Faleye Consulting is deciding which of two computer systems to purchase. It can purchase state-of-the-art equipment (System A) for an after-tax cost of $19,000, which will generate after-tax cash flows of $6,000 at the end of each of the next 6 years. Alternatively, the company can purchase equipment with an after-tax cost of $13,000 that can be used for 3 years and will generate after-tax cash flows of $6,000 at the end of each year (System B). If the company’s WACC is 10% and both “projects” can be repeated indefinitely, which system should be chosen, and what is its EAA? Do not round intermediate calculations. Round your answer to the nearest cent.
Choose Project
-Select-
, whose EAA = $

Answers

Answer 1

If Faleye Consulting’s WACC is 10% and both “projects” can be repeated indefinitely, the system that should be chosen is System A, and its EAA is $2,866.91.

What is the EAA of a project?

The EAA of a project is the Equivalent Annual Annuity.  The EAA can be determined using the following formula.

EAA = r x NPV1 - (1 + r)-n

Where the EAA = Equivalent Annual Annuity

r = interest rate per period

n = project duration

NPV = Net present value of project

We can also compute the EAA by using an online finance calculator as follows:

Data and Calculations:

                                                System A        System B

After-tax cost                           $19,000         $13,000

After-tax cash flows                 $6,000           $6,000

Equipment duration                 6 years           3 years

WACC = 10%

Annuity factor                            4.355              2.487

Present value of cash flows $26,130          $14,922 ($6,000 x 2.487)

NPV                                          $7,130           $1,922 ($14,922 - $13,000)

EAA (an online calculator)    $2,866.91        $800.966

Thus, using the EAA rule, the computer system that should be chosen is System A because it has a higher EAA than System B.

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Related Questions

4+10(5-3) = 4 +62 is what?
O 18
O 42
O 21
O45

Answers

Hey there!

4 + 10(5 - 3) = 4 + 62

4 + 10(5) + 10(-3) = 4 + 62

4 + 50 - 30 = 4 + 62

54 - 30 = 4 + 62

24 = 4 + 62

24 = 66

24 ≠ 66


OR

4 + 10(5 - 3) = 4 + 62

4 + 10(2) = 4 + 62

4 + 20 = 4 + 62

24 = 4 + 62

24 = 66

24 ≠ 66


Thus, this statement is FALSE because both of your numbers aren’t equivalent to each other.


But, let’s try this method

4 + 10(5 - 3) = 4 + 62

4 + 10(2) = 4 + 62

4 + 20 = 4 + 62

24 = 66

24 ≠ 66

66 - 24 = 42

Thus, if this is what your question is asking it would be: Option B. 42


Good luck on your assignment and enjoy your day!


~Amphitrite1040:)

Please help on math.​

Answers

Answer:

The median is 45

Step-by-step explanation:

The median is also referred to as "the middle" value, so you want to take all the values in order and find the middle number. that will be the median. It's the same either box plots.

A quicker way to find it with box plot is to look at the line inside the of the box (line is not always in center of box) on the plot. that is where you'll find the median on questions like these.

hope this helps! :)

6) Molly invests $7,747 in a retirement
account with a fixed annual interest rate
compounded 2 times per year. After 16
years, the balance reaches $31,685.08.
What is the interest rate of the account?

Answers

Answer:

R = 9% per year

Step-by-step explanation:

Please help and explain this to me!! I am confused and would like to know how to solve!!

Answers

Answer:

13. C) The sum of the numerators is incorrect.

14. B) [tex]-\frac{5}{8}+\frac{1}{8}=\frac{-5+1}{8}=\frac{-4}{8} =-\frac{1}{2}[/tex]

Step-by-step explanation:

13. The reason why it's incorrect.

When dealing with the sum of fractions, denominators must be the same. So allows us to do the sum of the numerator. The image displayed is the incorrect sum of the numerator.

14. [tex]-\frac{5}{8}+\frac{1}{8}=\frac{-5+1}{8}=\frac{-4}{8} =-\frac{1}{2}[/tex]

henry had charged 847 dollars to his credit card. the cost of his next purchase caused him to exceed his credit limit of 1000

Answers

Answer:

The purchase is greater than $153

Step-by-step explanation:

A function f is odd and f(x)=x^2 for all x>0. Sketch the graph of of this function and then write the rule of the function as a single formula

Pls solve I put 77 points ito this

Answers

The odd function is:

f(x) = sgn(x)*x^2

And the graph can be seen at the end.

How to get the formula of the function?

