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The decision sciences department is trying to determine which of two copying machines to purchase. Both machines will satisfy the department's needs for the next ten years. Machine 1 costs $2,000 and has a maintenance agreement, which, for an annual fee of $150, covers all repairs. Machine 2 costs $3000, and its annual maintenance cost is a random variable. At present, the decision sciences department believes there is a 40% chance that the annual maintenance cost for machine 2 will be $0, a 40% chance it will be $100, and 20% chance it will be $200. Before the purchase decision is made, the department can have a trained repairer evaluate the quality of machine 2. If the repairer believes that machine 2 is satisfactory, there is a 60% chance that its annual maintenance cost will be $0 and a 40% chance it will be $100. If the repairer believes that machine 2 is unsatisfactory, there is a 20% chance that the annual maintenance cost will be $0, a 40% chance it will be $100, and a 40% chance it will be $200. If there is a 50% chance that the repairer will give a satisfactory report, what is EVSI? If the repairer charges $40, what should the decision sciences department do? What is EVPI?
Prepare the journal entries for these transactions, assuming that the common stock has a par value of $3 per share. Prepare the journal entries for these transactions, assuming that the common stock is on-par with a stated value of $2 per share.
A favorable cost variance of significant magnitude: A) Is strong evidence of tight financial control. B) Does not need to be investigated as to its underlying cause.
smelly perfume company manufactures and distributes several different products. they currently use a plant-wide
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refer to the preston wade information above. preston has received a special order from a local plant nursery to
a. What is the underground economy? b. Why might buyers and sellers in the underground economy prefer to use cash?
At December 31, 2010, Moonlight Bay had a 10% installment note payable to Third Mercantile Bank with a balance of $500,000. The annual payment is $60,000, payable each June 30.
clear company reports the following information for its first year of operationsunits produced this year 100000
on january 1 2011 the allegheny corporation purchased machinery for 115000. the estimated service life of the machinery
season tickets for the panthers are prices at 320 and include 16 games. revenue is recognized after each game is
How should Pioneer report the change? Would your answer be the same if Pioneer is changing from the equity method rather than to the equity method?
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