Answer: It will take approximately 82 months for Annie to repay the entire loan.
Supporting Explanation: Given, Annie White graduated from college with a student-loan debt of $32,000.The interest rate on this debt is 0.5% per month. If monthly payments on this loan are $618.65,We need to find out how many months it will take for Annie to repay the entire loan. We will use the compound interest formula to solve this problem. It is given as: A = P(1 + r/n)^nt where A is the amount, P is the principal, r is the annual interest rate, t is the number of years, and n is the number of times interest is compounded per year. We can find the monthly interest rate by dividing the annual interest rate by 12. Hence, the monthly interest rate is:0.5% / 12 = 0.004166667Using the given values, we get: P = $32,000r = 0.004166667n = 12t = ?A = $618.65We can rearrange the formula to solve for t. It is given as:t = log(A/P) / [n * log(1 + r /n)]Substituting the given values, we get: t = log(618.65/32000) / [12 * log(1 + 0.004166667/12)]t = 81.7044 ~ 82 months. Therefore, it will take approximately 82 months for Annie to repay the entire loan.
Know more about loan here:
https://brainly.com/question/30015539
#SPJ11
What is the the effect on the foreign price with a combined domestic production subsidy and consumption tax applied by a small country on the same good at the same level?
Answer:
The effect these factor will have on Import is that it will lower Imports and decrease in imports = Increase in foreign prices
Explanation:
The effect on the foreign price when there is a combined domestic production subsidy and consumption tax applied on a good at the same level
i) when consumption tax is applied : The consumer price will increase by the amount of the tax and the demand for the good will decrease while the producer price will remain the same
ii) when production subsidy is applied : producer price will increase while the consumer price will remain unchanged
when they are both set at the same level ( i.e. consumption tax and production subsidy ) The producer price = consumer price
The effect these factors will have on Import is that it will lower Imports and decrease in imports = Increase in foreign prices
When the owner does not know when or where it disappeared form the owner's possession, it is considered to be
Answer Choices:
A. Assession
B. Lost property
C. Mislaid property
Answer:
lost property
Explanation:
when auditing pp&e, the auditor's approach is generally to
When auditing PP&E (property, plant, and equipment), the auditor's approach is generally to make sure the assets exist and record the assets' fair value. However, when auditing PP&E, the auditor's approach is generally to ensure the assets exist and record the assets' fair value.
To assess the completeness and accuracy of PP&E, auditors conduct analytical procedures. For auditing PP&E, the auditor's strategy is as follows: Physical verification of PP&E: The auditor performs physical verification of PP&E. The auditor usually investigates the property and physically counts the assets to ensure that they exist.
Recording of PP&E: The auditor reviews the company's financial statements and supporting documentation to determine whether the assets' values have been recorded correctly. The auditor also considers if the asset has been depreciated properly and if there are any impairments.The Auditor's assessment of PP&E is crucial because the value of assets has a direct effect on a company's financial statements and disclosures.
To know more about assets visit :
https://brainly.com/question/14826727
#SPJ11
explain why we would expect that more often than not, different countries face different real rates of interest in international capital markets. be specific as in applying your reasoning to this particular case
Different countries face different real rates of interest in international capital markets due to various factors such as inflation, economic growth, political stability, and perceived risk.
Inflation, for example, can cause a country's currency to depreciate, leading to higher interest rates to compensate investors for the loss of purchasing power. Similarly, countries with stronger economic growth and political stability may offer lower interest rates to attract foreign investment.
Finally, perceived risk, such as that associated with political instability or high levels of government debt, can also impact interest rates. In the specific case of international capital markets, the unique economic and political conditions of each country create variations in demand for and supply of capital, leading to differences in interest rates.
For more questions like Inflation click the link below:
https://brainly.com/question/30112292
#SPJ11
A case study shared at the end of chapter 4 in the textbook discusses forecasting for home support workers'. In Canada, there is a large segment of the population which is over 65 years of age. Approximately 1.2 million people in Canada employ home care workers. The challenge, as the case study points out, is that demand for HSW's is expected to double over the next 30 years, however, the supply of these workers may not keep up with the demand. It is a challenging profession to be in, where the compensation is low compared to similar work done in hospital settings. Benefits are also not at par with those offered within healthcare settings. Discuss one way the government can help address this challenge of a possible insufficient supply of these workers in the future, considering this is a service which millions of Canadians rely on, and need. Discuss one way employers can help address this challenge. (Relate your suggestions to low wages and inadequate benefits). Maximum word limit: 200 words. Worth 2%. (2 points)
The government can help address the challenge of an inadequate supply of Home Support Workers in Canada by implementing various policies. One way the government can help is by providing funding for education and training for individuals interested in the field of Home Support Workers.
