Read No Evil (RNE) is a firm specializing in the destruction of sensitivedocuments. An industrial paper shredder costs $7,083. If bought, itwould raise RNE's net income by an additional $850 per year. Themachine is designed to last forever and never require maintenance. If thefirm does not purchase the machine, it will put the money into an interest- bearing bank account.At which interest rates would RNE rather buy the machine than put themoney in a bank account? Check all that apply.8%11%15%17%

To determine whether RNE should buy the machine or put the money in a bank account, we need to…

Answered: Read No Evil (RNE) is a firm…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Felix lives in San Francisco and runs a business that sells pianos. In an average year, he receives $711,000 from selling pianos. Of this sales revenue, he must pay the manufacturer a wholesale cost of $411,000; he also pays wages and utility bills totaling $279,000. He owns his showroom; if he chooses to rent it out, he will receive $1,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Felix does not operate this piano business, he can work as a financial advisor and receive an annual salary of $31,000 with no additional monetary costs. No other costs are incurred in running this piano business. Identify each of Felix's costs in the following table as either an implicit cost or an explicit cost of selling pianos. Implicit Cost Explicit Cost The salary Felix could earn if he worked as a financial advisor The wages and utility bills that Felix pays The rental income Felix could receive if he chose to rent out his showroom The…
I asked this question it was not answered and I was charged please issue me a refund and answer this question. Dina is working for a consulting firm making $60,000 per year but considers starting her own consulting company. Dina has determined that to launch the business, she needs to invest $100,000 of her own funds. The annual cost of running the business will include $70,000 for the rent of the office space, $210,000 for employee wages, and $5,000 for materials and utilities. Dina plans to manage the business, which means that she will have to quit her current job. Suppose that the interest rate (or rate of return) on investments in the economy is 6%. Dina's total implicit cost per year is . Dina's total cost per year is .
The Rosebud Motel is a must-stay for any road-tripper or weary traveler. The motel fils each of its 24 rooms for 200 nights each during the year. Annual fixed costs total $160,000. The variable cost of one night's stay is $100. The motel owners expect a 50% return on the company's $500,000 of assets each year. The Rosebud Motel is currently the only place to stay for 50 miles. What should Rosebud's cost-plus price be if sales volume and costs are expected to stay consistent? OA. $133.33 OB. $185.42 OC. $2,150.00 OD. $152.08 OE. The Rosebud Motel would not set its price as it is a price-taker in this market.
Solve the problem and what is asked. Write your answer on clean paper clearly and readable. Don't forget to show your answer then box the final answer.
please solve parts d, e
As Financial Manager what would be your decision on assets and investment matters to meet profit maximization? Choose the best answer. 1. A financial manager must choose between four alternative Assets: 1, 2, 3, and 4. Each asset costs P35,000 and is expected to provide earnings over three years as described below. Based on the profit- maximization goal, the financial manager would choose ASSET YEAR YEAR 1 2 1 21,000 15,000 6,000 2 9,000 15,000 21,000 3 3,000 20,000 19,000 4 6,000 12,000 12,000 А. Asset 1 В. Asset 2 C. Asset 3 D. Asset 4 Why the financial manager should maximize their wealth? How would they prove that there was a transaction so that the demander will be able to repay the supplier on time and at the right amount? Do you think using those financial institutions would help the company to grow
Dana was dating Wade, a wealthy real estate entrepreneur. Wade was much older than Dana and knew he needed to offer something “special” to make her stay. Wade told Dana that if she continued dating him, he would pay her $10,000 a month. Wade paid Dana for two years when suddenly, for no apparent reason, he stopped the monthly payments. Dana stayed with Wade for another six months, but decided enough was enough and left. She wanted the $60,000 she was owed for the six months; Wade refused to pay her. Is Dana entitled to the $60,000?
3
In many cities, discount clubs are popular. For a fixed annual fee (paid in advance) one can purchase goods at 90% of their listed price (in other words, 10% off the list price); otherwise, one pays the list price. Suppose that the annual fee is $300 and the interest rate on your savings account is 5%. Finally, assume discount club's list prices are the same as any other store, and you plan to spend $4000 over the coming year at this store. (Hint: the interest represents an opportunity cost of purchasing a membership). benefit not buying is a membership I dollars and the cost of not buying The of a membership is dollars. Please record your answer without a dollar sign or a comma.
It is the periodic compensation for the use of money; the amount of money paid for the use of borrowed capital. Annuity due Interest rate Interest Present worth
Ben Hunt operated a farm under the name of S.B.H. Farms. Hunt went to Mollary Bank and Trust and requested a loan to build hog houses, buy livestock, and expand farming operations. The bank agreed to loan S.B.H. Farms $175,000, for which short-term promissory notes were signed by Hunt. At the same time, oral discussions were held with the loan officer regarding long-term financing for the farm operations. No dollar amount, interest rate, or repayment terms were discussed. When Hunt defaulted on the short-term notes, the bank foreclosed on the farm. Hunt counterclaimed for $750,000 damages, alleging that the bank had breached a contract for long-term financing. Was there a valid offer for long-term financing offered by the bank?
If the total interest paid equals the borrowed principal over 20 years, determine the discount rate applied. Determine the equivalent simple interest rate.

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