Based on the information given, both Luxembourg and Ireland can gain from trade if they agree to the following prices of trade:
a) 14 pairs of boots per case of liquor,
b) 5 pairs of boots per case of liquor,
c) 1 pair of boots per case of liquor,
d) 10 pairs of boots per case of liquor.
This is because each country has a comparative advantage in different goods: Luxembourg has a comparative advantage in producing liquor while Ireland has a comparative advantage in producing boots.
By trading goods with each other, both countries can benefit from specialization and receive more of the good they have a comparative advantage in.
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the first time she had bubble tea, maria didn't like it. however, all of her friends loved it and often drank it in front of her. because of this, maria decided to give it another try and found that she actually liked it. what shaped her attitude toward bubble tea?
Maria's attitude towards bubble tea was shaped by her friends.
After seeing them enjoy it, she decided to give it a second chance and found that she actually liked it. Her friends were a positive influence, and seeing them enjoy the beverage encouraged her to try it again.
Maria initially had a negative attitude towards bubble tea, but seeing her friends enjoy it encouraged her to give it another try. She was influenced by her friends' positive attitude, which made her more willing to try it again and form her own opinion.
This demonstrates the power of positive influences in changing our attitude towards something. Seeing her friends enjoying bubble tea likely made her more open-minded and willing to reconsider her original opinion. Ultimately, her friends helped shape her attitude towards bubble tea in a positive way.
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Drug A and Drug B are both appetite suppressants. Drug A will cause rats to decrease food consumption by 50% at its most effective dose. Drug B will cause rats to decrease food consumption by 30% at its most effective dose. The ED50 values of Drug A and Drug B are the same. Therefore, ___
Drug A and Drug B are both appetite suppressants, but Drug A is more potent than Drug B. This is because Drug A will cause rats to decrease food consumption by 50% at its most effective dose, while Drug B will cause rats to decrease food consumption by 30% at its most effective dose.
Even though the ED50 values of Drug A and Drug B are the same, Drug A is more potent because it causes a greater decrease in food consumption at its most effective dose.
In pharmacology, the ED50 value refers to the dose of a drug that is effective in 50% of the population. This value is used to compare the potency of different drugs. A drug with a lower ED50 value is considered more potent because it requires a lower dose to be effective in 50% of the population.
In this case, both Drug A and Drug B have the same ED50 value, but Drug A is more potent because it causes a greater decrease in food consumption at its most effective dose.
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which is true of status, according to weber's theory? group of answer choices marx analyzed class only; weber analyzed status only. status is a positive quality that is always desirable. status correlates with class; that is, higher class means higher status, and lower class means lower status. pariah groups have status, but it is of a negative quality.
According to Weber's theory, the following is true of status: status correlates with class; that is, higher class means higher status, and lower class means lower status.
Status refers to the social position or standing of an individual or a group within society. It is an individual's position within society that comes with prestige, authority, and power.
Max Weber, a German sociologist, proposed the concept of social stratification, which is defined as the process by which individuals and groups are placed in a hierarchy of social categories based on their status, class, and power.
Weber identified three main factors that contribute to social stratification: class, status, and power. According to Weber's theory, status correlates with class. Higher class means higher status, and lower class means lower status. Higher-class individuals are more likely to have more status and power because they have greater access to education, jobs, and economic resources than lower-class individuals.
They are also more likely to have more opportunities for social mobility, such as getting a better job, education, or higher-paying jobs.
Pariah groups, on the other hand, are individuals or groups that are excluded from mainstream society and face discrimination and prejudice. They may have a lower status in society, which can be of negative quality.
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On average, the technology industry giant Apple comes out with a new iPhone on an annual basis. Considerable research and development go into new features for each model, which is a prime example of what social concept?
a) technocracy
b) industrialized science
c) megamachines
d) robo-social problems
On average, the technology industry giant Apple comes out with a new iPhone on an annual basis. Considerable research and development go into new features for each model, this is a prime example of a social concept known as industrialized science. The Option B is correct.
