a) the present value of the lease is $145,673.50.
b) the annual amortization expense for the right-of-use asset is $48,557.83.
c) Lease obligation table.
d) These entries represent the recognition of the right-of-use asset and the lease liability on the lessee's balance sheet throughout the lease term.
[a] To calculate the present value of the lease, we need to discount the annual lease payments using the risk-free rate.
Annual lease payment = $50,000
Risk-free rate = 3%
Lease term = 3 years
Using the annuity due factor, the present value of the lease can be calculated as follows:
Present value of the lease = Annual lease payment × Annuity due factor
Present value = $50,000 × 2.91347
Present value = $145,673.50
Therefore, the present value of the lease is $145,673.50.
[b] Since the Lessee adopts straight-line amortization, the annual amortization expense for the right-of-use asset will be the same over the lease term.
Amortization expense = Present value of the lease / Lease term
Amortization expense = $145,673.50 / 3
Amortization expense = $48,557.83 (rounded to the nearest dollar)
Therefore, the annual amortization expense for the right-of-use asset is $48,557.83.
[c] Lease obligation table:
Year Lease Payment Interest Expense Reduction in Lease Liability Lease Liability
1 $50,000 $4,370.21 $45,629.79 $145,673.50
2 $50,000 $4,370.21 $45,629.79 $100,043.71
3 $50,000 $4,370.21 $45,629.79 $54,413.92
Total $150,000 $13,110.63 $136,889.37
[d] Entries for the lease at inception and during the term:
At inception:
Right-of-use asset: $145,673.50
Lease Liability: $145,673.50
During the term (each year):
Right-of-use asset: $48,557.83
Lease Liability: $45,629.79 (reduction from lease payment minus interest expense)
These entries represent the recognition of the right-of-use asset and the lease liability on the lessee's balance sheet throughout the lease term.
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Calcular el Costo Variable Total teniendo en cuenta:
CANTIDAD PRODUCIDA: 1000 UNIDADES
COSTO VARIABLE UNITARIO: $ 50
COSTO FIJO TOTAL: $ 20.000
PRECIO DE VENTA: $ 100
By dividing the price to produce one unit of your product by the number of items you have created, you can determine the total variable cost. For instance, if producing one unit of your product costs $60 and you produced 20 units, your total variable cost would be $60 x 20 or $1,200.
What is the product?The object being sold is referred to as a product. A service or an object both qualify as products. It could take on a physical, virtual, or cyber form. Every product has a cost associated with it, and each one has a price. The market, the quality, the marketing, and the group that is being targeted all affect the price that can be charged.
the price to produce one unit of your product by the number of items you have created, you can determine the total variable cost. For instance, if producing one unit of your product costs $60 and you produced 20 units, your total variable cost would be $60 x 20 or $1,200.
Therefore, By dividing the price to produce one unit of your product by the number of items you have created, you can determine the total variable cost.
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your company is manufacturing a new product , you need to establish a product quality control process. what are three things you must do to create/ establish. your product quality control process? (choose 3). 1.) developing the product website and social media campaign ? 2.) setting up your test market strategy ? 3.) review the results of internal quality assurance testing ? 4.) establish the method to use or testing product quality ? 5.) determine what standards have to be met based on the product and industry ? 6.) publish your test results in a popular professional journal?
Answer:5,4,and1
Explanation:
if you invest $57,000 in this fund, what is the dollar amount of fees that you would pay this year? (round your answer to 2 decimal places.)
A = $147,843.32
A = P + I where
P (principal) = $57,000.00
I (interest) = $90,843.32
Calculation Steps:
First, convert R as a percent to r as a decimal
r = R/100
r = 10/100
r = 0.1 rate per year,
Then solve the equation for A
A = P(1 + r/n)nt
A = 57,000.00(1 + 0.1/1)(1)(10)
A = 57,000.00(1 + 0.1)(10)
A = $147,843.32
Summary:
The total amount accrued, principal plus interest, with compound interest on a principal of $57,000.00 at a rate of 10% per year compounded 1 time per year over 10 years is $147,843.32.
