1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
azamat
3 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]3 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old things usually dont work correctly and could be out of date.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

You might be interested in
promissory note received from a customer in exchange for an account receivable is recorded by the payee as
luda_lava [24]

Answer: Note Receivable

Explanation:

A Note Receivable is a written document from a party promising to repay another party with interest on amounts borrowed in form of cash or otherwise thereby creating a debtor - creditor relationship between them.

When a promissory note is received from a customer in exchange for an accounts receivable it is a <em>Note Receivable</em> and the Payee being the creditor will record it as such.

4 0
3 years ago
A company sells two products with information as follows: ​ A B Sales price per unit $12 $22 Variable cost per unit $10 $10The p
Tanya [424]

Answer:

Option (c) : $80,000

Explanation:

As per the data given in the question,

                                         A        B

Sales price                      $12     $22

Less: Variable cost         $10     $10

Contribution per unit      $2      $10

Time required in hours  0.25    0.50

Contribution per hour     $8      $20

Rank                                 2          1

Company should produce only product B to maximize the contribution.

Total contribution = $20 × 4,000

= $80,000

5 0
3 years ago
Shane is looking for ways to get more capital for his appliance sales and service business. he is very protective of his company
Nitella [24]
<span>Shane, who is interested in new ways to get more capital for his business that sells and services appliances, is highly protective of his company's information and often worries that it may fall into the wrong hands. With this state of mind, Shane is likely not interested in incorporating his money</span>
6 0
3 years ago
Scenario II:
solmaris [256]

Answer:

Pay tuition first

Explanation:

Mrs. Das should pay the tuition fee of her children first from the $5000 balance with her, this is to enable the children take their exams without any distraction. Failure to pay their tuition may also mean that the children will spend an additional year in some cases. Therefore to avoid inflicting psychological distress on the children, paying the children's tuition will be made priority.

Also, settling Avon before the due date is important too and if I were in her shoes may decide to return or sell some of the goods purchased from her because it could be seen that Mrs. Das was carried away by Avon's stock and purchased more than those things which they needed most importantly.

3 0
3 years ago
Sales this year at Donna's Pawn Shop have been high, and based on several factors, Donna projects next year's sales to also be g
nalin [4]

Answer: Contingency planning

Explanation: In simple words, it refers to the planning for an upcoming event that may or may not occur in the future. This planning is usually done by organisation so that they can act accordingly if any problem in business operations occurs in future.

In the given case, even after having positive forecast, Donna is planning for future uncertainty such as unexpected stoppage on sales.

Thus we can conclude that this is the type of contingency planning.

4 0
3 years ago
Other questions:
  • you worked from 9:00 am to 7:00 pm with a 45 minute unpaid lunch and an unpaid 15 minute break. you will be paid time and 1/2 fo
    10·1 answer
  • Which aspect of culture is being addresses by an advertisement for ham that features a family enjoying dinner together??
    14·1 answer
  • Because advertising is often designed to add ________ value to a product or brand, it plays a more important communications role
    11·1 answer
  • A bank has $200 million in assets in the 0 percent risk-weight category. It has $400 million in assets in the 20 percent risk-we
    5·1 answer
  • A bank employee so customers personal identification information to a third party. What law did the employee break?
    14·1 answer
  • rippett Industries manufactures cleaning products. During the year, the company spent $600,000 on chemicals and $728,000 on conv
    11·1 answer
  • President Bigego is running for re-election against Senator Pander. Bigego proclaims that more people are working now than when
    13·1 answer
  • A purely competitive firm finds that the market price for its product is $30.00. it has a fixed cost of $100.00 and a variable c
    8·1 answer
  • What does the government have to do with public sector ?
    15·1 answer
  • What is a bank??????????
    15·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!