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old things usually dont work correctly and could be out of date.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

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The subject property has a total value of $280,000 by the sales comparison approach. A competitive neighborhood nearby has home
True [87]

The value of the subject land is $84,000.

Given,

75,000 / 250,000 = 0.30

280,000 * 0.30 = 84,000

Land value is the measure of the way lots a plot of land is worth, now not counting any buildings but including improvements inclusive of better drainage. when a landowner can pay taxes on her actual property, a part of what is taxed is the fee of the land, in addition to whatever structures sit down atop it.

To measure the price of land use the traditional value approach: Use RS means statistics on prices to calculate the fee of the belongings as though it has been new. Subtract depreciation. The result is an estimate of the fee of the modern structure. Subtract from sale fee to get land cost.

<em />

<em>Your question is incomplete. Please read below to find the missing content.</em>

The subject property has a total value of $280,000 by the sales comparison approach. A competitive neighborhood nearby has home sales with a median value of $250,000, and recent lot sales at $75,000. By allocation, what would be the value of the subject land?

$68,000

$76,000

$84,000

$92,500

Learn more about statistics here: brainly.com/question/4219149

#SPJ4

5 0
2 years ago
President obama announced a $100,000,000 humanitarian aid package to haiti to support its earthquake relief. england's parliamen
Julli [10]

Answer: The parliament is likely to allocate £ 1,23,93,800.62

We arrive at the answer as follows:

Amount allocated by President Obama    $100,000,000

Amount England wants to contribute        20% of President Obama's allocation

Amount England wants to contribute in USD  =

                                              0.2 * 100,000,000 = USD 2,00,00,000  

Exchange Rate                                      $1. 61371/1 pound sterling

We can read the problem as if $1.61371 is equal to 1 pound sterling, how many pound sterlings are equal to $2,00,00,000?

Let number of pound sterlings be x

So, \frac{1.61371}{1}= \frac{100000000}{x}

x = \frac{100000000}{1.61731}

x = 1,23,93,800.62


3 0
3 years ago
A firm has a weighted average cost of capital of 11.68 percent and a cost of equity of 15.5 percent. The debt-equity ratio is 0.
asambeis [7]

The firms Cost of Debt is 9.62%.

Data and Calculations:

Weighted average cost of capital = 11.68%

Cost of equity = 15.5%

Debt-Equity Ratio = 0.65

Without taxes, the firm's Weighted Cost of Debt (WACC) = WACC - Weighted Cost of Equity

= 11.68% - (15.5% (1 - 0.65)

= 11.68% - 5.425%

= 6.255%

Unweighted cost of debt = 6.255%/0.65

= 9.62%

Thus, the firm's cost of debt is 9.62% while the weighted cost of debt is 6.255%.

Learn more: brainly.com/question/23044852

6 0
2 years ago
(Learning Outcome 2) Watson Plumbing performed plumbing services for ABC Daycare on account for $565. How will this transaction
Strike441 [17]

Answer:

ABC Daycare

Effect of Performing Plumbing Services on account on the Accounting Equation:

Assets (Accounts receivable) will increase by $565 and Equity (Retained Earnings) will equally increase by $565

Explanation:

a) Data and Analysis:

Accounts receivable $565 Service Revenue $565

The accounting equation that equals assets to liabilities and equity is always true at all times and with every correctly posted transaction.  It implies that assets are financed through the contributions made by either the owners (equity) or the creditors (debts), or a combination of the two.  This equation forms the basis for the double-entry system of financial accounting.

7 0
3 years ago
Which of the following statements regarding a balanced scorecard is correct? Multiple Choice A balanced scorecard includes non-f
Fynjy0 [20]

Answer:  All of these are correct answers.

Explanation: In simple words, Balanced scorecard refers to the strategic management system in which the organisational tries to communicate to the stakeholders what is their ultimate goal and what are they trying to establish.

In such a process, the managers of the organisation translate their mission statement relating to various aspects of customer service and declares their course of actions regarding the activities that really matters to the customers.

Hence from the above we can conclude that all the statements are correct in the given case.

4 0
3 years ago
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