, viist:

https://brainly.com/question/15062534

#SPJ1

What is productivity?

Productivity is the amount of production that can be generated from a certain amount of inputs. It is an assessment of efficiency in which a company transforms inputs into outputs.

What are Investments in research and development?

The money put into research and development (R&D) to enhance the goods and services a company provides is referred to as investments in research and development. R&D initiatives may lead to the creation of new goods or procedures that can make a company more profitable by allowing it to gain a larger market share, for example.

Investments in research and development can help a company improve its production process by increasing efficiency, reducing costs, and enhancing product quality. As a result, it can assist to increase productivity.

Option C, investments in research and development, is most likely to increase productivity.

Learn more about research and development (R&D) at https://brainly.com/question/29782299

#SPJ11