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zloy xaker [14]
3 years ago
14

Topsider Inc. is evaluating whether to replace an existing leather-cutting machine with a new machine that has a five-year life.

The old machine has current salvage value equal to $3,000; its salvage value in five years is expected to be zero. The net (after-tax) salvage value of the new machine in five years is expected to be $6,000. If the new machine is purchased, Topsider will have to invest $3,520 in its net working capital. Based on this information, what is the new machine's terminal cash
Business
1 answer:
pogonyaev3 years ago
5 0

Answer:

$9,520

Explanation:

Terminal cash flow = After tax salvage value of new machine + Recovery of net working capital

Terminal cash flow = $6,000 + $3,520

Terminal cash flow = $9,520

So, the new machine's terminal cash is $9,520.

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Unions and productivity In some industries, the labor productivity of union workers exceeds the labor productivity of nonunion w
MA_775_DIABLO [31]

Answer:

C. Because union wages exceed nonunion wages, employees may be encouraged to work harder.

D. Unions may provide information to companies about how to improve operations and eliminate problems in the work environment.

Explanation:

Workers' unions have been instrumental in ensuring that workers work in the environment that is safe and conducive. Not only that, the unions also ensure that the workers are remunerated fairly for their labor and services. Thus, the wages of the unioned workers are higher because unions bargain for the increase in the worker's wages.

Furthermore, the worker's union work hand in hand to exchange information about the conditions of the workers and how the companies can eliminate the potential problems that result in worker dissatisfaction. In addition, the unions protect workers from exploitation.  

4 0
3 years ago
Splish Brothers Inc. uses a perpetual inventory system. Data for product E2-D2 include the following purchases.
harkovskaia [24]

Answer:

Splish Brothers Inc.

Perpetual Inventory Schedule using moving average costs:

Date       Description   Number   Average Cost  Total Cost          Cost

                                     of Units                                                   Balance

May 7         Purchase       105               $7                $735            $735

June 1        Sales              (55)              $7                  385              350

July 28       Purchase         63             $18                1,134            1,484

August 27  Sales              (84)            $13.1327        1,103               381

Explanation:

a) Data and Calculations:

Date                          Number of Units   Unit Price    Total Costs

May 7         Purchase           105                $7                $735

June 1        Sales                  (55)               $7                  385

July 28       Purchase            63              $18                 1,134

August 27  Sales                 (84)             $13.1327        1,103

Cost of goods sold = $1,488 ($385 + $1,103)

Ending inventory =       $381

8 0
3 years ago
In 2016, due to a change in marketing forecasts, Barney Corporation reduced the projected life of its patent for producing round
Effectus [21]

Answer:

(C) Unaffected.

Explanation:

This is a change in estimate. No prior period adjustment is needed.

3 0
3 years ago
Ariel holds a $5,000 portfolio that consists of four stocks. Her investment in each stock, as well as each stockâs beta, is list
Natali5045456 [20]

Answer:

1) Flitcom Corp (Beta = 0.60)

2) Tobotics Inc. (s.d. = 11%)

Explanation:

1. Suppose all stocks in Ariel's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio?

The indicator of the market risk is the Beta. It relates the variation of the price or value of the stock relative to the variation of the total stocks in the market.

The value of Beta indicates how risky is a stock relative to the risk of the market. A Beta =1 means it has the same systemic risk as the market. If Beta<1, the stock is less volatile than the market, and if Beta>1, it is more volatile than the market.

Then, the stock with less value of Beta will contribute the least risk to the portfolio.

This is the case of Flitcom Corp (Beta=0.60)

2. Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk?

The stand-alone is reflected by the standard deviation. The less the standard deviation, the less risk of the stock (measured only the stock variability).

This is the case of Tobotics Inc. (s.d. = 11%)

7 0
4 years ago
At Mattress Store, Nate signs a contract to buy bedroom furniture. The contract sets a schedule of $500 monthly payments, subjec
Anettt [7]

Nate finds the language of the contract to buy bedroom furniture difficult to understand due to "procedural unconscionability".

<h3>What is procedural unconscionability?</h3>

Unconscionability that results from the contract-making process rather than from a contract's terms that are inherently unfair or unreasonable

Examples of Procedural Unconscionability is-

  • influencing an underprivileged party who would not have otherwise signed the contract to do so.
  • minimising important clauses in contracts for the sake of the underdog.
  • If one side uses threats of violence against the other party, his family, or friends, this is known as coercion.

Therefore, Procedural unconscionability is based on elements that deprive a party of a meaningful choice, such as customer ignorance or a significant amount of unclear fine print.

To know more about elements required in contract-making, here

brainly.com/question/8116487

#SPJ4

6 0
2 years ago
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