What is the principal?
Principal is mostly used to refer to the actual sum of money debt in a loan or put into an investment is called principal.
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The total amount accrued, principal plus interest, with compound interest on a principal invested of $57,000.00 at a rate of 10% per year compounded 1 time per year over 10 years is $147,843.32.
What is the principal and explain the above mechanism of investment.Principal is mostly used to refer to the actual sum of money debt in a loan or put into an investment is called principal.
A = $147,843.32
A = P + I where
P (principal) = $57,000.00
I (interest) = $90,843.32
Calculation Steps:
First, convert R as a percent to r as a decimal
r = R/100
r = 10/100
r = 0.1 rate per year,
Then solve the equation for A
A = P(1 + r/n)nt
A = 57,000.00(1 + 0.1/1)(1)(10)
A = 57,000.00(1 + 0.1)(10)
A = $147,843.32
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Man is termed an 'economic animal' because he a) has the ability to understand economic activities b) lives a life which is governed by economic forces c) studies economies in order to live a productive life d) uses his ability to satisfy his wants from the gifts of nature
Answer:
The conception of man as an economic animal is implied by the view that economic production is the determining “factor” or “sphere” of man or society. Against this conception can be put another, that of man as praxis. This takes account of man as a creative being, capable of realizing his freedom through his own activity. In this article the theory of the determining role of the “economic factor”, and the theory of factors in general have been examined. The economic interpretation of history, a variant of the theory of factors, has been acknowledged as partly true for the self‐alienated man and society, but the theory of factors in any variant has been found inadequate as a general theory of man, or society. The possibility of freedom cannot be reduced to the fact that the determining roles played by “factors”, vary, or to the hope that the economic “factor” can be subordinated to a “better” one. Man's freedom consists in his resolving the conflict of “factors”, and in realizing himself as an integral creative being, no longer split into independent and mutually opposed spheres.
Explanation:
that should help
international business
Question 2: (5 marks) For each of the following company you have to find the mission statement, then propose an alternative statement (explain your choice). 1- Yum Brands:
2- American Express:
3- eB
Mission Statement (original): "To build the world's most loved, trusted, and fastest-growing restaurant brands."
Alternative Statement: "To create exceptional dining experiences that satisfy and delight customers worldwide."Explanation: While the original mission statement of Yum Brands focuses on brand building and growth, the alternative statement emphasizes the core objective of creating outstanding dining experiences. This alternative statement puts more emphasis on customer satisfaction and delight, which is ultimately the goal of any successful restaurant business. By focusing on providing exceptional dining experiences, Yum Brands can ensure that they prioritize customer needs and preferences, leading to stronger customer loyalty and sustainable growth.American Express:Mission Statement (original): "We work hard every day to make American Express the world's most respected service brand."Alternative Statement: "To empower individuals and businesses with seamless financial solutions and exceptional customer service."Explanation: While the original mission statement of American Express highlights their desire to be a respected service brand, the alternative statement puts more emphasis on the benefits they provide to customers. The proposed alternative statement emphasizes the core objective of empowering individuals and businesses with seamless financial solutions and exceptional customer service. This statement highlights the value proposition of American Express, focusing on their commitment to providing reliable and customer-centric financial services. It communicates a clear focus on meeting customer needs and delivering a positive customer experience.
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A journal with two amount columns in which all kinds of entries can be recorded.answer choicesA. general journalB. credit memorandumC. dividendsD. retained earnings
Option a: General journal is a journal with two amount columns in which all kinds of entries can be recorded.
This is the ledger of original entries from which all transactions are first recorded and then transferred to their respective ledger. Each reservation is recorded in a general journal with date, brief description, debit and credit accounts, and respective amounts.
The purpose of the general journal is to record all business transactions in chronological order. This record helps us maintain accurate financial records and provides a complete audit trail of all financial transactions.
