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ozzi
3 years ago
5

Delaney company is considering replacing equipment which originally cost $600,000 and which has $420,000 accumulated depreciatio

n to date. a new machine will cost $790,000 and the old equipment can be sold for $18,000. what is the sunk cost in this situation?
Business
1 answer:
Gelneren [198K]3 years ago
7 0
From the given original cost and the total accumulated depreciation of the old equipment, it can be seen that the value of the equipment should still be $180,000.
                            salvage value = $600,000 - $420,000 = $180,000
Given that it can be sold for only $18,000, the sunken cost is $162,000. 
                            sunken cost = $180,000 - $18,000 = $162,000
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Answer:

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Explanation:

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The points below the curve show the points that are feasible but inefficient.

The points above the curve show the points that cannot be attained using the given level or resources and technology.

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3 years ago
You receive five annual cash flows of $10,000 with the first cash flow being received today and the last cash flow occurring 4 y
ivanzaharov [21]

Answer:

FV= $75,437.02

Explanation:

Giving the following information:

Number of cash flows= 5

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Total number of periods= 10 years

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<u>First, we need to calculate the future value of the 5 cash flows in 5 years using the following formula:</u>

<u></u>

FV= {A*[(1+i)^n-1]}/i

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FV= {10,000*[(1.06^5) - 1]} / 0.06

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3 years ago
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Answer:

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Explanation:

Calculation for How much of the raw material should the company purchase during the year

First step is to prepare the Production Budget

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Total 202,000

(170,000+32,000)

Less beginning finished goods inventory (22,000)

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Second step is to prepare Materials Budget

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Add desired ending finished goods inventory

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Total raw materials needed 582,000

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Less beginning finished goods inventory (52,000)

Required material purchases 530,000 grams

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Answer: See explanation

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