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dolphi86 [110]
3 years ago
7

A new manufacturing machine is expected to cost $289,000, have an eight-year life, and a $33,000 salvage value. The machine will

yield an annual incremental after-tax income of $34,000 after deducting the straight-line depreciation. Compute the payback period for the purchase.
Business
1 answer:
ziro4ka [17]3 years ago
7 0

Answer:

4.38 years

Explanation:

Data provided in the question:

Cost of the machine = $289,000

Useful life = 8 years

Salvage value = $33,000

Incremental income after deducting depreciation = $34,000

Now,

Annual depreciation = [ Cost - Salvage value ] ÷ Useful life

= [ $289,000 - $33,000 ] ÷ 8

= $32,000

Thus,

Net Annual cash flow = Incremental income + Annual depreciation

= $34,000 + $32,000

= $66,000

Therefore,

Payback period = Cost ÷ ( Net Annual cash flow )

= $289,000 ÷ $66,000

= 4.38 years

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Which of the following statement is false? Group of answer choices Financing activities include the obtaining of cash from issui
Lapatulllka [165]

Answer:

Interest payment on bonds payable is a cash outflow from financing activities.

Explanation:

The only statement which is false from the list is : Interest payment on bonds payable is a cash outflow from financing activities.

Interest payment on bonds payable is an expense in the income statement used to determine the income for the year. Net Income falls under the Cash flows from Operating Activities.

6 0
3 years ago
Assume Ireland and Mali can both produce grain and dates, and that the only limited resource is the farming labor force, meaning
likoan [24]

Answer:

a. Which country has the absolute advantage in producing dates?

Mali

b. Which country has the absolute advantage in producing grain?

None

c. Which country has the competitive advantage in producing dates?

Mali

d. Which country has the comparative advantage in producing grain?

Ireland

Explanation:

Opportunity cost of producing dates:

Ireland = 10 / 5 = 2 tons of grains

Mali = 10 / 25 = 0.4 tons of grains

Opportunity cost of producing grains:

Ireland = 5 / 10 = 0.5 tons of dates

Mali = 25 / 10 = 2.5 tons of dates

7 0
2 years ago
You are planning to buy 2019 MINI Cooper on a loan. Price of the car is $26,000. You are planning to make monthly payments for t
Sergeu [11.5K]

Answer:

$1,223.91

Explanation:

As per the concept of time value of money, the value of money today is more than the value of money tomorrow.

Given:

Price of car = $26,000

Interest rate 12%, compounded monthly

Tenure = 2 years

Now, Price of the car is the value of money today to purchase the car. So, while computing the monthly payment for car $26,000 will be considered as present value.

Monthly payment for car can be computed easily using Microsoft excel.

Use the following mentioned formula to calculate the monthly payment.

"=PMT(rate,nper,pv,[fv])"

wherein,

Rate = 12%/2 (because it has been compounded monthly)

nper = 2*12 (because 2 years are to be compounded monthly.)

Pv = $26,000 (as mentioned earlier)

Since, there is no Fv so it blank.

5 0
3 years ago
Which of these products would be most likely to have dependent demand? televisions refrigerators automobiles automobile engines
harkovskaia [24]

Answer:

\boxed{\bold{Automobile \ Engines}}

Explanation:

➤ Automobile engines would be most likely to have dependent demand

When creating a new car, customers are going to want an engine in their car. That is why it is a "department demand." It is a demand that an automobile must have an engine when you are creating / working in the automobile department. You can't build an automobile without an engine, and that is why it is a demand to have one.

- Mordancy

8 0
3 years ago
Classify each resource used in production as land, labor, capital, or entrepeneurs.
sveticcg [70]

Answer:

1. Aunt Sandy's Jammin' Jellies (the business) - <u>Entrepreneurs </u>

Entrepreneurship refers to the process of bringing together the various other factors of production to be able to produce goods and services. Aunt Sandy's as a business is an entrepreneur as it brought together factors of production to make Jellies.

2. Anika, a server at Sonic Drive-In - <u>Labor</u>

Labor refers to the actual people who contribute to the business. Anika is a server at the Drive- In and so works there contributing to the success of the business so she is Labor.

3. Your favorite bartender - <u>Labor</u>

Like Anika above, your favorite bartender is also a person contributing to the success of the bar so is considered labor.

8 0
3 years ago
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