Question

In: Economics

An active can be sold today for $12,000. The value on the market will be reduced...

An active can be sold today for $12,000. The value on the market will be reduced by $500 during the first 3 years and starting from the fourth year it will be reduced by $600 anually. The operational costs remain constant at $900 anually. Determine the marginal cost of this active for the next 3 years. Use an interest rate of 12%

Please include steps , thanks.

Solutions

Expert Solution


Related Solutions

A company sold merchandise for cash on September 30th. The merchandise was sold for $12,000 and...
A company sold merchandise for cash on September 30th. The merchandise was sold for $12,000 and had a cost of $7,000. The tax rate is 5%. Show all of your work! Record the sale: Record the remittance of the sales taxes to the state on October 30th.
XYZ can buy a Monet for $8,200,000 today. She believes that the masterpiece can be sold...
XYZ can buy a Monet for $8,200,000 today. She believes that the masterpiece can be sold in 7 years for $19,600,000. What is the annual rate of return that XYZ expects to earn on this art investment?
Pilar can buy a Monet for $7,200,000 today. She believes that the masterpiece can be sold...
Pilar can buy a Monet for $7,200,000 today. She believes that the masterpiece can be sold in 9 years for $19,600,000. What is the annual rate of return that Pilar expects to earn on this art investment? a. 11.77% (plus or minus .02 percentage points) b. 172.22% (plus or minus .02 percentage points) c. 19.14% (plus or minus .02 percentage points) d. 30.25% (plus or minus .02 percentage points) e. None of the above is within .02 percentage points of...
Future Value Computation Kate Company deposited $12,000 in the bank today, earning eight percent interest. Kate...
Future Value Computation Kate Company deposited $12,000 in the bank today, earning eight percent interest. Kate plans to withdraw the money in five years. How much money will be available to withdraw assuming that interest is compounded (a) annually, (b) semiannually, and (c) quarterly? Use Excel or a financial calculator for computation. Round answers to the nearest dollar. (a) Annually...... Answer 0 (b) Semiannually....... Answer 0 (c) Quarterly....... Answer 0
If an asset is sold (market value) for more or less than its book value that...
If an asset is sold (market value) for more or less than its book value that used for tax purposes, and adjustment must be made to the taxable income during the year. How this difference in market value and book value affect the taxable income?
Which of the following can be greatly reduced by diversification? a. Unsystematic risk. b. Market risk....
Which of the following can be greatly reduced by diversification? a. Unsystematic risk. b. Market risk. c. Systematic and unsystematic risk. d. Systematic risk
Rose company owns Machine A (adjusted basis of $12,000 and fair market value of $15,000), which...
Rose company owns Machine A (adjusted basis of $12,000 and fair market value of $15,000), which it uses in its business. Rose sells Machine A for $15,000 to Aubry (a dealer) and then purchases Machine B for $15,000 from Joan(also a dealer). Machine B would normally qualify as like-kind property. a. What are Rose Company's realized and recognized gain on the sale of Machine A? b. What is Rose's basis for Machine B? c. What factors would motivate Rose to...
Equipment that is purchased for $12,000 now is expected to be sold after ten years for...
Equipment that is purchased for $12,000 now is expected to be sold after ten years for $2,000. The estimated maintenance is $1,000 for the first year, but it is expected to increase $200 each year thereafter. The effective annual interest rate is 10%. 6. The present worth is most nearly: (A) $16,000 (B) $17,000 (C) $21,000 (D) $22,000 7. The annual cost is most nearly: (A) $1,100 (B) $2,200 (C) $3,600 (D) $3,700
An investor owns a three-stock portfolio today with the market value and expected annual return for...
An investor owns a three-stock portfolio today with the market value and expected annual return for each of the stocks as follows blue - 12,000 8% black 22,000 10% Serina 16000 12% What is the expected portfolio value two years from now
If you deposit $10,000 in an investment account today, it can double in value to $20,000...
If you deposit $10,000 in an investment account today, it can double in value to $20,000 in just a couple of decades even at a relatively low interest rate (say, 4%).
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT