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juin [17]
3 years ago
6

You have been asked by the president of your company to evaluate the proposed acquisition of a new special-purpose truck for $25

0,000. The truck falls into the MACRS three-year class, and it will be sold after three years for $50,000. Use of the truck will require an increase in NWC (spare parts inventory) of $5,000. The truck will have no effect on revenues, but it is expected to save the firm $80,000 per year in before-tax operating costs, mainly labor. The firm's marginal tax rate is 21 percent. What will the operating cash flow for this project be during year 3
Business
1 answer:
JulijaS [17]3 years ago
5 0

Answer:

Please find the complete solution in the attachment file.

Explanation:

Please find the attachment table for the 3 years of cash flow:

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Assume that the Texas legislature is not in session and the economy has gone into recession. What must occur before legislators
Vadim26 [7]

Complete question:

Assume that the Texas legislature is not in session and the economy has gone into recession. What must occur before legislators can act to reformulate policy

A. The legislature as a body must wait for the comptroller to decertify the budget.

B. The legislature must wait for a special session to be called.

C. The legislature must wait for economic conditions to deteriorate to a point where a constitutional provision allowing deficit spending kicks in.

D. The legislature must wait until the federal government increases monies for state governments.

Answer:

The legislature must wait for a special session to be called.

Explanation:

Once the Texas legislature passes a budget and the governor has acted, after 6 months does the budget go into effect.

The Texas legislature passed a law that requires that an agency take a specific action in order to solve a problem. At formulation stage of the policy making process did the passage of this law occur

A special session (also a exceptional session) in a parliamentary term is a time when the assembly meets outside the usual legislative session. Anyone holding a special meeting would be subject to different requirements, such as by a legislative vote in a normal session, the president, or the presiding officer of the legislature.

6 0
3 years ago
At the time of Carol's 10 year high school reunion she was making $30,000 and the CPI was 90. Now that is is time for her to att
Klio2033 [76]

No, Carol's real income fell during that 10-year period.

[(30,000 ÷ 90 × 100) is > (65,000 ÷ 200 × 100)].

<h3><u>How Does the Consumer Price Index (CPI) Work?</u></h3>

The change in prices that American consumers pay each month is tracked by the Consumer Price Index (CPI). The CPI is calculated by the Bureau of Labor Statistics (BLS) as a weighted average of prices for a selection of goods and services that are indicative of overall consumer spending in the United States.

A common indicator of inflation and deflation is the CPI. The CPI report employs a different survey methodology, price sample, and index weights than the producer price index (PPI), which gauges changes in the prices paid by American producers of products and services.

<u>What Purposes Does the CPI Serve?</u>

Policymakers and the financial markets carefully monitor the CPI Index as an indicator of inflation. The cost of living adjustments for federal benefit payments is computed using a linked CPI metric.

<u>How is the CPI determined?</u>

When calculating the CPI, the Bureau of Labor Statistics takes a monthly sample of 94,000 prices and weights each index according to its share of recent consumer spending to determine the total change in prices. In the computation, the substitution impact is also taken into account, which occurs when customers divert their spending away from goods whose prices are rising relative to other goods.

Learn more about CPI with the help of the given link:

brainly.com/question/26682248

#SPJ4

8 0
1 year ago
Smith buys and sells equity securities. On December 15, 2021, Smith purchased $542,000 of Jones shares and elected the fair valu
zimovet [89]

Answer:

$46,000

Explanation:

We can find out the the revaluation gain that need to be reported at the year end by just deducting the the cost of the investment by its current fair value .

DATA

Fair value = 588,000

Cost = 542,000

Revaluation gain = Current fair value - Cost

Revaluation gain = 588,000 - 542,000

Revaluation gain = $46,000

The revaluation gain of $46,000 will be reported in other compreensive income of smith's financial statements.

4 0
3 years ago
Starling Co. manufactures one product with a selling price of $18 and variable cost of $12. Starling’s total annual fixed costs
nikitadnepr [17]

The number of units that Starling Co. sold was 11200

<u>Explanation:</u>

Given -

Operating income = $28,800

Fixed cost = $38,400

Selling price of one unit = $12

Variable cost = $12

Number of units sold, n = ?

Contribution  margin per unit = $18 - $12

                                                 = $6

n = \frac{operating income + fixed cost}{contribution margin per unit}

n = \frac{28800 + 38400}{6} \\\\n = \frac{67200}{6} \\\\n = 11200

Therefore, number of units that Starling Co. sold was 11200

7 0
3 years ago
The largest component of gdp is investment spending. is
antiseptic1488 [7]

Answer:

The statement is false. The largest component of GDP is private consumption, or simply: consumption.

Explanation:

Consumption includes all purchases of goods and services made by individuals and households except for the purchase of new houses (these are considered investments).

In the U.S., consumption accounts for around 70% of GDP. This is why some economists say that the U.S. is a consumer-based economy.

8 0
3 years ago
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