JB Co., a manufacturer of compostable garbage bags, would like to increase its market share in the Midwest. In order to do so, JB has decided to locate a new factory near St. Louis. JB will either buy or lease a site depending upon which is more advantageous. The site location committee has narrowed down the available sites to the following three very similar buildings that will meet their needs. Building A: Purchase for a cash price of $49,500,000, useful life 25 years. Maintenance cost for the building will amount to $750,000 and will be paid at the end of each year under the terms of a contract to be signed with a maintenance company. Building B: Lease for 25 years with annual lease payments of $4,750,000 being made at the beginning of each year. Maintenance is included in the lease payment. Building C: Purchase for $77,500,000 cash. This building is larger than needed; however, the excess space can be rented to a tenant for 25 years at an annual rental of $2,600,000. Rental payments will be received at the end of each year. JB Co. has no aversion to being a landlord. Maintenance cost for the building will amount to $900,000 and will be paid at the end of each year under the terms of a contract to be signed with a maintenance company. Instructions: In which building would you recommend that JB Co. locate, assuming a 7% cost of funds?
Answers
Based on the 7% cost of funds, jb co.should locate in building b as it results in the lowest overall cost when considering the present value of the lease payments.
. should locate in building b.
to determine the most advantageous building for jb co. to locate, we need to calculate the present value of the costs associated with each option and select the one with the lowest present value. assuming a 7% cost of funds, let's evaluate each building:
for building a:
the cash price is $49,500,000, and the useful life is 25 years. the maintenance cost is $750,000 per year. to calculate the present value, we use the formula for the present value of an annuity:
pv(a) = cash price + present value of maintenance costs
pv(a) = $49,500,000 + ($750,000 x ((1 - (1 + 0.07)⁽⁻²⁵⁾) / 0.07))
≈ $69,768,317
for building b:
the lease payments are $4,750,000 per year for 25 years. since maintenance is included in the lease payment, we only need to consider the lease payments themselves. the present value can be calculated using the formula for the present value of an annuity:
pv(b) = present value of lease payments
pv(b) = $4,750,000 x ((1 - (1 + 0.07)⁽⁻²⁵⁾) / 0.07)
≈ $63,462,695
for building c:
the cash price is $77,500,000, and there is additional rental income of $2,600,000 per year for 25 years. the maintenance cost is $900,000 per year. we need to calculate the present value of both the cash flows and the rental income:
pv(c) = cash price + present value of maintenance costs + present value of rental income
pv(c) = $77,500,000 + ($900,000 x ((1 - (1 + 0.07)⁽⁻²⁵⁾) / 0.07)) + ($2,600,000 x ((1 - (1 + 0.07)⁽⁻²⁵⁾) / 0.07))
≈ $104,950,288
comparing the present values, we find that building b has the lowest present value of approximately $63,462,695.
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Related Questions
For questions #1 - #4: Visit the PeachState Credit Union Website
https://www.peachstatefcu.org/ (Links to an external site.) Click on Accounts --> Checking
What is the name of the account for young adults?
Group of answer choices
eXtreme Checking
CU60 Checking
Basic Checking
Fresh Start Checking
Premium Checking
Answers
Answer:
I'm pretty sure that the answer is basic checking I'm not sure but you could try it if nobody else has an answer for you :)
What is the gross pay if Yesinia worked 88 hours in two weeks and she is paid $12.75 and hour
Answers
88 x 12.75 = 1,122
Her pay is $1,122.00 for the two weeks
Which is not a benefit of exporting?
Answers
1) Nelson Company began operations on December 1, Year 1. The following transactions and adjustments were recorded in December and posted to the company’s ledger accounts:
5) Purchased $500 of supplies on account to be used in January
1.1) Acquired $3,800 cash from the issue of common stock to its stockholders
2.2) Provided services on account for $3,300
3.3) Paid $1,900 cash for land
4.4) Owed $1,400 of salaries expenses to employees for work done in December that will be paid during January
5.6) Collected $1,700 from customers
What is the total of the debit account balances that will be reported on the company's adjusted trial balance at December 31, Year 1?
