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Over [174]
3 years ago
11

(Ignore income taxes in this problem.) Clairmont Corporation is considering the purchase of a machine that would cost $150,000 a

nd would last for 5 years. At the end of 5 years, the machine would have a salvage value of $18,000. By reducing labor and other operating costs, the machine would provide annual cost savings of $37,000. The company requires a minimum pretax return of 12% on all investment projects.
The present value of the annual cost savings of $37,000 is closest to:________.
a) $133,385
b) $235,070
c) $185,000
d) $20,979
Business
1 answer:
djverab [1.8K]3 years ago
4 0

Answer:

a) $133,385 

Explanation:

Present value is the sum of discounted cash flows.

Present value can be calculated using a financial calculator:

Present value each year from year 1 to 5 = $37,000

I = 12%

NPV = $133,385 

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

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Other things being equal, an increase in the number of sellers of a good will _____ for that good.
Ahat [919]

Answer:

The correct answer is letter "C": decrease equilibrium price and increase equilibrium quantity .

Explanation:

An increase in the number of sellers in a market of a certain good implies the quantity demanded for that good will increase, thus the equilibrium quantity will be higher. According to the demand law, if the quantity demanded goes up, the price is likely to decrease, so, the equilibrium price will be lower.

Thus, <em>the increase in sellers will raise the equilibrium quantity decreasing the equilibrium price.</em>

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3 years ago
The market for tomatoes is in equilibrium at the price of $10, and quantity of 50 tomatoes. If consumer surplus is $400 and tota
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Answer:

$250

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Explanation:

Data provided in the question:

Price of tomato = $10

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Total surplus = $650

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This because out of the total surplus, the surplus left after being received by the consumer goes to the producer.

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4 years ago
You decide to implement a new customer loyalty program that rewards customers for shopping in your store. To accomplish this, yo
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Read 2 more answers
The way Professor Quinn choose to handle this situation illustrates the difficulty of dealing with ethics violations. Listed as
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Answer:

The correct answer is:

Establishing a code of ethics

Referring ethical dilemmas to an ethics committee

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Explanation:

The ethics of the company tries to apply ethical principles in decision-making and concrete actions, and provides tools that raise the ethical level of companies.

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Companies when they want to define their code of ethics, integrate a series of values ​​such as honesty, loyalty, integrity, innovation, quality, respect for the individual, among others.

4 0
4 years ago
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