This will not only attract more individuals to this field, but also enhance the skill sets of the current workforce.In addition, the government can offer financial incentives to employers to ensure they pay higher wages to HSW's and offer better benefits.
This will lead to more individuals entering this field, and also attract more experienced individuals to remain in this field.The employers can also help address the challenge by providing better wages and benefits to the employees. As mentioned in the case study, the compensation for HSW's is low compared to similar work done in hospital settings, which can lead to a shortage of workers in the future.
To know more about government visit:
https://brainly.com/question/4160287
#SPJ11
Which economic effect does a central bank hope to achieve by buying back large amounts of treasury security
A. It hopes to reduce the amount of money available for lending.
Explanation:
Usually, the central bank(Federal reserve) control the supply of money in circulation in the economy so that the nation's economy would be healthy. One of the ways through which the federal reserve controls the quantity of money in circulation is by selling or purchasing of government securities through a process known as open market operation.
If the federal reserve sells government securities such as treasury bills, in large quantities, its aim is to reduce the amount or quantity of money available to commercial banks for lending, hence mop up the quantity of money in circulation.
Also, if the federal reserve buys government securities, its aim is to make more money available in large quantities to commercial banks and other institutions, hence have more cash to lend people.
The economic effect that central bank are trying to effect by the process of buying back large amounts of treasury security is bring reduction to amount of money available for lending.
Treasury notes as well as bonds are securities that brings about payment of fixed rate of interest which is usually done every six months till the security reach a stage of maturity.The central bank do buy large amounts of treasury security so that the money that can be available for lending can be reduced.Therefore, this process are put in place to balance the economy.
Learn more at:
https://brainly.com/question/15004115?referrer=searchResults
a home builder wants to construct a house on his lot. the house will sit 20' from the front lot line. the city ordinance calls for a minimum setback line of 25'. in order to construct his house in the manner described, the builder must obtain a: select one: a. variance. b. spot zoning permit. c. special use permit. d. non-conforming use license.
The correct answer is: a. variance.
in order to construct the house with a setback of 20' from the front lot line, which is less than the minimum setback required by the city ordinance (25'), the builder would need to obtain a:
a. variance.
a variance is a permission or exception granted by the local zoning authority that allows a property owner to deviate from certain zoning regulations or requirements. in this case, the builder would need to request a variance to construct the house with a setback of 20' instead of the required 25' setback.
a spot zoning permit typically refers to the process of designating a specific area or spot for a particular use within a larger zoning district. a special use permit is required for specific uses that may have an impact on the surrounding area, but it doesn't apply to setback requirements. a non-conforming use license is related to properties that were legally established before zoning regulations were enacted and do not comply with current zoning requirements.
Learn more about exception here:
https://brainly.com/question/31238254
#SPJ11
over the past century, has the incidence of natural disasters been increasing or decreasing?
The incidence of natural disasters has been increasing over the past century.
The increase in incidence of natural disasters is due to a combination of factors such as climate change, urbanization, and population growth, which have made societies more vulnerable to the impacts of natural disasters.
In recent years, extreme weather events such as hurricanes, floods, and wildfires have become more frequent and intense, causing significant economic and social disruptions around the world. It is essential for governments, organizations, and individuals to take measures to reduce the risk and impact of natural disasters through disaster preparedness, risk reduction, and mitigation strategies.
To know more on natural disasters
https://brainly.com/question/2479021
#SPJ4
Which of the following statements about the recognition of a prior service cost related to a postretirement obligation is correct?
a. The prior service amount is recognized in the income statement in the current period.
b. The prior service cost is recognized in the income statement net of tax.
c. Restatement of previously issued annual financial statements is required.
d. The prior service cost amount affects comprehensive income in the current period.
The correct answer is a.Prior service cost is a component of postretirement benefit plan accounting.
It is defined as the increase in the present value of postretirement benefits that is caused by the introduction of, or changes to, a postretirement benefit plan. For example, if a company decides to increase the healthcare benefits offered to its retired employees, it will result in an increase in the present value of the plan's obligations, and this increase is referred to as prior service cost.When prior service cost is recognized, it is recognized in the income statement in the current period, as an expense. It is reported separately from the other components of net periodic pension cost. The amount recognized is the excess of the year's increase in the projected benefit obligation over the year's service cost.The recognition of prior service cost does not require the restatement of previously issued annual financial statements.