A) $6,900
B) $9,000
C) $5,200
D) $3,500
Answers
The total of the debit account balances that will be reported on the company's adjusted trial balance at December 31, Year 1 is B) $9,000
Nelson Company Adjusted trial balance at December 31, Year 1
Debit side
Cash $3,600
($3,800+$1,700-$1,900)
Account Receiveble $1,600
($3,300-$1,700)
Supplies $500
Land $1,900
Salaries expenses $1,400
Total debit balance $9,000
Credit side
Account payable $500
Salaries payable $1,400
Common stock $3,800
Service revenue $3,300
Total Credit balance $9,000
Inconclusion The total of the debit account balances that will be reported on the company's adjusted trial balance at December 31, Year 1 is B) $9,000
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During the breakup of Pangaea 200 million years ago, the continent of Australia was one of the first to become separated from the rest of the land masses. This has led to a variety of animal life only found on this continent of the world. This is an example of
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During the breakup of Pangaea 200 million years ago, the continent of Australia was one of the first to become separated from the rest of the land masses.
This geological event led to the isolation of Australia, resulting in a unique and diverse array of animal life found exclusively on this continent. This phenomenon is an example of "biogeographic isolation" or "allopatric speciation."
Biogeographic isolation refers to the physical separation of populations or species, often due to geographic barriers such as mountains, bodies of water, or, in the case of Australia, the isolation caused by continental drift. When populations become isolated, they are subjected to different environmental conditions and ecological pressures, leading to distinct evolutionary pathways and adaptations.
In the case of Australia, the separation from other land masses created a distinct and isolated evolutionary environment. Over millions of years, the unique flora and fauna of Australia evolved in response to the specific ecological niches and environmental conditions found on the continent. The lack of connectivity with other land masses limited gene flow and allowed for the development of diverse and endemic species.
This isolation resulted in the evolution of unique and fascinating animals found only in Australia, such as marsupials like kangaroos, koalas, and wombats, as well as monotremes like the platypus and echidna. These species have adapted to the Australian environment over millions of years, exhibiting specialized features and behaviors that make them distinct from species found elsewhere in the world.
The example of Australia's biogeographic isolation highlights the significant role that geographic barriers and isolation can play in shaping biodiversity. It demonstrates how the breakup of continents can lead to the emergence of distinct ecosystems and the evolution of species with unique characteristics. Understanding the processes of biogeographic isolation and allopatric speciation provides valuable insights into the complex patterns of life on Earth and the interplay between geography and biology.
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Why is it important for a human resource manager to carefully maintain
employee records?
Answers
Answer:
Certain records require employee privacy to be protected. Not maintaining and following best practices for employee record keeping leaves you vulnerable to defending yourself against lawsuits, labor investigations or audits.
Explanation:
Help me ITs EASY TAKE A LOOK
Answers
Answer:
a) Employees (Staff)
Chief Executive officer (Owner)
b) Government
Share holders
Given the information below, calculate net income in the current period. Accounts Receivable$14,700 Rent Expense 7,500 Insurance Expense 2,100 Common Stock 24,000 Service Revenue 28,300 Supplies 4,300 Equipment 21,600 Income Tax Expense 4,200 Multiple Choice $27,300. $29,200. $14,500. $10,200.
Answers
Answer :
Net income = $14,500
Explanation :
Net income = Revenue from service - Income tax - Rent - Insurance
Net income = $28,300 - $4,200 - $7,500 - $2,100
Net income = $14,500
A good exercise for all CRM projects is to take select high-level sales and marketing organization strategies and tie those to your customer relationship management
capabilities and functionality.
a. Explain on how CRM represents A Business Strategy for growth (Brand Loyalty Reduced marketing costs, Attracting new customers, Trade leverage)
b. Fill in what you consider would be good items to include in a CRM system for this type of organization.
1. Sales Strategy (3 examples)
2. Marketing Strategy (3 examples)
3. Service Strategy (3 examples)
Answers
CRM represents a business strategy for growth by enhancing brand loyalty, reducing marketing costs, attracting new customers, and leveraging trade opportunities.
CRM, or Customer Relationship Management, is not merely a software system but a comprehensive approach to managing customer interactions and relationships. When implemented effectively, CRM can serve as a powerful business strategy for growth. One key benefit is the ability to enhance brand loyalty.
