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3 years ago

What is the initial investment outlay for the spectrometer, that is, what is the Year 0 project cash flow

Business

1 answer:

Nataliya [291]3 years ago

8 0

Answer:

$215,000

Explanation:

this question is not complete. here is the full question :

New project analysis-- You must evaluate a proposed spectrometer for the R&D department. The base price is $180,000, and it would cost another $27,000 to modify the equipment for special use by the firm. The equipment falls into the MACRS 3-year class and would be sold after 3 years for $90,000. The applicable depreciation rates are 33%, 45%, 15%, and 7%. The equipment would require an $8,000 increase in net operating working capital (spare parts inventory). The project would have no effect on revenues, but it should save the firm $79,000 per year in before-tax labor costs. The firm's marginal federal-plus-state tax rate is 40%.*********** What is the initial investment outlay for the spectrometer, that is, what is the Year 0 project cash flow?

the initial cash outlay = cost of the spectrometer + net working capital

cost of the spectrometer = base price + cost of modification

$180,000 + $27,000 = $207,000

$207,000 + $8,000 = $215,000

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During the month of January, Marcos & Henesey, Inc. had total manufacturing costs of $165,000. It incurred $62,000 of direct

adell [148]

Answer:

$68,800

Explanation:

Let the direct material used be X,

Direct Material + Direct Labor + Over Head = Total product cost

X + $62,000 + $40,000 = $165,000

X + $102,000 = $165,000

X = $165,000 - $102,000

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Raw Materials used = Beginning Inventory + Purchased - Ending Inventory

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$63,000 = Beginning Inventory + Purchased - Beginning Inventory - $5,800

$63,000 = Purchased - $5,800

Purchased = $63,000 + $5,800

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3 years ago

Suppose the market wage for cashiers increases from $7 per hour to $9 per hour.As a result, Pat, who is a cashier, now works fiv

Anton [14]

Answer:

Income

Explanation:

Suppose the market wage for cashiers increases from $7 per hour to $9 per hour. As a result, Pat, who is a cashier, now works five more hours per week. On the other hand Chris, who is also a cashier, now works five fewer hours per week.Chris's behavior illustrates the Income effect of a wage increase.

As the income increases, few individual prefer to work fewer hours as now they are able to maintain target by working fewer than at previous wage rate. These people prefer leisure over higher income and want to settle down with limited income. These people may have a backward bending individual labour supply curve – they may choose to work fewer hours when the wage rate rises.

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3 years ago

With brick-and-mortar toy stores closing, board game manufacturers expect to have trouble finding as many consumers interested i

Oxana [17]

Answer:

This is how the market for board games would be affected in the explanation below

Explanation:

Because the manufacturers of the board game expect that the demand for their games would experience a decline, they would have to adjust their Production according to the decline. This is going to shift supply curve to the left, because of the decline in the production. Then equilibrium price would then increase as the quantity decreases because of the shift of the supply curve to the left.

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3 years ago

Division A of Barsema, Inc. has operating data as follows: Capacity 20,000 units Selling price $80 per unit Variable costs $45 p

Neporo4naja [7]

Answer:

the minimum price it should charge is $40 per unit.

Explanation:

Minimum Transfer Price = Variable Costs - Internal Savings + Opportunity Cost

Note : Division A has capacity available to meet B's requirements therefore there is no opportunity cost.

There are Internal savings of $5 as A's variable costs will be $5 less per unit.

Minimum Transfer Price = $45 - $5

= $40

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3 years ago

Swifty's Market used the perpetual method to record the following events involving a recent purchase of inventory:

butalik [34]

Answer:

Inventory balance will be of 73,318

Explanation:

Inventory 75,400

Account payable 75,400

to record goods received

Account payable 1,300

Inventory 1,300

to record return of goods

Inventory 700

Cash 700

to record payment of freight

Account Payable 74,100

Inventory 1,482

Cash 72,618

to record payment of invoice within discount period

75,400 - 1,300 = 74,100

74,100 x 2% = 1,482

Inventory balance:

DEBIT CREDIT

75,400

1,300

700

1,482

balance:

73,318

8 0

3 years ago