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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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maks197457 [2]

The differences between the two are that <u>supply chain </u>involve(s) both manufacturing and procurement with multiple manufacturers, suppliers, and retail companies.<u> logistics </u> refers to distribution activities in one company.

<h3>What is Supply chain and logistics?</h3>

Supply chain has to do with production or manufacturing and distribution of goods produce to suppliers, retailers or customers while logistics has to do transporting or distribution of goods or products.

Supply chain involve the following:

  • Manufacturer
  • Supplier
  • Warehouses
  • Distribution
  • Retailers

Logistics involve:

  • Warehouse
  • Distribution

Inconclusion <u>supply chain </u>involve(s) both manufacturing and procurement with multiple manufacturers, suppliers, and retail companies.<u> logistics </u> refers to distribution activities in one company.

Learn more about supply chain and logistics here:brainly.com/question/25160870

4 0
2 years ago
(1.1: Modeling) Before paying employee bonuses and state and federal taxes, a company earns profits of $103,000. The company pay
yan [13]

Answer:

Amount paid in;

Bonuses to employees = $5,150

State tax = $5,150

Federal tax = $41,200

Explanation:

The bonus paid to employees, federal tax and state tax are all a percentage of the profit made by the company.

The amount of each of these elements may be computed by applying the applicable percentage on the profit made by the company before any of these deductions.

amounts paid in;

bonuses =  5% * $103,000

= $5,150

state tax  =  5% * $103,000

= $5,150

and

federal tax =  40% * $103,000

= $41,200

8 0
2 years ago
Wildhorse Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be d
9966 [12]

Answer:

depreciation expense 2021 = $6,200

depreciation expense 2022 = $6,700

Explanation:

depreciable value = $29,000 - $200 = $28,800

depreciation expense per mile driven = $28,800 / 144,000 = $0.20

number of miles driven during 2021 = 31,000

depreciation expense 2021 = 31,000 x $0.20 = $6,200

number of miles driven during 2020 = 33,500

depreciation expense 2022 = 33,500 x $0.20 = $6,700

8 0
3 years ago
I am planning to reduce the duration of lunch break by 10 minutes. Does anyone have any objection to this policy? In the context
NikAS [45]

Answer:

a) the leader presents ideas and invites questions.

Explanation:

Leadership continuum is a leadership style which describes the relationship with respect to the autonomy that a manager gives to his subordinates, and the level of authority used by him/ her. This is a inverse proportional relation which reduces the authority of the manager when team's freedom increases. It debases an autocratic rule by a manager, especially in taking decisions.

The example cited in the question is a way of taking decision by suggestions by expecting questions from his team.

5 0
3 years ago
If Abrams Company has an inventory turnover of 7.3 and a receivables turnover of 9.6, approximately how long is its operating cy
Leviafan [203]

Answer:

It is 16.9

Explanation:

Operating cycle = Inventory turnover + Receivable turn over - payable turnover

Hence, Operating cycle = 7.3+9.6

=16.9

Operating cycle implies how long it takes us to convert entire production process to cash .

It has an direct relationship with the level of working capital required. The higher the operating cycle, the higher the working capital investment required to keep the operation running.

A cash driven businesses like restaurant which hardly sell on credit will certainly have shorter operating cycle compared to a manufacturing company.

6 0
3 years ago
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