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lys-0071 [83]
3 years ago
12

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 $120,000 delivered and installed, would also last for 10 years and would produce after-tax cash flows (labor savings and depreciation tax savings) of $18,900 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? Do not round intermediate calculations. Round your answer to the nearest cent. Negative value, if any, should be indicated by a minus sign.NPV: $ _________
Business
1 answer:
lora16 [44]3 years ago
5 0

Answer:

Chen should buy the new machine since it produces a positive NPV of  $1,294

Explanation:

Summary of the Project Cash Flows is as follows :

Year 0                                  = ($120,000)

Year 1 to Year 10                 =    $18,900

The Project cost of capital = 9%

Calculation of the Project`s NPV :

<em>NPV can be calculated from this summary using a financial calculator as :</em>

<em>CF0 = ($120,000)</em>

<em>CF1  = $18,900</em>

<em>Nj     = 10</em>

<em>i       = 9 %</em>

<em>NPV =  ? </em>

<em>NPV = $1,293.73 or $1,294</em>

The Project is accepted only if it has a Positive NPV

Conclusion,

Chen should buy the new machine since it produces a positive NPV of  $1,294.

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Scenario II:
solmaris [256]

Answer:

Pay tuition first

Explanation:

Mrs. Das should pay the tuition fee of her children first from the $5000 balance with her, this is to enable the children take their exams without any distraction. Failure to pay their tuition may also mean that the children will spend an additional year in some cases. Therefore to avoid inflicting psychological distress on the children, paying the children's tuition will be made priority.

Also, settling Avon before the due date is important too and if I were in her shoes may decide to return or sell some of the goods purchased from her because it could be seen that Mrs. Das was carried away by Avon's stock and purchased more than those things which they needed most importantly.

3 0
3 years ago
Jason Liang has gotten three job offers. He is now looking at the benefits packages of all three to see what he likes and doesn'
Dovator [93]

Answer:

Which step in the career planning process is Jason completing?

E) Evaluate financial and other factors of positions offered.

Explanation:

Career planning is an aspect of career management that involves self evaluation and formulation goals to have a strong career path. It involves constant evaluation in improving skills and setting goals to ensure that one achieves career objectives that they set out. Career planning is a step-wise procedure that is to move an individual to a direction that will make him/her achieve professional excellence in the career that is chosen. The following steps are involved in career planning;

1. Self assessment

Self assessment involves the evaluation of one's own skills and interests and also capabilities to understand what he/she already has and where he/she wants to be in the career path.

2. Research on careers

Once the skills and interests has been assessed, one can research on the careers they would love to pursue to find out if they align with their skills, capabilities and interests

3. Set career objectives

The individual should then set clean career objectives, both short-term and long-term objectives.

4. Learn and improve skills

In order to align with set career objectives, the individual should keep improving and acquiring new skills.

5. Search for a Job

This involves the preparation of Curriculum vitae and supporting documents and search for jobs that offer opportunities that will help in advancing your career.

6. Once you receive job offers, evaluate various factors including the financial ones offered by the positions.

7 0
4 years ago
Because of the sarbanes-oxley act, accountants must maintain financial documents and audit work for
BabaBlast [244]
Because of the Sarbanes-Oxley act, accountants must maintain financial documents and audit work for five years.
This act was enacted in 2002 in the US. It has to do with the accuracy of financial information, and was named after the sponsors of the act, US <span>Senator </span>Paul Sarbanes<span> </span><span>and U.S. Representative </span>Michael G. Oxley.

6 0
3 years ago
Sykora Corp. sells $540,000 of bonds to private investors. The bonds are due in 5 years, have a 6% coupon rate and interest is p
Katen [24]

The effective rate on these bonds is 7.17%

<h3>What is the effective rate?</h3>

The effective interest rate of a bond is the rate that equates the present value of the bond's future interest payments and the bond's maturity value to the bond's current market value.

The effective interest rate can be determined using a financial calculator:

  • Cash flow in year 0 = -490,222
  • Cash flow from period 1 - 12 = 6% x 540,000 = 32,400
  • Cash flow in year 6 or period 12 = $540,000

effective interest rate = 7.17%

To learn more about effective interest rate, please check: brainly.com/question/13735414

#SPJ1

7 0
2 years ago
Paul Rodriguez is the President of WV Railroad. His organization faces issues related to the environment, government regulation,
Ivanshal [37]

Paul Rodriguez who is the President of WV Railroad will need to rely primarily on his <u>Conceptual skills </u>to combat the challenges faced by his organization.

<h3>What are Conceptual Skills?</h3>

Conceptual skills refer to the competence and ability to see the overall organization, grasp how the various elements are interrelated, and analyze how the organization interacts with its external environment.

Conceptual skills also include the capacity to recognize and solve challenges. These abilities enable Presidents or managers of an organization to assess events and devise alternate strategies.

For Paul Rodriguez to combat the challenges faced by his organization, He needs to focus primarily on his conceptual skill as it gives him the ability to:

  • Make swift judgments. 
  • Think critically and
  • Come with a logical solution to those problems, 

Learn more about conceptual skills here:

brainly.com/question/4382381

3 0
2 years ago
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