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Vaselesa [24]
3 years ago
5

You must evaluate the purchase of a proposed spectrometer for the R&D department. The base price is $250,000, and it would c

ost another $50,000 to modify the equipment for special use by the firm. The equipment falls into the MACRS 3-year class and would be sold after 3 years for $125,000. The applicable depreciation rates are 33%, 45%, 15%, and 7%. The equipment would require a $13,000 increase in net operating working capital (spare parts inventory). The project would have no effect on revenues, but it should save the firm $32,000 per year in before-tax labor costs. The firm's marginal federal-plus-state tax rate is 40%.
What is the initial investment outlay for the spectrometer, that is, what is the Year 0 project cash flow?
Business
1 answer:
malfutka [58]3 years ago
3 0

Answer:

$332,000

Explanation:

Initial investment refers to the cash outflow needed to begin a project or start a business. It includes capital expenditure, modification cost, and working capital needed.

Based on this, the initial investment outlay can be calculated as follows:

Initial investment outlay = Base price + Additional modification cost + Net operating working capital = $250,000 + $50,000 + $32,000 = $332,000

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What is the present value of receiving $100 investment two years from now at a 10 percent annual discount rate
guapka [62]

Answer: $121

Explanation:

The question simply wants us to find the present value of receiving $100 investment two years from now at a 10 percent annual discount rate.

This can be easily solved as follows:

For the first year, the $100 will be worth:

= $100 + ($100 × 10%)

= $100 + ($100 × 0.1)

= $100 + $10

= $110

The worth at the end of the second year will then be:

= $110 + ($110 × 10%)

= $110 + $11

= $121

8 0
3 years ago
An economy is operating at full employment, and then workers in the bread industry are laid off. this change is portrayed in the
quester [9]

An economy is operating at full employment, and then workers in the bread industry are laid off. this change is portrayed in the movement from C to F.

The economy in points A, B, C, and D is at full employment. Some employees make bread, while others make wine. Points F and G depict scenarios where the unemployment rate varies depending on the state of the economy. Point E illustrates a growing economy that is performing above its maximum level of employment. When the unemployment rate is between 4% and 5%, an economy is considered to be in full employment; nonetheless, frictional unemployment is always present.

Given that the economy was at full employment when the question was asked, but that unemployment then rose, the starting point must be A, B, C, or D, and the final position must be F or G. Only option D, from points C through F, makes sense.

An economy is operating at full employment, and then workers in the bread industry are laid off. this change is portrayed in the movement from C to F.

To learn more about the above question, visit the following link:

brainly.com/question/14549969

#SPJ4

6 0
2 years ago
LO 4.4Assigning indirect costs to specific jobs is completed by which of the following?
LUCKY_DIMON [66]

Answer:

using the predetermined overhead rate

Explanation:

The indirect cost is also known as the overhead cost. The overhead cost are those cost which is related to the factory expenses like - depreciation, property taxes, utility expense, rent expense, repairs expense, indirect labor, and indirect material cost, etc

As we know

Predetermined overhead rate = (Total estimated manufacturing overhead) ÷ (estimated direct labor-hours) or (estimated machine labor-hours)  

As the case maybe

By using the predetermined we can easily allocate the indirect cost to the specific cost

6 0
3 years ago
The number of days' sales in receivables a.is an estimate of the length of time the receivables have been outstanding. b.is not
Nostrana [21]

Answer:

a.is an estimate of the length of time the receivables have been outstanding.

Explanation:

The average collection period can be calculated as follows: 365 days in a year divided by the accounts receivable turnover ratio.

Days sales uncollected = Average Account receivable/Net sales*365

A short collection period means prompt collection and better management of receivables. A longer collection period may negatively affect the short-term debt paying ability of the business in the eyes of management.

6 0
3 years ago
Columbia Sportswear makes nylon activewear. Its marketing manager set a goal to increase sales 12 percent over the next three ye
GenaCL600 [577]

Answer:

a) functional planning

Explanation:

The functional planning is the planning that need to be done for each type of department so that the goals and the objectives of the company could be accomplish in a efficient and effective manner

Since in the question it is mentioned that the marketing manager have set a goal to rise the sales by 12% over the next three years so this represent that the manager is engaged in the functional planning

6 0
3 years ago
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