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tester [92]
3 years ago
6

A machine costing $25,000 to buy and $3000 per year to operate will save mainly labor expenses in packaging over six years. the

anticipated salvage value of the machine at the end of six yeats is $5000 (a) if a 10% return on investment (rate of return) is desired, what is the minimum required annual savings in labor from this machine
Business
1 answer:
matrenka [14]3 years ago
4 0

$3388 is the minimum required annual savings

<u>Explanation:</u>

<u>a) First we have to calculate the present value of the salvage amount: </u>

Step1: Go to excel and "click" insert to insert the function.

Step2: Select the "PV" function as we are finding the present value in this case.

Step3: Enter the values as Rate = 10%; Nper = 6; PMT = 0; FV = -5000

Step4: Click "OK" to get the desired value.

The value comes to "$2,822.37"

Now, the present value is $25,000 plus $2,822 = $27,822

<u> Calculating the annual cash inflows using excel sheet: </u>

Step1: Go to excel and click "insert" to insert the function.

Step2: Select the "PMT" function as we are finding the annaul cash inflows

Step3: Enter the values as Rate = 10%; Nper = 6; PV = -27822; FV = 0

Step4: Click "OK" to get the desired value.

The value comes to " $6,388"

Therefore, the annual cash inflows are $6,388

<u> To calculate the annual savings, we deduct the annual operating costs from annual cash inflows </u>

Annual savings = $6,388 - $3,000

= $3,388

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Answer:

Preparation of a statement of cash flows involves five steps

1. Compute net cash provided or used by operating activities.

This is the section where all the cash flow that belongs to the operating section are been added and subtracted according to the inflow and outflow of the transaction.

2. Compute net cash provided or used by investing activities.

This is the section where all the cash flow that belongs to the investing section are been added and subtracted according to the inflow and outflow of the transaction.

3. Compute net cash provided or used by financing activities.

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4. Compute the net increase or decrease in cash

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4 0
3 years ago
How is an online bank different from a retail bank? A. Online bank and retail bank refer to the same entity, so there is no diff
kramer

Answer:

B. An online bank has lower operating costs than a retail bank

8 0
3 years ago
Read 2 more answers
Lin Corporation has a single product whose selling price is $134 per unit and whose variable expense is $67 per unit. The compan
podryga [215]

Answer:

1. 600 units

2. $81,800

Explanation:

In this question we use the formula of break-even point in unit sales which is shown below:

= (Fixed expenses + target profit) ÷ (Contribution margin per unit)

where,  

Contribution margin per unit = Selling price per unit - Variable expense per unit

= $134 - $67

= $67

And, the other items values would remain the same

Now put these values to the above formula  

So, the value would equal to

= ($32,300 + $7,900) ÷ ($67)

= ($402,00) ÷ ($67)

= 600 units  

2. Break even point = (Fixed expenses + desired profit) ÷ (Profit volume Ratio)  

And, Profit volume ratio = (Contribution margin per unit) ÷ (selling price per unit) × 100

So, the Profit volume ratio = ($67) ÷ ($134) × 100 = 50%

The other values would remain same

Now put these values to the above formula  

So, the value would equal to  

= ($32,300 + $8,600) ÷ (50%)  

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8 0
3 years ago
Specific tariffs are: Group of answer choices levied as a proportion of the value of the imported good. government payment to do
adell [148]

Answer:

Option (D) is correct.

Explanation:

We all know that a country imposes tariffs on the imports of a commodity to restrict imports from other country.

Specific tariff is a type of tariff that will be imposed on the every unit of a commodity that will be imported in a country. It is a amount of money that a person have to pay for every unit he or she imports.

It is mostly levied on the products like Fertilizers, rice, wheat, cloth, sugar, cement, etc.

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3 years ago
Erin, a department manager, is struggling trying to lead a cross-functional team. Most members are other department managers at
Ksju [112]

Answer:

The correct answer is: Weak Position power.

Explanation:

The position power can be understood as the amount of influence that an individual has over a group. In other words, an individual with strong position power is able to administer either rewards or punishment to the members of a given group

Leaders, usually have strong position powers, specially when the people they are leading are from lower levels.

In this particular case, Erin who is a department manager is struggling trying to lead a cross-functional team because most members are other department managers at her level, and they see no reason to do what she asks. Here, Erin has Weak position power, because she is at the same level of the members of the group she is supoosed to lead.

In conclusion, the correct answer is: Weak Position power.

8 0
3 years ago
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