Finding balance in life helps you improve your overall health. When you have balance, you have time to pay attention to your body's needs. You can prioritize things like diet, exercise, and meditation instead of regretting that you never have time to take care of yourself.
An example of balance is being able to walk on a tight rope. An example of balance is when a person divides his time evenly between work, family, and personal pleasure. An example of balance is a person who doesn't get upset very often and doesn't let the little things bother them.
[Date |General Joumal [Debit |Credit
[May 15, Supplies S240,
[Cash [S240
[May 31 |Supplies expense(S410 — 2,400 - S210) 52,600,
Supplies [52,600
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A substitute in production is a good that is _____ another good, and a complement in production is a good that is _____ another good.
A substitute in production is a good that is produced in place of another good, and a complement in production is a good that is produced together with another good.
What do you understand by substitute in production?
Substitutes offer consumers choice in purchasing decisions by providing equally good alternatives, thus increasing utility. However, from a company's perspective, substitute products create rivalry.As a result, businesses may incur high marketing and promotional costs as they compete for market share, which in turn reduces operating profits. Some companies are even stopped by substitute products that far exceed their own offerings.What do you understand by complement in production?
Complements in production are two or more goods that are produced together using a given resource. The production of one good automatically triggers the production of another, often as a by-product. Both goods are simultaneously produced from the same source. The production of one good does not preclude the production of another, as would be the case with substitutes in production. In fact, it supports the production of the other. Make one, make both.To learn more about demand, refer to:
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What is the difference between equality of opportunity and equality of condition.
There are many differences between equality of opportunity and equality of condition. Few of them are listed below:
Equality of opportunity
Equal opportunity, also called equality of opportunity in political theory, the idea that people should be able to compete on equal terms or "level playing field" for favored positions and positions.
Proponents of equal opportunity believe that this principle is compatible with and indeed can justify certain inequalities in outcome, but there is considerable disagreement about the extent and which inequalities it justifies and how it does so.
Equality of condition
Equality of condition (Lynch & Baker, 2005) is “the belief that people should be as equal as possible in relation to the central conditions of their lives” (p. 132). Those who strive for equality of conditions aim to equalize the possibilities of people in a given situation.
Inequality can occur in education when teachers evaluate their students without considering the five dimensions of a level playing field: resources; respect and recognition; love, care and solidarity; Power supply; and work and learn.
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The invisible hand principle indicates that competitive markets can help promote the efficient use of resources true or false?.
The Invisible Hand Principle suggests that competitive markets can help facilitate the efficient use of resources even when each market player cares only about their self-interest rather than about the overall efficiency of resource usage. True
What is the principle of the invisible hand?The invisible hand is characteristic of laissez-faire, representing the "let do/let go," approach to the market. In other words, the approach maintains that the market will find stability without government or other interventions pushing it into unnatural patterns. The invisible hand upgrades individual self-interest and competition.
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The loanable funds theory categorizes all market participants (consumers, businesses, governments, and foreign participants) as net _________ or _________ of funds.
The loanable funds theory categorizes all market participants (consumers, businesses, governments, and foreign participants) as net suppliers or demanders of funds.
What is the loanable funds theory?The theory describes that the loanable funds are all the income that individuals and organizations have decided to save and loan out rather than spend on consumption. The loanable funds theory is based on the market's interest rates and the various components that they influence, hence a Supply and demand are discussed as the key parts of this theory.
In conclusion, the theory mainly categorizes all market participants (consumers, businesses, governments, and foreign participants) as net suppliers or demanders of funds.
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difference between money and bitcoin
Answer:
control
Explanation:
The main difference of Bitcoin from traditional currencies lies in the fact that no one controls Bitcoin as it is decentralized. It allows Bitcoin to be an independent peer-to-peer money system that can function regardless of anyone's wishes.
Bitcoin is a type of cryptocurrency, a digital currency. It is a virtual form of money and can be used to buy things. You can also transfer it from the bank. Bitcoin is related to currency, but it is not money.
Money is a currency that you keep in your wallet. Money is touchable as it can be held in your hands, unlike Bitcoin.
Money is a currency that you hold or keep with yourself. But Bitcoin is like a digital currency you cannot hold it. You can only store it on a computer.