What does industrialized science means?The term "industrialized science" refers to the application of scientific knowledge and methods to industrial processes and production. It involves using scientific principles to improve efficiency, quality, and productivity in manufacturing, as well as developing new technologies and products.
Industrialized science emerged during the Industrial Revolution in the 18th and 19th centuries, when advancements in science and technology enabled factories and industries to become more efficient and productive. The application of scientific principles to industrial processes led to the development of new machines and methods that transformed the way goods were produced and distributed, leading to a significant increase in the output of manufactured goods.
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What were some of Philip’s accomplishments during his Reign?
Responses
A Won with the Spanish Armdada
B Won the 30 years war
C Won the 7 years war
D Defended Catholicism and spread it
One of his most significant achievements was the successful defense of Catholicism and the spread of it throughout Europe, which was a primary objective of his reign. The Option D is correct.
What was Philip’s known for during his Reign?Philip II belonged to the Habsburg dynasty. From 1556 to 1598, he was king of the Spaniards, and from 1580 to 1598, he was king of the Portuguese (as Philip I). The Spanish empire flourished under Philip, achieving its greatest power, extent, and influence.
Philip declared himself to be the protector of the Roman Catholic Church. He sought to limit the spread of Protestantism, and he eventually completed the work of unification begun in the Iberian Peninsula by Ferdinand and Isabella (the "Catholic Monarchs").
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What was the booming economy in the 1800s in south dependant on?
Answer: The booming economy in the 1800's in the south is the sale of staples to a world market.
Explanation:
How were rights denied to African Americans through the pleasure v Ferguson court decision
Answer:
The Plessy v. Ferguson court decision in 1896 established the "separate but equal" doctrine, which legalized racial segregation in public facilities such as schools, transportation, and public accommodations. This decision denied African Americans their rights to equal treatment and protection under the law as guaranteed by the 14th Amendment of the U.S. Constitution.
Under the "separate but equal" doctrine, facilities for African Americans were often of inferior quality and underfunded, while those for White Americans were well-funded and of better quality. This meant that African Americans were denied equal access to educational and employment opportunities, and were subjected to discrimination, prejudice, and racial violence. The doctrine was used to justify segregation for almost 60 years until it was overturned by the Supreme Court in the Brown v. Board of Education decision in 1954.
Explanation:
why is interpersonal psychotherapy considered a sociocultural approach? group of answer choices depression is thought to result from disrupted social interactions and role expectations. depression is thought to result from individual pathology. depression is thought to be best treated within the family and in the real world rather than in the clinic. depression is thought to be best treated by use of a multidisciplinary treatment team.
Interpersonal psychotherapy is considered a sociocultural approach because depression is thought to result from disrupted social interactions and role expectations. Therefore, the correct option is: depression is thought to result from disrupted social interactions and role expectations.
Interpersonal psychotherapy is a time-limited and practical therapy that focuses on resolving interpersonal issues that lead to or contribute to depression, anxiety, or other psychological problems. Interpersonal therapy is a form of psychotherapy that prioritizes the patient's current social relationships and their roles in these relationships to enhance their mental health. IPT is a form of psychotherapy that is intended to aid in the resolution of problems with relationships, as well as other depressive symptoms.
Interpersonal psychotherapy is a sociocultural approach because of the following reasons:
Depression is thought to result from disrupted social interactions and role expectations. Depression, according to sociocultural approaches, is not caused solely by an individual's personality, brain, or family dynamics. Sociocultural factors such as culture, ethnicity, gender, and socioeconomic status are also considered.
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Consider the per-worker production function graph on the right If there is an increase in capital per hour worked, holding technology constant, then A. there is a movement from D to C B. there is a movement from A to C C. there is a movement from B to D. D. there is a movement from A to B
Consider the per-worker production function graph on the right If there is an increase in capital per hour worked, holding technology constant, then there is a movement from A to C
The per-worker production function graph on the right is given below:
Per-Worker Production Function The relationship between output and the amount of labor is given by the production function. It's a technique to illustrate the production process that employs labor and capital. The graph of a per-worker production function shows the connection between output per worker and the quantity of capital per worker.
