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charle [14.2K]
3 years ago
14

Cusic Music Company is considering the sale of a new sound board used in recording studios. The new board would sell for $24,200

, and the company expects to sell 1,590 per year. The company currently sells 1,940 units of its existing model per year. If the new model is introduced, sales of the existing model will fall to 1,610 units per year. The old board retails for $22,600. Variable costs are 54 percent of sales, depreciation on the equipment to produce the new board will be $1,335,000 per year, and fixed costs are $3,125,000 per year. If the tax rate is 24 percent, what is the annual OCF for the project
Business
1 answer:
inn [45]3 years ago
3 0

Answer:

$31,312,440  

Explanation:

Working for Net Income Calculation is attached in MS Excel File Format with this answer, Please Fins it.

Net Income =  $29,977,440

As we know that the depreciation is a non cash expense, so it will be added back to the net income to calculate the Operating cash flow.

Operating Cash Flow = Net Income + Depreciation

Operating Cash Flow = $29,977,440  + 1,335,000

Operating Cash Flow = $31,312,440  

Download xlsx
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Answer:

B) wash trades

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3 years ago
Nick’s Novelties, Inc., is considering the purchase of new electronic games to place in its amusement houses. The games would co
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Answer:

     a. 5 years

     b. Yes they will because the payback period is 5 years.

Explanation:

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= $95,000

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Payback period = Investment cost / Annual cash inflow

= 475,000 / 95,000

= 5 years

b. The company will purchase the games because they have a payback period of 5 years.

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3 years ago
Apple Bank makes a loan to Harry at 12.5 percent per year to be repaid by level annual payments for t years. Exactly one year be
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Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

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7 0
3 years ago
Stewart Parnell, the former CEO of the now-bankrupt Peanut Corporation of America, was charged with falsifying food safety repor
slega [8]

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Explanation:

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Tom rented an apartment from margaret on a month-to-month basis, with rent due on the first of the month. this type of tenancy i
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