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Elenna [48]
3 years ago
15

Premier Steel, Inc. is considering the purchase of a new machine for $100,000 that has a useful life of 3 years. The firm’s cost

of capital is 11.0% and the tax rate is 40%. This machine will be sold for its salvage value of $20,000 at the end of 3-years. The machine will require an investment of $2,500 in spare parts inventory upon installation. The machine will cost $8,000 to ship and $4,000 to install and modify it. Sales are as follows: year 1 = $90,000; year 2 = $97,500; year 3 = $105,000. Operating expenses are year 1 = $25,000; year 2 = $27,000; year 3 = $29,000. The investment in working capital will be liquidated at termination of the project at the end of year 3. MACRS Rates 33% 45% 15% 7% Using MACRS, what is the operating cash flow in year 1?
Business
1 answer:
Soloha48 [4]3 years ago
3 0

Answer

The answer and procedures of the exercise are attached in a microsoft excel document.  

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.  

Download xlsx
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The accompanying graphs depict the market for bags of potato chips, which is currently at an equilibrium price of $1.67 per bag
Sergeeva-Olga [200]

Answer:

Equilibrium is the point of the interaction between the demand and supply curves.

The given graph given from the question is attached below (Image 1-2)

The solution is attached in image 3-4

6 0
3 years ago
Crossroad chooses to report a financial asset at its fair value. The asset trades in two different markets; however, neither mar
Alex

Answer:$81

Explanation:

The options given are:

a. $76

b. $80

c. $81

d. $82

If the principal market that is, the market that the greatest volume of activity can't be identified, then the most advantageous market would be used to determine the fair value of a financial asset.

The most advantageous market is the market that has the highest net price, after transaction cost has been considered even though the transaction costs is not included into the fair value. Therefore, the second market gives the highest net price of $80 after the consideration of the transaction costs, hence, it should be utilized for fair value purposes.

The fair value amount include the transaction costs, which give $80 + $1 = $81

The fair value amount is $81.

5 0
3 years ago
Use the following information to answer the next two questions: A company had the following transactions during September, the f
horsena [70]

Answer: 326,500

I’m not 100% sure why,but I had the same question on an assignment and that was the answer.

4 0
3 years ago
Given a prior forecast demand value of 1,100, a related actual demand value of 1,000, and a smoothing constant alpha of 0.3, wha
Korvikt [17]

Answer:

1,030

Explanation:

Calculation for what is the exponential smoothing forecast value

Exponential smoothing forecast value = 1,000 + 0.3 x (1,100-1,000)

Exponential smoothing forecast value = 1,000 + 0.3 x (100)

Exponential smoothing forecast value = 1,000 + 30

Exponential smoothing forecast value= 1,030

Therefore the exponential smoothing forecast value will be 1,030

5 0
3 years ago
Is the extent to which a good or service is perceived by its customer to meet his or
Bingel [31]

Answer:

credit

Explanation:

an agreement between a buyer and the seller that payment for product or service will be received at some later due date

8 0
3 years ago
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