An odd function has the property:

f(-x) = -f(x).

In this case, for x > 0 we have:

f(x) = x^2

Notice that if we evaluate that in a negative number, we get:

f(-2) = (-2)^2 = 2^2 = f(2)

So, this is actually even.

To transform it into an odd function, we can multiply it by the sign function:

f(x) = sgn(x)*x^2

Now, when x is negative, the outcome will be negative, so the function is odd. The graph can be seen below.

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help me with this pls​

Answers

Answer:

sure I'll help u with this as this question required to have a and asuch a being used to review with an associate with you in the comment of the item that you used in the comment is the only one that was a good one to review the product and details about the refund

some one help me solve this asap pls and thx!!

Answers

Answer:

x = 14

Step-by-step explanation:

Knowing that this figure is a vertical angle.

Define vertical angles ⇒ a pair of opposite angles formed by intersecting lines

Thus, if the left side = 122

then the other side must equal 122

The equation is:

8x + 10 = 122

Subtract 10 from both sides

8x + 10 - 10 = 122 -10

8x = 122

Divide both sides by the same factor

8x/8 = 122/8

Simplify

x = 14

Thus, x = 14.

Kavinsky

Suppose you play a game in which 5 dice (6-sided) are rolled simultaneously.
If a "4" is rolled, then you win $2 for each "4" showing.
If all the dice are showing "4", you win $1000.
If none of the dice are showing "4", then you lose $5.

What is the expected value of this game. (Show work)
If you want to you can take a photo of the work and upload it.

Answers

The expected value of the game in which 5 dice (6-sided) are rolled simultaneously is -0.2094.

How to find the mean (expectation) and variance of a random variable?

Supposing that the considered random variable is discrete, we get:

Mean =  [tex]E(X) =[/tex] [tex]\sum_{\forall x_i} f(x_i)x_i[/tex]

Here,   [tex]x_i; \: \: i = 1,2, ... ,[/tex] n is its n data values and [tex]f(x_i)[/tex]is the probability of  [tex]X = x_i[/tex]

Suppose you play a game in which 5 dice (6-sided) are rolled simultaneously.

If a "4" is rolled, then you win $2 for each "4" showing.If all the dice are showing "4", you win $1000.If none of the dice are showing "4", then you lose $5.

Let Y is the amount of money player won. The value of X can be,

[tex]Y=2,4,6,8,1000,-5[/tex]

How to find that a given condition can be modeled by binomial distribution?

Binomial distributions consists of n independent Bernoulli trials. Bernoulli trials are those trials which end up randomly either on success (with probability p) or on failures( with probability 1- p = q (say))

Suppose we have random variable X pertaining binomial distribution with parameters n and p, then it is written as

[tex]X \sim B(n,p)[/tex]

The probability that out of n trials, there'd be x successes is given by

[tex]P(X =x) = \: ^nC_xp^x(1-p)^{n-x}[/tex]

The expected value and variance of X are:

[tex]E(X) = np\\ Var(X) = np(1-p)[/tex]

Put the values as 5 trials for each time 4 appears.

[tex]P(X =0) = \: ^5C_1(\dfrac{1}{6})^0(1-\dfrac{1}{6})^{5-0}=0.4018 \:\\P(X =1) = \: ^5C_1(\dfrac{1}{6})^1(1-\dfrac{1}{6})^{5-1}=0.402\\P(X =2) = \: ^5C_2(\dfrac{1}{6})^2(1-\dfrac{1}{6})^{5-2}=0.162\\P(X =3) = \: ^5C_3(\dfrac{1}{6})^3(1-\dfrac{1}{6})^{5-3}=0.032\\P(X =4) = \: ^5C_4(\dfrac{1}{6})^4(1-\dfrac{1}{6})^{5-4}=0.0032\\P(X =5) = \: ^5C_5(\dfrac{1}{6})^5(1-\dfrac{1}{6})^{5-5}=0.00013\\[/tex]

The probability of loosing $5 equal probability of 0 success.

[tex]P(Y=-5)=P(x=0)[/tex]

Similarly, for probability of getting profit are,

[tex]P(Y=2)=P(x=1)\\P(Y=4)=P(x=2)\\P(Y=6)=P(x=3)\\P(Y=8)=P(x=4)\\P(Y=1000)=P(x=5)[/tex]

Expected value of game,

[tex]E(Y)=\sum y .P(Y=y)\\E(Y)=-5.P(X=0)+2.P(X=1)+4.P(X=2)+6.P(X=3)+8.P(X=4)+1000.P(X=5)\\E(Y)=-0.2094[/tex]

Thus, the expected value of the game in which 5 dice (6-sided) are rolled simultaneously is -0.2094.

