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Vinil7 [7]
2 years ago
7

Buff is considering a new packaging machine. The initial cost is $10,000 and we would save $4,000 per year in labor costs. If ou

r MARR is 12% and our projects must have a 3-year discounted payback period, should we purchase this packaging machine?
Yes
No
Not enough nformation to answer.
Business
1 answer:
vivado [14]2 years ago
8 0

Answer:

NO

Explanation:

Discounted payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative discounted cash flows

For the machine to be accepted, the total amount invested should be recovered in three years or less

Amount recovered = - cost of the project + discounted value of the cash flow

Amount recovered in year 1 = -10,000 + (4000 / 1.12) = -6,428.57

Amount recovered in year 2= -6,428.57 - (4000/ 1.12^2) = -3239.74

Amount recovered in year 3=  -3239.74 + (4000/ 1.12^3) = -392.62

the project would not be accepted because the amount invested would not be recovered within 3 years

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3 0
3 years ago
Clampett, Inc. has been an S corporation since its inception. On July 15, 2019, Clampett, Inc. distributed $40,500 to J. D. His
AlexFokin [52]

Answer:

c. None of the choices are correct

Explanation:

Calculation of capital gain  

Basis of stock                                       $35,000

Allocated ordinary income               $12,000

Total basis                                       $47,000

Amount distributed                       $40,500

Therefore, Since basis is more than distribution capital gain, The capital gain is $0.

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3 years ago
Mcduff's boss told him he needs to be more concise in his report writing. to do this, mcduff should?
kirza4 [7]

Macduff's boss told him he needs to be more concise in his report writing. to do this, MacDuff should delete the <u>verbiage </u>form the report.

<h3>What is verbiage?</h3>

Verbiage simply means words that don't reduce the meaning of the information when they are deleted.

In order words they are needless and hence need to be removed.

Macduff can do this manually or he can do so with the aid of online tools that are programmed to recognize unnecessary words and options for revision.

The importance of being concise is that  it makes the report easier to read, thus improving effectiveness of communication.

Learn more about report writing at;
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7 0
2 years ago
What’s at least 5 daily responsibilities of polygraph analyst
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Answer: Why is it advantageous to take market trends into consideration when planning a career path?

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Explanation:

6 0
3 years ago
Company A has 279,000 basic shares outstanding and 26,000 outstanding options and warrants. The exercise price of these options
lesya [120]

Answer:

c. 342,000

Explanation:

Missing question and Multiple Option <em>" & if-converted methods?  305,000, 292,000, 342,000, 345,333"</em>

<em />

Proceeds expected if option are exercised = No of outstanding options and warrants * Per share exercise price

Proceeds expected if option are exercised = 26,000 * $3.75

Proceeds expected if option are exercised = $97,500

Number of treasury shares expected to be purchased = Proceeds expected if option are exercised  / Average market price per share

Number of treasury shares expected to be purchased = $97,500 / $7.50

Number of treasury shares expected to be purchased = $13,000

Number of new shares issued if conversion is effected = Amount of convertible bonds reported / Effective conversion price per share

Number of new shares issued if conversion is effected = $200,000 / $4

Number of new shares issued if conversion is effected = 50,000

Calculation of the Diluted Share Outstanding

Number of basic shares outstanding                                   279,000

Add: Number of new shares through options                     26,000

Add: Number of new shares through conversion issued   50,000

Less: Number of treasury shares to be purchased             <u>(13,000)  </u>

Diluted Share Outstanding                                                   <u>342,000</u>

8 0
2 years ago
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