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Olenka [21]
3 years ago
11

Metro Corporation will spend $1 million for special manufacturing equipment. Shipping and installation charges will amount to $1

75,000 and an initial increase in net working capital of $50,000 will be required. The equipment will replace an existing machine that has a salvage value of $85,000 and a book value of $140,000. If Metro has a current marginal tax rate of 34%, what is the amount of the initial outlay for this project
Business
1 answer:
Dafna1 [17]3 years ago
4 0

Answer: (1121300)

Explanation:

The initial outlay for the project will be:

Machinery purchase price = =-1000000-175000 = (1,175,000)

Less: Proceed from old machine =

= =85000+(140000-85000) × 34% = 103,700

Net working capital = 50,000

Initial outlay = (1121300)

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1 year ago
The cost of raising capital through retained earnings is the cost of raising capital through issuing new common stock. The cost
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Answer:

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3 0
3 years ago
Marquis Company uses a weighted-average perpetual inventory system.
timama [110]

Answer:

The amount of the cost of goods sold for this sale is $98.4

Explanation:

Marquis Company uses a weighted-average perpetual inventory system

August 2, 22 units were purchased at $3 per unit,

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Average cost per unit: $3

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3 years ago
On January 1, the Elias Corporation issued 10% bonds with a face value of $99,000. The bonds are sold for $97,020. The bonds pay
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Answer:

c. $9,702

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Elias Corporation has issued 10% bond the semi annual rate of bond is 10%. The 10% rate is divided by 2 to find the actual semi annual rate of interest on the bond. The rate of bond is 5%. The amount at which bond can be sold will be used to calculate interest expense of the bond.

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The correct answer is c.$9,702

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3 years ago
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3 years ago
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