It is saying that it was $9 and it was then marked down on sale for 7:00. The tag is also telling you the size.
Answer:
Explanation:
South Tel Communications is considering the purchase of a new software management system. The system is called B-image, and it is expected to drastically reduce the amount of time that company technicians spend installing new software. South Tel's technicians currently spend 6,000 hours per year on installation which cost South Tel $25 per hour. The owners of the B-image system claim that their software can reduce time on task by at least 25%. The system requires an initial investment of $55,000 and an additional investment of$10,000 for technician training on the new system. Annual upgrades will cost the firm $15,000 per year. Because the investment is comprised of software, it can be fully expensed in the year of the expenditure (no depreciation). South Tel faces a 30% tax rate and uses a 9% cost of capital to evaluate projects of this type.
A. Assuming that South Tel has sufficient taxable income from other projects so that it can immediately expense the cost of the software, what are the free cash flows for the project for years zero through five?
Total (65,000)
Cash flow year 1 - 5
Saving on installations per year 450,000
Less: Annual upgrades ( 15,000)
Total 435,000
Less: Tax (30%) (130,500);
Total project free cash flow 304,500.answer
Answer:
A. Expensed when incurred.
Explanation:
An incurred expense is basically the cost that are unpaid for. Paid expenses are incurred expenses once you paid for it (Eg credit card).
Answer:
$648,000
Explanation:
Given that;
Net income = $360,000
Interest expense = $72,000
Times interest earned = 10
Net Income + Interest expense + Tax expense ÷ Interest expense = Times interest earned.
($360,000 + $72,000 + Tax expense) /$72,000 = 10
Tax expense = $288,000
Therefore;
Sunderland's income before taxes for the year
= Net income + Tax expense
= $360,000 + $288,000
= $648,000
