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Alex_Xolod [135]
2 years ago
12

You have been asked by the president of your company to evaluate the proposed acquisition of a new special-purpose machine. The

machine's total price including installation and delivery is $70,000. The machine falls into the four-year class using straight line depreciation method, and it will be sold after four years for $0. The use of this new machine will bring revenue of $25,000 annually for 4 years, and will have annual maintenance expense of $5,000. The firm's marginal tax rate is 40 percent and the required rate of return is 10%. (Please show your work)
a. What is the initial investment ? (keep your number as a whole number: example of answer format: $1,000)
b. What is the Cash Flow at year 1 ? ( keep your number as a whole number: example of answer format: $1,000 )
c. What is the Cash Flow at year 4 ? ( keep your number as a whole number: example of answer format: $1,000 )
d. What is NPV ? ( keep your number to two decimals: example of answer format: $1,000.00 or if it's negative, then -$1,000.00)
Business
1 answer:
Vesnalui [34]2 years ago
8 0

Answer:

Explanation: download the manual if you may get and get solutions

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find the selling price per pound of a coffee mixture made from 8 pounds of coffee that sells fo $9.20 per pound and 12 pounds of
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Answer:

$6.98 per pound

Explanation:

The computation of the selling price per pound is shown below:

As we know that

8 pounds of coffee sells for $9.20 per pound which equal to

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= $73.6

And, 12 pounds of coffee is for $5.50 per pound which equal to

= 12 pounds × $5.50 per pound

= $66

The total value would be

= $73.6 + $66

= $139.60

And, the total number of pounds would be

= 8 pound + 12 pound

= 20 pounds

And we assume the selling price per pound be X

So, the equation would be

$139.60 = 20 pounds × X

So, X would be

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4 0
3 years ago
A firm can produce steel with or without a filter on its smokestack. If it produces without a filter, the external costs on the
Licemer1 [7]

Answer:  B. The firm would install the filter at a cost of $ 300,000.

Explanation:

If the community owns the property rights, they would be able to demand that the firm pay the external cost of $500,000 per year.

If on the other hand the company installed a filter, it would cost them $300,000 but then they would not have to pay the community the $500,000.

The lower cost option would be to install the filter for $300,000 which is what the firm would do.

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What does someone need to do before they can become certified, licensed, or registered?
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8 0
3 years ago
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On January​ 1, 2018, Jordan Company acquired a machine for​ $1,090,000. The estimated useful life of the asset is five years. Re
anyanavicka [17]

Answer:

$206000.

Explanation:

Given: Asset purchase value = \$ 1090000

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Now, we will calculate depreciation per year using straight line method.

Depreciation= \frac{(purchased\ value\ of\ asset - residual\ value)}{estimated\ useful\ life\ of\ asset}

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Explain the relationship between consumer expectations and economic performance
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