King T'Challa of Wakanda wants to create ten youth centers in and around Oakland, California, to improve the living conditions of Black kids in the area. He is considering two options to go about this project: • Option 1 Build all ten centers now, at a cost of $250,000,000 • Option 2 Build four centers now for $100.000,000, three more after four years at a cost of $90,000,000, and three more eight years from now at a cost of $120,000,000 In either case, each youth center requires $150.000 (adjusted for inflation) to run every year once it is built. You can assume the investment for each youth center is paid in full at the beginning of the year and that operating costs are due at the end of every year starting with year one. If the average expected inflation is 2% and the interest rate is 9%, which option makes the most economic sense?
In: Economics
King T'Challa of Wakanda wants to create ten youth centers in and around Oakland, California, to improve the living conditions of Black kids in the area. He is considering two options to go about this project:
Option 1 Build all ten centers now, at a cost of $250,000,000
Option 2 Build four centers now for $100,000,000, three more after four years at a cost of $90,000,000, and three more eight years from now at a cost of $120,000,000
In either case, each youth center requires $150,000 (adjusted for inflation) to run every year once it is built. You can assume the investment for each youth center is paid in full at the beginning of the year and that operating costs are due at the end of every year starting with year one. If the average expected inflation is 2% and the interest rate is 9%, which option makes the most economic sense?
In: Statistics and Probability
during 2016, Liang's bookstore paid $484,000 for land and built a store in Georgetown. prior to construction, the city of Georgetown charged Liang's $1,300 for a building permit, which Liang's paid. Liang's also paid %15,300 for architect's fees. the construction cost of $685,000 was fascinated by a long-term note payable with interest cost of $28,220 paid at completion of the project. the building was completed June 30, 2016. Liang's depreciates the building by the straight-line method over 35 years with estimated residual value of $336.000.
requirements:
1. journalize transaction for the following
a. purchase of the land
b. all the cost chargeable to the building in a single entry
c. depreciation on the building for 2016
2. report Liang's bookstore's plant assets on the company's balance sheet at December 31, 2016.
3. what's Liang's income statement for the year ended December 31, 2016, report for these facts
In: Accounting
In: Finance
Fundamentals of cost and management accounting
Classwork on breakeven analysis
Question 1
GPZ sells cupcakes for $2. Material per unit costs $0.10. Variable labour cost is $0.25. Variable other manufacturing costs is $0.35. Monthly fixed costs are $12,000.
Required
Question 2
A road construction company generates on average $500,000 of revenue for each kilometre of road built. The variable costs per kilometre built are made up of fuel ($10,000), direct labour ($40,000), vehicle maintenance ($20,000), other variable vehicle costs ($55,000), and materials ($225,000). The monthly fixed costs of the company are $1.5 million.
Required
1) Calculate the breakeven point in kilometres of road built per month.
2) Calculate the breakeven point in dollar revenue per month.
3) Calculate the contribution margin percentage.
Question 3
APP operates a beauty salon. Average revenue per customer is $200. Monthly fixed costs are $45,000. Variable costs in last month were in total $78,000. During that month APP had 1,000 customers.
Required
Question 4
Aisha operates a children’s nursery. Her monthly fixed costs are AED60,000. Her revenue per month per child is AED1,600. Variable costs per month are AED200 per child.
Required
In: Accounting
how to create a function to compute PACF of a time series in MATLAB without using built-in function ''parcorr''?
In: Computer Science
How do I prepare a budget for a new plant being built compared to the existing plant data
In: Accounting
In: Physics
Discuss the pros and cons of keeping the federal funds rate near zero percent.
In: Economics
Why can the Drude equation not be applied in the range of wavelengths near maximum absorbance?
In: Chemistry