1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Alina [70]
3 years ago
13

urk Manufacturing is considering purchasing two machines. Each machine costs $9,000 and will produce cash flows as follows: End

of Year Machine A B 1 $ 5,000 $ 1,000 2 4,000 2,000 3 2,000 11,000 Turk Manufacturing uses the net present value method to make the decision, and it requires a 15% annual return on its investments. The present value factors of 1 at 15% are: 1 year, 0.8696; 2 years, 0.7561; 3 years, 0.6575. Which machine should Turk purchase?
Business
1 answer:
Brums [2.3K]3 years ago
7 0

Answer:

Turk should purchase Machine B

Explanation:

<u>Our first step</u> will be to multiply each cashflow by the factor.

Then we will add them to get the present value of the cash flow

\left[\begin{array}{cccc}-&A&factor&Present \: Value\\Year \: 1&5,000&0.8696&4,348\\Year \: 2&4,000&0.7561&3,024.4\\Year \: 3&2,000&0.6567&1,313.4\\Total&11000&-&8,685.8\\\end{array}\right]

Then we subtract the machine cost:

8,685.8 - 9,000 = -314.2 This Machine has a negative value. It is not convinient to purchase this machine.

\left[\begin{array}{cccc}-&B&factor&Present \: Value\\Year \: 1&1,000&0.8696&869.6\\Year \: 2&2,000&0.7561&1,512.2\\Year \: 3&11,000&0.6567&7,223.7\\Total&14,000&-&9,605.5\\\end{array}\right]

9,605.5 - 9,000 = 605.5 This machine NPV is positive it is convient.

You might be interested in
Select the examples of Buying and Merchandising workplaces. Check all that apply.
KiRa [710]

Answer:

2,3,4,5

Explanation:

...

3 0
3 years ago
Read 2 more answers
Label each of the following scenarios with the correct combination of price change and quantity change. In some scenarios, it ma
ZanzabumX [31]

Explanation:

Classifying of each situation with the correct combination of change in price and quantity:

a. On a hot day, both demand for lemonade and supply of lemonade increase - Pp? Q increase

b. On a cold day, both demand for ice cream and the supply of ice cream decrease -  Pp? Q decrease

c. When Hawaii's Mt. Kilauea erupts violently, the demand on the part of tourists for sightseeing flights increases but the supply of pilots willing to provide these dangerous flights decreases- P increase Qq?

d. In a hot area of Arizona where they generate a lot of their electricity with wind turbines, the demand for electricity falls on windy days as people switch off their air conditioners and enjoy the breeze. But at the same time, the amount of electricity supplied increases as the wind turbines spin faster - P decrease Qq?

5 0
3 years ago
A fundamental aspect of _____ is that it effectively conducts global business by providing an individual the right to freedom of
Rus_ich [418]

Answer:

<u>Democracy.</u>

Explanation:

Democracy is a social organization characterized by popular influence and participation in the political decision-making process. In the democratic regime, the people are free to choose their rulers through votes.

It can be defined in a broader context as a constitutional, electoral and administrative order, the foundations of which must be established according to a social system. Some fundamentals of democracy are:

  • Freedom of expression and opinion of the individual.
  • Freedom of expression and political opinion of the individual.  
  • Equal political rights and favorable opportunities for the people and parties to speak out on decisions of general interest.
5 0
3 years ago
A customer has total assets of $436,000 and total liabilities of $314,000. The customer has just signed a contract to buy a new
natta225 [31]

Answer:

$122,000

Explanation:

Net worth refers to total assets minus total liabilities.

Therefore, the net worth of this customer can be calculated as follows:

Assets = Existing assets + A new car - Withdraw from existing checking account = $436,000 + $35,000 - $5,000 = $466,000

Liabilities = Existing liabilities + Borrowing from auto fiance company =  $314,000 + $30,000 = $344,000

Net worth = Assets - Liabilities = $466,000 - $344,000 = $122,000.

8 0
3 years ago
Dominic heads the corporate communications department of Zookey Technologies. Eva is his least preferred coworker because her pe
Angelina_Jolie [31]

Answer:

The correct answer is A that is Relationship oriented leadership style.

Explanation:

Relationship oriented is an approach of the leadership style in which an individual or the person focuses or aim on the general well being as well as the motivation of the team members.

In this case, Dominic is most preferred in comparison to Eva as Dominic has a  pleasing personality and she is also helpful to other coworkers. So, she has a relationship-oriented style.

8 0
3 years ago
Other questions:
  • A company purchased a weaving machine for $190,000. The machine has a useful life of 8 years and a residual value of $10,000. It
    14·1 answer
  • Aaron has designed innovative accessories for hard-core bicycling enthusiasts.He knows where and how he will make them,and he ne
    8·1 answer
  • Pleaseee
    9·1 answer
  • A car loan requiring quarterly payments carries an APR of 8%. What is the effective annual rate of interest?
    11·1 answer
  • You own a portfolio that has $2,800 invested in Stock A and $3,900 invested in Stock B. Assume the expected returns on these sto
    10·1 answer
  • Blasto, Inc., operates several mines. At one, a typical batch of ore run through the plant yields three products: lead, copper,
    9·1 answer
  • Define economic profit. Explain how economic profit is different than accounting profit. Why is it important for economists to m
    14·1 answer
  • What are the main issues to be addressed in a business code of ethics required by the Securities and Exchange Commission
    14·1 answer
  • A company invests $40,000 in a project with the following net cash flows: Year 1: $3,000 Year 2: $8,000 Year 3: $14,000 Year 4:
    7·1 answer
  • 1. What is the effect on the Cash account when a company sells merchandise, but allows the customer to pay later?​
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!