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the fictional taj mahal indian grocery store had sales of us$50,000 in august and us$62,000 in september. there are 10 full-time workers in the store, each of whom worked 40 hours a week. in august, the store also employed four part-time workers, each of whom worked 15 hours a week. in september, eight part-time workers were employed, each for 10 hours a week. assuming there are four weeks in each month, and sales dollars are the output measure, what was the change in productivity from august to september?\
The change in productivity from August to September is 18.84%
Sales in August = $50000
Sales in September = $62000
Calculating productivity in August:
Productivity = Sales/Work done by employees
= 50000/(4*(10*40+4*15))
=50000/1840
=$27.17
Calculating productivity in September:
= 62000/(4*(10*40+8*10))
=62000/(4*480)
=62000/1920
=$32.29
Change in productivity = (32.29-27.17)/27.17*100
=18.84%
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Christy flips through her monthly issue of cosmopolitan. After seeing nine different perfume advertisements, she goes to the mall and purchases romance by ralph lauren. This example represents which of the segmentation criteria discussed in class?.
Christy looks through her copy of Cosmopolitan from each month. She visits the mall and buys Romance by Ralph Lauren after viewing nine different perfume advertising. This illustration illustrates the segmentation criteria for reachability.
More about segmentation:
Homogeneous groups of individuals with discernible shared characteristics must be developed in order to segment. They could be things like their geographic location, age, lifestyle, or even how they behave on your website. These are what we refer to as segmentation criteria.
People in the same segment are anticipated to have similar expectations and should react similarly to an offer, certain type of content, or specific message. By comparing several types of data, you could obtain a more thorough study of your clientele. Let's review the most often used segmentation guidelines.
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Ralph has $1,000 in an account that pays 10 percent per year. Ralph wants to give this money to his favorite charity by making three equal donations at the end of the next 3 years. How much will ralph give to the charity each year?.
Answer:
The Answer is $402.11
Explanation:
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to assess his company's progress against that of the competition, greg has been asked to determine the total sales of barrett's boots corp. for the past six months in the southeast compared to the total sales of boots across the entire united states. greg will be providing information on
To assess his company's progress against that of the competition, Greg has been asked to determine the total sales of Barrett's boots corp. for the past six months in the southeast compared to the total sales of boots across the entire united states. Greg will be providing information on market share.
Market share is the percentage of total sales or revenue in the market occupied by a company's operations. For example, if a particular industry sells 50,000 units a year, the company that sold his 5,000 of those units would have a share of that market.
Market share is the percentage of total industry sales generated by a particular company. Market share is calculated by dividing a company's sales for a period by the industry's overall sales for the same period.
Higher market share usually means higher revenues, lower sales efforts, and a strong barrier to entry for other competitors. A high market share also means that leaders win more than others when the market expands.
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shawn is buying a new spring jacket, and he is willing to pay as much as he paid for the last jacket he bought, which was $38. he finds one that he likes on sale and buys it for $29. in this case, shawn receives a consumer surplus of $
In this case, shawn receives a consumer surplus of $ 9.
What is consumer surplus?consumer surplus is moreover called social surplus and consumer's surplus, in financial matters, the contrast between the cost a shopper pays for an item and the cost he would be willing to pay instead of do without it.
Formula for Consumer surplus :
Consumer surplus = Most extreme cost buyer is willing to pay – Actual cost.
The customer surplus equation for numerous customers can be communicated as follows:
Shopper Overflow = ½ * Demand quantity at equilibrium * (Maximum cost buyer is willing to pay – Market cost)
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How does a market economy answer the 3 basic economic questions?
A market economy answers the 3 basic economic questions, Key terms. In its purest form, a market economy answers the three economic questions by allocating resources and goods through markets, where prices are generated. In its purest form, a command economy answers the three economic questions by making allocation decisions centrally by the government.
An economy is a system of interconnected production and consumption activities that ultimately determine the allocation of resources within a group. The production and consumption of goods and services as a whole meet the needs of the people who live and work there.
A nation's economy is the wealth it derives from business and industry. The Japanese economy grew by more than 10% every year. 3. Uncountable nouns. The economy is about using the minimum amount of money, time, or other resources necessary to accomplish something and not wasting anything. Economic growth increases government capacity and the supply of public goods. As the economy grows, the state taxes these revenues, providing the capacity and resources necessary to provide the public goods and services that citizens need, such as health care, education, social protection, and basic public services. You can get
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You are the manager of a customer service call center that handles customer inquiries for a large clothing retailer. One of your responsibilities is to use different types of reinforcement to motivate employees to engage in certain behaviors while on the phone with customers. Because you want all employees to stick to the provided script when answering calls, you decide to randomly monitor calls and praise employees who use the script. What type of reinforcement did you use?.
