Complete Question:
Machine A costs $9,500 and has an annual operating cost of $5,500. Machine B costs $8,000 and has an annual operating cost of $5,800. Each machine has an economic life of 8 years. What is the annual rate of return the additional investment in machine A?
Answer:
IRR is 11.81%
Explanation:
<u><em>We have to find the annual rate of return on the additional investment in machine A.</em></u> The additional investment can also be termed as incremental investment which is $1,500 ($9,500 - $8,000). Furthermore, the additional cost savings of operating machine A is $300 ($5,500 - $5,800). And this cost savings will be during the life span of the machine A.
Now
We can compute IRR, by using Excel as under:
Answer:
c. recognizes that depreciation creates a cash inflow
Explanation:
The formula to compute the operating cash flow is shown below:
Operating cash flow = Earning before interest and taxes + Depreciation - Income tax expense
Since as we can see that after computing the earning before interest and taxes we added back the depreciation expense and deduct the income tax expense so that the proper value could arrive
Hence, option c is correct
If in the process of calculating gdp, the market value of all intermediate goods is added to the market value of all final goods, this would: overstate the actual value of GDP.
<h3>What is meant by GDP?</h3>
This is the term that has to do with the Gross domestic product. It is the amount of goods and services that are produced in a given economy at a particular period of time which could be in one year.
We have to conclude that If in the process of calculating gdp, the market value of all intermediate goods is added to the market value of all final goods, this would: overstate the actual value of GDP.
Read more on GDP here: brainly.com/question/1383956
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These undistributed profits are refereed to as <u>"RETAINED EARNINGS".</u>
Retained earnings are the benefits that an organization has earned to date, less any profits or different disseminations paid to financial specialists. This sum is balanced at whatever point there is a section to the bookkeeping records that impacts an income or cost account. An extensive held profit balance suggests a fiscally solid association.
The Retained earnings balance or gathered shortage balance is accounted for in the investors' value segment of an organization's asset report.
Answer – Nonrecourse loan
<span>In commercial real estate, the actual borrower is shielded from personal
liability. In this case, the lender cannot lay claim to the personal properties
of the borrower if ever he defaults. This type of loan is commonly referred to
as a nonrecourse loan.</span>