The following statements can be made based on the graph:If the capital per hour worked increases while holding technology constant, there will be a movement from point A to point C. The output per worker will rise if the amount of capital per worker increases. Because the total amount of capital is fixed, the labor share of total output will rise.
Because of diminishing returns to capital, the rise in output per worker will eventually decrease as the amount of capital per worker continues to rise. Therefore, point C is reached when the output per worker stops increasing and begins to decrease.
The movement from A to C signifies that the output per worker increases first and then decreases when capital per hour worked increases, holding technology constant.
Therefore the correct answer is option B
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fill in the blank. ___ is the idea that the organizational structures and control systems that are chosen by managers depend on characteristics of the external environment in which the organization operates.
Contingency theory is the idea that the organizational structures and control systems that are chosen by managers depend on characteristics of the external environment in which the organization operates.
This theory suggests that there is no one best way to organize or manage an organization. Instead, the most effective organizational structure and control systems are those that are tailored to fit the specific needs and characteristics of the organization's external environment.
This includes factors such as the industry in which the organization operates, the level of competition, the availability of resources, and the preferences of customers and stakeholders.
Managers must consider these factors when making decisions about the organization's structure and control systems in order to ensure that the organization is able to adapt to changes in the external environment and remain competitive.
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What concept suggests that everyone has identities connected to family, religion, occupation, cultural origin, gender, and other characteristics
a police officer is to a city as a _______ is to a navy ship.
A police officer is to a city as a sailor is to a navy ship.
A police officer is a law enforcement officer who maintains law and order in the society. The police force is responsible for preventing and investigating criminal activity, as well as maintaining public order. A police officer is responsible for apprehending criminals, resolving disputes, and keeping people safe.What is a sailor?A sailor is someone who works aboard a ship or boat. Sailors work in a variety of capacities, including deckhands, engineers, navigators, and cooks.
Sailors are responsible for maintaining and operating the ship or boat they are on, and they must be skilled in a variety of areas, including seamanship, navigation, and engineering.What is the relationship between a police officer and a city, and a sailor and a navy ship?A police officer is to a city as a sailor is to a navy ship. Both police officers and sailors are responsible for maintaining law and order, as well as ensuring the safety of those around them.
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Millennials Projected to Spend$1.4Trillion as Influence Grows In 2020 , U.S. millennials are projected to spend$1.4trillion, which will make them the country's highest spending generation. In 2018, millennials were big spenders on pet food-$6billion - and on lawn and garden supplies -$12billion, and these amounts are expected to grow. Source: bizjournals.com, January 13, 2020 Describe the macroeconomic equilibrium after the change in millennials' expenditure. If the economy had been at a full-employment equilibrium, then the economy will be at equilibrium in the short run. In the long run, the money wage rate to restore a full-employment equilibrium. A. a below full-employment; rises
B. an above full-employment; rises C. a below full-employment; falls D. an above full-employment; falls
Answer: The correct option is C. A below full-employment; falls.
Explanation: Macroeconomic equilibrium refers to the condition when aggregate demand is equal to aggregate supply in the economy. After the change in millennials' expenditure, the macroeconomic equilibrium will be affected. In the given case, millennials are projected to spend $1.4 trillion in 2020, which will make them the country's highest spending generation.
This will result in a change in aggregate demand. Aggregate demand is the total demand for all goods and services in the economy. If there is an increase in aggregate demand, there will be a higher level of output and employment in the short run. But in the long run, the economy will return to full-employment equilibrium.
To explain it better, we can use the concept of the aggregate demand and aggregate supply model. In the below graph, AD and AS are the aggregate demand and supply curve, respectively. The intersection point is the macroeconomic equilibrium point.
If there is an increase in millennials' expenditure, it will shift the aggregate demand curve from AD to AD1. Now, the new intersection point is E1, where the aggregate demand is equal to aggregate supply. At this point, the output and price level are higher than the original equilibrium point.
