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tatuchka [14]
3 years ago
6

Firm X is considering the replacement of an old machine with one that has a purchase price of $70,000. The current market value

of the old machine is $18,000 but the book value is $32,000. The firm's tax rate is 30%. What is the net cash outflow for the new machine after considering the sale of the old machine? Disregard the effect of depreciation of the new machine if acquired.
Business
1 answer:
Blababa [14]3 years ago
7 0

Answer:

$47,800

Explanation:

net cash outflow for the new machine = Cost of new machine - salvage value of old machine + tax ( salvage value of old machine - book value of old machine)

$70,000 - $18,000 + 0.3($18,000 - $32,000)

$70,000 - $18,000 + (0.3 × $-14,000) = $47,800

I hope my answer helps you

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Unsolicited email that plagues employees at all levels and clogs email systems is also known as spam. Spam emails are typically flooding everyone within the organization, with the same message and is usually something one would not choose to receive. The majority of spam emails that are sent out are commercial advertising which takes time away from receiving other necessary emails. 
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3 years ago
Annual maintenance costs for a particular section of highway pavement are $2500. The placement of a new surface would reduce the
rewona [7]

Answer:

The maximum investment is $6,360.111

Explanation:

Giving the following information:

The placement of a new surface would reduce the annual maintenance cost to $500 per year for the first 3 years and to $1000 per year for the next 7 years. After 10 years the annual maintenance would again be $2500.

We need to find the net present value. The maximum initial investment will be the amount that makes the NPV cero.

NPV=∑[Cf/(1+i)^n]

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<u>For example:</u>

Year 1= 500/1.05= 476.19

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6 0
3 years ago
Rent control policies tend to cause
Savatey [412]

Answer:

The correct answer is d.  relatively smaller shortages in the short run than in the long run because supply and demand tend to be more inelastic in the short run than in the long run.

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There are no federal rent control laws since the US Supreme Court. UU. He ruled that rent regulation is a state issue. Most states do not have rent control laws regulated. Only some cities and communities in some states continue to apply them.

In the United States, rent control laws were adopted during World War II when the country was experiencing a housing shortage. President Richard Nixon then passed the wage and price laws that influenced the modern rent control laws that are still being applied today. This is why most rent control laws usually apply to older properties built before 1980.

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