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Elena-2011 [213]
3 years ago
15

Butler Corporation is considering the purchase of new equipment costing $78,000. The projected annual after-tax net income from

the equipment is $2,800, after deducting $26,000 for depreciation. The revenue is to be received at the end of each year. The machine has a useful life of 3 years and no salvage value. Butler requires a 11% return on its investments. The present value of an annuity of $1 for different periods follows: Periods 11% 1 0.9009 2 1.7125 3 2.4437 4 3.1024 What is the net present value of the machine
Business
1 answer:
True [87]3 years ago
5 0

Answer:

-$7,621

Explanation:

Calculation to determine the net present value of the machine

Using this formula

Net present value of the machine=(Net cash flow *present value of an annuity at 11%)- Amount invested

Let plug in the formula

Net present value of the machine=($2,800+$26000*2.4437)-$78,000

Net present value of the machine=($28,800*2.4437)-78,000

Net present value of the machine=$70,379-$78,000

Net present value of the machine=-$7,621

Therefore the Net present value of the machine is -$7,621

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Lina20 [59]

Answer and Explanation:

This is an example of corporation. Corporation is a legal entity wherein it goes public and offers its shares for ownership and trading in the primary and secondary market. Corporation is public limited company and has a board consisting of executives and CEO. Whereas, the shareholders do not interfere with the management decisions they are only concerned with their dividends.

In this case, Juan owned 1000 shares of DDX. DDX is a corporation because it is able to offers its shares to the general public and allows trading of shares for ownership.

3 0
3 years ago
For important management positions companies often use​
natali 33 [55]

Answer:

The correct answer would be Specialized Executive Search Firms.

Explanation:

When companies hire employees, they usually use the conventional methods of recruitment, like giving ads in newspapers or pasting ad on a social job site, etc. But when employees for the important management positions are required to hire, companies often use Specialized Executive Search Firms. These are the recruitment firms which takes the demands of the employer and search for the best of the best candidates to be interviewed by the employers. Such firms have fine data about the best candidates in their databases which updates regularly. Also, after selecting the candidates, they first take initial interviews of the potential employees themselves and then route them to the employer.

4 0
3 years ago
Barry has a medical plan with a $1,200 deductible, 20% coinsurance, and a $5,000 coinsurance cap. His allowable medical expenses
Trava [24]

Based on his deductible and coinsurance cap, the amount that Barry will pay is <u>$4,560.</u>

<h3>Amount Barry will pay </h3>

Barry will have to pay the entire deductible of $1,200. The expenses that are left will then be shared between him and the insurer in a 20% - 80% ratio but he will not pay more than $5,000.

Total he will pay out of pocket is therefore:

= Deductible + ( 20% x (Medical expenses - deductible))

Solving gives:

= 1,200 + ( 20% x (18,000 - 1,200))

= $4,560

In conclusion, he will pay $4,560.

Find out more on insurance payments at brainly.com/question/25973180.

4 0
2 years ago
Which of the following comes after a period of recession in the business cycle? A. Stagflation B. A drought C. A boom D. Recover
morpeh [17]
<h3>Hello there!</h3>

Your question asks what comes after the period of recession in the business cycle.

<h3>Answer: D). Recovery</h3>

The reason why answer choice "D). Recovery" is correct because this comes after the period of recession in the business cycle.

Recession is like a "slow down" in the activity of a business. Which means that they aren't receiving any income, GDP, investments, and etc. This would cause a business to decrease while a lot of expenses that the business is getting are increasing. By expensive, I mean the cost to keep the business running and things of that sort.

Businesses go through a time of recession; therefore, they need to "recover" from that. And that's why recovery is the next stage. A business must recover from the "recession" period if they want to keep the business up and running. If the business doesn't recover, then the business will fail.

Once the business can recover from the recession period, then the business can succeed in their plans and execute them, while seeing the profits that they expected to make.

<h3>I hope this helps!</h3><h3>Best regards, MasterInvestor</h3>
7 0
3 years ago
Which of the following statements is accurate? Group of answer choices A cost-leadership competitive strategy increases the thre
Katen [24]

Answer:

The correct statement is expressed by option B - Firms with a low-cost position can reduce the threat of rivalry in an industry.

Explanation:

Firms with a low-cost position can reduce the threat of rivalry in an industry based on these reasons:

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Secondly, low-cost firms can decide to price their goods or services a little bit below the prices of their high-cost rivals.

8 0
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