- A proposed new bus route is expected to require 12 new buses and to operate a total of 720,000 veh-km per year and 40,000 veh-h per year. Buses cost $210,000 each, have a 10-year life, and a salvage value after 10 years of $27,000 each. Operating costs include labor costs (wages, benefits, etc.) at $50.00 per veh-h, maintenance costs at $0.18 per veh-km, and cost of fuel, oil, tires, etc. at $0.42 per veh-km. Calculate the life-cycle cost (present value) of adding this route and operating it for 10 years, assuming an annual interest rate of 5 percent.

Lead time for one of your fastest-moving products is 20 days. demand during this period averages 90 units per day.a) what would be an appropriate reorder point? ) how does your answer change if demand during lead time doubles? ) how does your answer change if demand during lead time drops in half?

If a business is in need of working capital, one option is to use a(n) that will buy the company's account receivables and then handle their collection for a fee.

On january 1, 2018, wetick optometrists leased diagnostic equipment from southern corp. which had purchased the equipment at a cost of $2,256,342. the lease agreement specifies six annual payments of $490,000 beginning january 1, 2018, the beginning of the lease, and at each december 31 thereafter through 2022. the six-year lease term ending december 31, 2023 (a year after the final payment), is equal to the estimated useful life of the equipment. the contract specifies that lease payments for each year will increase on the basis of the increase in the consumer price index for the year just ended. thus, the first payment will be $490,000, and the second and subsequent payments might be different. the cpi at the beginning of the lease is 120. southern routinely acquires diagnostic equipment for lease to other firms. the interest rate in these financing arrangements is 12%. (fv of $1, pv of $1, fva of $1, pva of $1, fvad of $1 and pvad of $1) prepare the appropriate journal entries for wetick and southern to record the lease at its beginning.