The management of Ballard MicroBrew is considering the purchase of an automated bottling machine for $55,000. The machine would replace an old piece of equipment that costs $15,000 per year to operate. The new machine would cost $7,000 per year to operate. The old machine currently in use could be sold now for a salvage value of $26,000. The new machine would have a useful life of 10 years with no salvage value Required: 1 What is the annual depreciation expense associated with the new bottling machine? 2 What is the annual incremental net operating income provided by the new bottling machine? 3. What is the amount of the initial investment associated with this project that should be used for calculating the simple rate of return? 4. What is the simple rate of return on the new bottling machine? (Round your answer to 1 decimal place le. 0.123 should be considered as 12.3%.) 1 2. 3 Depreciation expense Incremental net operating income Initial Investment Simple rate of return
The management of ballard microbrew is considering the purchase of an automated bottling machine for $55,000. the machine would replace an old piece of equipment that costs $15,000 per year to operate. the new machine would cost $7,000 per year to operate. the old machine currently in use could be sold now for a salvage value of $26,000. the new machine would have a useful life of 10 years with no salvage value. required: 1. what is the annual depreciation expense associated with the new bottling machine? 2. what is the annual incremental net operating income provided by the new bottling machine? 3. what is the amount of the initial investment associated with this project that should be used for calculating the simple rate of return? 4. what is the simple rate of return on the new bottling machine? (round your answer to 1 decimal place i. e. 0.123 should be considered as 12.3%.)
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Answer:
Financial planning is a step-by-step approach to meet one's life goals. A financial plan acts as a guide as you go through life's journey. Essentially, it helps you be in control of your income, expenses and investments such that you can manage your money and achieve your goals.
The probability that the buyer of one ticket will win the lottery that is worth $10 million will be determined or calculated by dividing the number of tickets that a person has by the total number of tickets which were sold at a certain period. When this statement is translated to mathematical expression,
P = x / S
where P is the probability, x is the number of ticket bought by the winner (this number is already given to be 1), and S is the number of the sample (this is given to be 175175 million. Substituting the known values,
P = 1 / 175175 million
<em>ANSWER: 5.71 x 10^-12</em>
Answer:
a. buyers of the good will bear most of the burden of the tax.
Explanation:
When a tax is imposed on a good for which the supply is relatively elastic and the demand is relatively inelastic, buyers or consumers of the good will bear most of the burden of the tax.
However, when tax is imposed on a good whose supply is relatively inelastic and the demand for the goods is relatively elastic, the producers or sellers would be responsible for the tax burden of the goods.
Generally, tax revenues are larger with respect to the inelasticity of demand and supply.
