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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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Presented below is information related to Crane Company at December 31, 2020, the end of its first year of operations.
pshichka [43]

Answer:

Follows are the solution to the given points:

Explanation:

In point a:

Formula:

= \text{sales-Cost of product sold -Selling and Administrative expense}

=316,550-150,400-53,900\\\\=112,250

In point b:

Formula:

=\text{Income from operation + Gain on sale of plant assets} - \text{Interest Expense} -\text{Loss from discontinued operations}\\\\=112,250+30,560- 5,840- 11,990\\\\=124,980

In point c:

Formula:

=\text{Net Income-  Allocation to noncontrolling interest}

= 124,980 - \text {missing value}

In point d:

Formula:

=\text{Net Income+ Unrealized gain on available for sale debt investments}\\\\= 124,980- 9,460\\\\=115,520

In point e:

Formula:

=\text{Net Income - Dividends declared and paid}\\\\=124,980- 4730\\\\=120,250\\\\

5 0
3 years ago
Sugarcane is vulnerable to the cane beetle, which can substantially reduce crop yields. Suppose that a new beetle‑resistant spec
Vanyuwa [196]

Answer:(1) Decrease (2) Increase (3) Decrease (4) Decrease (5) Not chanhe

Explanation: This tries to describe a free market economy,where price, quantity demanded and quantity supplied are influenced by the market forces. The improved productivity of the Sugarcane which is a major raw material for sugar production is increased,the cost of production of Sugarcane will decrease as productivity increases,the quantity supplied to the market will increase leading to decreased price for all sugar value chain. The price for Honey a sweetener will also decrease responding the increased demand for sugar but the price for textile will not change because it is not a substitute for sugar.

5 0
3 years ago
During January, Metro Co., which maintains a perpetual inventory system, recorded the following information pertaining to its in
kenny6666 [7]

Answer:

Inventory= $3,300

Explanation:

Giving the following information:

1/1: 1,000units at $1  

Purchased on 1/7: 600 units at $3

Sold on 1/20: 900 units

Purchased on 1/25: 400 units at $5

What amount should Metro report as inventory at January 31

Inventory= 1,100 units* [(5+3+1)/3]= $3,300

6 0
2 years ago
Which statement best describes how insurance works?
Brilliant_brown [7]

Insurance companies collect and hold a customer's premiums and pay claims from that money in the event that the customer has a loss.

<h3>What is insurance?</h3>

Insurance involves securing an item against accident or any damages.

An individual can insure properties such as Land, building or Life by paying certain amount of money which serves a premium.

Therefore, insurance companies collect and hold a customer's premiums and pay claims from that money in the event that the customer has a loss.

Learn more on insurance below,

brainly.com/question/25855858

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7 0
2 years ago
A method of pricing where the price the seller quotes includes all transportations costs, and the seller is responsible for any
xenn [34]

Answer:

<u>Uniform delivered pricing</u>

Explanation:

<u>Uniform delivered pricing:</u> In business or management, the term "uniform delivered pricing" is determined as one of the pricing methods whereby every customer tends to pay a similar amount of money or freight costs to the seller irrespective of their distance from the seller's dispatch point. Uniform delivered pricing is also denoted as "postage stamp pricing".

<u>In the question above, the given statement represents the "uniform delivered pricing".</u>

7 0
2 years ago
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