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
Deffense [45]
3 years ago
6

A company is looking to purchase and replace a fixed asset for $235,000. It will sell the asset that will be replaced for $47,00

0 but will incur a $15,000 gain upon that sale. It must also commit​ $30,000 of working-capital to the investment. The​ firm's tax rate is 35​%. What is the amount of the relevant initial​ investment?
Business
1 answer:
QveST [7]3 years ago
8 0

Answer:

-$193,250

Explanation:

Relevant Initial Investment:

= New Investment + Gains × (-Tax rate) + Salvage Value

= -235,000 + 15,000 × (-35%) + 47,000

=  -$235,000 - $5,250 + $47,000

= -$193,250

Net working capital is a cash outflow at the beginning of the project but it will be recovered at the end.

So, it is not considered as initial investment.

You might be interested in
Tips for Successful LinkedIn Prospecting?
Dmitriy789 [7]

Answer:

Sales prospecting is one of the most essential elements of the whole sales process.

Some tips are;

  • Make LinkedIn Your Second Home
  • Show’em What you Got For Them
  • Tweak and Polish Your Profile
  • Connect With Strategy
  • Be more personal

7 0
3 years ago
Since oligopolies can lead to either good or bad market outcomes, it is important to understand what strategic decisions firms w
Pachacha [2.7K]

Answer:

The correct option is (C) Game theory

Explanation:

The game theory is the way to studying the agent choices who generates the results in an economically manner as compared with the utilities of another agents

So as per the given scenario, as the oligopolies affect the good or bad market results so here the strategic decisions are required to understand for this the economist use the game theory

Therefore the correct option is (C) Game theory

4 0
3 years ago
A property owner had a stroke and is unable to take care of himself. He has no heirs so a court placed him in a nursing home and
julia-pushkina [17]

Answer: Tax lien

Explanation:

Tax lien could be defined as a federal obligation which the government carries out when you fail to pay tax debt. The government accumulates the total tax.

The property owner got exposed as regards tax payment plan which was not paid.

federal tax lien is the government's legal claim against your property when you neglect or fail to pay a tax debt. ..

3 0
3 years ago
Hurry please. in order to break even, your minimum selling price must be_______your variable costs.
Rudik [331]
The correct answer isb
3 0
3 years ago
Synovec Co. is growing quickly. Dividends are expected to grow at a rate of 24 percent for the next three years, with the growth
djverab [1.8K]

Answer;

$ 70.07

Explanation:

The price of the stock when the dividends level off at a constant growth rate, we then find the PV of the future stock price, including the PV of all dividends during the super normal growth period. The stock start it constant growth in Year 4, so that we can be able to find the price of the stock in Year 3, which is the year before the constant dividend growth begins as:

P3= D3(1 + g) / (R− g) = D0(1 + g1)3(1 + g2) / (R− g)

P3= $3.40(1.24)3(1.06) / (.14 − .06)

P3= $85.89

Therefore the price of the stock today is the PV of the first three dividends, we then add it with the PV of the Year 3 stock price.

Hence the price of the stock today will be:

P0= $3.40(1.24) / 1.14 + $3.40(1.24)2/ 1.142+ $3.40(1.24)3/ 1.143+ $85.89 / 1.143

P0= $70.07

The current shape price is $70.07

7 0
3 years ago
Other questions:
  • When they produce 20,000 units per month, sanders incorporated has variable costs of $392,000 and fixed costs of $242,000. if sa
    12·1 answer
  • An accountant who combines accounting and investigating skills to uncover suspected fraudulent business activity or to prevent s
    14·1 answer
  • The zero coupon bonds of Mark Enterprises have a market price of $394.47, a face value of $1,000, and a yield to maturity of 6.8
    7·1 answer
  • Griffins Goat Farm, Inc., has sales of $664,000, costs of $326,000, depreciation expense of $70,000, interest expense of $45,000
    15·1 answer
  • A country wants to create a fair economy for its people. The government takes control over the country's biggest companies and p
    12·1 answer
  • In its first year of operations, Roma Company reports the following. Earned revenues of $47,000 ($39,000 cash received from cust
    6·1 answer
  • Every night at 9 p.m., the phone rings with calls from companies you have never heard of asking you buy their products. You have
    6·2 answers
  • John House has taken a $250,000 mortgage on his house at an interest rate of 6 percent per year. If the mortgage calls for 20 eq
    9·1 answer
  • Renee is going to buy a new car that has a list price of $19,675. She will be responsible for $1,420 in vehicle registration fee
    12·1 answer
  • What is an exampl of a price floor
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!