Learn more about benefit here
https://brainly.com/question/31433988
#SPJ11
Name some areas where there’s an expected be an increased demand for workers
Answer:
Health care,Social assistance,Child care
1. What are some things that the study of economics is not?
1) What is the correct definition of a financial plan?
A) a quarterly earnings statement
B) a way of organizing finances
C) a diversified account portfolio
D) a list of assets and debts
To support rice producers, the government imposesa price floor of $50 per ton. a. what quantity will be traded in the market? why?
The specific quantity that will be traded in the market will depend on the exact quantity demanded and supplied at the price floor of $50 per ton.
To determine the quantity that will be traded in the market with a price floor of $50 per ton for rice, we need to consider the relationship between supply and demand. Since the price floor is set above the equilibrium price, the quantity demanded will be lower than the quantity supplied. This creates a surplus in the market, as producers are willing to sell more rice at $50 per ton than buyers are willing to purchase.
To determine the exact quantity that will be traded in the market, we need to compare the quantity demanded and the quantity supplied at the price floor: - If the quantity demanded is greater than the quantity supplied at $50 per ton, there will be a shortage in the market, and not all producers will be able to sell their rice. - If the quantity supplied is greater than the quantity demanded at $50 per ton, there will be a surplus in the market, and some producers may not be able to sell all of their rice.
To know more about quantity visit:
https://brainly.com/question/31034990
#SPJ11
Why is it so necessary to have a freely elected government for democratic capitalism to create a prosperous and fair economy
Explanation:
Free elections are a mechanism for limiting corruption. A government sets rules that govern the marketplace. To ensure that these rules don't create unfair advantages or limit the abilities of producers and consumers, democratic societies elect the people who will represent them. When representatives are not elected, there is less accountability to the people and therefore a greater risk that representatives won't set rules in the interests of the people, including rules around commerce.
Some people are concerned that privacy is increasingly rare in our hyperconnected world as our online prescence leave a lasting footprint. To what degree do you fear htat disclosing personal matters online will hamper your job search? Why?
One must exercise extreme caution while utilizing these social media platforms to prevent obstacles in the job search process and humiliating circumstances.
What is the reason behind that personal matters online will hamper your job search?Technology development in the modern world has improved communication by making it simpler, quicker, and more efficient. It has made it possible for those who are located in the most remote parts of the planet to connect with only a few clicks. Information may be sent quickly and efficiently. But, anything that evolves and advances has advantages and disadvantages. Similar to this, social networking and technological growth also have drawbacks. We are all linked these days through various social networks or other services, which has an impact on our job hunt. Our constant online activity might occasionally cause us to unintentionally or purposefully reveal information that could harm our reputation.Job providers occasionally utilize social networks to examine a potential employee's or an employee's current employment history.
Employees occasionally post sensitive information about their employers on social networking sites, which results in their firing and eventually hinders their ability to find new employment. These social media platforms could reveal a prior occurrence about a person that he does not wish to divulge.
Companies may connect with former coworkers of a candidate they wish to recruit through these social networks to learn more about their behavior and behavioral patterns.
To know more about social media refer to:
https://brainly.com/question/12453081
#SPJ1
Which of the following statements is true regarding the mean absolute deviation measure and the mean square error measure?
a. The values for both measures are unchanged if the forecasting method is changed.
b. Both are measures of seasonal variation.
c. Lower values of these measures reflect more accurate forecasting methods.
d. The mean absolute deviation measure places greater weight on large errors.
e. None of the above.
The correct statement regarding the mean absolute deviation measure and the mean square error measure is c) lower values of these measures reflect more accurate forecasting methods.
Mean absolute deviation (MAD) is the average of the absolute differences between the forecasted values and the actual values. It measures the average magnitude of errors in a set of forecasts, regardless of their direction. Mean square error (MSE) is the average of the squared differences between the forecasted values and the actual values. It measures the average squared difference of errors in a set of forecasts.
Both MAD and MSE are used to evaluate the accuracy of a forecasting model. The lower the values of MAD and MSE, the more accurate the forecasting method is considered. Therefore, option c) is the correct statement.
