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schepotkina [342]
2 years ago
8

BuiltRite Corporation has decided to sell some old equipment to make room for a new project. The salvage value of the equipment

is $300,000. The firm would be able to recover $60,000 in working capital when the equipment is sold. Their tax rate is 21%. The old equipment has a book value of $210,000. What is the terminal cash flow
Business
1 answer:
alexira [117]2 years ago
5 0

Terminal cash flow = $281,a hundred + $60,000 = $341,one hundred.

Terminal cash flows are cash flows at the end of the challenge after all taxes are deducted. In different phrases, terminal coins flows are the net amount made by the organization after disposing of the asset and necessary amounts are paid. these are calculated after the disposal of assets and all different amounts are paid (fees, taxes, and many others.).

The calculation of NPV encompasses many economic topics in a single component: cash flows, the time fee of cash, the cut price rate over the period of the undertaking (generally the weighted common fee of capital (WAAC)), terminal value, and salvage fee.

For the terminal cost to be significant it should be discounted to the existing use of a discount fee. The terminal cost is added to the prevailing value of an asset's cash flows within the years preceding it to calculate the full gift cost.

Learn more about Terminal cash flow here: brainly.com/question/24179665

#SPJ4

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JetBlue’s "Even More Space" initiative allowed passengers to buy seats with more legroom for a slightly higher price. The initia
8090 [49]

Answer: Upselling

Explanation:

Upselling is a customer development strategy whereby the customers are encouraged to buy an upgraded or higher end version of a particular product. Upselling therefore results in the customers spending more than what they initially planned for and this bring about increase in revenue to the company.

Therefore, the customer development strategy exemplified by JetBlue is Upselling.

7 0
3 years ago
What is the permeter of a rectangle
AlekseyPX

The perimeter is the total distance around the outside of a shape. In the case of a rectangle, opposite sides of the rectangle are equal. Here is a formula for finding the perimeter of a rectangle: P=2(l+w) or Perimeter = 2 × length + width

6 0
3 years ago
On January 1, Year 1, the Hoverman Corporation made amendments to its defined benefit pension plan, resulting in $150,000 of pas
Lapatulllka [165]

Answer:

Check the explanation

Explanation:

a)

In IFRS according to IAS 19 all past service cost is recognized in the net income in the period in which amendment (change) is made by entity for defined benefit pension, it does not matter what is the status of the employees who will benefit the change. So in Year 1 $150000 will be expended completely and in subsequent years the amount is $0

Year 1 =$150000

Subsequent years= $0

b) In US GAAP the past service cost is recorded in Accumulated other comprehensive income in the year of amendment. It is amortized over the future working life of the participants.

Year 1 is year of adoption hence $0 is amortized because $150000 is included in Accumulated other comprehensive income.

Subsequent years: (150000/10=15000) $15000 will be amortized for each year for 10 years.

3 0
3 years ago
A channel of distribution: A. is any series of firms or individuals who participate in the flow of goods and services from produ
Illusion [34]

Answer:

A. is any series of firms or individuals who participate in the flow of goods and services from producer to consumer or final user.

Explanation:

6 0
3 years ago
Zen Co. sells a copier machine for $2,000. The copier cost Zen $6,000 and at the time of sale, accumulated depreciation was $2,5
Alenkinab [10]

Answer:

The correct option is: Debit to Loss on Disposal of Machinery for $1,500.

Explanation:

As at the time of sale, the net book value (cost - accumulated depreciation) of the copier machine was $3,500 ($6,000 - $2,500). Then, the proceed from sale is $2,000. The full accounting entries to record the transaction will be:

Debit Accumulated depreciation                          $2,500

Debit Cash (sales proceed)                                   $2,000

Debit Loss on disposal of machinery                    $1,500

Credit Fixed asset (cost - copier machine)           $6,000

<em>(To record disposal of copier machine)</em>

8 0
3 years ago
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