A credit note, on the other hand, is a document used to notify a customer that a certain amount has been credited to their account, usually through a refund or credit adjustment. Not a diary.
Both dividends and retained earnings are financial terms that refer to a company's profit distribution. Dividends are the portion of profits paid out to shareholders and retained earnings are the portion of profits that the company keeps to reinvest in its business. These have nothing to do with his concept of a journal with two columns of amounts.
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the heart and soul of a company's strategy-making effort:
The heart and soul of a company's strategy-making effort lies in the ability to define a clear and compelling vision that inspires and aligns its employees and stakeholders towards a shared goal. This vision should be accompanied by a set of strategic objectives and a roadmap that outlines how the company plans to achieve them.
Effective strategy-making also involves understanding the external and internal environment that the company operates in. This requires analyzing market trends, competitive forces, and customer needs and preferences. Additionally, companies must assess their own strengths and weaknesses, as well as their resources and capabilities, in order to identify opportunities and challenges.
Moreover, strategy-making requires a collaborative approach that involves input from various stakeholders, including employees, customers, investors, and partners. This not only ensures that different perspectives are taken into consideration but also fosters a sense of ownership and commitment to the strategy.
Finally, successful strategy-making requires ongoing monitoring and adaptation as market conditions and internal factors change over time. Companies must remain flexible and agile in their approach to strategy in order to respond quickly to new opportunities and challenges.
Overall, the heart and soul of a company's strategy-making effort is a clear and compelling vision, informed by a comprehensive understanding of the internal and external environment, and supported by a collaborative approach and ongoing monitoring and adaptation.
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Dad Mystery
To all my friends and "ex-friends" I have a message. I am pushing you to the side until I finally finish this mystery. I can't handle the stress of having to multi-multi-task. I need to focus on certain things, not the stress some of you have put me through and the talking. You know who you are. Now, back to my question
What happened on CFB 2149-0403?
Whatever happened to Emily?
How fast were they travelling?
Having a moment of clarity
Why did base do this to them?
Who are they calling family?
Answer:
Uh...sorry to be hours late but did something happen to a friend of yours that was bad? -Your friend, Bill Cipher
Explanation:
You have discovered that the price of a bond rose from $975 to
$995 when the yield to
maturity fell from 9.75 percent to 9.25 percent. What is the
duration of the bond?
According to given data, The duration of the bond is approximately 0.04082.
The duration of a bond measures its sensitivity to changes in interest rates. To find the duration of the bond, we need to calculate the percentage change in price for a given change in yield to maturity.
First, let's find the price change. The initial price of the bond is $975, and it increases to $995. So the price change is $995 - $975 = $20.
Next, let's find the yield change. The initial yield to maturity is 9.75%, and it decreases to 9.25%. So the yield change is 9.75% - 9.25% = 0.50%.
Now, we can calculate the duration of the bond using the formula:
Duration = (Percentage Change in Price) / (Percentage Change in Yield)
Duration = ($20 / $975) / (0.50% / 100)
Simplifying the equation, we get:
Duration = 20 / 975 / 0.50 / 100
Duration = 0.04082
So, the duration of the bond is approximately 0.04082.
Conclusion, The duration of the bond is approximately 0.04082.
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I have a question. How do you deal with the pain, of knowing you cant date your crush, who you have liked for 1 and a half years, and knowing that her dad is the reason why. How should i deal with it cause i cant seem to get past it.
Answer:
don't worry about it because it is not your fault that her dad does not let you
Explanation:
hopefully he opens up about you
HI I really want a bichon poodle dog but first I need to convince my parents. So far I've been working on earning 1000 dollars to pay for it and I wrote a 50 page essay but I'm not sure that will cut it what is the best tactic to get my dog??? what is the best business tactic to get this item.