By capturing and analyzing customer data, CRM enables companies to understand their customers' preferences and behaviors, allowing for personalized interactions and targeted marketing campaigns. This personalized approach fosters stronger connections with customers, leading to increased loyalty and repeat business.
Another advantage of CRM is its potential to reduce marketing costs. With CRM, organizations can optimize their marketing efforts by identifying high-value customer segments and tailoring campaigns to their specific needs. By targeting the right customers at the right time with relevant messages, companies can minimize wasted resources and maximize marketing ROI.
Furthermore, CRM helps attract new customers. By leveraging the insights gained from existing customer data, organizations can identify patterns and trends that highlight potential new customer segments. This information can be used to refine marketing strategies and acquire new customers who are more likely to engage with the brand and make a purchase.
Additionally, CRM offers trade leverage opportunities. By centralizing customer data and interactions, organizations gain a holistic view of their customers' preferences, purchase history, and engagement patterns. Armed with this knowledge, companies can negotiate more effectively with suppliers and partners, leveraging their customer relationships to secure better deals and favorable terms.
In summary, CRM represents a strategic approach to business growth by enhancing brand loyalty, reducing marketing costs, attracting new customers, and leveraging trade opportunities. By leveraging CRM capabilities and functionality, organizations can align their sales and marketing strategies with customer-centric practices, ultimately driving growth and profitability.
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If anyone can please help asap
Answers
Answer:
1. Negative externality: Jeff declined to buy his favorite chocolate bar because the price has increased.
2. Dollar vote: increased neighborhood crime is caused by a pawn shop.
3. Public goods: a freeway is available for all to use.
4. Positive externality: public education in the United States results in benefits for others around the world.
Explanation:
1. Negative externality: Jeff declined to buy his favorite chocolate bar because the price has increased. A negative externality arises when the production or consumption of a finished product or service has negative impact (cost) on a third party.
2. Dollar vote: increased neighborhood crime is caused by a pawn shop. A dollar vote describes how the consumer's purchasing power influences the type (quantity) of goods to be produced and supplied to the market.
3. Public goods: a freeway is available for all to use. It refers to any goods that is accessible and available to the general public at all times without an additional fee, charges or cost.
4. Positive externality: public education in the United States results in benefits for others around the world. A positive externality arises when the production or consumption of a finished product or service has a significant impact or benefits to a third party that isn't directly involved in the transaction.
Four main types of uniform series?
Answers
The four main types of uniform series are: Uniform series present worth (USPW), Uniform series future worth (USFW), Uniform series sinking fund (USSF) and Uniform series gradient (USG)
Uniform series present worth (USPW): This represents the present value of a series of equal cash flows that occur at regular intervals over a specific period of time.
Uniform series future worth (USFW): This represents the future value of a series of equal cash flows that occur at regular intervals over a specific period of time.
Uniform series sinking fund (USSF): This represents the regular payments required to accumulate a future sum of money at a given interest rate over a specific period of time.
Uniform series gradient (USG): This represents a series of cash flows that increase or decrease at a constant rate over time.
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Which of the following choices incur speculative risk?
a.stocks
b.fire insurance on a house
c.options
d.life insurance
e.high interest savings account
Answers
Answer: correct option is A.
Explanation: A speculative risk can be defined as risk that is taken willingly either it results in profit or loss and the stocks involve in probability of gain and loss making it a speculative risk.
Stocks incur speculative risk. Therefore option A is correct.
What are Stocks?A stock usually referred to as equity, is a type of investment that denotes ownership in a portion of the issuing company. Shares, also known as units of stock, entitle their owners to a share of the company's assets and income in proportion to the number of shares they possess.
Common stock and preferred stock are the two primary categories of stocks.
Owners of common stock are entitled to dividends and the right to vote at shareholder meetings.
Common stockholders often do not have voting rights, while preferred stockholders typically get dividend payments ahead of time and are given preference over common investors in the event of a firm bankruptcy and asset liquidation.
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Which of the following is an example of telecommuting?
A. Setting up a conference call between two different companies
B. Working from home instead of at the company's main office
C. Scheduling a meeting in the middle of the day
D. Using a computer and slideshow during a meeting
Answers
B. Working from home instead of at the company's main office
Have a great day!
An example of is Working from home instead
Telecommuting is also known as Remote work
Telecommuting refers to the ability granted to an employee to work from remote place apart from the office.
