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OLEGan [10]
3 years ago
8

A project has sales of $511,800, costs of $322,400, depreciation of $22,620, interest expense of $3,062, and a tax rate of 34 pe

rcent. What is the value of the depreciation tax shield?
Business
1 answer:
MAVERICK [17]3 years ago
6 0

Answer:

$7,690.80

Explanation:

The formula and the computation of the depreciation tax shield is shown below:

= Depreciation expense × tax rate

= $22,620 × 34%

= $7,690.80

For computing the depreciation tax shield we multiplied the depreciation expense with the tax rate so that the correct amount could come.

And the other information provided in the question is of no significance. So, ignored it

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Barry has just become eligible for his​ employer-sponsored retirement plan. Barry is 40 and plans to retire at 65. Barry calcula
snow_lady [41]

Answer:

$713,449.15

Explanation:

Barry’s total personal amount to invest = Initial amount + additional amount

                                                                 = $4,500 + 1,140

Barry’s total personal amount to invest = $5,640

Since Barry’s employer would match this amount, total amount to invest will be;

Total amount to invest for Barry = $5,640 + $5,640 = $11,280

The new amount Barry will have at retirement can be calculated using future value of an annuity formula stated as follows:

FV = M × {[(1 + r)^n - 1] ÷ r} ................................. (1)

Where,

FV = Future value of the amount at the retirement

M = Total amount to contribute yearly by Barry and his employer = $11,280

r = Rate of return = 7% = 0.07

n = number of periods = 65 – 40 = 25 years

Substituting the values for into equation (1), we have:

FV = $11,280 × {[(1 + 0.07)^25 - 1] ÷ 0.07}

     = $11,280 × {[(1.07)^25 - 1] ÷ 0.07}

     = $11,280 × {[5.42743264012289 - 1] ÷ 0.07}

     = $11,280 × {4.42743264012289 ÷ 0.07}

     = $11,280 × 63.2490377160413

FV = $713,449.15

Therefore, Barry would have $713,449.15 at retirement if he could invest an additional $1,140 per year that his employer would match.

7 0
3 years ago
School teachers, counselors, and job placement centers can help you _____. a. place a classified job advertisement b. identify j
Dimas [21]

Answer:

Identify job leads and set up interviews.

Explanation:

6 0
3 years ago
Read 2 more answers
Vulcan, Inc., has 8.7 percent coupon bonds on the market that have 10 years left to maturity. The bonds make annual payments and
Lana71 [14]

Answer:

$880.72

Explanation:

Bond price will be calculated by following formula

Bond Price = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F x ( 1 + r )^-n ]

Bond Price = $87 x [ ( 1 - ( 1 + 0.107 )^-10 ) / 0.107 ] + [ $1,000 x ( 1 + 0.107 )^-10 ]

Bond Price = $87 x [ ( 1 - ( 1.107 )^-10 ) / 0.107 ] + [ $1,000 x ( 1.107 )^-10 ]

Bond Price = $87 x [ ( 1 - ( 1.107 )^-10 ) / 0.107 ] + [ $1,000 x ( 1.107 )^-10 ]

Bond Price = $518.87 + $361.85

Bond Price = $880.72

6 0
3 years ago
In markets where customers are sensitive to price and where internal efficiencies lead to cost advantages allowing for acceptabl
Nadusha1986 [10]

Answer:

The correct answer is letter "A": Penetration.

Explanation:

Penetration Pricing means that an initially low price for a new product or service attracts customers away from the competitors. The new company hopes that even if prices rise to normal levels, customers will continue to use their products. Penetration Pricing will yield higher returns on sales and push rivals out of the market if implemented long enough.

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3 years ago
Miao Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 3,000 client-visits, but its act
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Mayonnaise is delicious, agree? Yes indeed.
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