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aalyn [17]
3 years ago
5

Your company may buy a used pick-up for $20,000. During the truck's five year useful life, it is estimated the firm will save $5

,000 per year after all of the costs of owning and operating the truck have been paid. The truck's salvage value is estimated to be $3,000. Assume straight line depreciation and a tax rate of 35%. Assume r of 10%.Create a model that will calculate before-tax and after-tax cash flows.
Business
1 answer:
777dan777 [17]3 years ago
4 0

Answer:

Please see explanation

Explanation:

The before tax and after tax cash flow calculation can be made through below mentioned model:

                       0                 1             2                 3                 4                   5  

Pick-up cost  (20,000)

Saving to firm               5,000       5,000         5,000          5,000          5,000

Salvage value                                                                                            3,000

Pre tax CF      (20,000) 5,000       5,000        5,000          5,000          8,000

[email protected]%                       (1,750)      (1,750)        (1,750)         (1,750)        (2,800)                    

Tax saving on dep         1,190         1,190          1,190            1,190           1,190

((20,000-3000)/5*35%)

After tax CF ($20,000)  $4,440     $4,440     $4,440        $4,440       $6,390        

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Acme Enterprises began the new year owing its suppliers $3,000 for merchandise purchased last year. Acme then sold half of this
Sedaia [141]

Answer:

Acme's current balance of accounts payable is $6000

Explanation:

The closing balance of accounts payable can be calculated using the opening balance and adjusting the changes during the period to the opening balance.

The closing balance can thus be calculated as:

Closing balance = Opening balance + Credit purchases - Payment to Accounts payable

Closing balance = 3000 + 4000 - 1000

Closing balance = $6000

8 0
3 years ago
PLEASE ANSWER SOON!!!!
Gwar [14]
Currency I think.  It's given in exchange for an item.
4 0
3 years ago
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investment is made at r percent compounded annually, at the end of n years it will have grown to A = P(1 + r)n . An investment m
bixtya [17]

Answer:

$1,500

Explanation:

Given the compounding formula A = P(1+r)^{n}

And given an investment (P), made at 16% compounded annually (r), and an ending amount of $1,740 (A) at the end of the year (n = 1 year), the original amount invested (P) can be computed as follows.

1,740 = P(1+0.16)^{1}

1,740 = P * 1.16

= P = 1,740/1.16 = 1,500.

Therefore, the original investment was $1,500.

3 0
3 years ago
VI. Here we consider the paradox of saving one last time in the context of the AS-AD model. Suppose the economy begins with outp
Nonamiya [84]

Answer:

The solution to this question can be defined as follows:

Explanation:

In point a:

When consumer interest decreases, => consumers begin and save less and more, => MPC decreases; => the "IS" curve becomes flatter; => "IS" turns inside. Currently, 'AD' shows together all the goods and financial sector, => as the 'IS' curve adjusts inside the industry, => the 'AD' would also change to the left.

In point b:

Take into account the SR models of "IS-LM" and "AD-AS." 

Therefore there is the case of a full job only at the beginning; => its optimum between "IS1" and "LM" in the "IS-LM" model; as well as the main equilibrium among "AD1" and "AS" in the "AD-AS" model "E1'," => the original equilibrium among "Y=Yf," "r=r1" and "P=P1." That now the consumer is reducing the confidence, => the 'IS' curve becomes shifting IMEI 'IS2,' => provided the 'LM' curve, that new balance is 'E2.' That's why the price in the SR is calculated, the AS will change =>, however, the AD also will shift the "AD2" side and "E2'" will become the equilibrium point in the "AD-AS" system, "r=r2 <r1" and "P=P1" throughout the new "Y=Y2 <Yf" balance.

Please find the graph file in the attachment.

6 0
2 years ago
What item should you look for when adjusting your check register?
Varvara68 [4.7K]

Answer:

The payment and the Deposit

Explanation:

The check register is adjusted using the item: payment and the Deposit and from the point of view of the bank statement the item is the withdrawal and deposit.

8 0
2 years ago
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