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soldier1979 [14.2K]
3 years ago
12

The management of Osborn Corporation is investigating an investment in equipment that would have a useful life of 4 years. The c

ompany uses a discount rate of 12% in its capital budgeting. The net present value of the investment, excluding the annual cash inflow, is −$405,014. How large would the annual cash inflow have to be to make the investment in the equipment financially attractive? (Ignore income taxes.)
Business
1 answer:
katovenus [111]3 years ago
3 0

Answer:

The equipment shall be financially attractive when we have annual cash inflow in excess of 132,686

Explanation:

Calculate the PVIFA ( Present value of interest factor annuity ) at r = 12 % and n = 4 years

= [ 1 - (1.12)-4 ] / 0.12 = 3.03734935

Minimum annual cash flow needed = Investment / PVIFA = 403,014 / 3.03734935

= 132686

The equipment shall be financially attractive when we have annual cash inflow in excess of 132,686

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aylor & Edwards Inc. manufactures television sets. Last month, direct materials (electronic components, etc.) costing $550,0
fenix001 [56]

Answer:

Unitary prime cost= $170.24

Explanation:

Giving the following information:

Last month, direct materials (electronic components, etc.) costing $550,000 were put into production.

Direct labor= $880,000.

Manufacturing overhead equaled $495,000

The company manufactured 8,400 television sets during the month.

Unitary prime cost= (direct material + direct labor)/number of units

Unitary prime cost= (550000 + 880000)/8400= $170.24

7 0
3 years ago
1. All of the factors below create a change in demand for alcohol except: a. Change in cigarette prices given that cigarettes an
Gnesinka [82]

Answer:

d. Rise in price of alcohol

Explanation:

Change in Quantity demanded occurs due to change in Price. Change in Demand happens due to factors other than price - Income, Substitute & Complementary good's price, Taste.

Change in alcohol demand - due to substitute Cigarette price change , Change [Decrease] in alcohol demand - due to change in taste based on anti drinking sentiments, higher risk of alcohol liver cirrhosis , Change [Increase] in alcohol demand - due to change [rise] in Income : These all are due to factors other than price & hence are 'Change in Demand'

Rise in price of Alcohol leads to 'Change [Expansion] in Quantity Demanded' due to price change [rise] .

5 0
3 years ago
If the slope of a straight line is minus3 and if Y​ (the variable on the vertical​ axis) decreases by​ 6, then X​ (the variable
Sergio039 [100]

Answer:

X​ (the variable on the horizontal​ axis) will increases by 2.

Explanation:

The slope of a straight line is -3. So, m=6.

Slope of a straight line is

m=\dfrac{Rise}{Run}=\dfrac{\text{Change is y}}{\text{Change in x}}

Y​ (the variable on the vertical​ axis) decreases by​ 6.

Change is y = -6

We need to find the change in ​ (the variable on the horizontal​ axis).

Substitute the given values in the above formula.

-3=\dfrac{-6}{\text{Change in x}}

\text{Change in x}=\dfrac{-6}{-3}

\text{Change in x}=2

Note: All options are incorrect.

Therefore, X​ (the variable on the horizontal​ axis) will increases by 2.

5 0
3 years ago
Identify the coefficient and exponent of these very large and very small numbers represented in scientific notation. Identify ho
viktelen [127]

Answer:

The answer is below

Explanation:

Scientific notation is a way in which real numbers both big and small are represented in decimal form. It is represented by dividing the number into two parts in the form of a × 10^b, where 1 ≤ |a| ≤ 10 and  b is to the power of ten which makes it equal to the original number.

1)\ 5890000=a*10^b=5.89*10^6\\\\hence,a=5.89,b=6\\\\2)\ 0.0000521=c*10^d=5.21*10^{-5}\\\\hence,c=5.21,d=-5

3 0
3 years ago
ohn joined the military during his senior year in high school with a deferred reporting date. He heard about jobs within the mil
nirvana33 [79]

Answer: a. Boot camp is the military's version of employee orientation.

Explanation:

To become an employee in a company, it is standard practice for the employer to give the employee an orientation so that they may be able to perform better at their jobs because they would know what is expected of them and how to go about achieving this.

This is the same for the military. When they send recruits to boot camps, they are doing their version of employee orientation because the recruit will learn what Uncle Sam expects from them and how they are to accomplish these tasks.

5 0
3 years ago
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