Option a) is incorrect because changing the forecasting method can change both MAD and MSE values. Option b) is incorrect because MAD and MSE measures do not specifically measure seasonal variation. Option d) is incorrect because MAD places equal weight on all errors, whereas MSE places greater weight on larger errors.
The correct statement regarding the mean absolute deviation measure and the mean square error measure is c) lower values of these measures reflect more accurate forecasting methods.
Know more about Mean absolute deviation here,
https://brainly.com/question/32035745
#SPJ11
Grayson really wants to get an a on his upcoming math test but he hates studying. He decides to set a goal for himself to study for 20 minutes every night this week and preparation for the quiz Friday.What kind of goal Grayson set for himself?
Answer: short term goal
Explanation:
A short-term goal is a goal that an economic agent such as an individual or a fitm wants to achieve or accomplish soon. Short term goals are goal that one wants to achieve maybe today, in a week, in a month or even probably a year.
Since Grayson really wants to get an a on his upcoming math which is coming soon, the goal that he sets to study for twenty minutes every night is referred to as a short term goal.
Goldman Corp. had the following balances in its inventory accounts for the first quarter, ending March 31, 2018:
Beginning Ending
Raw Materials Inventory $20,000 $26,000
Work in Process Inventory $38,000 $34,000
Finished Goods Inventory $14,000 $22,000
Additional information for the quarter is below:
Direct Material purchases $75,000
Direct labor costs incurred $89,000
Manufacturing overhead costs incurred $42,000
Calculate the following: direct materials used, cost of goods manufactured, and cost of goods sold.
The direct materials used during the first quarter ending March 31, 2018, for Goldman Corp. Cost of Goods Sold = Cost of Goods Manufactured - Ending Finished Goods Inventory, Cost of Goods Sold = $206,000 - $22,000 = $184,000
It can be calculated by subtracting the beginning balance of the raw materials inventory from the ending balance of the raw materials inventory:
Direct Materials Used = Ending Raw Materials Inventory - Beginning Raw Materials Inventory
Direct Materials Used = $26,000 - $20,000 = $6,000
The cost of goods manufactured for the first quarter ending March 31, 2018, for Goldman Corp. can be calculated by adding together the direct material purchases, direct labour costs incurred and manufacturing overhead costs incurred
Cost of Goods Manufactured = Direct Material Purchases + Direct Labor Costs Incurred + Manufacturing Overhead Costs Incurred
Cost of Goods Manufactured = $75,000 + $89,000 + $42,000 = $206,000
Cost of Goods Sold = Cost of Goods Manufactured - Ending Finished Goods Inventory
Cost of Goods Sold = $206,000 - $22,000 = $184,000
For more such questions on inventory
https://brainly.com/question/25947903
#SPJ11
the sarbanes-oxley act of 2002 (sox) was created, in part, to address cases of companies making fraudulent entries to avoid reporting net losses. to find evidence of this kind of earnings management, review the below tableau dashboard, which includes available data from all u.s. public companies for 1985-2017 (except banks, financial institutions, and other regulated companies). by following the requirements below, you will discover whether earnings management occurred during certain periods.
The Sarbanes-Oxley Act of 2002 (SOX) was enacted in the wake of some major corporate scandals such as Enron, WorldCom, and Tyco International. The Act was created to address cases of companies making fraudulent entries to avoid reporting net losses.
SOX established stringent accounting and auditing standards for public companies and required the management to provide certification of financial statements.The below Tableau Dashboard includes available data from all US public companies for 1985-2017 (except banks, financial institutions, and other regulated companies). To find evidence of earnings management, you must follow the below requirements.Requirements:1. Select “Accounts Receivable” as the account to focus on.2. Identify the years 1998–2001 and observe the graph trend. 3. Identify the years 2002–2005 and observe the graph trend. 4. Interpret and explain the graph trend from step 2 and step 3. 5. Discuss whether you believe earnings management occurred during the two periods observed.In step 2, the graph shows that accounts receivable remained stable from 1998 to 2001, with a slight increase in 2001. In contrast, in step 3, accounts receivable decreased continuously from 2002 to 2005. This decrease implies that companies may have engaged in aggressive collection procedures to meet earnings expectations.In conclusion, the graph suggests that companies used aggressive accounting techniques during 2002-2005 to meet earnings expectations. Therefore, it can be concluded that earnings management occurred during this period.
