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Galina-37 [17]
4 years ago
8

Continuing from Problem 1, at the end of the first year, Chemtec is expecting sales of $250 million and costs of $125 million. T

here are no more required investments in either net working capital or plant and equipment. However, the existing plant and equipment will experience \$50$50 million of depreciation. Assume that Chemtec's marginal tax rate on earnings is 35\5%. Assuming that all of these cash flow occur at the end of the first year, what is the first year's free cash flow
Business
1 answer:
Tanzania [10]4 years ago
3 0

Answer:

Free cash for first year is $98.75

Explanation:

Sales =                                  $250 million

Less: Costs =                        $125 million

Less: Depreciation =            <u>$50 million</u>

Earning before Tax =           $75 million

Less: Tax 35% (75 x 35%) = <u>$26.25 million</u>

Net Income =                        <u>$ 48.75 million</u>

Free cash flow = Net Income + Non cash Expenses - Increase in working capital - Capital Expenditure

Free cash flow = 48.75 million + 50 million - 0 - 0

Free cash flow = 98.75 million

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The average total cost of producing electronic calculators in a factory is $20 at the current output level of 100 units per week
olga_2 [115]

Answer:

C. total cost is $3000

Explanation:

Fixed cost is $1000 no matter what per week.

Your output is 100 units, average cost to produce each is $20.

so 100 * $20 = $2,000

total cost is $3000

hope this helps

4 0
3 years ago
What are the two views on why asset prices fluctuate so much that they lead to financial crises and bank​ failures?
tester [92]

In one view, the asset prices are objectively based on fluctuating principles, whilst in the certain, psychological factors and prejudices play an important role.

Explanation:

As the rate of interest increases, the price of the investments declines because the yield on risk-free investing can sometimes be greater to buyers. On the other hand, the price of assets is rising as interest rates are falling.

This is usually the interest rate owed by small investors on an approved FDIC portfolio, checking account, term deposit acct or mutual fund of the monetary sector. This is now the so-called US "risk-free" limit for bigger creditors, companies and individuals. Bills for the Treasury.

6 0
3 years ago
Original source: for those who can't afford to be fussy about status or pay, there are of course plenty of jobs in america. Hund
shepuryov [24]
What is the question here? also immigrants take less pay and pay no taxes so that doesn't help the situation especially when they send it home out of the US to be exchanged for much more in their country. something sounds fishy....but we also have opportunities in the US to have a career or real job if you call it that. a job is a job and a career is something you work hard to do by getting a degree or years of experience that the person can grow within the company as well. unlike a "job" where you can only go so high up the food chain.
5 0
3 years ago
Suppose that businesses buy a total of $120 billion of the four resources (labor, land, capital, and entrepreneurial ability) fr
Bingel [31]
To consider this question, we must consider the relationship between the resources and their costs.
Labor: The price that companies pay for labor is the wage. The businesses paid $68 billion for labor
Land: The price of land that business pay is rent (assuming they do not own the land). The business paid $14 billion for land. 
Capital: The cost of using capital is the interest paid on that capital. The businesses paid $24 billion for using capital. 

This leaves entrepreneurial ability. It is more difficult to discern the payment for this resource, as it is less tangible and thus has a less direct cost. From the payment for other resources and the total payment to households, we can infer the payment for entrepreneurial ability:
120 - 68 - 14 - 24 = $14 Billion
7 0
4 years ago
Suppose that there are customers distributed evenly across a line which runs from 0 to 1. There are two competing vendors that c
Shtirlitz [24]

Answer:

b.(1/2, 1/2)

Explanation:

If one vendor is located at “1/2” then the best possible respond of the other vendor is “1/2”, both of them of capture the equal share of the market.

Therefore, Nash equilibrium is (1/2 , 1/2).

7 0
3 years ago
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