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sammy [17]
4 years ago
5

Tax savings generated from deductions are considered cash inflows.

Business
1 answer:
lubasha [3.4K]4 years ago
3 0
Tax savings generated from deductions are considered cash inflows.

Answer: false

Hope this helps
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Guiding the actions of the affected party in a way that helps encourage compliance is the principal objective in which element of the Curbside Manner model

<h3>What is Curbside Manner model?</h3>

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The Golden Rule is the most fundamental principle of Curbside Manner: Treat others as you would like to be treated.

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5 0
2 years ago
Vextra Corporation is considering the purchase of new equipment costing $35,000. The projected annual cash inflow is $11,000, to
Klio2033 [76]

Answer:

The net present value of the machine  = $ 1590

Explanation:

Solution

The first step is to compute the present value of annual cash inflows as shown below:

The present value of the inflow of cash = (Annual inflow of cash * PVIFA rate, period)

which is

= $11,000 * PVIFA 12%, 4

=  $11,000 * 3.0373

= $ 33,410

Note: the present value of  inflow of cash has been computed by multiplying Annual cash inflows and Cumulative factor of 12% and 4 years. Annual cash inflow is $11,000 and from the table of PVIFA rate for a 4 periods at 12% discount rate is 3.0373.

Next step is to compute the Net value as shown in the equation below:

Net present value = (present value of inflow of cash - Investment)

which is

=$ 33, 410 - $ 35,000

= $1590

The net present value is = $ 1590

Note: Net present value has been computed  be subtracting  investment from the present value of inflow of cash.

The opening investment is $35,000 and the present value of inflow of cash is $33,410. since the initial investment is more than the present value of cash inflows, the net present value is seen as negative.

6 0
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