The ___ can transfer the right to cash a check to another party by endorsing

Madrigal Corporation purchased a new machine for $120,000. The machine has an estimated useful life of 10-years with no salvage

GenaCL600 [577]

Answer:

The annual cash flow using the gross book value method is $18,000

Explanation:

In order to calculate the annual cash flow using the gross book value method we would have to calculate the following formula:

annual cash flow=( value of new machine*ROI)/100

Value of the new machine=$120,000

ROI=15%

annual cash flow= ($120,000* 15%)/100 =

annual cash flow=$18,000

The annual cash flow using the gross book value method is $18,000

7 0

2 years ago

Read 2 more answers

In order to produce a new product, a firm must lease new equipment. The managers feel that they can sell 10,000 units per year a

kogti [31]

Answer:

The most the firm can spend to lease the new equipment without losing money=$75,000

Explanation:

The point at which the revenue in terms of sales equals the cost is the break-even point. This can be expressed as;

R=C

where;

R=revenue from sales

C=cost

And;

R=P×N

where;

R=revenue from sales

P=price per unit

N=number of units

In our case;

P=$7.5 per unit

N=10,000 units

replacing;

R=7.5×10,000=$75,000

Total revenue from sales=$75,000

C=p×n

where;

p=cost per unit

n=number of units

In our case;

p=$5

n=unknown

replacing;

C=5×n=5 n

At break-even point, R=C;

5 n=75,000

n=75,000/5=15,000

The break-even cost=5×15,000=$75,000

The most the firm can spend to lease the new equipment without losing money=$75,000

5 0

2 years ago

Assume that interest rates on 15-year noncallable Treasury and corporate bonds with different ratings are as follows: T-bond = 7

miv72 [106K]

Answer:

Investors are risk averse, which means that they are willing to invest in low risk projects or investments. In order for an investor to invest in a riskier project, he/she will expect to receive higher returns to compensate for the extra risk. US Treasury bonds are probably the safest investments in the world, that is why they yield the lowest interest rate. AAA bonds are less risky than BBB bonds, which in turn are less risky than CCC bonds. That is why AAA bonds yield a lower return than BBB bonds, and BBB bonds yield a lower return than CCC bonds.

7 0

2 years ago

a person was able to invest 1,000 per month for 30 years with interest rate of 5%. 1. find out how much the person will have in

sveticcg [70]

Answer:

1. $832,258.64

2. $616,550.50

3. $476,407.77

Explanation:

As the question is concerned, we are to calculate the Future value for the following data

1. PV = 0

PMT = 1,000

N = 30*12 = 360

I = 5%/12

Future Value = PV (PMT, N, I)

Future Value = PV(0, 1,000, 360,0.05/12)

Future Value = $832,258.6354

Future Value = $832,258.64

2. PV = 0

PMT = 1,500

N = 20*12 = 240

I = 5%/12

Future Value = PV (PMT, N, I)

Future Value = PV (0, 1,500,240, 0.05/12]

Future Value = 616,550.5028

Future Value = $616,550.50

3. PV = 0

PMT = 800

N = 25*12 = 300

I = 5%/12

Future Value = PV (PMT, N, I)

Future Value = PV (0, 800, 300, 0.05/12]

Future Value = 475,407.7668

Future Value = $476,407.77

7 0

2 years ago

Which of the following kinds of price discrimination occurs when each customer is charged one price for the first set of units p

olasank [31]

Answer:

D

Explanation:

Price discrimination is when the same product is sold at different prices to customers in different markets

types of price discrimination

1. first degree price discrimination : here sellers charge each consumer at their willingness to pay in order to eliminate consumer surplus.

2. second degree price discrimination : here firms offer different prices depending on the quantity purchased. e.g. giving discounts for bulk purchases.

3, third degree price discrimination : firms charge different prices to different groups of customers. e.g. having a certain price for senior citizens, students

3 0

3 years ago