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kap26 [50]
3 years ago
13

An investment project is expected to generate earnings before taxes (EBT) of $60,000 per year. Annual depreciation from the proj

ect is $30,000 and the firm’s tax rate is 40 percent. Determine the project’s annual net cash flows.
Business
1 answer:
Masja [62]3 years ago
6 0

Answer:

Net cash flow= $66,000

Explanation:

Giving the following information:

An investment project is expected to generate earnings before taxes (EBT) of $60,000 per year. Annual depreciation from the project is $30,000 and the firm’s tax rate is 40 percent.

Net cash flow= EBT - Tax + Depreciation

Net cash flow= 60,000 - (60,000*0.4) + 30,000= $66,000

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14. Your opportunity cost of funds can be expressed as 6% per year, compounded quarterly. Assume now that the internship pays $8
zloy xaker [14]

Answer:

$7,960.4

Explanation:

Here

Yearly rate is 6% which means that quarterly rate would be 1.5% which is one fourth of yearly rate (6% * 1/4).

Monthly internship is $8,000.

Now by using the present value model, we have:

Present Value = Future Value / (1  +  r)^t

Here t will be one third (1/3) as we are calculating the present value of a salary and the rate that we are using is quarterly which means one month is one third of a quarter (1/3).

This Implies that:

Present Value = $8,000 / (1   +  1.5%)^(1/3)

= $7,960.4

7 0
3 years ago
Some economists believe that a sales tax increase affects which group the MOST?
VladimirAG [237]

Answer:

the lower class

Explanation:

they will lose money for necessities

5 0
3 years ago
Portions of the financial statements for Peach Computer are provided below.
mamaluj [8]

Answer:

$128,100

Explanation:

PEACH Computer

Statement of cash flow using direct method for the year ended 31 December 2018.

Cash flows from operating activity

Net income. $91,000

Adjustment to reconcile net income to net cash from operations

Depreciation expense. $47,000

Changes in working capital

Decrease in accounts re. $4,200

Increase in inventory. ($18,500)

Decrease in prepaid rent $1,700

Increase in accounts Payable $6,500

Decrease in Income tax Payable ($3,800)

Net cash flow from operating activities

$128,100

4 0
4 years ago
The result of a prisoner’s dilemma in a duopoly is often that even though Firm A and Firm B could make the highest combined prof
mestny [16]

Firms in the oligopoly typically act more like competitors.

Explanation:

The result of a prisoner's dilemma in a duopoly is often that even though firm A and B could make the highest combined profits by cooperating, in producing lower level of output and act like a monopolist. The two firms end with an increasing output and earn only $400 in each profits.

Since the number of sellers in an oligopoly grows larger, the market looks like a competitive market. There are more chances to get incentive or cheat if the person or firm cooperated.

The prisoner's dilemma is a game that tells why cooperation is difficult to maintain for oligopolists. in this game the strategy of each actor is to defect.

6 0
3 years ago
A monopolist maximizes profits at the output at which Group of answer choices total revenue is at its greatest, assuming that th
UkoKoshka [18]

A monopolist maximizes profits at the output at which marginal revenue equals marginal cost.

<h3>Who is a monopolist?</h3>

It should be noted that a monopolist simply means an individual that controls the sale of a particular good in the market.

In this case, a monopolist maximizes profits at the output at which marginal revenue equals marginal cost.

Learn more about monopolist on:

brainly.com/question/13113415

#SPJ1

3 0
2 years ago
Read 2 more answers
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