Positive reinforcement as the manage is praising the good behaviour of employees which motivates employees to stick to the script.
A approach used to strengthen future behavior is known as positive reinforcement. As a result, the actions have a longer duration, greater magnitude, and increased frequency. When desired behavior is attained, the reward is given as part of an expression of the behavior as is the case with positive reinforcement.
Positive reinforcement is used to increase the possibility that the desired behavior will change and occur frequently. Positive reinforcement is understood to occur when a reward results in a desirable outcome and the response is enhanced. This core idea seeks to accelerate the rate of behavior. So, Positive reinforcement as the manager is praising the good behaviour of employees which motivates employees to stick to the script.
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Having a corporate code of ethics that prohibits employees from accepting gifts from customers or vendors is an example of which component of internal control?.
Having a corporate code of ethics that prohibits employees from accepting gifts from customers or vendors is an example of control environment.
Employees perform unique responsibilities and duties for employers in change for compensation. commonly, they paintings in a full-time, element-time or brief potential. personnel satisfy sure job obligations and roles, most usually described within the task listing. The dictionary definition of “employee” says succinctly that an worker is “someone who works for any other in return for economic or different compensation.”three underneath that definition, independ- ent contractors would seem like personnel. An enterprise is an enterprise, organization, authorities entity, organisation, employer, professional offerings firm, nonprofit association, small business, shop, or man or woman who employs or places to work, a person who's called an employee or a team of workers member.
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deepa dalal opened a free-standing radiology clinic. she had anticipated that the costs for the radiological tests would be primarily fixed, but she found that costs increased with the number of tests performed. costs for this service over the past nine months are as follows:
1) The variable cost per unit = $60,450 divided by 1,500 is $40.30 for the past nine months of providing this service.
$195,510 in total fixed costs less ($40.30 multiplied by 4,100) equals $30,280.
2) The anticipated cost of maintenance for October is $171,330
1) Quantity of tests
total price
High: 4,100 in August
$195,510
Low - 2,600 in February
$135,060
Difference 1,500
$60,450
The variable cost per unit is $40.30 ($60,450 divided by 1,500).
C(x)= FC + V is the cost function (x)
Total cost for x tests = $30,280 plus $40.30 times 2) The anticipated maintenance cost is:
Amount fixed $30,280
Cost variable: 3,500 times $40.30 = 141,050
October's anticipated maintenance costs are $171,330.
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The adjustment for supplies used during the period will result in a debit to the ______ account and a credit to the ______ account.
The adjustment for supplies used during the period will result in a debit to the supplies expense account and a credit to the supplies account.
Define debit: what does it mean?Any accounting entry that results in a reduction in obligations or an increase in assets is referred to as a debit.All debits must be offset with matching credits on the right side of the ledger in double-entry accounting, where all debits are made on the left side of the ledger.Positive asset and cost values are debited and negative balances are credited on a balance sheet.Any double-entry accounting system will include a debit as a component.In contrast to credits, debits exist.A given account's debits and credits indicate the inflow and outflow of money, respectively.To know more about debit, refer to the following link:
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A bank statement computes an account's ending balance by adding all
to the beginning balance.
O A. amounts of cash purchases
B. amounts of cancelled checks
C. withdrawals and debits
D. deposits and credits
A bank statement computes an account's ending balance by adding all to the beginning balance with respect to deposits and credits. Thus, option D is correct.
What is a bank statement?A bank statement can be described as the part where the transactions that are related to the bank that is in relation to the withdrawal or the payment of the funds.
When calculating a profile's closing balance on a bank account, deposits and credits are added to the opening balance will be considered.
This means that the account will have the entry of the deposit and the withdrawal, which are represented by the debit and the credit balance. Therefore, option D is the correct option.
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If buyers and sellers both expect future prices to increase, what will happen to the current equilibrium price?.
If buyers and sellers both expect future prices to increase, the current equilibrium price will decrease.
What is a equilibrium price?
When two lines cross in a diagram, that intersection usually means something. On the graph, the point where the supply curve (S) and the demand curve (D) intersect is the equilibrium. The equilibrium price is the only price where consumers' wants and producers' desires match—that is, the amount of a product that consumers want to buy (quantity demanded) equals the amount that producers want to sell (quantity supplied).
