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shusha [124]
3 years ago
10

Although the Chen Company's milling machine is old, it is still in relatively good working order and would last for another 10 y

ears. It is inefficient compared to modern standards, though, and so the company is considering replacing it. The new milling machine, at a cost of $40,000 delivered and installed, would also last for 10 years and would produce after-tax cash flows (labor savings and depreciation tax savings) of $8,000 per year. It would have zero salvage value at the end of its life. The Project cost of capital is 9%, and its marginal tax rate is 35%. Should Chen buy the new machine?
Business
1 answer:
mario62 [17]3 years ago
3 0

Answer:

Chen should buy the machine

Explanation:

Buying of the new milling machine would make a business sense if the net present value of the new machine is positive.

By net present value I mean if the today's worth of the asset considering its initial cash outflow and subsequent cash inflows bring about a positive worth today.

Net present value=initial cost-cash inflows(discounted to today's terms)

Net present value=-$40,000+($8000*6.4177)

                          =-$40,000+51341.6

                          =$11,341.60

The 6.4177 is the annuity factor for 9% cost of capital for 10 years.

Since the project has a positive net present value,Chen should buy the machine

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forsale [732]

Answer:

Justified Alignment

Explanation:

The type of text alignment that is frequently seen in newspaper,magazines,and books(both the left and the right sides of the paragraph are perfectly straight).I'm sorry if it was wrong.

brainliest plz ;-;

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At the beginning of the current period, Griffey Corp. had balances in Accounts Receivable of $239,000 and in Allowance for Doubt
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tekilochka [14]

Some hotels ask their guests to rate the hotel's services as excellent, very good, good, and poor. This is an example of the ordinal scale.

What is ordinal scale and instance?

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What is supposed by using ordinal scale?

The Ordinal scale includes statistical facts type in which variables are so as or rank however with out a degree of distinction between categories. The ordinal scale incorporates qualitative information; 'ordinal' that means 'order'. It places variables in order/rank, only allowing to measure the value as better or lower in scale.

What type of scale is ordinal?

The ordinal scale is the 2d degree of dimension that reports the ordering and ranking of records with out establishing the degree of version between them. Ordinal represents the “order.” Ordinal records is known as qualitative data or specific statistics. it is able to be grouped, named and additionally ranked.

Learn more about ordinal scale here :- brainly.com/question/13267344

#SPJ4

6 0
1 year ago
The ________ is a form of business organization that is rapidly gaining popularity in the United States. The concept originated
zvonat [6]

Answer:

Limited liability company

Explanation:

A limited liability company (LLC) is an hybrid entity United States in which the characteristics of corporations and partnerships are combines. In this strategy owners are not personally liable for the firm's debts.

I hope you find this information useful and interesting! Good luck!

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B is the correct answer.
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