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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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antoniya [11.8K]

Answer:

d. beta did a better job of explaining the returns than standard deviation

Explanation:

Beta measures the systemic risk associated with the particular investment, it do not compute the total risk associated, which is more  logical.

Standard deviation computes the total risk associated.

Some risk is natural, like the risk of floods, natural calamities, earthquake, etc:

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Thus, beta provides better details about explaining the returns.

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2 years ago
Phil, age 20, is single and can be claimed as a dependent on his parent's return. He had $150 in interest income and wages of $7
Korvikt [17]

Answer: B - $7,150

Explanation: Standard taxation is an option by IRS to reduce an inidvidual taxable income. this is subject to an individuals filling status.

Phil who is aged 20, single and who can claim a dependent on his parents tax filling return. As of 2019, his standard tax deduction is limited to his earned income plus $350.

According to the above question, Phil earns $7,000 as wages plus $150 in interest income.

From the above information, Phil has a standard tax of $7,150.

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2 years ago
Assume Sarah is a cash-method, calendar-year taxpayer, and she is considering making the following cash payments related to her
Marizza181 [45]

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Answer:

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Explanation:

The after-tax cost is the net cost after the deduction of the amount of tax from the actual payment. In most cases, the value of the tax deduction is determined by multiplying the marginal tax rate with the payment. Then, the magnitude of the after-tax cost can be estimated by subtracting the payment from the tax deduction.

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Some tips for writing an effective ad in a newspaper are:

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Therefore, it is essential that when choosing the channel where your ad will be published, you verify that it is the most appropriate channel to attract the attention of your audience.

In a newspaper, it is effective to use advertisements that portray urgency, opportunity, and calls to action.

Find out more about advertise here:

brainly.com/question/1658517

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B. Shopping goods

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