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AleksandrR [38]
3 years ago
15

A firm is considering the acquisition of a new machine. The base price is $85,000 and it would cost $15,000 to install. The mach

ine is MACRS 3 year class property and it will be sold after 3 years for $17,000. The machine would also require an increase in net working capital of $10,000. The machine is expected to increase before tax revenues by $40,000 per year. This firm is in a 34% marginal tax bracket. MACRS 3 year factors are 33%, 45%, 15%, and 7% for years 1 through 4 respectively. What is the initial (year 0) net cash outflow. Group of answer choices
Business
1 answer:
Naddik [55]3 years ago
4 0

Answer:

Cash flow year 0   (110,000)

or in other way to express it: a cashoutflow for $110,000

Explanation:

Initial net cahs outflow

this will be the acquisition of the machine cost plus the increase in the working capital for the company

machine cost: all cost necessary for acquire the machien and get it operational

supplier list price        85,000

installation cost       <u>    15,000</u>

total cost                     100,000

Increase in Working Capital Cost 10,000

As these are cost they are negative so we have a cashouflow

Total cashflow    (110,000)

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Two years from now, your mother will receive the first of three annual payments of $20,000 from a small business project. If she
Zarrin [17]

Answer:

i think FV(10) is 110,000.

Explanation:

Suppose today is 1/1/2000, two years from now, ur mom will get the first payment in 2002, and then the second is 2003, and the last is in 2004. U can calculate those number to bring it back to 2000, so u can calculate PV= 46,446 .Then, from 2004, ur mom plans to retire six years later from 2004, which means,2010 (she will begin retire in 2010, last day of 2009, 31/12/2009). Then u will calculate the FV= PV.(1+9%)^10= 110,000

5 0
3 years ago
Total costs for Locke​ &amp; Company at 120 comma 000 units are $ 329 comma 000​, while total fixed costs are $ 175 comma 000. T
Yuliya22 [10]

Answer:

For 260,000 units Variable Costs are = $ 154,000/120,000 * 260,000= $1.2833* 260,000=  $ 333,667

Explanation:

Locke​ & Company

Total costs                 $ 329, 000  

Less Fixed Costs   $ 175, 000

Variable Costs $ 154,000  for 120,000 units

For 1 unit Variable Costs are = $ 154,000/120,000= $1.2833

For 260,000 units Variable Costs are = $ 154,000/120,000 * 260,000= $1.2833* 260,000=  $ 333,667

The total Costs for 260,000 units would be determined by  adding Variable Costs and Fixed Costs.

We Suppose the fixed costs are same then = 333,667 + 175,000= $ 508,667

3 0
3 years ago
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Pavel [41]
An example would be 
The Cost of flour for a baker
3 0
3 years ago
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How van an oligopoly cause market failure (8)​
Sladkaya [172]

The correct answer to this open question is the following.

Although there are no options attached we can say the following.

An oligopoly can cause market failure because companies that form the oligopoly do not allow other companies to enter and compete in the market. This action limits consumers to choose from a variety of options, including quality, the best price, and service.

Often, oligopoly associates the strongest or more powerful companies in order to wipe out other minor competitors. They want to establish a dominant presence that affects prices and consumers participation.

Oligopoly practices result in inefficiency and instability in the market. That is why oligopolies are not good for the economy.

The automobile industry is mostly associated with an oligopoly.

When a market is controlled by just a few numbers of companies, but none of them is above the others, we are talking about an oligopoly. They can collude intentionally or not, to establish prizes and to not let other companies compete with them.

6 0
3 years ago
If the required reserve ratio is 15 percent, currency in circulation is $400 billion, checkable deposits are $1000 billion, and
MrRa [10]

If the required reserve ratio is 15 percent, currency in circulation is $400 billion, checkable deposits are $1000 billion, and excess reserves total $1 billion, then the M1 money multiplier is (A) 2.54.

<h3>What is Money Supply?</h3>

The interest rates depend on the money supply and money demand. Generally, the interest rate directly relates to money demand and has an inverse relationship with the money supply. M1 money supply includes currency in circulation and checkable deposits with bank.

Formula :

m 1 = 1 + ( C / D ) / [ r r + ( E R / D ) + ( C / D ) ]

Where:

C/D = currency ratio

ER/D = excess reserves ratio

So if :

Required reserve ratio (rr) = .15

Currency in circulation = $400 billion

Deposits = $1000 billion

Excess reserves = $1 billion

m 1 = 1 + ( 400 / 1000 ) / ( .15   +   ( 1 / 1000 ) + ( 400 / 1000 ) )

m 1 = 1.4 / ( .15 + .001+ .4 )

m 1 = 1.4 / .551

m 1 = 2.54

Therefore , we can conclude that the correct option is A.

Your question is incomplete, but most probably your full question was:

If the required reserve ratio is 15 percent, currency in circulation is $400 billion, checkable deposits are $1000 billion, and excess reserves total $1 billion, then the M1 money multiplier is

A) 2.54.

B) 2.67.

C) 2.35.

D) 0.551.

Learn more about Money Supply on:

brainly.com/question/25803402

#SPJ4

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