Answer:
A lemonade stand maybe
the paper money used in the united states is select an answer and submit. for keyboard navigation, use the up/down arrow keys to select an answer. a national bank notes. b treasury notes. c united states notes. d federal reserve notes
The paper money used in the United States is primarily composed of Federal Reserve Notes.
These notes are issued by the Federal Reserve, which is the central banking system of the United States.
Federal Reserve Notes are used in everyday transactions, such as purchasing goods and services, and are accepted by virtually all businesses in the country.
However, there have been other types of paper money used in the past, such as national bank notes, treasury notes, and United States notes.
National bank notes were issued by individual banks before the establishment of the Federal Reserve, while treasury notes were used during times of war to help finance military efforts.
United States notes, also known as Legal Tender notes, were issued during the Civil War and were intended to help finance the war effort as well.
Overall, while there have been various types of paper money used in the United States throughout history, Federal Reserve Notes remain the most common and widely accepted form of currency today.
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The first paragraph or part of a business letter is the
OA. introduction
OB. addresses
OC. supporting details
OD. conclusion
SUE
Answer:
introduction
Explanation:
I don't know how to explain
If the two countries have the same amount of resources and the same technological knowledge, which country has an absolute advantage in the production of popsicles
Answer:neither does
Explanation:
How important is money
Answer:
very important
Explanation:
money is a global income source for everyone. we all have different types but it is all still money. now say one country got rid of money and had people pay for stuff using other things. if china did that lots of different countries wouldn't be able to get stuff from there unless they had so much of that product they could just give it up.
The power to tax is called a "concurrent power" because it is a power...
A. that only is held by the federal government.
B. only held by state governments.
C. jointly held by the federal and state governments.
D. that affects both individuals and corporations.
The power to tax is called a "concurrent power" because it is a power that affects both individuals and corporations. The answer is OPTION D.
Banks place a strong emphasis on consumer and company accounts, and many offer trust services. Consumer lending and deposit services are prioritized by credit unions. Savings organizations prioritize financing for real estate.
Savings accounts and certificates of deposit are just a couple of the financial goods that banks and credit unions both provide. (CDs). The primary distinction between the two is that while credit unions are not-for-profit organizations that share their profits with their members, banks are usually for-profit businesses. The answer is OPTION D.
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according to a generic business strategy framework, there are two fundamental alternatives a firm can use to seek a competitive advantage. one of these is to
According to the generic business strategy framework, a firm can seek a competitive advantage by either pursuing a cost leadership strategy or a differentiation strategy.
A cost leadership strategy involves offering products or services at a lower cost than competitors while still maintaining a reasonable level of quality. This can be achieved through various means, such as streamlining processes, reducing waste, and negotiating better deals with suppliers. On the other hand, a differentiation strategy involves offering unique or superior products or services that stand out in the market. This can be achieved through innovation, design, quality, customer service, or any other aspect that sets the firm apart from competitors. Both strategies have their advantages and disadvantages, and the choice ultimately depends on the firm's goals, resources, and market conditions. A firm may also choose to pursue a hybrid strategy that combines elements of both cost leadership and differentiation to achieve a more balanced approach.
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The least liquid current asset is _______. Group of answer choices plant and equipment common equity cash accounts receivable inventory
The least liquid current asset is plant and equipment. Plants and equipment are long-term assets used in business operations. Thus, option A is correct.
Liquidity refers to the ease with which an asset can be converted into cash without significant loss of value or time delay. Generally, the more liquid an asset is, the easier it is to convert into cash.
Among the options provided, plant and equipment are the least liquid current assets. Plants and equipment typically represent long-term assets used in the production or operations of a business, such as machinery, buildings, and vehicles.
These assets are not easily convertible into cash because they are essential for the company's day-to-day operations and are not intended for immediate sale or use in generating cash inflows.
On the other hand, cash, accounts receivable, and inventory are considered more liquid current assets. Cash is the most liquid asset as it can be readily used for transactions.
