A company is considering the purchase of a new machine for $55,000. Management predicts that the machine can produce sales of $1
6,700 each year for the next 10 years. Expenses are expected to include direct materials, direct labor, and factory overhead totaling $7,300 per year including depreciation of $4,700 per year. Income tax expense is $3,760 per year based on a tax rate of 40%. What is the payback period for the new machine
The answer is: It's important to apply subtlety and sensitivity.
If we do not use subtle/sensitive language when we market to ethnic consumers, there would be a good chance that the ethnic consumers would feel objectified and perceived that their culture is simply used as a marketing tool by our company. This would decrease their likelihood of using the product.
Option D (are cash..........inflation) is the right alternative.
Explanation:
Even before forecasting or considering a project's investment returns, this same important thing to recognize or significant observation is capital investment.
Quite often approximate cash flows as well as being consistent throughout the cure of economic growth around an integrated or incremental perspective.
Some other alternatives given are not linked to the scenario in question. That is indeed the right choice, therefore.
The company should use the taxable income of $305,600 to calculate it's income tax expense, as that is what they will actually have to pay in taxes after year-end.
Tringali report as its income tax expense for its first year of operations: