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suter [353]
3 years ago
10

Deep South Sounds would like to spend $189,000 for new sound equipment. However, the company has a major loan maturing 3 years f

rom today and needs this money at that time to avoid bankruptcy. The sound equipment is expected to increase the cash flows by $45,000 in the first year, $92,400 in the second year, and $40,000 a year for the following 3 years. Should Deep South buy the sound equipment at this time? Why or why not?
Business
1 answer:
Kay [80]3 years ago
7 0

Answer:

Deep South should not buy the equipment as the cash flows in three years would be $172,400 which is less than the price of the sound equipment and therefore they will not be able to pay the loan.

Explanation:

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The 2008 balance sheet of Maria's Tennis Shop, Inc., showed long-term debt of $2.25 million, and the 2009 balance sheet showed l
Svet_ta [14]

Answer:

net cash flow from creditors of $1.42 million

Explanation:

The movement in the long term debt account between 2008 and 2009 is as a result of the interest owed on the debt and the cash payment for the period.

Let the cash outflow to the creditor be H

$2.25 million + 0.33 million - H = $4 million

H = $2.25 million + 0.33 million - $4 million

H = ($1.42 million)

This means that the firm had a net cash flow from creditors of $1.42 million in 2019.

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4 years ago
I need a Christmas present for a 40-year-old man a 32-year-old woman a 9-year-old girl a 12-year-old girl and a 4-year-old boy
e-lub [12.9K]
What is the question??
4 0
2 years ago
Find the final amount in the following retirement​ account, in which the rate of return on the account and the regular contribut
ICE Princess25 [194]

Answer:

Total value of the investment= $57,320.73

Explanation:

<u>First, we need to calculate the future value of the first part of the investment. We will calculate the future value for the monthly deposit for five years and then the lump sum for another five years.</u>

FV= {A*[(1+i)^n-1]}/i

A= monthly deposit

i= 0.04/12= 0.003333

n= 5*12= 60 months

FV= {322*[(1.003333^60) - 1]} / 0.003333

FV= $21,348.05

<u>For the lump sum:</u>

FV= PV*(1+i)^n

n= 12*5= 60

i= 0.05/12= 0.004167

FV= 21,348.05*(1.004167^60)

FV= $27,397.75

<u>Now, the future value of the second part of the investment:</u>

<u></u>

n= 60

i= 0.0041667

A= 440

FV= {440*[(1.004167^60) - 1]} / 0.004167

FV= $29,922.98

Total value of the investment= 27,397.75 + 29,922.98

Total value of the investment= $57,320.73

3 0
3 years ago
United Disposal, Inc., operates a hazardous waste disposal site that accepts waste transported by Ace Trucking Company from Gene
rosijanka [135]

Answer:

United Disposal, General Manufacturing Corporation, Ace Trucking Company, and/or Investment Properties.

Explanation:

When the EPA cleans up site, it generally uses money from its superfund and it is allowed to recover the money from the entity that caused the pollution (either directly or indirectly), the owner of the premise or the user of the premise. I.e. they can recover the funds from anyone involved. The EPA will try to recover the funds based on several aspects including the financial position of the entities involved. E.g. if United Disposal, Ace Trucking Company and General Manufacturing Company filed for bankruptcy, the EPA will recover the funds from Investiture Properties even if they were not responsible for the pollution.

8 0
3 years ago
Adam Smith found that having employees focus on one task instead of many was more successful than having them learn a number of
Lunna [17]

Answer:

specialization

Explanation:

In order for labor specialization (or division of labor) to be successful, first the productive activities must be separated into smaller tasks, and then each worker will be responsible for performing just one task. That way the worker can specialize in performing that one task, and his/her efficiency should increase.

Labor specialization was the basic idea behind Henry Ford's moving assembly line. Each specialized worker was responsible for one manufacturing task and that decreased total production time and cost. The same concept applies today and the results are still the same.

8 0
3 years ago
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