To know more about Sarbanes-Oxley Act (SOX) visit:
https://brainly.com/question/14521649
#SPJ11
Acme Fasteners keeps efficiency high by making a million of each kind of bolt
at a time. But its customers usually want to buy only 1,000 to 10,000 of a kind
at a time. What service of wholesalers can best help Acme in this situation?
O
A. Buying large quantities and selling in smaller lots needed by
customers
O
B. Transporting fasteners to storage facilities
O
C. Being experts in fasteners and customers who use them
O
D. Keeping fasteners stored without theft or other kinds of loss
Answer:
A. Buying large quantities and selling in smaller lots needed by customers
Explanation:
Wholesalers can best help Acme in this situation by buying large quantities and selling in smaller lots needed. Thus, option A is correct.
Who is the customer?A customer is a client who places a request for a commodity, payments for such a product or service, and then receive it. The person who purchases a good or receives a service is known as a customer. A consumer is essentially the person who pays for the item or service.
In this situation, the wholesaler should buy the quantities in bulk that is being produced by the company and then divide the load into smaller quantity of 1000 unit or 10000 unit so that they can easily sell it to the customer and also benefit from the same and earn a profit from the same. Also, bulk buying can provide them with some offers.
Therefore, option A is the correct option.
Learn more about customers, here:
https://brainly.com/question/28502787
#SPJ2
TRUE/FALSE. at least half of the budget for a major political campaign is consumed by television advertising.
Answer:
true
Explanation:
had a simmalar fill in the blank question
A popular fried chicken franchise opened their operations in China. Their Beijing outlet translated the tagline, Finger-lickin' good" to "Eat your fingers off." Using online research, briefly summarize five other examples of poor cultural language and cultural awareness in advertising.
Answer:
(Answers may vary.)
Sometimes marketers try to convince consumers overseas that their product goes beyond traditional cultural barriers by simply translating the original taglines or ignoring cultural barriers. This is where they go wrong. Here are some examples:
A company that made baby foods entered the market in Africa where they used their original packaging of containers with baby pictures on them. In Africa, most companies follow the tradition of putting picture of contents on the packaging. So, putting the picture of a baby on the packaging proved to be a bad brand strategy.
A famous cereal brand had to rename their product name in Sweden after it was translated into the local language as “burned farmer.”
A well-known bank with an ad campaign that read, "Assume Nothing," had to reconsider their campaign when they launched their operations overseas. They had to change their tagline because the tagline translated to "Do Nothing" in many countries.
An automobile company tried to sell cars in Mexico using a tagline that roughly translated to “the car doesn’t move”.
A beverage company used characters in Chinese that sounded like the brand name but read as “Bite the wax tadpole.” They later used a different tagline, this time being more careful.
Explanation:
Plato
An example of blank______ would be the calculations to compute weekly paychecks.
Oucation 6 of 25
The need to get goods from producera to consumers raimes which of the
following bowie queations?
O A. How are goods and services to be distributed?
O B. What is to be produced?
O C. How is production to be organized?
O D. What is the most effective allocation?
Answer:
A. How are goods and services to be distributed?
Explanation:
After the manufacturing of the goods, the process of distribution proceeds. In this process, the goods and services produced are distributed from the producers to the consumers. Transportation, packaging, storage, and advertising are some of the processes that lie between the production and distribution of the products.
According to the given options, the basic question to be asked related to the distribution of the produced goods is option A. All the other three questions belongs to the production stage.
Answer:
How are goods and services to be distributed?
Explanation:
took the test
Suppose you borrow $260,000 at 5.25% for 30 years, monthly payments. You pay 2 discount points.
A. Your APR on this loan is 5.625%. What amount of other financing fees did you pay?
B. Suppose that your effective cost over a five-year holding period is 5.875%. What amount of other fees did you pay?
You paid approximately $956.10 in other financing fees on the loan amount after discount points and you paid approximately $3,185 in other fees over a five-year holding period.
To calculate the amount of other financing fees you paid, we first need to determine the total loan amount after accounting for the discount points.
Discount points are a percentage of the loan amount that you pay upfront to reduce the interest rate. In this case, you paid 2 discount points.
