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Sedbober [7]
3 years ago
9

A company is considering the purchase of a new machine for $49,000. Management predicts that the machine can produce sales of $1

6,100 each year for the next 10 years. Expenses are expected to include direct materials, direct labor, and factory overhead totaling $7,900 per year including depreciation of $4,100 per year. Income tax expense is $3,280 per year based on a tax rate of 40%. What is the payback period for the new machine?
Business
1 answer:
sergejj [24]3 years ago
6 0

Answer:

7.47 years

Explanation:

Payback period calculates the amount of the time it takes to recover the amount invested in a project from its cumulative cash flows.

= amount invested / cash flows

To derive cash flow: (S - C - D) x (1 - t) + D

S = sales = $16,100

C = Cost of goods sold = $7,900

D = deprecation = $4,100

T = tax = 40%

$16,100 - $7,900 - $4,100 = $4100

$4100 × 0.6 = $2460

$2460 + $4,100 = $6560

$49,000 / $6560 = 7.47 years

I hope my answer helps you

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LUCKY_DIMON [66]

Answer:

b.) to use money to make more money

Explanation:

<em>The correct reason for making investments would be </em><em>to use money to make more more money.</em>

<u>A financial investment represents the act of allocating money to a process or an item in order to reap profit or generate income in the short term, the long term, or both. </u>

An investment can be in the form of purchased goods or services that can later be sold at a higher amount. It can also be an item or service that will be yielding immediate income while preserving all or parts of its original value.

The money made on an investment is referred to as gains o returns.

<em>The correct option is </em><em>b</em><em>.</em>

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3 years ago
Aggregate demand shifts right if a. government purchases increase and shifts left if stock prices rise. b. government purchases
max2010maxim [7]

Answer:

The correct answer is option b.

Explanation:

Aggregate demand represents the overall demand of goods and services in the economy in a year. It is comprised of consumption spending, investment, government spending, and net exports.

An increase in the government spending will increase the aggregate demand, so the aggregate demand curve will shift to the left.

A decrease in the stock prices, on the other hand, will cause the aggregate demand to fall, shifting the curve to the left. This happens because decrease in stock prices causes the wealth of the investors to decline. The consumer spending decreases and so does aggregate demand.

8 0
3 years ago
Kamir and Javon form KJ Corporation, with each receiving 50% of the stock. Kamir contributes equipment with a fair market value
Vera_Pavlovna [14]

Answer:

Adjusted basis for Kamir's share = $70,000

Explanation:

Adjusted basis for any share, is the original cost or value, and does not represent fair value, for any share.

Therefore, for calculating the adjusted basis for Kamir, the original value of all the contributions made by him will be considered.

His contributions are:

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Services with a value = $15,000

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5 0
3 years ago
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tekilochka [14]

Answer:

Explanation:

In this question, we apply the lower of cost or market (LCM) rule which is shown below:

For Product 1

The Cost is $20

And, the market value = Selling price - selling cost - normal profit margin

                                     = $40 - $6 - $5

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The Cost is $50

And, the market value = Selling price - selling cost - normal profit margin

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5 0
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yaroslaw [1]

Answer:

human relations approach

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6 0
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