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azamat
2 years ago
13

One year​ ago, your company purchased a machine used in manufacturing for . You have learned that a new machine is available tha

t offers many​ advantages; you can purchase it for today. It will be depreciated on a​ straight-line basis over ten​ years, after which it has no salvage value. You expect that the new machine will contribute EBITDA​ (earnings before​ interest, taxes,​ depreciation, and​ amortization) of per year for the next ten years. The current machine is expected to produce EBITDA of per year. The current machine is being depreciated on a​ straight-line basis over a useful life of 11​ years, after which it will have no salvage​ value, so depreciation expense for the current machine is per year. All other expenses of the two machines are identical. The market value today of the current machine is . Your​ company's tax rate is ​, and the opportunity cost of capital for this type of equipment is . Is it profitable to replace the​ year-old machine?
Business
1 answer:
Kazeer [188]2 years ago
6 0

Answer:

Yes it would be profitable to replace a year old machine.

Explanation:

its always best to buy new things to replace others.

old things usually dont work correctly and could be out of date.

buying something new can reduce that probability of not working correctly

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Phipps Company borrowed $25,000 cash on October 1, 2016, and signed a nine-month, 8% interest-bearing note payable with interest
anzhelika [568]

Answer:

The correct option is C,$500

Explanation:

The amount of interest accrual is the interest on the sum borrowed from October 1 2016 to 31 December 2016,that is 3 months of interest,which is computed below:

Accrued interest =principal*stated interest rate*number of accrued months/12

principal is $25,000

stated interest is 8%

number of accrued months is 3

accrued interest =$25,000*8%*3/12=$500

The accrued interest is to be debited interest expense  because it is an increase in expense  and credited to interest payable as a liability

5 0
2 years ago
Cason is filing as single and has 2019 taxable income of $36,000 which includes $34,000 0%/ 15 % / 20% net long-term MID capital
AleksandrR [38]

Answer:

The correct answer of this question is b-200$.

Explanation:

As per tax schedule if income from capital gain is less than 39,375$ 0% tax is charge lieved.

So on his income from capital gain that is 34,000 dollars no tax will be charge. However the remaining income is subject to income tax that is (36000-34000)= 2000 dollars. So Cason is liable to pay tax equals to 200$. (2000*10%)

As per tax law whose income is less than 9,750 dolars is liable to pay tax at the rate of 10%.

5 0
2 years ago
If quotas on sugar were eliminated in the United States, domestic production of sugar would fall. Why is this a benefit in econo
Vladimir79 [104]

Answer:

It is beneficial because it makes money from the trade.

4 0
3 years ago
Scampini Technologies is expected to generate $25 million in free cash flow next year, and FCF is expected to grow at a constant
Feliz [49]

Answer:

The stock’s value per share is $10.42

Explanation:

For:    

FCF1 = Expected cash flow of the firm

        = $25 million  

WACC = 10%    

g = 4%    

Firm value = FCF1/(WACC - g)    

                  = 25,000,000/(0.10 - 0.04)    

                  = $416,666,666.67    

We know that there is no debt & preferred stock, so the firm value will be equal to Equity value :

Firm value = Equity value

                 = $416,666,666.67

stock value per share = Equity Value/No. of share outstanding

                                     = $416,666,666.67/40,000,000

                                     = $10.42 per share

Therefore, The stock’s value per share is $10.42

7 0
2 years ago
According to the two-factor theory proposed by Herzberg, which of the following factors is considered a hygiene factor? promotio
givi [52]

Answer:

Quality of supervision

Explanation:

Herzberg's 2 factor theory included motivational factors and hygiene factors.

Motivational factors are those which enable an employees or a workers to contribute their best efforts with utmost efficiency.

Hygiene factors on the other hand convey to the contrary i.e such factors lead to a reduction in the productivity and efficiency of workers.

One of the hygiene factor specified by Herzberg is supervision as per which poor supervision or command leads to job dissatisfaction among workers.

An organization must eliminate hygiene factors so as the employees are motivated to work and contribute optimally towards attainment of organizational goals.

6 0
2 years ago
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