This mutually required quantity is called the equilibrium quantity. At any other price, the quantity demanded does not equal the quantity supplied, so the market is not in equilibrium at that price. It should be clear from the previous discussions of surpluses and shortages that if a market is not in equilibrium, then market forces will push the market into equilibrium.
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Suppose the dealer incentive per vehicle for honda’s acura brand is thought to be bell-shaped and symmetrical with a mean of $3,200 and a standard deviation of $200. Based on this information, what interval of dealer incentives would we expect approximately 95% of vehicles to fall within?.
Based on this information, dealer incentives of approximately 95% of the vehicles fall within $2800 and $3600.
This is calculated by using empirical rule.
What is empirical rule?The empirical rule, often referred to as the 68-95-99.7 rule, is a shortcut used in statistics to remember the proportion of values that fall within an interval estimate in a normal distribution: 68%, 95%, and 99.7% of the values fall within one, two, and three standard deviations, respectively. When not all the data is accessible, the empirical rule is typically the main tool used to determine outcomes. When all the data are accessible, it enables statisticians or data analysts to understand where the data will fall. The empirical rule aids in gauging a data set's degree of normality.Therefore, according to empirical law, with a normal distribution, 95% are within two standard deviations.
We have,
Mean = $3,200
Standard deviation = $200
95% = mean ± 2 x standard deviation = 3200 ± (2 x 200) = (2800, 3600)
Hence, dealer incentives of approximately 95% of the vehicles fall within $2800 and $3600.
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are typically embedded in unique routines and practices that have evolved and accumulated over time such as effective work teams. group of answer choices organizational capabilities reputational resources intangible resources tangible resources
Intangible resources are typically embedded in unique routines and practices that have evolved and accumulated over time such as effective work teams.
What are Intangible resources?
The resources a company has that cannot be transported or handled, like equipment or physical property, are referred to as intangible assets. Patents, trademarks, copyrights, goodwill, and other intangible assets are among them. Despite the fact that they aren't tangible objects that you can touch, they have a lot of worth for your company. You must identify, oversee, and amortise your intangible assets as a business owner.The resources a company holds that are not physical but nonetheless have real value are known as intangible assets. Intellectual property owned by a company, such as music, designs, trademarks, software licences, motion pictures, client lists, and franchises, is a typical example of an intangible asset.These are the assets that an organisation develops over time as a result of specific practises and routines.To know more about Intangible resources visit:
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the managerial accountant at xyz company told her friend that the company expects to announce a major recall in a few weeks. the friend promptly sells all her stock in xyz. the accountant violated which ima requirement? (check all that apply.)
The managerial accountant at internal company told her friend that the company expects to announce a major recall in a few weeks. . The friend promptly sells all her stock in internal
What kind of information is offered by managerial accounting?The sort of accounting known as managerial accounting is used by managers and other decision-makers inside an organisation to provide them with financial information. Financial measures used in managerial accounting frequently include revenue, sales, operational costs, and cost controls.
The discipline of management accounting, often known as managerial accounting, is useful in giving the management financial information and the right resources to aid managers in decision-making.
The basic goal of managerial accounting is to help a company's management accomplish its planning, organising, directing, and controlling duties effectively.
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the two ways that a corporation can be classified by purpose are a. general and limited. b. profit and not-for-profit. c. state and federal. d. publicly held and privately held
The two ways that a corporation can be classified by purpose are profit and not-for-profit. In general, for-profit businesses sell goods or offer services. A non-profit group typically uses donations, events, and corporate sponsors to fundraise. In general, for-profit businesses aim to give consumers a good or service while also turning a profit.
The goal of a nonprofit organization is to assist the community without thinking about making a profit. A non-profit organization is a group that was established with the intention of making a profit, and in which no part of the organization's revenue corporation is given to its directors, officials, or members.
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think about a 5-year annuity with a positive payment and discount rate. in an ordinary case, the first payment would occur one year from now and the fifth payment would occur five years from now. what would happen to the present value if the payments were shifted such that the first payment occurs today and the fifth occurs four years from today?
PV would be increased if the present value if the payments were shifted such that the first payment occurs today and the fifth occurs four years from today.
