1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
dsp73
3 years ago
12

Golddex Corporation has decided to sell some old equipment to make room for a new project. The salvage value of the equipment is

$220,000. The firm would be able to recover $60,000 in working capital when the equipment is sold. Their tax rate is 21%. The old equipment has a book value of $140,000. What is the terminal cash flow?
Business
1 answer:
never [62]3 years ago
7 0

Answer:

The correct answer is $263,200.

Explanation:

According to the scenario, the given data are as follows:

Salvage value =$220,000

Working capital = $60,000

Book value = $140,000

Tax rate = 21%

So, Gain on disposal = Salvage value - Book value

= $220,000 - $140,000 = $80,000

Now, Tax paid on gain on disposal value = Gain on disposal × tax rate

= $80,000 × 21% = $16,800

So, Salvage value after tax = Salvage value - Tax paid on gain on disposal value

= $220,000 - $16,800

= $203,200

So, we can calculate the terminal cash flow by using following formula:

Terminal cash flow = Salvage value after tax + Working value

= $203,200 + $60,000

= $263,200

You might be interested in
Martha signs a listing agreement with Broker Patrick. Which of the following would probably not be found in the agreement they s
Vlad [161]

Answer:

4. Martha's average utilities

Explanation:

As in the question, it is given that Martha has signed a listing agreement with the Broker Patrick.  

The listing agreement refers to a contract between the real estate broker and the real estate owner that allows the broker the authority to act as a property sales agent.

The terms and conditions which are mentioned the listing contract are presented below:

a. Starting and expiration date of the contract

b. Patrick's commission

c. Martha's priced. Other terms and conditions

8 0
4 years ago
As a manager, Marcus is very conscious of how his subordinates feel about whether their work outcomes are as expected relative t
Nataly [62]

Answer:

equity

Explanation:

From the question we are informed about, Marcus who is a manager and very conscious of how his subordinates feel about whether their work outcomes are as expected relative to the effort and contributions they put in. This case is an example of the equity theory. Equity theory can be regarded as theory that base give explanation or allows to know if the distribution of particular resources is been fair to both involved relational partners.

To measure, Equity the ratio of contributions/cost is been compared with benefits/rewards outing

each person in consideration.

ratio of inputs to that of outcomes gives the structure of equity in a company.

4 0
3 years ago
According to Census Bureau and Federal Reserve surveys, about 50 percent of all new businesses begin with less than ____ in tota
vodka [1.7K]

Answer:

$30,000

Explanation:

According to Census Bureau and Federal Reserve surveys, about 50% of all new businesses begin with less than $30,000 in total capital to start small businesses though the average capital to start small businesses is $80,000. The reason is not far fetched and one of it is that small businesses have limited opportunities to get capital to start a business. Small business capital is usually from the owner's personal savings or from family members or friends as little help is rendered by the lending institutions. Small businesses majorly need financing to expand their businesses. The inability of small businesses to get good capital for their businesses causing difficulties in growing small businesses.

7 0
3 years ago
Describe the current global strategy and provide evidence about how the firm’s resources and competencies support the pressures
oksian1 [2.3K]

Describe the current global strategy and provide evidence about how the firm’s resources and competencies support the pressures regarding costs and local responsiveness. Describe entry modes they have usually used, and whether the modes are appropriate for the given strategy is described below

Explanation:

Global Strategy’ is a shortened term that covers three areas: global, multinational and international strategies. Essentially, these three areas refer to those strategies designed to enable an organisation to achieve its objective of international expansion.

In developing ‘global strategy’, it is useful to distinguish between three forms of international expansion that arise from a company’s resources, capabilities and current international position.

Implications of the three definitions within global strategy:

International strategy: the organisation’s objectives relate primarily to the home market.

Multinational strategy: the organisation is involved in a number of markets beyond its home country. But it needs distinctive strategies for each of these markets because customer demand and, perhaps competition, are different in each country. Importantly, competitive advantage is determined separately for each country.

Global strategy: the organisation treats the world as largely one market and one source of supply with little local variation. Importantly, competitive advantage is developed largely on a global basis.

3 0
3 years ago
In the Basic Solow Model without exogenous growth, if the population, and therefore the labor supply, doubles:_______
otez555 [7]

Answer:

In the Basic Solow Model without exogenous growth, if the population, and therefore the labor supply, doubles <u>steady state output per worker will be unchanged.</u>

Explanation:

According to the given scenario options A, B and C are ruled out. Hence, the answer to the above question is option D. Steady state output per worker will be unchanged.

Hope this helps.

 

3 0
3 years ago
Other questions:
  • Takt time is calculated as Demand volume divided by customer required volume Customer required volume divided by available work
    12·1 answer
  • The initials GAAP stand for a.general accounting procedures b.generally accepted accounting principles c.generally accepted acco
    8·1 answer
  • _____ are more important in situations where the sales cycle is long and sales are few because what a salesperson does can be ob
    12·1 answer
  • ​a primary source of organizational culture is _____.
    12·1 answer
  • The Product Owner of a team was asked for a forecast for the completion of a product release. There were 140 story points worth
    9·1 answer
  • After meeting with your new client, Sid, you prepared his current financial statements. Which part of the financial planning pro
    10·1 answer
  • Kelly finds that her intended improvement, a veterinary clinic, is allowed by the zoning classification of her land only if she
    9·1 answer
  • What are the essential elements of a great presentation?
    9·1 answer
  • A company has been determined the they plan to invest $9,800,000 in a new solar field in November 2020. The investment will star
    6·1 answer
  • Bank a has total deposits of $125 million and total reserves of $26 million. the required reserve ratio is 15 percent. the bank
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!