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
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

You might be interested in
1. Production and DM budgets: Stolen Horse, Inc. manufactures and distributes toy dinosaurs throughout the Western United States
Yanka [14]

Answer:

Check the explanation

Explanation:

RAW MATERIAL PURCHASE BUDGET    

                                         July             Aug  Sep  Total  

Budgeted

Production units  64,000  97,200  1,05,200  2,66,400  79,200

RM required per unit   4  4  4  4  4

Total

RM requirement  2,56,000 3,88,800  4,20,800   10,65,600  3,16,800

Add: Desired

Ending Inventory  1,55,520 1,68,320 1,26,720  1,26,720  

Total needs   4,11,520  5,57,120  5,47,520  11,92,320  

Less: Beginning

Inventory        96,000  1,55,520  1,68,320  96,000  

Purchase Units  3,15,520  4,01,600  3,79,200  10,96,320  

Kindly check the attached image below to see the well arranged accounting entry.

6 0
3 years ago
A monopolistically competitive firm is producing at an output level in the short run where average total cost is $4.75, price is
Scorpion4ik [409]

Answer: With a loss

Explanation:

The firm here has its Marginal cost higher than it's marginal revenue.

This means that for every additional unit sold, the company is incurring a loss of $0.50 which is the difference between the marginal cost and the marginal revenue.

The company is therefore operating at a loss because every additional unit is costing them instead of benefitting them. To counter this, they need to reduce production so that marginal cost will fall.

5 0
3 years ago
What happens if you get pulled over without insurance?.
ehidna [41]

Answer:

It depends on which state you are in. In Michigan if you operate a motor vehicle on state roadways and you don't have car insurance, you could face the following: Driver's license and registration suspension. Up to one year in jail. Fines and fees up to $500.

Explanation:

4 0
2 years ago
What key stage involves defining your project? a. Representing your data in a trustworthy manner b. Working with data c. Develop
STatiana [176]

Answer:

The correct answer is letter "C": Developing your design solution.

Explanation:

Every project borns with the idea of <em>finding a solution</em> to a problematic situation. While designing a project coming up with what the solution is for the problem that you would like to attempt solving is vital because from there part all the steps on what and how it is going to be done.

7 0
3 years ago
What is important to know about yourself when making a career choice?
yaroslaw [1]
It’s important to know your limits and your strengths.
The goal is to do your best in the job you have, so before making that important choice, it’s good to think about maybe your talents or hobbies that you have.
You could ask yourself questions such as:

Do I communicate well with people?

What am I best at?

Am I able to fulfill the tasks that are included in this career?

And I’m sure there are more questions, but it is a good thing to know yourself that way when you apply for a job, you know what you’re getting into.

I hope this helps!
~Brooke❤️
5 0
3 years ago
Other questions:
  • Which of the following statements is NOT true regarding the importance of the role that an operations manager plays in addressin
    10·1 answer
  • When obtaining a mortgage, in order to not be taken, paying a much higher rate than neccessary, which can easily cost well over
    13·1 answer
  • Read the sentence.
    11·1 answer
  • Last year all refuse collected by Shelbyville city services was incinerated. This incineration generated a large quantity of res
    11·2 answers
  • Socialism is described
    9·1 answer
  • Which person argued that a corporate manager's primary responsibility is to the shareholders of the organization and that manage
    11·1 answer
  • Determine the cost assigned to ending inventory and to cost of goods sold using specific identification. For specific identifica
    10·1 answer
  • When does the company go in loss​
    7·1 answer
  • Aw sh~ here we go again.....
    7·1 answer
  • Use the graph to answer the question that follows.
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!