Answer:
If I bougth the Machine at 14% interest.
This purchase is not justified
Depreciation expenses and credit interest are greater than the income generated
Explanation:
Machine 360000
Adittional cost 20000
Final Cost 380000
Salvage Value 73000
Machine value for depreciation 307000
year 1 307000 61400 245600
year 2 245600 61400 184200
year 3 184200 61400 122800
year 4 122800 61400 61400
year 5 61400 61400 0
Period Payment Capital Interest Loan
360000
1 104.862 54.462 50.400 305.538
2 104.862 62.087 42.775 243.451
3 104.862 70.779 34.083 172.672
4 104.862 80.688 24.174 91.984
5 104.862 91.984 12.878 0
Depreciation 307000
Interes 164.310
Expenses 471.310
Revenue 430.000
Drifting off the pavement will cause front tire traction loss. When you understeer on a slippery surface around a bend or curve, you lose front tire traction.
<h3 /><h3>What is tire traction?</h3>
Traction is described as "the capacity of a wheel or tire to maintain contact with the ground without slipping." This is especially critical while driving on slick terrain, such as snow.
<h3>What factors influence tire traction?</h3>
Traction is created when multiple forces push against one another at the same time, forming a strong grip between them.
In the instance of a car, we have the weight of the vehicle, the immovability of the road, the power of the engine, and the amount of flexibility a tire possesses.
Learn more about Tire traction:
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To determine the number of consumers which might prefer eating locally produced food, we simply multiply the metropolitan population by the decimal equivalent of the percentage given. That is,
= (1,773,120)(0.70)
= 1,241,184
Thus, 1,241,184 will most likely prefer the locally produced food.
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Answer: The cost of capital for a firm with no debt in its capital structure.
Explanation:
Leverage in finance refers to the use of debt. Unlevered capital therefore would refer to capital that is without debt which means that an unlevered cost of capital is one with no debt in its capital structure.
Companies with such a capital structure derive their capital 100% from Equity and as such do not pay interest. This means however, that they will not benefit from the tax shields that interest payments offer.