How PV should be calculated?PV of ordinary annuity = Amount[tex]*[(1-((1+r)^-n))/r)[/tex]
PV of annuity due = Amount + (Amount[tex]*[(1-((1+r)^-(n-1)))/r))[/tex]
Now, we can take an example to know what would happen to the present value if the payments were shifted such that the first payment occurs today and the fifth occurs four years from today:
We will take
Amount = 200
Interest rate (r) = 8%
Years (n) = 5
Solving both the annuities:
PV of ordinary annuity = 200*[(1-((1+8%)^-5))/8%) = 798.5
PV of annuity due = Amount + (200*[(1-((1+8%)^-(5-1)))/8%)) = 862.4
We can see that if the payments were shifted such that the first payment occurs today and the fifth occurs four years from today that is a situation of PV of an annuity due then the PV would increase.
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when small discusses how customers crave personal interaction, knowledge of the person who created the garment, and want unique, humanness in their clothing, what is he describing?
He is describing the product research of the garment.
Customers crave personal interaction, knowledge of the person that created the garment, and want unique, humanness in their clothing, from knowing every inch of the details as people prefer product quality and characteristics and type of clothing it has offered.
Product or market research is done so as to choose the unique pattern that satisfies the wants and comfort of the consumer otherwise they have lot of options and opportunity cost existing with them. Describing the best of all can help grab sales easily.
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Assume peanut butter and jelly are complements. Ceteris paribus, an increase in the price of peanut butter will cause the equilibrium price of jelly to.
Assuming that peanut butter and jelly are complementary goods, then Ceteris Paribus, an increase in the price of peanut butter will cause the equilibrium price of jelly to decrease. Therefore, the option B holds true.
What is the significance of complementary goods?The complementary goods can be referred to or considered as the goods that are perfect replacements of each other, but are not substitutes. They have an indirect relationship to each, i.e., when price of one good increased, the price of other good decreases.
Therefore, the option B holds true and states regarding the significance of complementary goods.
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The question has been completed below for better reference.
Assume peanut butter and jelly are complements. Ceteris paribus, an increase in the price of peanut butter will cause the equilibrium price of jelly to. Increase, decrease, remain constant, none of these
rose riley's parents have booked and paid for a family trip to aspen, colorado, during her spring break. rose's friends recently decided to drive to destin, florida, for spring break. rose needs to decide whether to join her parents in aspen or drive to the beach with her friends. the opportunity costs of joining her friends on the trip to destin include each of the following except
Rose needs to decide whether to join her parents in aspen or drive to the beach with her friends. the opportunity costs of joining her friends on the trip to Destin include each of the following except the nonrefundable deposit her friends paid for the beach house in Destin.
What's Friendship?Fellowship is a relationship of cooperative affection between people.It's a stronger form of interpersonal bond than a" familiarity" or an" association", similar to a classmate, neighbor, colleague, or coworker.What's a true friend?Someone who's a true friend stands up for you.When others try to hurt you emotionally or physically, they do everything they can to make sure you stay safe.They do not watch who's trying to harm you; they will defend you anytime.Still, they'll do it without reservation or price If they can help you.Learn more about Friendship here:
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The way you use your money reveals your true priorities. Knowing that, how could having budget categories help you prioritize your money ?
The way that a person would use the money that the have would show their priorities because it would show how they would have to list the budgets they have to take care of more pressing needs.
How budgeting can help usThe term budgets has to do with the creation of a financial plan that would have to do with the needs that a person has and the way that it would be spread over the amount of money that they have.
This is important because it helps to ensure that one would not have to spend carelessly. It helps to track the expenses of a person and also create financial stability.
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the prohibits employers from discriminating against qualified individuals with disabilities with regard to applications, hiring, discharge, compensation, advancement, training, or other terms, conditions, or privileges of employment
The prohibits employers from discriminating against qualified individuals with disabilities with regard to applications, hiring, discharge, compensation, advancement, training, or other terms, conditions, or privileges of employment American with Disabilities Act of 1990
The Americans with Disabilities Act of 1990 forbids discrimination on the basis of physical or mental impairments in all spheres of public life, including the workplace, educational institutions, and public spaces. The rule in the workplace applies to both potential candidates for open positions and present employees.
What does the 1964 Title VII Civil Rights Act entail?Employment discrimination based on racial, ethnic, religious, sexual, and national origin is illegal under Title VII.
What constitutes discrimination according to the EEOC?You are protected from employment discrimination under the laws upheld by the EEOC if you are subjected to any of the following: Unfair treatment due to your race, color, religion, sex (including pregnancy, gender identity, and sexual orientation), national origin, disability, age (40 or older), or genetic information.
What does the ADA Amendments Act ADAAA intend to accomplish?Originally passed by Congress in 1990 (as the Americans with Disabilities Act-ADA), the Americans with Disabilities Act Amendments Act (ADAAA) protects people with disabilities against discrimination in the workplace, as well as in settings like schools and other public places.
