A remotely located air sampling station can be powered by solar cells or by running an above ground electric line to the site and using conventional power. Solar cells will cost $18,000 to install and will have a useful life of 5 years with no salvage value. Annual costs for inspection, cleaning, and other maintenance issues are expected to be $2,400. A new power line will cost $27,500 to install, with power costs expected to be $1,000 per year. Since the air sampling project will end in 5 years, the salvage value of the line is considered to be zero. At an interest rate of 10% per year,
a. Which alternative should be selected on the basis of an annual worth analysis
b. What must be the first cost of the above ground line to make the two alternatives equally attractive economically?
Answers: 1
Other questions on the subject: Business
Business, 22.06.2019 02:10, dakodahepps
Materials purchases (on credit). direct materials used in production. direct labor paid and assigned to work in process inventory. indirect labor paid and assigned to factory overhead. overhead costs applied to work in process inventory. actual overhead costs incurred, including indirect materials. (factory rent and utilities are paid in cash.) transfer of jobs 306 and 307 to finished goods inventory. cost of goods sold for job 306. revenue from the sale of job 306. assignment of any underapplied or overapplied overhead to the cost of goods sold account. (the amount is not material.) 2. prepare journal entries for the month of april to record the above transactions.
Answers: 1
You know the right answer?
A remotely located air sampling station can be powered by solar cells or by running an above ground...
Questions in other subjects:
Physics, 28.08.2019 14:10
Social Studies, 28.08.2019 14:10
English, 28.08.2019 14:10
Mathematics, 28.08.2019 14:10
