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Gnom [1K]
3 years ago
15

Your firm needs a computerized machine tool lathe which costs $51,000 and requires $12,100 in maintenance for each year of its 3

-year life. After three years, this machine will be replaced. The machine falls into the MACRS 3-year class life category. Assume a tax rate of 34 percent and a discount rate of 11 percent. If the lathe can be sold for $5,100 at the end of year 3, what is the after-tax salvage value
Business
1 answer:
valkas [14]3 years ago
3 0

Answer:

$4,650.89

Explanation:

Year Depreciation rate     Depreciation      Book Value

                                           (51000*Rate)

1            33.33%                   $16,998.30         $34,001.70

2           44.45%                   $22,669.50        $11,332.20

3           14.81%                     $7,553.10            $3,779.10

4           7.41%                       $3,779.10

            100%                       $51,000

Sale Value                                   $5,100

Book Value at end of 3 years    <u>$3,779.10</u>

Net Gain on Sale                         <u>$1,320.90</u>

Tax On Gain = $1320.90*0.34

Tax On Gain = $449.11

After-tax salvage value = $5100 - $449.11

After-tax salvage value = $4,650.89

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Korvikt [17]

Answer:

$20.90 & $14.88

Explanation:

The average cost per lead is the marketing expense incurred to acquire a new potential customer.  The average cost per or CPL is calculated using the formula total marketing spend / total number of leads. CPL helps identify the most efficient advertising channel.

For the first advertising buy, average cost per lead

=$4,600/220

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For the second advertising buy

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3 0
3 years ago
If the fed undertakes expansionary monetary policy, it can return the economy to its original unemployment rate but the inflatio
prohojiy [21]

TRUE, If the fed undertakes expansionary monetary policy, it can return the economy to its original unemployment rate but the inflation rate will be higher.

Monetary policy is the macroeconomic policy set by the central bank. It involves the management of the money supply and interest rates, and is the demand-side economic policy adopted by national governments to achieve macroeconomic goals such as inflation, consumption, growth and liquidity.

Monetary policy refers to the measures taken by a country's central bank to control the money supply in order to stabilize the economy. For example, policymakers manipulate the money supply to increase employment, GDP, and price stability using instruments such as interest rates, reserves, and bonds.

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3 0
2 years ago
How does a tariff impact a business exporting goods
ivolga24 [154]

Answer:

A tariff has a postive impact when it comes to safeguarding and having an income

Explanation:

A tariff is a tax put on imported or exported goods to protect the goods and earn money. This can be used as a source of income as many states in the US do so.

6 0
3 years ago
Read 2 more answers
Select all that apply Benefits of small amounts of inflation include Multiple select question. more expansionary monetary policy
EleoNora [17]

Benefits of small amounts of inflation include more expansionary monetary policy, the placebo effect, and the facilitation of relative price changes.

<h3>What is meant by inflation?</h3>

Inflation is the term used to describe the rate of price rise for goods and services.

It is sometimes used to categorize inflation according to cost-push, demand-pull, and built-in factors.

The two most popular inflation measures are the Consumer Price Index and the Wholesale Price Index.

Inflation can be viewed favorably or badly depending on the perspective and rate of change.

Inflation may be advantageous for those who own tangible assets since it will raise the value of their holdings, such as real estate or goods that are kept in storage.

Inflation's primary causes include:

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  • Regulations and policies

Benefits of Inflation: In order to meet increasing demand, production must increase. Additionally, debtors benefit from inflation because they can return their loans with funds that are less valuable than the funds they borrowed. This promotes borrowing and lending, which boosts expenditure on all levels once more.

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6 0
2 years ago
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4. taxation
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