In the short run, the economy will be at a below full-employment equilibrium, which means that the output and employment will increase. However, in the long run, the money wage rate will adjust to restore the full-employment equilibrium.
When the money wage rate decreases, it will shift the aggregate supply curve from AS to AS1, and the new equilibrium point will be E, which is back to the full-employment equilibrium. Therefore, the macroeconomic equilibrium after the change in millennials' expenditure will be a below full-employment equilibrium, and it will fall in the long run.
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a) Briefly describe ONE major difference between Zinn's and Schweikart's historical interpretation about the effectiveness of Franklin Roosevelt and the New Deal.
b) Briefly explain how ONE specific historical event or development that is not explicitly mentioned in the excerpts could be used to support Zinn's interpretation.
c) Briefly explain how ONE specific historical event or development that is not explicitly mentioned in the excerpts could be used to support Schweikart's interpretation.
The New Deal featured measures to reinflate the economy after prices had fallen precipitously as well as additional restrictions and protections for the financial sector.
What is Franklin Roosevelt and the New Deal?
President Franklin D. Roosevelt implemented a series of domestic programs known as the New Deal that significantly increased the federal government's involvement in the economy in response to the Great Depression.
A First New Deal (1933–1934), with the "alphabet soup" of relief, recovery, and reform agencies it produced, and a Second New Deal (1935–1938), which delivered more legislative reforms and laid the foundation for the current social welfare system, are two terms frequently used by historians.
The United States was eventually rescued from the Great Depression by the enormous military spending of World War II, not the New Deal.
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What is MOST LIKELY the reason the author included a description of Newton's first law of motion?
A
to demonstrate a problem that can interfere with the roller coaster moving smoothly on the hills
B
to show a type of energy that forces a car that is not moving at the top to start going down
C
to describe the reason why a roller coaster car begins to slow down as it ascends up a hill
D
to explain why the roller coaster car keeps moving up the hill despite gravity pulling it down
The most likely reason the author included a description of Newton's first law of motion is to explain why the roller coaster car keeps moving up the hill despite gravity pulling it down. Therefore, the correct answer is D.
The period after Charlamagne's death was referred to as..
Answer: The period after Charlemagne's death is known as the Carolingian Renaissance.
Explanation: This was a period of cultural, intellectual, and artistic revival in the Carolingian Empire, which encompassed much of Western Europe. During this time, there was a renewed interest in classical learning, and scholars worked to preserve and translate ancient texts. The Carolingian Renaissance also saw the development of a distinctive style of art and architecture that blended classical and Germanic influences. Overall, this period played an important role in shaping the cultural and intellectual landscape of Europe in the Middle Ages.
childhood obesity may be associated with the increased use of video games. which dimension of ethical concerns in the digital age would examine this issue?
The dimension of ethical concerns in the digital age that would examine the association between childhood obesity and the increased use of video games is "Health and Well-being."
The rapid development of technology has given rise to numerous ethical issues, particularly in the field of digital technology. Health and well-being, for example, is one of the seven dimensions of ethical concerns in the digital age.
Because childhood obesity is caused by a sedentary lifestyle and inadequate physical activity, which can be exacerbated by a lack of supervision and the use of electronic media devices such as video games, the issue would be examined under the health and well-being dimension.
The following are the seven dimensions of ethical issues in the digital age:
Privacy and surveillanceEmployment and laborEconomic systems and the environmentSecurity and safetyCyber warfare and cyber crimeIntellectual propertyHealth and well-beingTo know more about ethical concerns, click on the link below:
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Consider an excise tax imposed on daily parking charges in the downtown of a small city. Before the imposition of the tax, equilibrium price and quantity are $15 and 100 cars parked. (P = $15, Q = 100). The city government imposes a tax of $3 per car parked per day. Market equilibrium adjusts to P = $16 and Q = 95. After imposition of the tax, what is the daily after-tax price received by the seller per car parked? a.
$1
b.
$15
c.
$13
d.
$3
e.