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What is a rewritten form of the radical?
A.
-8816
B.
C.
D.
-90.75
-98616
-2.904

Answers

the only the answer is D

Two angles are supplementary. The larger angle is
150

larger than the smaller angle. Find the measure of both angles, and separate your answers with a comma.

Answers

Answer:

x = 165, y = 15

Step-by-step explanation:

1. Well, what does supplementary mean? - The angles add up to 180°.

2. Let's form an equation: x + y = 180°

3. Let's say x is the larger angle and y is the smaller angle.

4. Let's form another equation: x = 150 + y

5. Put the two equations next to each other:

x + y = 180

x = 150 + y

6. We know what x is equaled to, so let's plug it into the first equation!

150 + y + y = 180

150 + 2y = 180

-150           -150

2y = 30

y = 15

7. Now, we know what y is, let's find x!

x + 15 = 180

   -15     -15

x = 165

The measure of both angles are  15 degrees and 165 degrees.

What is Angle?

An angle is the figure formed by two rays, called the sides of the angle, sharing a common endpoint, called the vertex of the angle

Given that the two angles are supplementary.

we know that supplementary angles are the angles whose sum is added to 180 degrees.

Let the smaller angle is x.

The larger angle is 150∘ larger than the smaller angle.

y=x+150

Now add both the angles which makes 180 degrees

x+x+150=180

2x+150=180

Subtract 150 on both sides

2x=30

Divide both sides by 2

x=15

So the smaller angle is 15 and the larger angle is 165 degrees

Hence,  the measure of both angles are  15 degrees and 165 degrees.

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Write an equation in slope-intercept form of the line shown.
An equation is

Answers

Answer:

y = -x - 4

hope this helped :)

A table of values for the quadratic function f is shown below. If 3 is one solution to f(x) = 0, what is the value of the other solution?
Record your answer and fill in the bubbles on your answer document.

Answers

Answer:The answer to this oroblem would be -7

Step-by-step explanation:We can see this by when f(x) is 0 right next to it is -7

The value of the other solution for f(x)=0 is -7. This is obtained by taking the general form of the quadratic equation f(x)=y.

Quadratic function:A function is represented by an equation f(x)=ax²+bx+c where a≠0 and b, c are any real numbers.This can be generalized into f(x)=y where x is an independent variable and y is a dependent variable.

Given data:

In the table, x values range from -8 to 1

So, we can write using the general form f(x)=y for these values

For x=-8, f(-8)=-2.75

x=-7, f(-7)=0

x=-6, f(-6)=2.25

x=-5, f(-5)=4

x=-4, f(-4)=5.25

x=-3, f(-3)=6

x=-2, f(-2)=6.25

x=-1, f(-1)=6

x=0, f(0)=5.25

x=1, f(1)=4

And 3 is one of the solution to f(x)=0.

Calculating solution for f(x)=0:

It is given that f(x)=0 when x=3

Thus,

f(3)=0

From the table,

f(-7)=0

So, the other solution for the function f(x)=0 is -7.

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I need help solving this math problem. The teacher wants us to fill in three things using this math equation: 2x - 3√x + 1 = 0

(1) u=_

(2) u^2=_

(3) _u^2+_u+1=0

The teacher wants us to accomplish this using the U-Substitution method.

Answers

I'm not sure for my awnser but I thing 30

Which equation does NOT represent a linear function? A. y = 5 B. 4 y = 2 x − 8 C. y = x + 2 x 2 D. y = − 2 3 x − 1

Answers

The answer is C
A, B, and D are all linear

What is z in the context of the problem that’s at hand?

Answers

Answer:

The value of the z-score tells you how many standard deviations you are away from the mean. If a z-score is equal to 0, it is on the mean. A positive z-score indicates the raw score is higher than the mean average. For example, if a z-score is equal to +1, it is 1 standard deviation above the mean

Step-by-step explanation:

i dont know if i am correct tho, please like if i am correct

what is the greatest prime number less than 50?

Answers

Answer:

The greatest prime number less than 50 is 47

A married couple and their 4 children buy tickets to a ball game. The tickets cost 25 dollars api but each of their children gets a 20 percent discount. How much, in dollars, must the family pay for A tickets?

