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Studentka2010 [4]
4 years ago
11

A company is considering replacing an old machine, which has a market value of $75,000 and a tax basis of $50,000. The new machi

ne would cost $145,000 and would require an additional $12,000 in working capital for spare parts. If the company’s tax rate is 34%, what would be the initial cash outlay for this replacement project?
Business
1 answer:
sp2606 [1]4 years ago
8 0

Answer:

$90,500

Explanation:

The computation of initial cash outlay is shown below:-

initial cash outlay = New machine cost + Increase in working capital - After tax salvage value

= $145,000 + $12,000 - (($75,000 - ($75,000 - $50,000) × 0.34

= $145,000 + $12,000 - $66,500

= $90,500

Therefore for computing the initial cash outlay we simply applied the above formula.

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For a normal good, if the price of a substitute good decreases then:
geniusboy [140]

Answer:

(B) the demand curve shifts leftward while the supply curve stays the same.

Explanation:

"Substitutes are goods where you can consume one in place of the other. The prices of complementary or substitute goods also shift the demand curve. When the price of a good that complements a good decreases, then the quantity demanded of one increases and the demand for the other increases. When the price of a substitute good decreases, the quantity demanded for that good increases, but the demand for the good that it is being substituted for decreases. "

Reference: Khan Academy. “Price of Related Products and Demand.” Khan Academy, Khan Academy, 2019

8 0
3 years ago
Every day we see more and more impact locally from international business decisions. In your community, how do you see one or mo
natima [27]

Explanation:

For international businesses to settle in a specific location and achieve success in the market, a market segmentation survey must be carried out. This research is essential to discover relevant characteristics about the community of a country or city for example, it is important that the company knows the population that lives in the place where it wants to carry out its activities, therefore, to know characteristics such as age group, tastes, culture, monthly income, etc. is so important for a company, be it a franchise, management contracts or electronic businesses, to be able to align its strategy and action plans in order to conquer the market of a region.

It is important that companies are aware of the peculiar characteristics of a community, in order to adapt to their tastes, customs and values, so that their business is well positioned and meets the desires and needs of a community.

In addition to paying attention to local customs and culture, international companies guarantee jobs for the local community, convenience and must take advantage of the advantages that a local offers, such as cheaper labor, government incentives, potential markets, and develop plans to reduce disadvantages, which can be the disqualified labor and the lack of interest and identification for your product or service.

8 0
3 years ago
Tresnan Brothers is expected to pay a $2.95 dividend on its common stock at at the end of this year. This company's dividends ar
tino4ka555 [31]

Answer:

current value = $66.29

Explanation:

given data

expected to pay dividend = $2.95

constant rate = 4% per year

required rate of return  = 8.45%

solution

Stock's current value per share will be express as

current value = dividend ÷ (Required rate of return - Growth rate of dividend)     .....................1

put here value and we get

current value = $2.95 ÷ ( 8.45% - 4% )

current value = $66.29

8 0
3 years ago
Which term refers to the bond between product and consumer that is difficult for competitors to break
Ede4ka [16]

Answer: brand loyalty

Explanation:

7 0
2 years ago
The twelve Federal Reserve banks are involved in monetary policy in several ways including the following except​:_________
Fantom [35]

Answer:

B

Explanation:

The twelve Federal Reserve banks are involved in monetary policy in several ways including the following except voting on the purchase and sale of government securities that affect both interest rates and the amount of reserves in the banking system.

7 0
3 years ago
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