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after a recent study showed significant benefits of riding roller coasters, government officials have hired your consulting firm to increase this activity. in the initial meeting between the government officials and your consulting firm, some ideas for increasing demand were discussed. which suggestion would you recommend?
According to the given statement the correct option is 2.
Suggestion 2. Increase the price of private transportation by increasing tolls.
Briefing:Raising the price of a replacement good, private transportation, will raise the need for public transportation. Your recommendations should really be based on growing demand rather than increasing amount demanded. Consider which variables affect quantity demanded but which variables affect demand.
Why don't people use public transportation?Researchers at the University of California, Berkeley, discovered that passengers are more likely to abandon public transportation if they face delays that can be blamed on the transit provider. (Most individuals will overlook other annoyances such as traffic, crises, or mechanical breakdowns.)
What exactly are private forms of transportation?The article also goes over the many kinds of private transportation that make use of highways and long-distance pathways. These include walkers, bicycles, motorbikes, automobiles, taxis, and trucks. A private method of transportation is one where the vehicles are owned and operated by individuals.
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I understand that the question you are looking for is:
A recent study shows the benefits of using public transportation. Government officials have hired your consulting firm to increase the demand for public transportation. They come to you with three of their suggestions.
• Suggestion 1. Reduce the price of public transportation.
• Suggestion 2. Increase the price of private transportation by increasing tolls.
• Suggestion 3. Offer monthly and yearly passes that reduce the price paid per ride of public transportation.
Which suggestion(s) does your firm recommend?
A. 1
B. 2
C. 3
D. 1 and 3
5 . calculating percentage change transcript on april 1, the price of gas at bob’s corner station was $3.70 per gallon. on may 1, the price was $4.20 per gallon. on june 1, it was back down to $3.70 per gallon. between april 1 and may 1, bob’s price increased by , or . between may 1 and june 1, bob’s price decreased by , or . suppose that at a gas station across the street, prices are always 20% higher than bob’s. in absolute dollar terms, the difference between bob’s prices and the prices across the street is when gas costs $4.20 than when gas costs $3.70. some economists blame high commodity prices (including the price of gas) on interest rates being too low. suppose the fed raises the target for the federal funds rate from 2% to 2.5%. this change of percentage points means that the fed raised its target by approximately .
Between April 1 and May 1, Bob’s price increased by:- $4.20 -$3.70 = $0.5
Or (0.5)/3.7 =13.51%
Between may 1 and june 1, bob’s price decreased by , or . suppose that at a gas station across the street, prices are always 20% higher than bob’s.
Between May 1 and June 1, Bob’s price decreased by:- $4.20 -$3.70 = $0.5
Or (0.5)/4.2 =11.9%
The relationship between two pieces of data is described using percentages and percentage points. A percentage point measures the actual amount of change, whereas a percent refers to the pace of change.
2.5%- 2% = 0.5% ,this change of 0.5 percentage points means that fed has raised its target by approximately 0.5/2 =25%
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a five-year project has an initial fixed asset investment of $315,000, an initial nwc investment of $25,000, and an annual ocf of −$35,000. the fixed asset is fully depreciated over the life of the project and has no salvage value. if the required return is 11 percent, what is this project’s equivalent annual cost, or eac? (a negative answer should be indicated by a minus sign. do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
The project's EAC is -59,979.65 and NPV is -221, 678.6.
What is meant by "Equivalent Annual Cost" (EAC)?The annual cost of owning, running, and maintaining an asset over the course of its life is known as the equivalent annual cost, or EAC. EAC is frequently used by businesses to make capital budgeting decisions since it enables them to compare the cost-effectiveness of different assets with different lifespans.
Depreciation = 315000/5 = 63000
NPV= -(3,15,000 + 25000) + [tex]\frac{-35000 + 63000}{1+0.11}[/tex] + [tex]\frac{-35000 + 63000}{ 1.11^{2}}[/tex] +[tex]\frac{-35000 + 63000}{ 1.11^{3}}[/tex] +
[tex]\frac{-35000 + 63000}{ 1.11^{4}}[/tex] + [tex]\frac{-35000 + 63000}{ 1.11^{5}}[/tex] = -221, 678.6
The project’s equivalent annual cost is:
EAC = [tex]\frac{-221678.6 X 0.11}{(1-1.11)^{-5} }[/tex] = - 59,979.65
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