$1
Therefore, the correct answer is (c) $13, since the original equilibrium price was $15 and the tax reduces the price received by the seller by $3, resulting in an after-tax price of $12 per car parked per day.
What is a tax ?A tax is a mandatory financial charge or levy imposed by a government or other authority on individuals, businesses, or other entities to fund public expenditures and services. Taxes are usually calculated as a percentage of income, goods, services, or transactions.
Governments collect taxes for various purposes such as funding public infrastructure, providing public goods and services, redistributing income, regulating economic activity, and promoting social welfare. Taxes can be direct or indirect, progressive or regressive, and can take many forms, such as income tax, sales tax, property tax, value-added.
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to test the hypothesis that younger people are more opposed to the use of nuclear energy than older people, the best method would be a(n) . naturalistic observation archival study case study survey
To test the hypothesis that younger people are more opposed to the use of nuclear energy than older people, the best method would be a(n) survey.
What is survey research?
Survey research is a type of research method that involves asking questions from a sample of people chosen to be representative of a larger population.
It's an excellent way to get a large amount of information from a variety of individuals, and it's generally used to collect data on attitudes, values, beliefs, and opinions in a variety of areas.
Therefore, the best method to test the hypothesis that younger people are more opposed to the use of nuclear energy than older people is by conducting a survey.
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The article discusses what some other restaurant chains (Panda Express, Red Robin, etc.) are doing in response to higher egg prices, which economic concept are they describing
The article is describing how some restaurant chains are adjusting their menus and prices in response to the higher egg prices.
What is an article?An article is a piece of written content that presents information, opinion, or analysis on a particular topic. It can be found in various forms, such as news articles, feature articles, opinion pieces, or blog posts. The purpose of an article is to inform, educate, or entertain the reader, and it usually follows a particular structure, including an introduction, body paragraphs, and a conclusion. Articles can cover a broad range of subjects, from current events and politics to science and technology, lifestyle, or entertainment. They are typically published in newspapers, magazines, or online platforms and can be written by journalists, experts, or individuals with a passion for a particular topic.
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suggest three initiatives that may be consider implenting to foster unity after being discriminated
Answer:1.Support groups: Creating support groups for individuals who have experienced discrimination can be a powerful way to promote healing and foster a sense of community. These groups can provide a safe space for people to share their experiences, receive emotional support, and connect with others who have had similar experiences. Support groups can be organized by community organizations, local government, or other advocacy groups.
2.Community events: Organizing community events that celebrate diversity and promote unity can be another effective initiative. These events can bring people from different backgrounds together to share food, music, art, and other cultural traditions. They can also provide an opportunity for people to learn about and appreciate different cultures and perspectives. Events like these can be organized by local government, community organizations, or grassroots initiatives.
3.Education and awareness campaigns: Implementing education and awareness campaigns can be another way to foster unity and promote understanding. These campaigns can provide information on different cultures and perspectives, and help people learn about the harmful effects of discrimination. They can also provide tools for allies and bystanders to intervene when they witness discrimination. These campaigns can be implemented by schools, community organizations, and government agencies.
While Millennials are the primary target customer of the Atlanta Hawks, it is clear that the efforts of the organization to facilitate social media activity also appeals to other customer segments including Gen X and Baby Boomers. Thus, it is clear that the Hawks are employing a(n) __________________ targeting strategy
Thus, it is clear that the Hawks are employing a(n) differentiated targeting strategy.
When an organization decides on one or a many request niches that give them the stylish chances, discerned marketing, also known as segmented marketing, is used. Targeted special offers are created for each request sector to specifically appeal to its guests.
A better position within one request would frequently affect in increased profit, more repeat business, and lesser client satisfaction. While each member will bear a different product package, which reduces the possibility for husbandry of scale, all of this comes at a advanced cost than undifferentiated marketing.
The expenditure of the creation increases along with the expansion of juggernauts.
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All the oak trees in a park belong to the same ___. *
A: population
B: carrying capacity
C: habitat resource group
Researchers want to design a study to find our whether the coordination of walking is different between older and younger persons. What type of measurement techniques shouild the researcheers use in their study to best answer their question?
