Business, 24.04.2020 20:11 ashiteru123

Washington Air Company is considering the purchase of a helicopter for connecting services between the company's base airport and the new intercounty airport being built about 30 miles away It is believed that the chopper will be needed only for six years until the Rapid Transit Connection is phased in. The estimates on two types of helicopters under consideration, the Whirl 2B and the ROT 8. are given below:

The Whirl 2B

First Cost $95,000

Annual Maintenance $3,000

Salvage Value $12,000

Useful Life 3 years

The ROT 8

First Cost $120,000

Annual Maintenance $9,000

Salvage Value $25,000

Useful Life 6 years

Assuming that the Whirl 2B will be available in the future with identical costs, what is the annual cost advantage of selecting the ROTX? (Use an interest rate of 10%.)

Answers: 2

Show answers

Another question on Business

Business, 21.06.2019 21:40

Bella is the new president of first edition, a group dedicated to the promotion of english literacy in first-generation immigrant communities. in the two years that have passed since bella took the position, the organization's members have become more passionate about their mission and intensified their activities—they put in long hours teaching children to read, promoting the program to parents, and soliciting donations. bella's strength is in her ability to inspire others and make them believe that they are part of something greater than themselves. which term best captures bella's leadership style? a. transactional b. transformational c. legitimate authority d. absolute authority

Answers: 1

Answer

Business, 22.06.2019 01:30

At the end of the week, carla receives her paycheck and goes directly to the bank after work to make a deposit into her savings account. the bank keeps the required reserve and then loans out the remaining balance to a qualified borrower named malik as a portion of his small business loan. malik uses the loan to buy a tractor for his construction business and makes small monthly payments to the bank to payback the principal balance plus interest on the loan. the bank profits from a portion of the interest payment received and also passes some of the interest back to carla in the form of an interest payment to her savings account. in this example, the bank is acting

Answers: 1

Answer

Business, 22.06.2019 03:30

Joe finally found a house for sale that he liked. which factor could increase the price of the house he likes? a. both he and the seller each have a real estate agent. b. a home inspector finds faulty wiring in the house. c. the house has been for sale for almost a year. d. several buyers all want that same house.

Answers: 2

Answer

Business, 22.06.2019 04:10

Oakmont company has an opportunity to manufacture and sell a new product for a four-year period. the company’s discount rate is 18%. after careful study, oakmont estimated the following costs and revenues for the new product: cost of equipment needed $ 230,000 working capital needed $ 84,000 overhaul of the equipment in year two $ 9,000 salvage value of the equipment in four years $ 12,000 annual revenues and costs: sales revenues $ 400,000 variable expenses $ 195,000 fixed out-of-pocket operating costs $ 85,000 when the project concludes in four years the working capital will be released for investment elsewhere within the company. click here to view exhibit 12b-1 and exhibit 12b-2, to determine the appropriate discount factor(s) using tables.

Answers: 2

Answer

You know the right answer?

Washington Air Company is considering the purchase of a helicopter for connecting services between t...

Questions