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kifflom [539]
3 years ago
9

A 4-year project has an annual operating cash flow of $47,000. At the beginning of the project, $3,800 in net working capital wa

s required, which will be recovered at the end of the project. The firm also spent $21,500 on equipment to start the project. This equipment will have a book value of $4,300 at the end of the project, but can be sold for $5,400. The tax rate is 34 percent. What is the Year 4 cash flow
Business
1 answer:
Sergeeva-Olga [200]3 years ago
3 0

Answer:

$55,826

Explanation:

The computation of year 4 cash flow is shown below:

= Operating cash flow + required net working capital + after cash flow arise from salvage value

where,

Operating cash flow is $47,000

Required net working capital is $3,800

After cash flow arise from salvage value is

= Sale value - gain on salvage value × tax rate

The gain on salvage value is

= $5,400 - $3,800

= $1,100

So the after cash flow arise is

= $5,400 - $1,100 × 34%

= $5,400 - $374

= $5,026

Now the year 4 cash flow is

= $47,000 + $3,800 + $5,026

= $55,826

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If the Fed increases the discount rate, which of the following accurately describes the sequence of events that will follow in t
AnnZ [28]

Answer: A. Reserves ↓: Excess reserves ↓; Loans ↓; Deposits ↓; Money supply ↓

Explanation:

The discount rate is the rate at which the Fed lends money to banks and other depository type institutions. Normally banks have a reserve requirement that the Fed requires of them which states how much they are to leave with the Fed as a reserve. Banks tend to fall short of this reserve sometimes and so can borrow from the Fed to balance it off.

If the Fed increase the rate at which these banks can borrow, they will not want to do so thus leaving their Reserves at the Fed lower than it should be. They will then use their excess reserves which is money kept in reserve more than the Fed requires, to balance off their reserve at the Fed.

As a result of this reduction in their Excess reserve, they will have less money to give out as loans. With less loans being made, people will not have as much money to deposit after taking the loans. Money supply will then fall as a whole.

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3 years ago
5.
sineoko [7]
Wait im searching for answers
4 0
3 years ago
Answer this question based on the following information about a company: Revenues, $20 million; costs, $15 million; assets, $30
andrezito [222]

Answer:

$60,000,000

Explanation:

Market value is simply defined as the price an asset would fetch in the marketplace, or the value that the investment community gives to a particular equity or business.

Formula for market value is given as

Company's Share × Current Market price per share.

Therefore, given that

Numbet of shares = 3,000,000

Price of share = $20

Then, MV = 3,000,000 × 20

= $60,000,000

8 0
3 years ago
Read 2 more answers
He people who promote innovations as part of the process of transmission are called? adopters. transmitters. innovators. entrepr
Alina [70]

The people who promote innovations as part of the process of transmission are called "Transmitters".

<h3>What do you mean by term Innovations?</h3>

An innovation refers to the action or process of changing/transforming something. It an be used to make a process more effective.

In business, innovation often results when ideas are applied by the company in order to further satisfy the needs and expectations of the customers.

Adding to it, the transmitters are those who are helpful in the process of transmission of something. Rest all options like A, C and D are incorrect.

Therefore, correct option is B.

Learn more about transmitters, refer to the link:

brainly.com/question/2084370

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2 years ago
Wessner Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.20 Direct labor $
brilliants [131]

Answer:

The correct answer is D: $13

Explanation:

Giving the following information:

Cost per Unit Cost per Period:

Direct materials $ 6.20

Direct labor $ 2.80

Variable manufacturing overhead $ 1.45

Fixed manufacturing overhead $ 12,000

Sales commissions $ 1.00

Variable administrative expense $ 0.55

Fixed selling and administrative expense $ 4,000

Price= 25

Contribution margin= Price - variable costs

Variable costs= direct materials + direct labor + variable manufacturing overhead + sales commissions + variable administrative expense

Variavle costs= 6.20 + 2.80 + 1.45 + 1 + 0.55= $12

Contribution margin per unit= 25 - 12= $13

4 0
3 years ago
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