You are considering purchasing a dump truck. The truck will cost $45,000 and have an operating and maintenance cost that starts at $15,000 the first year and increases by $2,000 per year thereafter. Assume that the salvage value at the end of 5 years is $9,000 and interest rate is 12%. The equivalent annual cost of owning and operating the truck is most nearly:

Answer:

The equivalent annual cost of owning and operating the truck is most nearly:

= $29,616.

Explanation:

a) Data and Calculations:

                                                    Costs          PV Factor       Present Value

Year 0 Truck purchase           $45,000          1                       $45,000

Year 1  Operating &

           maintenance cost          15,000          0.893                  13,395

Year 2 O&M cost                       17,000          0.797                  13,549

Year 3 O&M cost                       19,000          0.712                  13,528

Year 4 O&M cost                       21,000          0.636                 13,356

Year 5 O&M costs                    23,000          0.567                  13,041

Year 5 Salvage value                -9,000          0.567                  -5,103

Total costs                                                                             $106,766

Annuity factor at 12% after 5 years = 3.605

Equivalent annual cost = $29,616 ($106,766/3.605)

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A) Yes, as his conduct was intentional.
B) Yes, but only if Adam intended to cause Linda serious emotional distress.
C) No, since he was only playing a practical joke.
D) No, since Linda was not physically hurt by Adam.

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b. We have assumed the prices of resources and exchange rates in the two countries are dynamic.
c. We have assumed there are barriers to the movement of resources from the production of one good to another within the same country.
d. We have assumed that agrarian nations do not specialize in producing fertilizers.
e. We have assumed diminishing returns to specialization.

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b) Fred must maintain records for 6 years from the year the return was filed
c) Fred must maintain records for 8 years from the year the return was filed
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a. 28000
b. 30000
c. 50000
d. 25000

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define business structure?

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Required:
a. After the contribution, Lee's basis in his interest in the partnership is $_________
b. Brad's basis in his interest in the partnership is $__________
c. Rick's basis in his interest in the partnership is $________

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Dividends to common shareholders $2,033
Weighted average common shares outstanding 4,221
Weighted average dilutive shares 4,305
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c. $1.69 and $1.65.d. $1.69 and $1.18.
e. none of these are correct.

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