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exis [7]
3 years ago
11

You consider purchasing a new computing system, including networking, for your sales force for $112,000. The system has a 6-year

useful life and no salvage value. Your sales force is expected to generate an additional $37,000 of net income before taxes and depreciation each year by using this upgraded system. The combined federal and state income tax rate = 40%, Annual inflation = 400.
A. Fill in the following table assuming MACRS depreciation rates.
Year Pre-Income Depreciation Taxable Tax After tax Inflation Real
Tax income owed income adjustment after tax
factor Income
1 $37,000 $22,400
2 $37,000
3 $37,000
4 $37,000
5 $37,000
6 $37,000
B. Ifyour MARR-15%, should you purchase this system based on your real after-tax income? Why or why not?
Business
1 answer:
pshichka [43]3 years ago
4 0

Answer:

I am sorry

Explanation:

I dont do business

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What is the present discounted value of $100 received 3 years from now? Assume the interest rate is 9% and that interest is paid
Anni [7]

Answer:

The correct answer is A.

Explanation:

Giving the following information:

Principal= $100

number of years= 3

Interest rate= 9%

To calculate the present value we need to use the following formula:

Present Value= Final Value*(1+i)^n

PV= 100/(1+0.09)^3

PV= $77.22

5 0
4 years ago
You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 16 percent, –5 percent, 19 perc
Kaylis [27]

Answer:

(A) 8.22%

(B) 7.5%

Explanation:

The first step is to calculate the average nominal return

Average nominal return= R1 + R2 + R3 + R4 + R5/5

= 16 +(-5) + 19 + 13 + 10/5

= 16-5+19+13+10/5

= 53/5

= 10.6%

(A) The average real return can be calculated as follows

= (1 + average nominal return)/(1+ inflation) -1

= (1+ 10.6/100)/(1+2.2/100) -1

= (1+0.106)/(1+0.022)-1

= 1.106/1.022-1

= 1.08219-1

= 0.08219 × 100

= 8.22%

(B) The average nominal risk premium can be calculated as follows

Average risk free rate= Nominal average t-Bill rate-inflation

= 5.3% - 2.2%

= 3.10%

Average nominal risk premium= average nominal return -average risk free rate

= 10.6% - 3.10%

= 7.5%

5 0
3 years ago
1. The payment made each period on an amortized loan is constant, and it consists of some interest and some principal.
AveGali [126]

Answer:

True

true

Explanation:

for  both of these questions the answers are true. the loan repayment is made up of the prncipal and the interest. This is due to the fact that as the amout of the loan outstanding gets to be repaid, the remaining principal balance would be decreased too and the interest that is associated will also be decreased too with time. The payment principal amount is going to be bigger while the interest would be smaller.

6 0
3 years ago
Alliance Company budgets production of 35,000 units in January and 39,000 units in the February. Each finished unit requires 4 p
harkovskaia [24]

Answer:

$506,800

Explanation:

The calculation of budgeted materials cost is shown below:-

For computing the budgeted materials cost first we need to find out the total materials for production and materials to be purchased which is here below:-

Total materials for production = Budgeted production × Pounds of raw material per unit

= 35,000 × 4

= 140,000

Materials to be purchased = Total materials for production + Ending raw materials inventory - January 1 inventory

= 140,000 + (39,000 × 4 × 30%) - 42,000

= 140,000 + 46,800 - 42,000

= 186,800 - 42,000

= 144,800

Budgeted materials cost for January = Materials to be purchased × Cost per pound

= 144,800 × $3.50

= $506,800

6 0
3 years ago
Read 2 more answers
Today, an estimated _____ of the adults in the united states are overweight, with over _____ falling into the obese range.
Shalnov [3]

The answer in the first space provided is seventy five percent while the second space provided is forty one percent, this is a research that has estimated the percent rate of overweight and obesity in the United States during the year of 2015.

3 0
4 years ago
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