Based on the amount it would cost to build the machine and the interest rate as well as the payoff, the following are true:
a. The machine will take a year to build which means the payoff will only start coming in next year.
First find the present value of the perpetuity:
= 70 / 5%
= $1,400
You then need to find the present value of the above in the current period:
= 1,400 / ( 1 + 5%)
= $1,333
NPV is:
= 1,333 - 1,000 cost
= $333
B. If the amount produced increases by 1%, you should use the Gordon Growth Model:
<em>= Next payoff / ( Interest - Growth)</em>
=70/ ( 5% - 1%)
= $1,750
Take this to current year:
= 1,750 / 1.05
= $1,667
NPV will be:
= 1,667 - 1,000
= $667
Find out more about NPV at brainly.com/question/7254007.
Amelia works in the manufacturing career cluster. She probably works in a plant workshop or factory
What is manufacturing career cluster?
To turn raw resources into finished goods, the Manufacturing cluster combines a passion for engineering, design, and technology with planning and organizational abilities.
What is considered a manufacturing worker?
Jobs in manufacturing are ones that start with components or raw materials and end with creating new products. You can find these occupations in a factory, plant, or mill. As long as goods rather than services are produced, they can also exist inside a house.
What are the positive impacts of manufacturing?
The timetable can be optimized by the program to lower errors and inefficiencies and produce products of higher quality. Cost savings over the long term are made possible by technology, which operates with greater efficiency, less waste, and fewer workers.
Learn more about career cluster: brainly.com/question/15225914
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Answer:
Crawford Trucking
Calculation of book value for disposal of two vehicles:
a) The Truck sold on January 2 would not have depreciation expenses computed for it. The book value on January 1 would be the same on January 2. It is not practical to compute depreciation expense for 1 day.
b) The Truck sold on July 9 would have depreciation computed for the year 2018 pro rated for six months. The book value would be less than the Truck sold on January 2.
Explanation:
Depreciation expense may be pro rated depending on the prevailing circumstances. This becomes necessary because the sold unit may not be fully utilized for the period under review. Under the matching principle of generally accepted accounting principles, it is imperative to match revenue to the period they were incurred.
Answer:
a. revenue (R), affecting owner's investment (I)
b. not affecting owner's equity (NOE)
c. expense (E) and affecting owner's investment (I)
Explanation:
Revenues and Expense form Profits which are included in the statement of changes in equity through the Retained Income line item, thus these two also affect owners investment.
