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Morgarella [4.7K]
3 years ago
7

DON Corp. is contemplating the purchase of a machine that will produce net after-tax cash savings of $20,000 per year for five y

ears. At the end of five years, the machine can be sold to realize after-tax cash flows of $5,000. Interest is 12%. Assume the cash flows occur at the end of each year.
Required:
Calculate the total present value of the cash savings.
Business
1 answer:
Allushta [10]3 years ago
3 0

Answer:

$74,932.66

Explanation:

Present value is the sum of discounted cash flows.

Present value can be calculated using a financial calculator

Cash flow from year 1 to 4 = $20,000

Cash flow in year 5 = $25,000

I = 12%

Present value = $74,932.66

To find the PV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

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In addition to​ risk-free securities, you are currently invested in the Tanglewood​ Fund, a​ broad-based fund of stocks and othe
Murrr4er [49]

Answer:  6.29%

Explanation:

Required return = Risk free rate + beta ( expected return - risk free rate)

Beta.

= Correlation * \frac{Volatility of venture}{Volatility of fund} \\\\= 0.16 * \frac{0.8117}{0.2636} \\\\= 0.493

Required return = 3.63% + 0.493(9.03% - 3.63%)

= 6.29%

7 0
3 years ago
Manufacturing automation and office automation are examples of ______ that are forces for change outside the a. organization.
s344n2d4d5 [400]

Answer:

b) technological advancements

Explanation:

Manufacturing automation and office automation are examples of technological advancements that are forces for change outside the....

Automation of manufacturing and office entails the use of technology in place of traditional means. Advancement in technology has made enterprises shift from traditional means of production to technology, which enhances efficiency and improves productivity.

4 0
3 years ago
Net Games Corporation hires Holley, a minor, to create new customized game software for certain clients. Holley signs a contract
Nuetrik [128]

Answer:

because he was not a big boss voting in his own version and was just about the same questions that he was doing in his first place to help him out

8 0
3 years ago
Tanuja Singh is a CPA and operates her own accounting firm (Singh CPA, LLC). As a single-member LLC, she reports her accounting
AnnyKZ [126]

Answer:

Tanuja is not entitled to a QBI deduction in 2019.

Explanation:

Tanuja has QBI from her accounting firm of $540,000

W-2 wages = $156,000

Unadjusted basis of property used in the LLC = $425,000

Taxable income before the QBI deduction = $475,000

Modified taxable income = $448,000.

Her accounting firm is a "specified services" business and she and her spouse's taxable income before the QBI deduction is $475,000, which exceeds the threshold for 2019.

6 0
3 years ago
A truck acquired at a cost of $69,000 has an estimated residual value of $12,000, has an estimated useful life of 300,000 miles,
Anuta_ua [19.1K]

Answer:

A. $57,000

B. Depreciation rate per mile is $0.19

C. Depreciation is $14,630

Explanation:

a. cost of the truck less the residual value.

Cost of the truck        $69,000

Less: Residual value  <u>$12,000</u>

                                   $57,000

b. Depreciation rate per mile is computed by dividing cost of the truck less the residual value over the estimated useful life.

$57,000 / 300,000 miles = $0.19

c. Units-of-activity depreciation for the year is computed by multiplying miles driven for the year by depreciation rate per mile.

77,000 miles x $0.19 = $14,630

6 0
3 years ago
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