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ivolga24 [154]
3 years ago
15

You are evaluating two different silicon wafer milling machines. The Techron I costs $276,000, has a three-year life, and has pr

etax operating costs of $75,000 per year. The Techron II costs $480,000, has a five-year life, and has pretax operating costs of $48,000 per year. For both milling machines, use straight-line depreciation to zero over the project’s life and assume a salvage value of $52,000. If your tax rate is 21 percent and your discount rate is 12 percent, compute the EAC for both machines. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Business
1 answer:
kramer3 years ago
7 0

Answer:

Techron I

-$154,842

Techron II

-$144,981

Explanation:

Techron I

Cash Flow From Year 1 to Year 3

Pretax operating costs             ($75,000)

Depreciation ($276,000 / 3)   <u>($92,000)</u>

Profit before tax                       ($167,000)

Tax (21% x $167,000)                <u>$35,070</u>

Profit after tax                           ($131,930)

Add back Depreciation            <u>$92,000</u>

Cash Flow after tax                   (<u>$39,930)</u>

Terminal Value = Salvage value - Tax = $52,000 - ($52,000 x 21%) = $41,080

NPV = ($276,000) + [ (39,930) x (1+12%)^-1] + [ (39,930) x (1+12%)^-2] + [ (39,930) x (1+12%)^-3] = ($276,000) + ($35,652) + ($31,832) + ($28,421) = ($371,905)

EAC = NPV/(1-(1+r)^-n)/r

EAC = -371,905 / ( 1 - ( 1 + 12% )^-3/12% = -$154,842

Techron II

Cash Flow From Year 1 to Year 3

Pretax operating costs             ($48,000)

Depreciation ($480,000 / 5)   <u>($96,000)</u>

Profit before tax                       ($144,000)

Tax (21% x $167,000)                <u>$30,240</u>

Profit after tax                           ($113,760)

Add back Depreciation            <u>$96,000</u>

Cash Flow after tax                   (<u>$17,746)</u>

Terminal Value = Salvage value - Tax = $52,000 - ($52,000 x 21%) = $41,080

NPV = ($480,000) + [ (17,746) x (1+12%)^-1] + [ (17,746) x (1+12%)^-2] + [ (17,746) x (1+12%)^-3] = ($480,000) + ($15,845) + ($14,147) + ($12631) = ($522,623)

EAC = NPV/(1-(1+r)^-n)/r

EAC = -522,623 / ( 1 - ( 1 + 12% )^-5/12% = -$144,981

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Answer:per unit mineral cost = $ 22 per ton

Total material cost of December 31, 2020, inventory= $ 169,840

Total material cost in cost of goods sold at Dec 31,2020= $ 467,060

Explanation:

Details on the property                Amount

Add:

Purchase cost                            $ 1,038,200

Restoration cost                              $  111,600

Development cost                           $  248,000

Deduct:

Sales value on the property             $124,000

Total material cost                           $1,273,800

Given that 57,900 tons are mined

a)

Per unit mineral cost = 1,273,800/57,900 = $ 22 per ton

b) Total material cost of December 31, 2020, inventory

Ending Minerals in inventory at Dec 31st 2020  = Tonnes mined – tonnes sold  = 28,950-21,230 = 7, 720

therefore, total material cost of inventory = 7,720 x 22 = $ 169,840

Total material cost in cost of goods sold at Dec 31,2020

cost per ton  = $22

goods sold = 21,230

therefore total material cost of goods sold = $22 x 21,230  = $ 467,060

8 0
3 years ago
Do the results of the experiment support the camouflage hypothesis? do the results of the experiment support the camouflage hypo
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I guess the last option is the best answer.

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The benefits of belonging to professional organizations include the development of professional contacts and the opportunity to
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3 years ago
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Answer:

Selection stands for the initial assessment of a candidate in an organization before he is offered a job. In includes several steps like the organization details the KSAOs (Knowledge, Skills, Abilities, and other criteria) required for the job; evaluation of a candidate over those criteria; and making an offer to the selected candidate.

Initial assessment methods stand for the starting ways through a candidate or an applicant is screened and shortlisted by the organization which includes ways like- application blanks, biographical information, and reference and background check. These three initial assessment methods are similar to each other in a way that when an organization starts its selection procedure, it reviews the applications of the candidates who all have applied for the particular position in the organization; after the screening and verification of the application form, the organization checks the biographical information of the candidate which becomes a part of application form; and finally the organization conducts a reference and background check to ensure that the candidate has given complete and true information and has not been involve din criminal or unethical actions in his past.

On the other hand, the differences in the three initial assessment methods- application blanks, biographical information, and reference and background check could be that in application blank, the candidate has to furnish his background and work experience details; while in biographical information, the organization checks and verifies it with the details furnished by the candidate in the application form; and when it comes to reference and background check, the organization performs thorough background check of the candidate before offering job to him. This way the three initial assessment methods are similar and different from each other.

Explanation:

6 0
3 years ago
Nikola Motors has a quick ratio of 2.00; $38,250 in cash; $21,250 in accounts receivable; some inventory; total current assets o
Margarita [4]

Answe2.55 times

Explanation:

Current assets represent the resources of short-term nature which a business expects to convert back to cash between a year. They include inventory, receivables.

Inventory turnover is the average number of days it takes a Nikola Motors to sell its its stock and replenish it. This can be determined by either working it out in number of times the stock is sold and replenished or the length of days its takes to do same.

The formula for both are given below:

Inventory turnover( no of times) = Cost of goods sold / average inventory

                                                <em>    = x number of times</em>

Inventory days = (Average inventory/ Cost of goods sold) *365 days

                           <em> = number of days</em>

<em>Note: The inventory figure was not given in the question, but we can work it out;</em>

Current assets= cash + inventory + receivables

85,000 = 38,250 + 21,250 + y                           <em>Lets "y "demote inventory</em>

y = 85,000 - 38250 - 21, 250

y= 25,500

<em />

<em>Also we need to work out cost of sold;</em>

Cost of goods sold = 65% × 100,000

                                = 65,000

<em>Now we can work out the inventory turnover;</em>

Inventory turnover =  65,000/25,500

<em>                             </em>  =  2.55 times

Nikola Motors is seling and replacing its inventory 2.55 times

7 0
3 years ago
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