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nevsk [136]
4 years ago
6

An injection molding machine can be purchased and installed for $90,000. It is in the seven-year GDS recovery period and is expe

cted to be kept in service for eight years. It is believed that $10,000 can be obtained when the machine is disposed of at the end of year eight. The net annual value added (i.e., revenues less expenses) that can be attributed to this machine is constant over eight years and amounts to $15,000. An effective income tax rate of 40% is used by the company and the after-tax MARR equals 15% per year.
What is the approximate value of the company's before-tax MARR?
Business
1 answer:
Misha Larkins [42]4 years ago
7 0

Answer:

Before tax minimun accepted rate of return = 25%

Explanation:

tax rate 40%

after.tax MARR 15%

<u>We need to covnert the after tax rate into before tax.</u>

Everything else is irrelevant for the calculation.

after-tax = before-tax \: (1-tax\:rate)

0.15 = before-tax X (1 - 0.40)

0.15/0.60 = .25

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A. True
Btw that's a picture of me.

6 0
3 years ago
Scenario: Technological Progress and Productivity Growth in Techland In Techland, from 1980 to 2010, holding technology and huma
andre [41]

Answer:

The growth of the real GDP per capita was 7.18%

Explanation:

It is important to establish that:

Future Value = Present Value × ((1 + r)^t), given that <em>r</em> is the <em>interest rate</em> and <em>t</em> is the <em>time period</em>  

Real GDP per worker increased from $40,000 to $320,000 in 30 years    

Therefore, we have;

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8 0
3 years ago
Why might the current and quick ratios for the electric utility and the​ fast-food stock be so much lower than the same ratios f
yulyashka [42]

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A. Inventory would be a factor in both of these ration (assets). In both of these industries, inventory would be low. You cannot readily stockpile energy and burgers are perishable items.

B. It is true that both of these industries would have low outstanding accounts receivable because people will need their power to survive and fast food places don't offer credit.

C. These two industries deal with cash mainly. Cash doesn't have to be physical currency, but accounts that can easily be paid.

D. Low current and quick ratios are actually signs of good management not poor management.

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6 0
4 years ago
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skad [1K]

Answer:

_Congress's_

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3 years ago
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I found it here: https://quizlet.com/155356515/chapter-3-automotive-vocab-flash-cards/

4 0
3 years ago
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