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dolphi86 [110]
2 years ago
5

XYZ Company is considering whether a project requiring purchasing of new equipment worth investing. The firm has spent $12,000 o

n consulting 2 months prior to the project as well as $7,000 in market study about a year ago. In order to start the new project, the firm has to replace the old machine which has a book value of $0 and will be scraped. The new machine will cost the firm $220,000. In order to make the machine working condition, XYZ will spend $7,000 in installation and $3,000 in shipping. Since it will produce more, $10,000 investment in net working capital is required. The project will increase annual revenues by $125,000 and will increase annual operating cost by $45,000. The company has a marginal tax rate of 34%. It has the cost of capital of 14% and the project will last 5 years. What is the initial outlay of this project? What is the initial outlay of this project? Round to the nearest penny. Do not include a dollar sign in your answer. Type the absolute value of the answer. (i.e. If your answer is -$20,000 since it is cost to replace, type 20000 as your answer.)
Business
1 answer:
alex41 [277]2 years ago
4 0

Answer:

The initial outlay of this project is $240.000

Explanation:

Consider the following formula and variables

new machine cost 220.000

installation 7.000

shipping 3.000

working capital  10.000

Initial investment outlay = new machine cost + installation+ shipping+ working capital

=220.000+7.000+3.000+10.000=240.000

You might be interested in
Vogel Corporation's cost of goods manufactured last month was $136,000. The beginning finished goods inventory was $35,000 and t
rosijanka [135]

Answer:

117,000 adjusted COGS

Explanation:

$$Beginning Inventory + Manufactured = Ending Inventory + COGS

35,000 + 136,000 = 48,000 + COGS

COGS = 123,000 before adjustment

overapplied overhead for 6,000

This means the applied is higher than actual expenses, the cost is 6,000 lower we must decrease the COGS

123,000 - 6,000 = 117,000 adjusted COGS

6 0
2 years ago
An assumption for a construction project could be Select one: a. a grant will be secured to help fund the project. b. the materi
Eduardwww [97]

Answer:

a. a grant will be secured to help fund the project.

Explanation:

In project management, a project manager can be defined as an individual or organization that temporarily undertakes a project in order to create a unique result, product, and service. Project managers strives very hard so that they can achieve their aims, goals and objectives in the most cost-effective, efficient and best manner through the use of unique set of interrelated tools, skills and tasks.

An assumption for a construction project could be, a grant will be secured to help fund the project.

Project managers sometimes embark on the execution of projects without having enough fund to finish it successfully. There assumptions are usually that once they have commenced the process, a grant can be secured from creditors, investors or financial institutions to help fund the remaining part of the project. However, since it is an assumption, they're not guaranteed that the grant will be given to them; therefore, this can result to the stalling of projects sometimes.

By virtue of standards, materials to be used to construct the building, the size of the building that is to be constructed and the regulations and codes required for the building should never be assumed by project managers.

6 0
3 years ago
Opal Inc. used $213,000 of direct materials and incurred $111,000 of direct labor costs during 2015. Indirect labor amounted to
alex41 [277]

Answer

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

Step-by-step 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.  

4 0
3 years ago
What international theory attributes security competition and interstate conflict to the lack of an overarching authority in the
wariber [46]

Structural Realism

Explanation:

International politics is basically a struggle for power, but they don't always endorse the conventional logical view that this is a human psychology outcome. The lack of an overall authority over countries and relative power sharing in the international system refer defense rivalry and intergovernmental disputes to them.

Structural realism maintains that its theory of chaos and capability allocation (measured for the number of large competences within the international system) determine the essence of the international framework. The international system has a dynamic anarchically organising theory, which ensures that there is no hierarchical central authority.

3 0
3 years ago
The College Board reported the following mean scores for the three parts of the Scholastic Aptitude Test (SAT) (The World Almana
storchak [24]

Answer:

a) P(492

And we can use excel or the normal standard table to find this probability:

P(-0.949 < Z< 0.949)= P(Z

b) P(505

And we can use excel or the normal standard table to find this probability:

P(-0.949 < Z< 1.898)= P(Z

c) P(484

And we can use excel or the normal standard table to find this probability:

P(-1 < Z< 1)= P(Z

Explanation:

Previous concepts

Normal distribution, is a "probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean".

The Z-score is "a numerical measurement used in statistics of a value's relationship to the mean (average) of a group of values, measured in terms of standard deviations from the mean".  

Part a

Let X the random variable that represent the scores for critical reading of a population, and for this case we know the distribution for X is given by:

X \sim N(502,100)  

Where \mu=502 and \sigma=100

We select a sample of size n=90, since the distribution for X is normal then the distribution for the sample size is also normal

\bar X \sim N(\mu, \frac{\sigma}{\sqrt{n}}=\frac{100}{\sqrt{90}}=10.54)

And for this case we want this probability:

P(502-10 < \bar X < 502+10)

And for this case we can use the z score given by:

z= \frac{\bar X -\mu}{\sigma_{\bar x}}

And if we use this formula we got:

P(492

And we can use excel or the normal standard table to find this probability:

P(-0.949 < Z< 0.949)= P(Z

Part b

Let X the random variable that represent the scores for Math of a population, and for this case we know the distribution for X is given by:

X \sim N(515,100)  

Where \mu=515 and \sigma=100

We select a sample of size n=90, since the distribution for X is normal then the distribution for the sample size is also normal

\bar X \sim N(\mu, \frac{\sigma}{\sqrt{n}}=\frac{100}{\sqrt{90}}=10.54)

And for this case we want this probability:

P(515-10 < \bar X < 515+10)

And for this case we can use the z score given by:

z= \frac{\bar X -\mu}{\sigma_{\bar x}}

And if we use this formula we got:

P(505

And we can use excel or the normal standard table to find this probability:

P(-0.949 < Z< 1.898)= P(Z

Part c

Let X the random variable that represent the scores for Writing of a population, and for this case we know the distribution for X is given by:

X \sim N(494,100)  

Where \mu=494 and \sigma=100

We select a sample of size n=100, since the distribution for X is normal then the distribution for the sample size is also normal

\bar X \sim N(\mu, \frac{\sigma}{\sqrt{n}}=\frac{100}{\sqrt{100}}=10)

And for this case we want this probability:

P(494-10 < \bar X < 494+10)

And for this case we can use the z score given by:

z= \frac{\bar X -\mu}{\sigma_{\bar x}}

And if we use this formula we got:

P(484

And we can use excel or the normal standard table to find this probability:

P(-1 < Z< 1)= P(Z

3 0
3 years ago
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