The measurement strategy chosen will depend on the research objective, the tools and resources available, and the population being studied.
To determine if older and younger people's walking coordination differs, researchers could use a variety of assessment techniques, but some choices include:
A technique called motion capture follows the movement of markers attached to various body parts as a person moves. In this procedure, cameras or sensors are employed. The way these signs move can be used by researchers to measure a variety of aspects of walking coordination, such as stride length, timing, and speed.The forces generated by each foot when it touches the ground while a person is walking can be measured using force plates, which are specialized platforms. This can provide information about how well-coordinated and balanced the person is while engaging in the walking exercise.In a broader sense, the word "gait analysis" describes a variety of techniques for evaluating different aspects of walking, including motion capture, force plates, and electromyography (EMG). Gait analysis can provide a more detailed assessment of walking coordination when older and younger people are compared.Electromyography (EMG), which monitors the electrical activity of the muscles that control walking, involves pinning electrodes to the skin. Researchers claim that examining this activity can provide insights into the synchronization and control of muscle activation during walking.To know more about Electromyography (EMG)
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Since the announcement of Metaverse, many companies have
increased the investments in producing the Augmented Reality (AR)
or Virtual Reality (VR) technologies for the future uses. From the
economics
Since the announcement of Metaverse, many companies have increased the investments in producing the Augmented Reality (AR) or Virtual Reality (VR) technologies for the future uses, then, the price is likely to rise if the competitive forces are compromised.
How is augmented reality used in metaverse?The Metaverse is a virtual environment that combines cutting-edge technology such as Augmented Reality, Virtual Reality, and others, allowing you to live your life as you would in real life, but with a virtual shape and experience. It enables a variety of functions that VR cannot.
Metaverse companies use Augmented Reality to captivate customers' attention by providing them with a spectacular view of the physical and digital worlds. This also contributes to increased physical engagement with digital tools, acquainting users with new technologies.
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What was the counterculture, and why might it have been appealing to some?
Answer:
below
Explanation:
Counterculture refers to a social and cultural movement that emerged in the United States and other Western countries in the 1960s. The counterculture was characterized by a rejection of mainstream values and institutions, including traditional social norms, consumerism, and political authority.
The counterculture was appealing to some because it offered an alternative way of life and a sense of community for those who felt disillusioned with the mainstream culture of the time. The counterculture embraced values such as individual freedom, self-expression, and communal living. It also promoted alternative forms of spirituality, including Eastern religions and New Age beliefs, and advocated for political and social change, including civil rights, anti-war activism, and environmentalism.
For many young people in particular, the counterculture represented a break from the conformist values and rigid social hierarchies of the 1950s. It offered a sense of rebellion and experimentation that appealed to those seeking new experiences and a sense of belonging outside of mainstream society. The counterculture also had a significant impact on popular culture, influencing music, fashion, art, and film for decades to come.
factors that should not affect your career choice
Answer:
Peer or societal pressure: It's important to choose a career that aligns with your own interests and skills, rather than what your friends or family members may expect of you.
Financial considerations alone: While it's important to consider the financial prospects of a career, money should not be the sole factor driving your career choice. Pursuing a career solely for financial gain may lead to dissatisfaction and burnout in the long run.
External prestige or status: Choosing a career simply because it is seen as prestigious or carries a certain social status may not align with your personal goals or interests.
Gender stereotypes: Your gender should not limit your career choices. You should be able to pursue any career that you are interested in and qualified for, regardless of gender.
Limited information: It's important to research and gather as much information as possible about a career before making a decision. Choosing a career based on limited information may lead to dissatisfaction and regret in the future.
Explanation:
Carry out an analysis of the economic indicators of
Brazil, and compare it with the indicators of Colombia
Brazil and Colombia have both experienced strong economic growth in recent years. In Brazil, GDP grew by 2.3% in 2020 and is expected to continue growing in 2021.