Answers

Price of an adult ticket: $25
Price of a child's ticket is 25-0.20(25) = $20

Total cost = 2 adult tickets + 4 child tickets
= 2(25)+4(20)
= 50+80 = $130

Find the missing side length.
Assume that all intersecting sides meet at right angles.
Be sure to include the correct unit in your answer.

Answers

Answer:

the answer is in the picture

Is this the graph of a function?

Answers

Answer:

function

Step-by-step explanation:

this graph is a function.

why?

if we draw a vertical line on all points of the function we can see that it only intersects ONCE. Therefore, it's a function. if it intersects more than once then it will not be a function

100 POINTS ANSWER ASAP

George's living room is a square that is 33 ft long on each side. He knows the diagonal of the ceiling from corner to corner must be longer than 33 ft.

(a) He thinks that because a square cut in half forms a special right triangle with the diagonal as the hypotense, so he multiples the side length by two to get 66 feet.
What is George's mistake?

(b) What is the correct length of the diagonal of George's ceiling using the correct special right triangle shortcut? (give exact answer, do not round)

(c) Use either the pythagorean theorem OR the correct trigonometry ratios to solve for the length of the diagonal (round to the nearest tenth of a foot)

Make sure to show all your work.

Answers

Answer:

47

Step-by-step explanation:

a)

a^2 + b^2 = c^2

33^2+33^2=c^2

2178=c^2

c=(nearest is 47)

b)

If you cut the square in half diagonally, it forms two right triangles with angle measures 90-45-45. You can use sin (opposite over hypotenuse) to find the length of the hypotenuse.  sin (45) would be 33/(hypotenuse length). From a trig chart, you can find that sin (45) is 1/sqrt(2), meaning that 33/x = 1/sqrt(2). This means that x=33sqrt(2), which is around 47.

47. Hope that this helps!

Determine whether each relation is a function.

Answers

Answer:

no

Step-by-step explanation:

no

one input (x) has 2 outputs (y)

the input 2 has 2 outputs 1 and 4

this does not pass the vertical line test

therefore it is not a function

Use ABC to find the value of tan B 41/9 40/9 41/40 9/41

Answers

Answer:

tanB =40/9

Step-by-step explanation:

tan B = opposite/adjacent

where the opposite is 40 and the adjacent is 9

therefore, tanB =40/9

Solve for x=?
a. 1.5(x+t)=9

Answers

Answer:

1.5x1.5t=9

Step-by-step explanation:

because i am learning this topic

*90 points* Pls help and give full responses pls!! Look at the graph in the pic.

A. Compare the distances relative to Columbus from which the trains begin their trip.
B. Tom claims both trains traveled at the same speed over a certain interval. Sara claims that both trains traveled at different speeds the entire time. Justify which claim is correct.
​Type your answer in the space provided.

Answers

Answer:

A. Train A begins 1800 miles from Columbus while train B begins 1200 miles from Columbus

B. Train A travels at a constant rate because its graph is a linear equation. Train B does not move until 1pm, when it starts moving towards Columbus at the same speed as train A. I know that trains are traveling at the same speed at a certain interval because they have the same slope at that interval. Because the train was moving at the same speed as train A over a certain interval, Tom is correct.

Step-by-step explanation:

A rectangular dance floor has an area of 96 square feet and a length of 8 feet. What is the width of the dance floor?

Answers

Answer:

The answer is 12ft

Step-by-step explanation:

96/8 = 12

Area = length x width

8. The expression below is evaluated when x = 9, y = 3,
and z = 2. What is the value of the expression?
8x - 72 + 2y

Answers

Answer:

64

Step-by-step explanation:

First of all substitute the values to where ever you see their corresponding variables to make them multiply.

x = 9

y = 3

z = 2

so we get

8x as 8(9),

7z as 7(2)

2y as 2(3)

then the it's will be

8(9) - 7(2) + 2(3)

which is

72 - 14 + 6

finally we get

64

A car is purchased for 1200. Each year it loses 25% of its value. After how many years will the car be worth 2800 or less?

Answers

Answer:

5.06 years

Step-by-step explanation:

It is already worth less than 2800

  perhaps you meant the purchase price was 12 000

2800 = 12 000 ( .75)^n

 n = 5.06 years   it will = 2800

What are all possible values of x if 10x + 7 ≥ 67

Answers

[tex]~~~~10x+7\geq 67\\\\\implies 10x \geq 67 -7\\\\\implies 10x \geq 60\\\\\implies x \geq \dfrac{60}{10}\\\\\implies x \geq 6[/tex]

why does thsi always happen

Answers

Answer:

It always happens because you asked the question

Step-by-step explanation:

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