Accounts receivable represents amounts owed to the company by its customers and can be converted into cash through the collection process. Inventory can also be relatively liquid as it can be sold for cash, although the speed of conversion may vary depending on the nature of the inventory.
In conclusion, among the given options, plant and equipment is the least liquid current asset, while cash, accounts receivable, and inventory are generally more liquid current assets. Thus, option A is the correct answer.
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The least liquid current asset among the choices provided is inventory as it can take a substantial amount of time for a company to convert its inventory into cash due to sales cycles
Explanation:The least liquid current asset is typically inventory. Liquid assets are assets that can be easily converted into cash. Among the options given, cash is the most liquid asset. Accounts receivable also holds a certain degree of liquidity as it represents the money owed by customers that can be collected. Plant & equipment, and common equity are not considered current assets as they cannot be easily converted into cash within an operating cycle of a year. However, inventory, which consists of goods that a company intends to sell, can sometimes take time to convert into cash because it depends on how quickly the business can sell its products.
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describe the difference between a landing strip and a runaway
Answer:
a runway is where the plane takes off and a landing strip is where the plane lands
Explanation:
Assuming the workmans live in california, a community property state, and that diana and ryan file separately, what is diana's gross income minus expenses on the day care business?
Diana and Ryan file separately, Diana's gross income minus expenses on the day care business would be half of the total gross income minus expenses for the business.
In California, a community property state, the income and expenses from a business owned by a married couple are generally split evenly between the two spouses. To calculate Diana's gross income minus expenses, we would first need to know the total gross income and total expenses for the day care business. Once we have those numbers, we can use the following formula:
Diana's gross income minus expenses = (Total gross income / 2) - (Total expenses / 2)
For example, if the total gross income for the day care business was $100,000 and the total expenses were $50,000, Diana's gross income minus expenses would be:
Diana's gross income minus expenses = ($100,000 / 2) - ($50,000 / 2) = $50,000 - $25,000 = $25,000
Therefore, Diana's gross income minus expenses on the day care business would be $25,000.
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Given f(x) = x4 - 4x3 8x2 6x - 20. Complete the table for f(x). X 0 1 2 Doe f(x) have a zero between x = 1 and x = 2? Anwer Definitely Perhap Go to anwer: 42 23 8 No way
The complete table will be:
x : 0 1 1.5 2
f(x) -20 -9 -23/16 8
From the question,
We have the expression: \(x^4 - 4x3 +8x^2 +6x - 20\)
So, for finding the value of the expression we will simply put the value of x.
So, for finding f(0), we will put the value of x = 0
Therefore, we will get:
at x=0, f(0)=-20
Again for finding f(1), we will put the value of x = 1
Therefore, we will get:
at x=1, f(1)=-9
Again for finding f(1.5), we will put the value of x = 1.5
Therefore, we will get:
at x=1.5, f(1.5)=-23/16
Again for finding f(2), we will put the value of x = 2
Therefore, we will get:
at x=Q, f(2)=8
Since fear is not zero on \($1 \leqslant x \leqslant 2$\) then it does not have a zero.
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Note that common skills are listed toward the top and less common skills are listed toward the bottom. According to O*NET, what are some common skills needed by Lawyers? Select four options.
installation
active listening
speaking
critical thinking
reading comprehension
equipment maintenance
The common skills needed by lawyers are active listening, speaking, critical thinking and reading comprehension.
The skills can be noted as -
Active Listening - To completely comprehend their viewpoints and obtain all pertinent facts, attorneys need to listen intently to their clients, witnesses, and other parties involved in a case.Speaking - Lawyers need to be able to communicate clearly both orally and in writing with their clients, juries, judges, and other lawyers.Critical Thinking - Lawyers must be able to evaluate intricate legal issues and create plans for resolving conflicts and attaining their clients' objectives.Reading comprehension - Complex legal papers, court rulings, and other important items must be read and understood by lawyers.Read more about lawyers on:
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what features does each financial institutions have
Establishing an online professional network is an important tool for locating career opportunities in the twenty-first century.
