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ivolga24 [154]
3 years ago
8

A proposed cost-saving device has an installed cost of $835,000. The device will be used in a five-year project but is classifie

d as three-year MACRS property for tax purposes. The required initial net working capital investment is $95,000, the marginal tax rate is 25 percent, and the project discount rate is 11 percent. The device has an estimated Year 5 salvage value of $145,000. What level of pretax cost savings do we require for this project to be profitable? MACRS schedule (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Business
1 answer:
Luda [366]3 years ago
6 0

Answer:

The level of pretax cost savings we require for this project to be profitable is $203272.65

Explanation:

investment in fixed assets + investment in NWC = pretax cost savings*(1-t)*PVIFA(R%,n) + PV of dep tax shield + PV of salvage  + PC of NWC

let a be the pretax cosy savings, then:

835000 + 95000 = a*(1-0.25)*3.69589702 + 170786.28 + 64537.83 + 56377.88

930000 = 2.771922765*a + 291701.99

2.771922765*a = 638298.01

a = $230272.65

Therefore, The level of pretax cost savings we require for this project to be profitable is $203272.65.

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lisa is an hr manager who has been assigned the task of establishing pay rates to ensure external equity. what should lisa most
Vikki [24]

Lisa is an HR manager who has been assigned the task of establishing pay rates to ensure external equity. Lisa most likely should conduct a salary survey.

The human resources department is responsible for a wide range of functions within a company. HR manager are responsible for recruiting and hiring new employees, managing employee benefits and records, and administering pay.

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6 0
1 year ago
5-When a local auto repair shop sponsors a local softball​ team, it is using the​ _____ element of the promotional mix.
mote1985 [20]

When a local auto repair shop sponsors a local softball​ team, it is using the​ public relations element of the promotional mix.


Public relations allows a company to create a good image with the public through relations and organizations they work with for the public to see. When the local auto repair shop sponsors a local softball team, they are not only advertising their name, but people are recognizing them as a company that gives back. By being active in their community they are building public relations.

3 0
3 years ago
Select cost information for Seacrest Enterprises is as follows: 1,000 units of output 5,000 units of output Total Cost/Unit Tota
gayaneshka [121]

Answer:

c. Utilities expense is a mixed cost and rent expense is a fixed cost.

Explanation:

Seacrest Enterprises

                                        1000 units                       5000 Units

                  Total Cost     Total Cost /Unit     Total Cost       Total Cost/Unit

Direct materials  $5,000               $5.00        $25,000          $5.00

Utilities expense  $1,000                 $1.0 0        $3,750            $0.75

Rent expense        $4,000                    $4.00         $4,000            $0.80

Direct Materials show variable Costs

Utilities expense show mixed costs

Rent Expense show fixed costs

The correct answer is

c. Utilities expense is a mixed cost and rent expense is a fixed cost.

4 0
3 years ago
What will you need to change to make the message appropriate for both a subordinate and other subordinates? Make the message eve
bezimeni [28]

Answer: The correct answer is "Focus on congratulating the team using each individual’s name and use a more formal tone.".

Explanation: In order for the message to be more appropriate both for a subordinate and for other subordinates, the team and each individual subject should be congratulated with their own name so that they feel part of it and feel that their work is important for the team always in a formal tone that maintains respect among all.

4 0
3 years ago
"Assume that Stephanie accumulates savings of $ 2 million by the time she retires. If she invests this savings at 12​%, how much
Lyrx [107]

Answer:

Explanation:

This is an annuity question. Use present value of annuity formula to solve this;

You can use a financial calculator to solve it. I'm using "Texas instrument BA II plus" calculator

<em>(Note: if using the same calculator as above ,enter the numbers first, then each respective function )</em>

N ; duration on investment = 20

I/Y; interest rate per year = 12%

PV; Present value = -2,000,000

FV; Future value = 0 (in annuities, use 0 if not given)

then CPT PMT = 267,757.56

Therefore, Stephanie will be able to withdraw $267,757.56

7 0
3 years ago
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