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]
2 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]2 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
Which kind of business organization does not allow for profit sharing?
Nataly_w [17]
The answer is d sole proprietorship
6 0
3 years ago
All of these are pitfalls an organization should avoid in strategic planning except:_____________.1. using plans as a standard f
Tamiku [17]

Answer:

1. using plans as a standard for measuring performance.

Explanation:

Strategic planning is an important process that enables a business or an organization to have a sense of direction, goal orientation, and also enables them to evaluate and measure progress.

It is important when carrying out the strategic planning process to first focus on clarifying and developing the vision, mission and objectives of the business before moving on to strategy formulation, this helps to give a sense of direction.

In the process of strategic planning, involving key employees cannot be overemphasized. Giving key employees the chance to be involved in the planning process will enable them to connect to the business and set them up for success.

Apart from the fact that strategic planning provides a sense of direction, it also enables a business to outline goals that can be measured, hence providing a standard for measuring performance.

3 0
3 years ago
If the present value of $280 paid one year from now is $250 what is the one-year discount factor?
OleMash [197]

Answer:

12%

Explanation:

The discount rate  will be  PV/FV -1

i.e., i =  (Fv/pv )-1

i=  (280/250) - 1

i = 1.12-1

i=12%

7 0
2 years ago
Read 2 more answers
A modification to a product that changes the taste, texture, sound, smell, or appearance is a(n) _______.
Paha777 [63]

A modification to a product that changes the taste, texture, sound, smell, or appearance is a <u>style modification.</u>

<u></u>

Product modification is the process of improving already-existing items by making the required adjustments to their nature, size, packing, colour, and other attributes in order to better meet changing market demands. The goal of the product change is to retain current demand, draw in new customers, and effectively compete with rivals.

The company's earnings improve as a result of increased sales, which are aided by this. The product's look is altered as part of the style enhancement plan. Nevertheless, a product's quality never changes. Here, the product's packaging or its shape, colour, or other characteristics may be altered. The fashion business frequently employs this tactic.

To learn more about Product modification here,

brainly.com/question/13922806

#SPJ1

6 0
1 year ago
Suppose real GDP for a country is $1,200 billion. The GDP price index is 114.6. There are 25 million workers who work 36 hours p
8_murik_8 [283]

Answer:

1,333.33

Explanation:

Labor productivity is measures the hourly output of a country's economy. Specifically, it charts the amount of real gross domestic product (GDP) produced by an hour of labor.

total labor hours = 25milion x 36 hours per week

                            = 900 million

labor productivity = GDP ÷ total labor hours

labor productivity = $1,200 billion ÷ 900 million

                                $1,333.33 per hour

4 0
2 years ago
Other questions:
  • Part 5: Joint Product Costs (10 points) Iaci Company makes two products from a common input. Joint processing costs up to the sp
    15·1 answer
  • Northwest Delivery Company acquired an adjacent lot to construct a new warehouse, paying $75,000 and giving a short-term note fo
    12·1 answer
  • An auditor observed that a client mails monthly statements to customers. Subsequently, the auditor reviewed evidence of follow-u
    7·1 answer
  • 33). You put half of your money in a stock portfolio that has an expected return of 14% and a standard deviation of 24%. You put
    12·1 answer
  • A perfectly competitive small organic farm that produces 1,000 cauliflower heads in the short run has an ATC = $6 and AFC = $2.
    15·1 answer
  • Suppose Community Bank offers to lend you $10,000 for one year at a nominal annual rate of 6.50%, but you must make interest pay
    6·1 answer
  • A high level of information asymmetry between insiders and outsiders encourages a greater use of debt relative to equity, as wel
    8·1 answer
  • Mrs. Torres goes out of town on a business trip. She spends 3 nights in a hotel at a charge of $80 per night. She pays 9% tax on
    6·2 answers
  • The process of transferring the cost of metal ores and other minerals removed from the earth to an expense account is called
    11·1 answer
  • Why is term life insurance better than whole life insurance?
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!