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
SCORPION-xisa [38]
3 years ago
12

Beloit Co. is a manufacturer of mini-doughnut machine makers. Early in 2015 a customer asked Beloit to quote a price for a custo

m-designed doughnut machine to be delivered by the end of 2015. Once purchased, the customer intends to place the machine in service in January 2016 and will use it for four years. The expected annual operating net cash flow is estimated to be $120,000. The expected salvage value of the equipment at the end of four years is about 10% of the initial purchase price. To expect a 15% required rate of return on investment, what would be the maximum amount that should be spent on purchasing the doughnut machine
Business
1 answer:
aliina [53]3 years ago
5 0

Answer:

$363,375.20

Explanation:

initial outlay = X

useful life = 4 years

salvage value = 0.1X

NCF years 1 - 4 = $120,000

discount rate = 15%

NPV = 0

X = $120,000/1.15 + $120,000/1.15² + $120,000/1.15³ + ($120,000 + 0.1X)/1.15⁴ =

X = $104,347.83 + $90,737.24 + $78,901.95 + $68,610.39 + 0.05718X

X = $342,597.41 + 0.05718X

0.94282X = $342,597.41

X = $342,597.41 / 0.94282 = $363,375.20

You might be interested in
How does increasing the size of your down payment impact your auto loan?
Gnom [1K]

Answer:

The correct answer is letter "C": It decreases the size of your principal and decreases the total cost of the loan .

Explanation:

Down payments are the initial sums debtors pay when requesting a credit. Down payments are usually mandatory but the debtor can offer the sum voluntarily.

<em />

<em>If the sum provided in the down payment is higher than what is requested, the amount of the principal will be lower. If the amount of the principal is lower, the total of the interest paid in the course to the loan will be lower as well, thus, the cost of the loan will be reduced.</em>

5 0
3 years ago
Barrington Bears has developed the following sales forecasts for the next few months. January 500, February 600, March 720, Apri
Oduvanchick [21]

Answer:

The correct answer is C.

Explanation:

Giving the following information:

Barrington Bears has developed the following sales forecasts for January 500 units.

BB has 80 bears on hand on Dec. 31. The normal ending inventory policy is to hold 20% of next month’s sales.

Direct labor is paid $18 per hour. Each bear takes 40 minutes to hand-finish. Variable overheads total $21 per direct labor hour. Fixed overheads amount to $25,000 per month.

First, we need to calculate the production for January.

Sales= 500 units

Ending inventory= (600*0.2)= 120 units

Beginning inventory= 80 (-)

Total= 540 units

Conversion costs= direct labor + manufacturing overhead

Direct labor= [(40/60)*540]*$18= $6,480

Variable overhead= 21*360 hours= $7,560

Fixed overhead= $25,000

Total conversion costs= $39,040

5 0
3 years ago
The sarbanes-oxley act of 2002 established requirements for ____. noncompliance can result in penalties of
IrinaK [193]
<span>The Sarbanes-Oxley Act of 2002 established new requirements for corporate governance to prevent fraudulent behavior in business. An accounting oversight board and financial reporting requirements including instituting a code of conduct for senior financial officers are the main focuses of this act.</span>
5 0
3 years ago
Which of the following is NOT an accurate statement?
Mandarinka [93]

Answer:

The correct answer is c. Workers in high-tech fields do not need good communication skills.

Explanation:

Communication skills refer to the ability to send, receive, elaborate and issue information, ideas, opinions and attitudes of the highest quality and oriented towards personal and organizational objectives. To properly carry out their activities, administrators must have at least the basic skills of oral, written and non-verbal communication related to: communication with clients, communication with their subordinates, communication with their superiors, with the media , sensitivity to cultural differences, among others.

  • Nonverbal communication skills refer to the use of facial expressions, movements and body language for the transmission of meaning.
  • Verbal communication skills refer to both oral messages that are used most frequently and take place in personal meetings and telephone conversations, as well as written messages, which are transmitted in different modalities (memorandums, fax, letters, newsletters, etc. .).

Communication is immersed in all the activities of the administrators, intimately relating to their performance.

4 0
3 years ago
Ras are simpler to complete than risk management plans, because risk management plans are continuous processes while ras are sim
Kamila [148]
<span>Ras are simpler to complete than risk management plans, because risk management plans are continuous processes while ras are simple point-in-time documents that can easily be completed in a single sitting.

False</span>
4 0
3 years ago
Other questions:
  • You have just received notification that you have won the $1.4 million first prize in the lottery. However, the prize will be aw
    6·1 answer
  • What best explains the relationship between a borrower’s credit score and a down payment requirement?
    15·2 answers
  • The following information is available for Trinkle Company for the month of June:
    11·1 answer
  • A snack food company experimented with the frequency of its advertising by working with a local cable provider. On the north end
    5·1 answer
  • Which of the following statements is true of conversion​ costs? A. The conversion cost needed for a completed unit and the conve
    13·1 answer
  • Purple Cab Company had 50,000 shares of common stock outstanding on January 1, 2018. On April 1, 2018, the company issued 20,000
    6·1 answer
  • Nikolas Industries has a cash balance of $20,000 on July 1, 20x8. The company is in the process of preparing the cash budget for
    14·1 answer
  • If a target was purchased for $1,500.0m with an equity contribution of $500.0m, what is the enterprise value of the target if it
    9·1 answer
  • How are disruptive technologies driving the face of entrepreneurship?
    5·1 answer
  • Think of an example of a time that you experienced or that you heard about when consumer perception influenced demand. What were
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!