Discount points = Loan amount * Discount rate
Discount points = $260,000 * (2/100)
Discount points = $5,200
Now, let's calculate the loan amount after deducting the discount points:
Loan amount after discount points = Loan amount - Discount points
Loan amount after discount points = $260,000 - $5,200
Loan amount after discount points = $254,800
Next, we can calculate the other financing fees. The APR (Annual Percentage Rate) on the loan is 5.625%. This includes both the interest rate and certain fees associated with the loan. Since we already know the interest rate is 5.25%, we can calculate the difference:
Other financing fees = APR - Interest rate
Other financing fees = 5.625% - 5.25%
Other financing fees = 0.375%
Now, let's calculate the other financing fees based on the loan amount after discount points:
Other financing fees = Loan amount after discount points * Other financing fees
Other financing fees = $254,800 * (0.375/100)
Other financing fees = $956.10
Now, let's calculate the amount of other fees you paid over a five-year holding period, considering an effective cost of 5.875%.
Effective cost = APR + Other fees
Other fees = Effective cost - APR
Other fees = 5.875% - 5.625%
Other fees = 0.25%
Amount of other fees paid over a five-year holding period:
Other fees paid = Loan amount after discount points * Other fees * Number of years
Other fees paid = $254,800 * (0.25/100) * 5
Other fees paid = $3,185
To know more about financing fees, click here.
https://brainly.com/question/32931181
#SPJ4
The escrow officer is a neutral third party who alternately represents both the buyer and seller in:_____.
Answer: a limited agency capacity.
Explanation: An escrow officer or personnel is usually a third party who represents both the interests of the buyer and seller in a business transaction. The escrow acts in a limited agent capacity in the sense that the funds from the buyer is released to the escrow once the buyers confirms satisfaction with service rendered by the seller the escrow releases the funds to the seller.
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.
How can choosing the right institution help you manage money effectively?
Answer:
You may get a better job, or it may make you more responsible. The money is the main thing, you will get paid better, so you wont have to worry abt money i guess.
Explanation:
Why do nations trade?
O All of the above
Becuase they need to acquire certain raw materials
So they can specialize
Because they believe that the products they receive are worth more than the products they give up
tion
Answer:
All of the above
Explanation:
International trade happens for a wide variety of reasons. Some of then can be specialisation. When a country specialises in production of the good it has a comparative advantage in, it gains from trade. The gains from trade is one major reason for why countries trade with each other.
Through trade countries can acquire resources which it may not posses or it may get it at a lower relative price from the other country.
Thus, specialisation, purchasing raw materials and buying products that are worth more than what is given up are the major reasons for nations to trade.
One year ago, your company purchased a machine used in manufacturing for $105,000. You have learned that a new machine is available that offers many advantages and you can purchase it for $160,000 today. It will be depreciated on a straight-line basis over 10 years and has no salvage value. You expect that the new machine will produce a gross margin (revenues minus operating expenses other than depreciation) of $40,000 per year for the next 10 years. The current machine is expected to produce a gross margin of $24,000 per year. The current machine is being depreciated on a straight-line basis over a useful life of 11 years, and has no salvage value, so depreciation expense for the current machine is $9,545 per year. The market value today of the current machine is $45,000. Your company's tax rate is 38%, and the opportunity cost of capital for this type of equipment is 12%. Should your company replace its year-old machine? The NPV of replacing the year-old machine is $ . (Round to the nearest dollar.) Should your company replace its year-old machine? (Select the best choice below.) O A. Yes, there is a profit from replacing the machine. OB. No, there is a loss from replacing the machine.
The company should replace its year-old machine (Option A).
To determine whether your company should replace its year-old machine, we need to calculate the Net Present Value (NPV) of the replacement option.
The cash flows for the replacement option can be calculated as follows:
Initial Investment: -$160,000 (outflow)
Annual Cash Flows (gross margin): $40,000 (inflow) for 10 years
The NPV can be calculated using the following formula:
\(NPV = CF0 + (CF1 / (1 + r)^1) + (CF2 / (1 + r)^2) + ... + (CFn / (1 + r)^n)\)
Where CF0 is the initial investment, CF1 to CFn are the annual cash flows, r is the discount rate, and n is the number of years.
Using the given information, the NPV can be calculated with a discount rate of 12% as:
NPV =\(-$160,000 + ($40,000 / (1 + 0.12)^1) + ($40,000 / (1 + 0.12)^2) + ... + ($40,000 / (1 + 0.12)^10)\)
By calculating this NPV, we find that the NPV of replacing the year-old machine is approximately $57,953.
Since the NPV is positive, the replacement option generates a profit. Therefore, the company should replace its year-old machine (Option A).
Learn more about discount rate
https://brainly.com/question/13660799
#SPJ4