1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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)

You might be interested in
When estimating income, it is better to be:
eimsori [14]

Answer:

When estimating income according to the prudency concept, we are to underestimate income or revenue and over estimate cost or expenses

Explanation:

5 0
3 years ago
What is the Consumer Price Index (CPI) and how is it determined each month? How does the Bureau of Labor Statistics (BLS) calcul
Mazyrski [523]

An CPI can be said as an index which  measures the prices of "market basket" of some 300 good and services that is assumed to be fixed and the services are brought by a "typical" consumer.

Explanation:

1)<u>How does the Bureau of Labor Statistics (BLS) calculate the rate of inflation from one year to the next?</u>

The Consumer Price Index is an index  which measures the prices of  market basket of goods and services and it  is used by the Bureau of Labor to calculate the rate of inflation, using the price of the basket from the current year divided by the base year, then multiplied by 100.

<u>2)What effect does inflation have on the purchasing power of a dollar?</u>

Inflation lowers the purchasing power of the dollar and it basically occurs when the market basket of goods is priced positively  with reference to  the rate of inflation.

<u>3) How does it explain differences between nominal and real interest rates</u>

A  real interest rate is an interest rate that takes into account the effects of inflation in order  to reflect the real cost of funds to the borrower and the real yield to an investor. A nominal interest rate refers to the interest rate that is calculated before taking the effects of inflation into account.

<u>4)How does deflation differ from inflation?</u>

Deflation occurs when the rate of inflation is negative.

8 0
3 years ago
PLEASE HELP! 30 PTS!
pishuonlain [190]
Hey there,

Your question states: <span>Which of the following represents inbound logistics for a bookstore?

Based on my research, your correct answer would be </span>purchasing books from a publishing house. By purchasing books from a publishing house, this would  represents inbound logistics for a bookstore.

Hope this helps.
~Jurgen
8 0
3 years ago
A firm's operations drive its structure. <br> a. True <br> b. False
Wittaler [7]
True hope this helped
6 0
3 years ago
Denber Co. acquired 60% of the common stock of Kailey Corp. on September 1, 2019. For 2019, Kailey reported revenues of $810,000
777dan777 [17]

Answer:

correct option is b. $22,000

Explanation:

given data

reported revenues = $810,000

expenses = $630,000

annual amount of amortization  = $15,000

solution

we get here net income 2019 is

net income 2019 = revenue - expenses - amortization  ........1

put here value

net income 2019 = $810,000 - $630,000 - $15,000  

net income 2019 = $165,000

and

as here acquired stock on September

so we get here income for September to December that is

net income = $165,000 × \frac{4}{12}    

net income = $55000

and

non controlling interest is

non controlling interest = 40% of $55000

non controlling interest = $22,000

so correct option is b. $22,000

5 0
3 years ago
Other questions:
  • According to the business week article, "how to get a life and do your job" the most important aspect when pursuing a career in
    8·1 answer
  • During the first quarter of the Super Bowl, Chris keeps track of actual game time vs. time devoted to commercials. Game time amo
    12·1 answer
  • Ziegler Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the
    15·1 answer
  • Assume that you are on the financial staff of Vanderheiden Inc., and you have collected the following data: The yield on the com
    15·1 answer
  • Currently baldwin is paying a dividend of $15.64 (per share). If this dividend were raised by $3.64, given its current stock pri
    15·1 answer
  • Record the purchase of services on account.On March 12, Medical Waste Services provides services on account to Grace Hospital fo
    14·1 answer
  • Budgeting, ethics, pharmaceutical company. Chris Jackson was recently promoted to Controller of Research and Development for Bri
    12·1 answer
  • Forecasts are the foundation of the planning process. There are many methods available but the trick is to find the one that fit
    5·1 answer
  • Deoro Company has identified the following overhead activities, costs, and activity drivers for the coming year:
    9·1 answer
  • a buyer purchases a home in an area where closings are traditionally conducted in escrow. which item would a buyer deposit with
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!