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devlian [24]
3 years ago
12

Tapestry Corporation will spend $1 million for special production equipment. Shipping and installation charges will amount to $1

75,000 and an initial increase in net working capital of $50,000 will be required. The equipment will replace an existing machine that has a salvage value of $85,000 and a book value of $100,000. Executives expect revenue to increase by $200,000 per year with no increase in operating expenses. If Tapestry has a corporate tax rate of 21%, what is the amount of the initial outlay for this project?
Business
1 answer:
shusha [124]3 years ago
3 0

Answer:

($1,136,850)

Explanation:

The computation of the initial outlay is shown below:

Purchase price (-1,000,000 - $175,000)    (1,175,000) (A)

machine proceeds

{$85,000 + ($100,000 - $85,000) × 0.21}   $88,150 (B)

Net working capital ($50,000) (C)

Initial outlay ($1,136,850)     (A - B + C)

Hence, the initial outlay is ($1,136,850)

We basically applied the above calculation to arrive at the answer

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Year-to-date, Oracle had earned a −1.53 percent return. During the same time period, Valero Energy earned 8.07 percent and McDon
iris [78.8K]

Answer:

The portfolio return is 2.35%

Explanation:

The portfolio return is the weighted average of the individual stock returns that form up the portfolio. The weightage of each stock is the investment in each stock as a percentage of total investment in the portfolio. The return of a three stock portfolio can be calculated using the following formula,

rP = rA * wA  +  rB * wB  +  rC * wC

Where,

  • rA, rB & rC represents the individual stock returns
  • wA, wB & wC represents the weightage of each stock

rP = -1.53% * 0.25 + 8.07% * 0.3 + 0.7% * 0.45  

rP = 0.023535 or 2.3535% rounded off to 2.35%

7 0
3 years ago
2) Consider the taxi market, a constant cost competitive industry. To operate a taxi an entrepreneur needs a license. Show graph
Arturiano [62]

Answer:

The new entrant of UBER has led the taxi fares to drop by significant amount. The competition has increased and customers have now choice available to choose from lowest fares.

Explanation:

The taxi market is competitive industry but since there was no specific organization behind the taxi union which governs the taxi fares, the taxi drivers were free to charge the fare they want. The entry of UBER in the industry has enables the customers to switch from normal taxi to UBER as it provides ease of online booking with lowest possible standard fares.

7 0
3 years ago
Marx and Springsteen provides​ hair-cutting services in the local community. In February, the business cut the hair of 200 ​clie
ozzi

Answer:

Cost of service to provide one haircut is $ 11.04

Explanation:

Hair saloon expense: $500

Building rent expense: $1,458

Utilities expense: $200

Depreciation expense --- Equipment: $50

Total operating cost = Hair saloon expense + Building rent expense + Utilities expense + Depreciation expense

= $500 + $1,458 + $200 + $50

= $ 2,208

Total hair cuts = 200

Therefore, cost per hair cut = Total operating cost ÷ Total hair cuts

= $2,208 ÷ $200

=  $ 11.04

5 0
3 years ago
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Nimfa-mama [501]
Procrastinating, the others are almost antonyms
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3 years ago
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With the start of each new era in japan, the country's capital changed locations. why?
Nitella [24]
<span>With the start of each new era in Japan, the country's capital changed locations because of the reason that they wanted to be under the governing of a new head or leader. The capital wanted to start fresh, and new.  </span>
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