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
ICE Princess25 [194]
2 years ago
7

4. Builtrite D is considering the purchase of a new machine for $500,000 which would require a $5000 installation charge. Employ

ees would need to go through a brief training session to operate the machine properly which would cost $25,000. In addition, an increase in net working capital of $30,000 would be required. The machine has an expected life of 10 years and due to efficiencies, labor costs are expected to decrease $150,000 annually (before depreciation and taxes). Assume straight-line depreciation, a 34% marginal tax rate and a cost of capital of 15%. Should Builtrite D purchase the machine?
Mathematics
1 answer:
Paraphin [41]2 years ago
3 0

Answer:

Builtrite D should purchase the machine

Step-by-step explanation:

Cash outflow in year zero = $ 500,000 + $ 25,000 ( training cost ) + $ 30,000 ( Net working capital)

Cash outflow in year zero = $ 555,000

Terminal cash flow in year 10  = $ 150,000 + $ 30,000 ( NWC)

Terminal cash flow in year 10  = $ 180,000

Operating cash flow per year = [ Savings - expenses - depreciation ] X ( 1 - tax rate) + depreciation

Net present value = -500,000 + \frac{116,000}{1.15^1} + \frac{116,000}{1.15^2} +...+ \frac{180,000}{1.15^{10}}

The Net present value of purchasing the machine = $32,071.42

Builtrite D should purchase the machine

You might be interested in
Help me with this math problem if u can.
Ierofanga [76]

Answer:

Step-by-step explanation:

47.86

-25.20

+52.75

-22.04

-8.50

+94.11

=39.46

7 0
2 years ago
PLZ HELP ASAP
zubka84 [21]

Here we go.

1) x/5 - 4h = 35

2) {(6-p)/3}+8

3) This is just 1.4k, since the distance you're trying to find is 1.4 times k feet.

You can include a diagram easily enough. Just draw a baseball diamond and two lines, one connecting first and third base and labeled 1.4k, while the other line, connecting home to third, is labeled k.


Hope that helped!

8 0
3 years ago
Are these triangles congruent? If so, state the rule which you used to determine congruence
Zepler [3.9K]

Answer:

not necessarily confident cuz simply it doesn't look same size it should be similar

3 0
2 years ago
The volume of a cube is 216 ft^3. What is the length of a side?
nlexa [21]

Answer:

54

Step-by-step explanation:

cause a cub has 4 sides so each side is 54

3 0
3 years ago
Read 2 more answers
NEED HELP ASAP!! <br><br> Use the function below to find F(3)
kvv77 [185]
It’s gonna be 1/125.

Since it’s F(3), you need to plug the 3 into the x. Then expand it into 1/5 times 1/5 times 1/5, which gets you 1/125
5 0
2 years ago
Read 2 more answers
Other questions:
  • A company makes cars at two factories. Some of the cars need repairs in the first year and some do not. This two-way frequency t
    8·1 answer
  • The diameter of a circle is 8 inches. What is the area?
    6·2 answers
  • Complete the tasks and answer the questions. Use the 2SD method to estimate the true proportion of the population of your city t
    7·1 answer
  • Plz answer ASAP I don't understand it easy math
    11·1 answer
  • The parallel black lines undergo a transformation. The green lines are the resulting image. Which choice describes the transform
    13·1 answer
  • In ΔCDE, the measure of ∠E=90°, DC = 89, CE = 39, and ED = 80. What is the value of the sine of ∠D to the nearest hundredth?
    8·1 answer
  • What is 9.1 less than a number is less than 4.6 equals?
    14·1 answer
  • Two students are reading a novel. Ashley reads 10 pages per day. Carly reads 8 pages per day, but she starts early and is alread
    7·2 answers
  • Your+required+return+is+14%. +should+you+accept+a+project+with+the+following+cash+flows
    12·1 answer
  • QUESTION IS DOW BELOW 5 POINTS EACH PLEASE HELP PLEASE HELP PLEASE HELP
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!