The reason why Organization allows telecommuting are:
Its helps to improve employee efficiencyIts offers schedule flexibilityIts improved employee retention and attraction.In conclusion, the mode of getting work done have been increasing in recent time because its saves cost for both the employee and employer.
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True or False
A Person who works full time for a power company in the energy cluster is considered a consultant.
Answers
Answer:
True
Explanation:
Answer:
False, i took the quiz and got 100% percent- k-12 7th grade career final exam
Explanation:
Find the consumer and producer surpluses by using the demand and supply functions, where p is the price (in dollars) and x is the number of units (in millions). Demand Function Supply Function
p = 975 − 21x p = 44x
consumer surplus $ ________ millions
producer surplus $ ________ millions
Answers
Consumer surplus: $337.5 million , Producer surplus: $337.5 million
To find the consumer and producer surpluses, we need to calculate the areas under the demand and supply curves, respectively. Demand function: p = 975 - 21x Supply function: p = 44x The consumer surplus is the area between the demand curve and the equilibrium price (p) up to the quantity (x) exchanged. To find the consumer surplus, we need to integrate the demand function from 0 to the equilibrium quantity (x) and subtract it from the equilibrium price (p). Integrating the demand function, we get: Consumer Surplus = ∫[0, x] (975 - 21x) dx The producer surplus is the area between the supply curve and the equilibrium price (p) up to the quantity (x) exchanged. To find the producer surplus, we need to integrate the supply function from 0 to the equilibrium quantity (x) and subtract it from the equilibrium price (p).
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Match the following.
1. the system responsible for carrying blood through the body; the blood carries important nutrients, oxygen, and waste
2. an organism that can only be seen under a microscope; it cannot be seen with the human eye
3. an instrument used to magnify objects
4. critical element needed for cellular respiration; the brain cannot survive without oxygen
circulatory system
microorganism
oxygen
microscope
Answers
Answer:
1. Circulatory system
2.Microorganism
3. Microscope
4. Oxygen
True or False? Medicare and private insurers generally provide
more comprehensive coverage than Medicaid for long-term care
services.
Answers
The statement " Medicare and private insurers generally provide more comprehensive coverage than Medicaid for long-term care services." is true.
Medicare is a federal health insurance program that provides coverage for individuals aged 65 and over, certain disabled persons, and those with End-Stage Renal Disease (ESRD). Medicaid is a joint federal-state program that provides health insurance coverage to low-income families, pregnant women, and children, as well as disabled and elderly individuals. Long-term care (LTC) refers to a wide range of services that meet the needs of individuals with chronic illnesses, disabilities, or other conditions that require assistance with activities of daily living (ADLs). These services may include medical care, personal care, and other supportive services.LTC and Medicaid. Medicaid is intended for low-income individuals and families who cannot afford the cost of care on their own. Medicare and private insurance, on the other hand, offer more comprehensive coverage for long-term care services, although they also have their limitations and may not cover all of the costs associated with long-term care services.
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what is utility in business and marketing
Answers
Answer:
Utility marketing is the concept whereby a brand intersects the consumer at the moment of a non-commercial need, addresses their need, becomes a part of their life, and remains with them for when they're ultimately ready to make a purchase.
What does it mean when the irs acknowledges your return?.
Answers
Answer:
When you receive confirmation that the IRS accepted your return, it means that they have reviewed your return, and it has passed their initial inspection. They verify your personal information and other basic items, like if your dependents have already been claimed by someone else.
Explanation:
What 3 questions will you ask in the survey?
Answers
do you have a car?
do you have anyone in the house under 18?
are you an expirenced worker?
The promotion of companies’ sustainably harvested rainforest products is intended to _______.
Answers
Companies are involved in promotion of sustainably harvested rain-forest products in order to gain an a competitive advantage.
What is competitive advantage?A competitive advantage means an advantage possess by a firm that allow them to produce goods or services better or more cheaply than its rivals.
In conclusion, the companies are involved in promotion of sustainably harvested rainforest products in order to gain an a competitive advantage.
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A 10-year bond issue with a $100,000 par value, 8% annual contract rate, with interest payable semiannually means that the issuer must repay $100,000 at the end of 10 years and make 20 semiannual interest payments of $4,000 each.Select one:TrueFalse
Answers
The statement with interest payable semiannually means that the issuer must repay $100,000 at the end of 10 years and make 20 semiannual interest payments of $4,000 each is True.
