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Luda [366]
3 years ago
6

Company AA and Company BB have identical Assets, Revenues and Ebit. They are in the same line of business. Company AA has a Debt

/Capital ratio of 0, while Company BB's ratio is 75%. Company BB pays a low interest rate, and both company's pay the same income tax rate. During good, profitable years, which company probably has the highest Net Income and why
Business
1 answer:
saveliy_v [14]3 years ago
7 0

Answer:  BB

Explanation:

Because the credit help the company BB to run over and to make monney.

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Assume that it is January 1, 2019, and that the Mendoza Company is considering the replacement of a machine that has been used f
Mashcka [7]

Answer:

C

Explanation:

c is the answer just trust

4 0
3 years ago
The top management of Wisniewski Automobile Parts Inc. has decided that the company's objective for the next two years will be t
Mkey [24]

Answer:

Strategic planning

Explanation:

Strategic planning is defined as the process by which a business outlines direction and strategy. It also involves decision on how the business will allocate it's resources to achieve its strategic goals.

Strategic plan involves formulation of mission, vision, and plan of action that will make the business achieve set goals.

In this scenario top management of Wisniewski Automobile Parts Inc. has decided that the company's objective for the next two years will be to expand the overall business internationally. This is the strategic plan of the business for the next two years

3 0
3 years ago
​for most homeowners, the most important financial benefit from owning a home is that it is:
mezya [45]
Most homeowners would agree that the most important financial benefit from owning their own home is the tax break. This is known as a tax shelter and allows for homeowners to avoid or lower their taxes.  Owning a home reduces your taxable income and in large part due to interest rates and interest paid on an owned home. 
7 0
3 years ago
Quip Corporation wants to purchase a new machine for $300,000. Management predicts that the machine will produce sales of $200,0
butalik [34]

Answer:

net present value NPV = $79800

so correct option is D) $79,800

Explanation:

solution

we knw that Net Present value = PV of cash inflow - PV of cash outflow    ............1

so here PV of cash outflow = $300000  

and Net sales = $200000

expenses = $80000

Depreciation =  \frac{300000-50000}{5}

Depreciation =  $50000

so Net income before taxes  = Net sales - Depreciation - expenses

Net income before taxes =  $200000  - $80000 - $50000

Net income before taxes =  $70000

and Tax expenses @ 40% = $28000

so

Net income = Net income before taxes - Tax expenses

Net income = $70000  - $28000

Net income = $42000

and

Depreciation = $50000

Net cash inflow =  Net income + Depreciation

Net cash inflow =  $42000  + $50000

Net cash inflow = $92000

and

PVIFA @ 10% 5 years = $3.7908

so

PV of cash inflow = $348755

PV of salvage value = $50000 ×0.6209

PV of salvage value = $31045

and

so here  Total PV of total cash inflow = $379800

and

net present value  NPV =  Total PV of total cash inflow - PV of cash outflow

net present value NPV = $379800 - $300000

net present value NPV = $79800

so correct option is D) $79,800

7 0
3 years ago
In which situation would it be better to use a credit card instead of cash?
bonufazy [111]
Computer, its a larger amount of money to pay so it would be best there

6 0
3 years ago
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