Business, 23.06.2020 21:01 bennyanderson857

A small trucking company is planning to install a GPS system in each of the five trucks the company owns. Each GPS system costs $4600 to install, has a 6-year useful life, and may be salvaged for $300. Total operating cost for all five systems is $1000 for the first year, increasing by $200 per year thereafter. a. How much new annual net income (each year for 6 years) is necessary to recover the initial investment of the five GPS systems at the annual effective interest rate of 9%? (The initial investment includes more than purchase price but not all of the costs given.) b. The company estimates an increased net income of $6000 per year for all five systems. This is total new income, not on top of part a. Now consider if the implementation of the GPS systems is financially viable. You should consider initial investment and maintenance costs. Use the annual effective interest rate of 9% and report the income or loss the company would experience each year.

Answers: 1

Show answers

Another question on Business

Business, 21.06.2019 20:20

The management at a pesticide manufacturing company has observed a decline in quality measures. the managers ask robin, the firm's hr manager, to investigate whether training might solve the problem. robin conducts needs assessment and recommends a training plan. which of the following conditions would most likely have been an observation during robin's person analysis?

Answers: 2

Answer

Business, 22.06.2019 10:40

At cooly cola, we are testing the appeal of our new diet one cola. in a taste test of 250 randomly chosen cola drinkers, 200 consumers preferred diet one cola to the leading brand. assuming that the sample were large enough, the large-sample 95% confidence interval for the population proportion of cola drinkers that prefer diet one cola would be:

Answers: 1

Answer

Business, 22.06.2019 16:40

Determining effects of stock splits oracle corp has had the following stock splits since its inception. effective date split amount october 12, 2000 2 for 1 january 18, 2000 2 for 1 february 26, 1999 3 for 2 august 15, 1997 3 for 2 april 16, 1996 3 for 2 february 22, 1995 3 for 2 november 8, 1993 2 for 1 june 16,1989 2 for 1 december 21, 1987 2 for 1 march 9, 1987 2 for 1 a. if the par value of oracle shares was originally $2, what would oracle corp. report as par value per share on its 2015 balance sheet? compute the revised par value after each stock split. round answers to three decimal places.

Answers: 1

Answer

Business, 22.06.2019 21:40

Engberg company installs lawn sod in home yards. the company’s most recent monthly contribution format income statement follows: amount percent of sales sales $ 80,000 100% variable expenses 32,000 40% contribution margin 48,000 60% fixed expenses 38,000 net operating income $ 10,000 required: 1. compute the company’s degree of operating leverage. (round your answer to 1 decimal place.) 2. using the degree of operating leverage, estimate the impact on net operating income of a 5% increase in sales. (do not round intermediate calculations.) 3. construct a new contribution format income statement for the company assuming a 5% increase in sales.

Answers: 3

Answer

You know the right answer?

A small trucking company is planning to install a GPS system in each of the five trucks the company...

Questions