Unemployment is also low at around 9.7%. In Colombia, GDP grew by 4.6% in 2020 and is also expected to continue to grow in 2021. Unemployment is also low at around 10.2%.
Inflation is a key indicator of economic stability and performance. In Brazil, inflation is estimated to be 4.7% in 2021. In Colombia, it is estimated to be 2.4%.
Finally, debt is an important indicator of economic health. In Brazil, public debt is estimated to be around 81.3% of GDP in 2021, while in Colombia it is estimated to be around 51.7%.
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Suppose you purchase a coupon bond with 20 years to maturity for $1000. It pays coupons of $70 per year and after one year, you must sell the bond to help pay for tuition. Further suppose that the interest rates have risen so that the price of the bond has fallen to $950. What is the rate of return (R) that you earned for holding the bond for one year? (Write down the formula for R and show your calculation.)
The rate of return earned for holding the bond for one year is 1.90%. We found it in the following manner.
To calculate the rate of return (R), we need to take into account the purchase price, the coupon payments received, and the selling price of the bond.
The purchase price of the bond is $1000, and the coupon payments received during the first year are $70. Therefore, the total cash inflow for the first year is $1070.
The selling price of the bond after one year is $950, which represents a capital loss of $50. Therefore, the total cash outflow for the first year is $1000 (initial investment) + $50 (capital loss) = $1050.
The rate of return (R) can be calculated using the following formula:
R = (Cash inflow - Cash outflow) / Cash outflow
R = ($1070 - $1050) / $1050 = 1.90%
Therefore, the rate of return earned for holding the bond for one year is 1.90%.
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A construction company must set up a temporary office building at a construction site. Two alternate schemes are proposed for heating this building. "Bottled gas" can be used for floor type furnaces, or electric radiant panels can be installed in the walls and ceiling. It is estimated that the building will be used for 5 years before being dismantled.
The gas installation will require an investment of$3,200. It is believed its net realizable value will be zero at the end of the 5 years. The estimated annual fuel and maintenance cost is $800.
The electric radiant panel installation will require an investment of $4,600; it has an estimated salvage value of $1,000. Estimated annual energy and maintenance cost is $500. Choice of the electric installation will cause an estimated extra payment for income taxes of $110 a year.
Compare the present worth's of the costs of these two alternatives using an interest of 10%.
The present worth of the cost of using the electric radiant panel option is $12,462.64
Let us calculate the present worth's of the costs of these two alternatives using an interest of 10%. So, we have: Bottled gas option:
Initial Investment = $3,200
Annual Maintenance cost and fuel cost = $800
Total annual cost = $3,200 + $800 = $4,0005 years'
worth of this cost will be $4,000 × 5 = $20,000
The present worth of $20,000 at an interest rate of 10% can be calculated using the formula,
P = A / (1 + r)n
Where, P is the present worth
A is the annual payment
r is the interest rate
n is the number of years
So, we have:
P = $20,000 / (1 + 0.1)5 = $11,575.27
Therefore, the present worth of the cost of using bottled gas will be $11,575.27.
Electric radiant panel option:
Initial Investment = $4,600
Salvage value = $1,000
Annual Maintenance cost and energy cost = $500
Extra payment for income tax = $110
Total annual cost = $4,600 - $1,000 + $500 + $110 = $4,2105 years'
worth of this cost will be $4,210 × 5 = $21,050
The present worth of $21,050 at an interest rate of 10% can be calculated using the formula,
P = A / (1 + r)n
Where, P is the present worth
A is the annual payment
r is the interest rate
n is the number of years
So, we have: P = $21,050 / (1 + 0.1)5 = $12,462.64
Therefore, the present worth of the cost of using the electric radiant panel option will be $12,462.64.As we can see, the present worth of the cost of using the bottled gas option is $11,575.27 and the present worth of the cost of using the electric radiant panel option is $12,462.64.
Thus, we can conclude that the present worth of the cost of using the bottled gas option is lower than the present worth of the cost of using the electric radiant panel option, and hence, the company should use the bottled gas option.
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