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anzhelika [568]
2 years ago
6

A new machine requires an investment of $630,000 and will generate $100,000 in cash inflows for 7 years, at which time the salva

ge value of the machine will be $130,000. Using a discount rate of 10%, the net present value of the machine is $_________
Business
1 answer:
Orlov [11]2 years ago
4 0

Answer:

$-76,447.56

Explanation:

Net present value is the present value of after-tax cash flows from an investment less the amount invested.  

NPV can be calculated using a financial calculator  

Cash flow in Y0 = -630,000

Cash flow in Y1 - Y6 = 100,000

Cash flow in Y7 = 100,000 + 130,000

I = 10%

npv = $-76,447.56

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

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budgets that are revised by adding a new quarterly budget to replace the quarter that just elapsed are called:
Natali [406]

Budgets that are revised by adding a new quarterly budget to replace the quarter that has just elapsed are called rolling budgets.

<h3 /><h3>What is rolling budget?</h3>

It corresponds to a more flexible and adaptable type of budget, generally used for companies whose business can be more volatile.

It is used continuously and extended, being updated during the period for the addition of new variables in the existing model. This being valid for use in the future budget.

Any type of budget is a necessary tool for organizations to be able to plan the use of their resources in a structured way that is consistent with their needs and objectives.

Therefore, a continuous or rolling budget helps companies adapt to trends, risks and characteristics of a dynamic market that is constantly changing.

Find out more about rolling budget on:

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#SPJ1

6 0
1 year ago
On January 1, Year 1, the Accounts Receivable balance was $20,100 and the balance in the Allowance for Doubtful Accounts was $1,
wel

Answer:

$18,400

Explanation:

A/R                                                               $20,100

Less: Allowance for doubtful accounts         ($1,700)

net realizable value of A/R                             $18,400    

The write off amount is already included in allowance for doubtful accounts on provision basis therefore it can't be separately deducted again.                                                

4 0
3 years ago
As an alternative to managing stressors, many organizations teach employees to use _____ to counteract the effects of stressors
Korolek [52]

Answer:

relaxation techniques

Explanation:

Many companies know a day teach employees relaxation techniques in order to counteract the effects of stressors. Such techniques can include breathing focus methods, Yoga, Tai Chi, Qigong, Mindfulness Meditation, etc. These all help relax both the body and mind to maintain a healthy balance. These relaxation techniques are extremely popular within the tech industry since many programmers and individuals in this industry work insanely long hours.

8 0
3 years ago
For 2015, Bakers Manufacturing uses machine-hours as the only overhead cost-allocation base. The direct cost rate is $3.00 per u
Vlad1618 [11]

Answer:

The profit margin earned if each unit requires two machine-hours is 25%

Explanation:

For computing the profit margin, first, we have to compute the estimated overhead rate per unit which is shown below:

Estimated Overhead rate = (Estimated manufacturing overhead costs) ÷ (estimated machine hours)

= ($240,000) ÷ (40,000 machine hours)

= $6

Now the profit per margin would equal to

= Selling price per unit - direct cost per unit - overhead cost per unit × number of required machine hours

= $20 - $3 - $6 × 2

= $5

Now the profit margin would equal to

= (Profit per unit) ÷ (selling price per unit) × 00

= ($5 ÷ $20) × 100

= 25%

4 0
3 years ago
Zooey is a single mother of two young children whose husband died in a tragic car accident. She earns $20,000 per year working a
dalvyx [7]

Answer:

b. She receives $10,000

Explanation:

Taxes owed = (1/4 of income) - $15,000.

Taxes owed = (1/4 x 20,000) - $15,000.

= 5,000 - 15,000 => -10,000

Hence, she receives $10,000 from the government.

A negative income tax is a system where people earning below a certain amount receive supplemental pay from the government instead of paying taxes to the government.

8 0
3 years ago
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