How to find the semiannual interest paymentUsing this formula to find the semiannual interest payment
Semiannual interest payment = Bond × Annual contract rate × 6/12
Where:
Bond = $100,000
Annual contract rate = 8% or 0.08
Let plug in the formula
Semiannual interest payment = $100,000 × 0.08 × 6/12
Semiannual interest payment = $4,000
Therefore correct option is A.
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at what level of investment ownership is significant influence often presumed?
Answers
Significant influence is often presumed when an entity or individual holds more than 20% but less than 51% of the investment in another entity.
Significant influence enables the entity to make operating and financial decisions for the other entity. The entity may lack total control since the ownership is not above 50%, but the entity can significantly influence corporate decisions.Some entities may exert significant influence with investment ownership that is less than 20%.
Under International Financial Reporting Standards, investors with significant influence account for their investments in the investee using the equity method.
Thus, significant influence is often presumed once an investor owns 20% or more of an investee.
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You should induce vomiting in a child you suspect has been poisoned ONLY when
you have been instructed to do so by the poison center expert.
True
O False
Answers
Answer:
The correct answer is the option: False.
Explanation:
To begin with, when it comes to terms of helping someone and moreover saving someone's live it is absolutely necessary to always act in order to make sure that everything that was possible to do was done, so therefore that it is understandable that in a case where a child has been poisoned with something then the person closer must know that he could induce vomiting by putting the finger into the throat, gently, so that the body will automatically try to throw up. Otherwise if the person might have not been instructed by the poison center expert and the kid is posible to pass out then the situation can get worse if the person does not do something.
Which condition is a result of open competition in a free market system?
A. Poor customer service
B. Government regulation
C. Higher prices
D. Higher quality goods
Answers
A result of open competition in a free market system is higher quality goods (option D).
What is the result of open competition?
Competition is when there are many producers operating in a particular industry. Competition is high in purely competitive markets and low in a monopoly. This is because in a pure competition, there are many producers while there is only one producer in a monopoly.
Due to the high level of competition in an industry, prices would be more likely to be low. This is because producers would want to attract more consumers by fairly pricing their goods. Also, producers would want to offer good customer service in order to retain consumers as there are many competing producers in the market. High quality goods are also a way to attract an retain customers.
A free market system is a market system where prices are set by the forces of demand and supply. There is no government regulation in this type of market.
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Bianca is a product engineer at Argon Inc. She learns that the salary she receives is less than that received by the other product engineers in the company with similar qualifications and job experience as hers. As a result, she becomes unhappy with her compensation and feels demotivated. She later talks to her manager and asks for a raise. In this scenario, Bianca has experienced problems with _____.
Answers
In this scenario in which Bianca is unhappy with her remuneration and feels unmotivated, it can be said that she had problems with her internal equity.
Definition of internal equityIn a work environment, it means the form of treatment and equal remuneration of employees, whether related to salaries, benefits or internal relationship.
Therefore, in an organization with internal equity problems, there may be conflicts, demotivation and an increase in employee turnover, being essential the analysis and effective decision-making of the leader to solve this issue.
The correct answer is:
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An oligopoly firm is similar to a monopolistically competitive firm in that.
Answers
Answer:
An oligopoly firm is similar to a monopolistically competitive firm in that both firms face the prisoner's dilemma. both firms are in industries characterized by an interdependent firm. both firms have market power. both operate in a market in which there are significant entry barriers.
what is stock exchange?
Answers
Match the different account heads to the two aspects of business.
Answers
Answer:
See below
Explanation:
Match Source A
The business owns:
Are assets that belong to the business.
investments
intangible assets
Property, Plant, and Equipment
Current assets
Match source B
Match owes :
Refer to the liabilities of the business. They belong to others.
loans
payable
The impact of discrimination behaviour to an individual
Answers
Answer:
Discrimination affects people's opportunities, their well-being, and their sense of agency. Persistent exposure to discrimination can lead individuals to internalize the prejudice or stigma that is directed against them, manifesting in shame, low self-esteem, fear and stress, as well as poor health.
Explanation: