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Tpy6a [65]
3 years ago
15

Granfield Company has a piece of manufacturing equipment with a book value of $44,500 and a remaining useful life of four years.

At the end of the four years the equipment will have a zero salvage value. The market value of the equipment is currently $22,900. Granfield can purchase a new machine for $129,000 and receive $22,900 in return for trading in its old machine. The new machine will reduce variable manufacturing costs by $19,900 per year over the four-year life of the new machine. The total increase or decrease in net income by replacing the current machine with the new machine (ignoring the time value of money) is:
Business
1 answer:
dmitriy555 [2]3 years ago
5 0

Answer:

$26,500 decrease

Explanation:

The total increase or decrease in net income by replacing the current machine with the new machine = Saving in variable manufacturing costs + Sale value of old machine - Purchase price of new machine

= ($19,900*4) + $22,900 - $129,000

= $79,600 + $22,900 - $129,000

= $26,500 decrease

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Explanation:

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3 0
2 years ago
In a(n) ________, members eliminate internal trade barriers, adopt a common external policy toward nonmembers, and eliminate bar
Elanso [62]

Option B, In a(n) , common market members eliminate internal trade barriers, adopt a common external policy toward nonmembers, and eliminate barriers to the movement of the factors of production.

A legal agreement that creates a collection of nations that adopt a single external policy  tariff is known as a common market. Countries that participate in a single market also permit free commerce as well as the free movement of capital and labor within the group's members. It establishes a common external tax on imports in the market. Members of this market thus do away with trade restrictions and embrace or adhere to a common policy.

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6 0
1 year ago
Conventional wisdom says one should measure a manager's investment performance over an entire market cycle. What arguments suppo
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Answer:

In every form of analysis, it is always safer to take a macro or holistic view of the situation. This is true for the investment performance of a manager. One investment decision that went right does not suffice to classify an investment portfolio manager as proficient, neither is one that went south enough to tag him deficient.

The forecasting ability of managers, on the balance of probability, will vary for different cases, with a helicopter view of providing a more accurate measure of their performance.

However, if it was possible to analyse the market for volatility and adjust our forecasts it becomes unnecessary to look at and analyse all the information from a 12-month cycle before coming to terms about the performance of the manager.

Cheers!

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3 years ago
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notsponge [240]

Answer: (C) Decline  

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 Therefore, Option (C) is correct answer.

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