False
True
Answer:
I say your answer option is true. I'm so sorry if my answer ends up being wrong. I tired my best
Answer:TRUE
Explanation:
You have been hired to manage the business aspects of a local legal firm with a staff of 6 attorneys, 10 paralegals, and 5 staff persons. Clients of the firm are billed a fixed amount per hour of attorney time. The fixed hourly charge is determined each year by dividing the total cost of the legal office for the preceding year by the total billed hours of attorney time for that year. A markup of 25% is then added to this average cost per hour of billed attorney time to provide for a profit and for inflation.
The firm's partners are concerned because the firm has been unprofitable for several years. The firm has been losing its smaller clients to other local firms-largely because the firm's fees have become uncompetitive. And the firm has been attracting larger clients with more complex legal problems from its competitors. To serve these demanding larger clients, the firm must subscribe to expensive online legal reference services, hire additional paralegals and staff persons, and lease additional office space.
What do you think might be the reason for the unprofitable operations in recent years? What might be done to improve the situation for the coming year?
The company needs to pay for pricey online legal reference services, hire more paralegals and staff members, and lease more office space in order to serve these demanding larger clientele.
What is a firm?
A firm is a for-profit enterprise that typically takes the form of a partnership and offers professional services like accounting or legal counsel.According to the philosophy of the firm, businesses exist to maximize profits.A company, which is distinct from a firm and refers to all business forms and trades, is a company that sells goods and/or services for profit.A company has one or more locations, all of which are owned by the same person and file their financial reports using the same EIN.The partners of the company are worried because the company has been losing money for a while. Because of the firm's rising rates, it has been losing its smaller clients to other nearby businesses.
Additionally, the firm has been luring more sophisticated clients with bigger legal issues from its rivals. The company needs to pay for pricey online legal reference services, hire more paralegals and staff members, and lease more office space in order to serve these demanding larger clientele.
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What is Bloom’s Taxonomy?
( no c0py from g00+gle)
Answer:
a set of three hierarchical models used to classify learning objectives into levels of complexity and specificity
Answer:
Bloom's Taxonomy is a Hierarchal Pyramid used to classify the objectives when learning something into: creating, evaluating, analyzing, applying, understanding, and remembering.
Explanation:
Arnold Inc. is considering a proposal to manufacture high-end protein bars used as food supplements by body builders. The project requires use of an existing warehouse, which the firm acquired three years ago for $3 million and which it currently rents out for $138,000. Rental rates are not expected to change going forward. In addition to using the warehouse, the project requires an upfront investment into machines and other equipment of $1.6 million. This investment can be fully depreciated straight-line over the next 10 years for tax purposes. However, Amold Inc. expects to terminate the project at the end of eight years and to sell the machines and equipment for $415,000. Finally, the project requires an initial investment into net working capital equal to 10 percent of predicted first-year sales. Subsequently, net working capital is 10 percent of the predicted sales over the following year. Sales of protein bars are expected to be $4.8 million in the first year and to stay constant for eight years. Total manufacturing costs and operating expenses (excluding depreciation) are 80 percent of sales, and profits are taxed at 30 percent.
a. What are the free cash flows of the project?
b. If the cost of capital is 15%, what is the NPV of the project?
First, calculate the annual depreciation expense by dividing the upfront investment by the depreciation period, which is $1.6 million divided by 10 years, resulting in $160,000 per year.
