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suter [353]
3 years ago
8

Zen Manufacturing Company is considering replacing a four-year-old machine with a new, advanced model. The old machine was purch

ased for $60,000, has an estimated useful life of 10 years with no salvage value, and has annual maintenance costs of $15,000. The new machine would cost $45,000, but annual maintenance costs would be only $6,000. The new machine would have an estimated useful life of 10 years with no salvage value. Using straight-line depreciation and an assumed 40% tax rate, compute the additional annual cash inflow if the old machine is replaced.
Business
1 answer:
dedylja [7]3 years ago
4 0

Answer:

$4,800

Explanation:

The computation of additional annual cash inflow is shown below:-

Saving in Annual Maintenance Cost by new machine = $15,000 - $6,000

= $9,000

Net savings on Maintenance = $9,000 × (1 - 0.4)

= $5,400

Decrease in Depreciation due to purchase of New machinery

= ($60,000 ÷ 10) - ($45,000 - 10)

= $6,000 - $4,500

= $1500  

Tax to be paid due to decrease in Depreciation = Decrease in Depreciation due to purchase of New machinery × Tax rate

= $1,500 × 0.4

= $600

Net Annual cash Inflow due to new machinery =  Net savings on Maintenance - Tax to be paid due to decrease in Depreciation

= $5,400 - $600

= $4,800

So, for computing the additional annual cash inflow we simply applied the above formula.

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krek1111 [17]

Answer:

Answer is option A, i.e. systematic sampling.

Explanation:

Systematic sampling is the type of probability sampling method of selection of samples out of the given group of homogenous nature. In this method, every Kth sample is selected until the required amount is obtained. Here, Chrysler selects every 16th van until he is successful in obtaining the 80 vans. Thus, Chrysler is using a systematic sampling method here.

3 0
3 years ago
Which one of the following statements concerning interest rates is correct?
DIA [1.3K]
Where is the statements or answer choices?
6 0
3 years ago
During the recession of 2008 through 2010, Ford
mars1129 [50]

Answer:

During the recession of 2008 through 2010, Ford saw sales of its vehicles drop and was forced to reduce production. This decision reflected changes in the company's ECONOMIC environment.

Explanation:

The automotive industry crises occurred from 2008 to 2010, it was basically a part of the financial crisis that started in 2007. It also effected most of the Europe, but the results in America were far worst than any other part of the world. The main reason behind it was the rise in the fuel prices for these vehicles. As Ford didn't offer much fuel efficient models for costumers, their sales started to decline, which resulted in the reduction of production, and changed the companies economic environment.

3 0
3 years ago
Acme Corporation has identified several new market opportunities but has limited funds to invest and therefore cannot pursue the
Yakvenalex [24]

Answer:

Option A Planning

Explanation:

The company is focusing on planning which tells about the pros and cons of the investment opportunity. This means planning tells about what issues the company would face after assessing the market research and then the company will form an opinion whether or not the company must invest. This process enables to choose the best option among a number of opportunities due to limiting factors (limited amount of money in this case) which limits the company to invest in coming future.

5 0
3 years ago
Martin transfers real estate with an adjusted basis of $260,000 and fair market value of $350,000 to a newly formed corporation
katrin [286]

Answer:

$40,000

Explanation:

We can calculate recognized gain on the transfer and basis for his stock just by deducting adjusted basis value from liability on the transfered real estate.

Calcuation

iability on the transfered real estate        $300,000

less: adjusted basis value                       ($260,000)

Gain recognized                                        $40,000

3 0
2 years ago
Read 2 more answers
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