Next, calculate the annual operating cash flow by subtracting the total manufacturing costs and operating expenses (80% of sales) from the sales revenue. In this case, it would be $4.8 million minus 80% of $4.8 million, which equals $960,000. To calculate the annual taxes, multiply the annual operating cash flow by the tax rate of 30%, which results in $288,000. The annual free cash flow is calculated by subtracting the annual depreciation expense and taxes from the annual operating cash flow. In this case, it would be $960,000 minus $160,000 minus $288,000, which equals $512,000. Since the project is terminated at the end of the eighth year, the free cash flows for years 9 and 10 are not considered. Therefore, the total free cash flows for the project are $512,000 multiplied by 8, which equals $4,096,000. The NPV of the project can be calculated by discounting the free cash flows using the cost of capital, which is given as 15%. The formula to calculate NPV is: NPV = Sum of [Free Cash Flow / (1 + Cost of Capital)^t], where t is the year. Using this formula, we discount each year's free cash flow and sum them up. In this case, the NPV of the project is calculated to be approximately $1,119,707. Therefore, based on a cost of capital of 15%, the NPV of the project is positive, indicating that the project is financially viable and could generate a return that exceeds the cost of capital.
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a product at the jennings company enjoyed reasonable sales volumes, but its contributions to profits were disappointing. last year, units were produced and sold. the selling price is per unit, the variable cost is per unit, and the fixed cost is .
The contribution to profits of a product at the Jennings Company can be calculated using the formula: contribution margin = selling price per unit - variable cost per unit.
To determine the contribution to profits of a product at the Jennings Company, we need to calculate the contribution margin. The contribution margin represents the amount of money available to cover fixed costs and contribute to profits.The selling price per unit is given as a specific value. Let's call it "P". The variable cost per unit is also given as a specific value. Let's call it "V". The fixed cost is not provided in the question, so we cannot calculate the contribution to profits directly. However, we can still explain the concept and formula.
The contribution margin can be calculated by subtracting the variable cost per unit from the selling price per unit: contribution margin = P - V. By multiplying the contribution margin by the number of units produced and sold, we can find the total contribution to profits. However, since the number of units produced and sold is not given in the question, we cannot calculate the actual contribution to profits.
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"What a given group of people appreciates" are their ___________. A. Cultural contexts b. Culture shock c. Cultural education d. Cultural values Please select the best answer from the choices provided A B C D
Answer:
d. Cultural values
Explanation:
Cultural values are the values and norms that are followed by a distinct society or a group of people. In other terms, values and norms developed within the society to form its basis are said to be the cultural values. The people believe, follow, and appreciate the values. They help in defining the ways of living and leading the life. The behavior, nature, and thinking of the society is influenced or structured as per the cultural values.
Answer:
D
Explanation:
I just took the assignment
The purchased and installation costs of some pieces of equipment are given as a function of weight rather than capacity. An example of this is the installed costs of large tanks. The 1990 cost for an installed aluminum tank weighing 45,000 kg was $640,000. For a size range from 90,000 to 450,000 kg, the installed cost weight exponent for aluminum tanks is 0.93. If an aluminum tank weighing 300,000 kg is required, what capital investment is needed in the year 2000?
The capital investment needed in the year 2000 for an aluminum tank weighing 300,000 kg would be approximately $2,818,208.80.
To calculate the capital investment needed for an aluminum tank weighing 300,000 kg in the year 2000, we can use the weight exponent provided and the given information.
The weight exponent for aluminum tanks is 0.93, which means that the installed cost is related to the weight of the tank according to the following equation:
Installed Cost = Installed Cost at a Reference Weight × (Weight/Reference Weight)^Weight Exponent
Installed Cost at Reference Weight (1990) = $640,000
Reference Weight = 45,000 kg
Weight of the tank required (2000) = 300,000 kg
Let's calculate the capital investment needed for the aluminum tank in the year 2000:
Installed Cost (2000) = $640,000 × (300,000 kg / 45,000 kg)^0.93
Installed Cost (2000) = $640,000 × (6.6667)^0.93
Using a calculator, we can calculate the value inside the parentheses:
(6.6667)^0.93 = 4.4047
Now, we can substitute this value back into the equation:
Installed Cost (2000) = $640,000 × 4.4047
Installed Cost (2000) = $2,818,208.80
Therefore, the capital investment needed in the year 2000 for an aluminum tank weighing 300,000 kg would be approximately $2,818,208.80.
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