a company buys a machine for $500,000 and depreciates it on a straight-line basis over a five-year period for tax purposes. the investment would result in cash cost savings of $200,000 per year, before taxes, for five years. at the end of five years, it was estimated that the machine would be sold for $75,000. the gain on the sale of the machine would be taxed at a 40% rate. is the investment in the machine attractive in economic terms, given all of the cash flows? please assume that the cash flows occur at the end of each year, that the tax rate is 40%, and that the appropriate discount rate is 8%. what is the net present value? the internal rate of return? the payback period?
Answers
When we add up all of the cash flows' present values, we get:
NPV = $226,014.05 NPV = -$500,000 + $185,185.19 + $171,467.77 + $158,730.16 + $147,035.20 + $63,596.73 Since the NPV is positive, the machine investment is financially appealing. The company ought to proceed with the investment if it anticipates a return greater than the discount rate of 8%.
What is NPV?The term "Net Present Value" is NPV. It is a financial metric that takes into account the discounted present value of an investment's expected cash outflows divided by the investment's expected cash inflows. A positive NPV indicates that the investment is expected to be profitable because it will bring in more cash than it will spend. An investment with a negative net present value (NPV) is not regarded as profitable because it is anticipated to generate fewer cash outflows than cash inflows. In capital budgeting and investment analysis, the NPV method is frequently used to assess an investment opportunity's financial viability.
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Related Questions
identifying an example of the factor of production labour used in producing the Nano
Answers
Answer:
The Four Factors of Production
Land Labor Capital
The physical space and the natural resources in it (examples: water, timber, oil) The people able to transform resources into goods or services available for purchase A company's physical equipment and the money it uses to buy
if foreigners are investing more in the united states than americans are investing abroad, this is likely to result in
Answers
If foreigners are investing more in the United States than Americans are investing abroad, it is likely to result in a capital inflow and an increase in foreign ownership of U.S. assets.
When foreigners invest more in the United States, it leads to a capital inflow, meaning that there is a net increase in foreign investment into the country. This can occur through various channels, such as foreign direct investment, portfolio investment, or purchases of U.S. government bonds. As a result, there is an accumulation of foreign capital within the United States. Additionally, this trend may lead to an increase in foreign ownership of U.S. assets, as foreigners acquire ownership stakes in U.S. companies or purchase U.S. real estate or other tangible assets.
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When operating cash flows are calculated using the indirect method, if accounts receivable balance decreased, then the change is ______ during the period.
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When operating cash flows are calculated using the indirect method, the change is added to net income.
What is operating cash flow?It should be noted that the operating cash flow is the money that's required in a business to run expenses.
When operating cash flows are calculated using the indirect method, if accounts receivable balance decreased, then the change is added to net income because more cash was collected that revenue generated.
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Which of the following can bring about a change in the quantity demanded? (a) change in supply (b)change in quality (c) change in income (d)change in product price When firms advertise their products, they are attempting to (a)shift the supply curve to left (b)shift the supply curve to the right (c) shift the demand curve to the left (d) shift the demand curve to the right
Answers
Change in product price (D) can bring about a change in the quantity demanded. Also, when firms advertise their products, they are attempting to (D) shift the demand curve to the right.
Changes in price can cause a change in quantity demanded. Quantity demanded is the total quantity of a commodity that consumers want to buy at a certain price in a specific market and during a given time. Price change affects the quantity demanded because, at a lower price, more people can afford it, and they may purchase more. Hence, the correct answer is Option D.
When businesses promote their products, they are aiming to shift the demand curve to the right. This indicates that when businesses promote their products, they want to increase demand for their goods, which shifts the demand curve to the right. The rightward shift of the demand curve implies that at each price, more quantity is being demanded. So, the firms hope that when demand increases, so will their revenue.
The supply curve, which reflects the connection between the price of a good and the quantity supplied, does not shift as a result of advertising. As a result, option D (shift the demand curve to the right) is the right choice.
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Do you think JNK should be more ethical? Explain your answer.
Answers
Answer:
"god is a woman"
Explanation:
"and its megan thee stallion"
The technique is also commonly referred to as cost-volume-profit analysis. " the units of production or volume of sales dollars at which the firm breaks even—that is, where total revenues are exactly equal to the total of fixed and variable costs."
Answers
The technique that you are referring to is commonly known as cost-volume-profit analysis, which helps businesses determine their break-even point.
The technique you're referring to, known as cost-volume-profit (CVP) analysis, is a valuable tool used by businesses to evaluate the relationship between costs, volume, and profit. It helps companies understand the break-even point, which is the level of production or sales dollars where total revenues exactly match the total of fixed and variable costs. By using CVP analysis, businesses can make informed decisions about pricing, production levels, and cost management to maximize profitability. This analysis involves examining the relationship between a company's fixed and variable costs, as well as its sales volume, to determine the level of production or sales revenue needed to break even. By analyzing the cost-volume-profit relationship, companies can make more informed decisions about pricing strategies, product mix, and other factors that impact profitability. Overall, cost-volume-profit analysis is a useful tool for any business looking to optimize its operations and maximize profitability.
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"Creditors do not actually have to worry about their dues in case the business fails." In which form of business is this possible? Which special feature is highlighted in this statement ?
Answers
Answer:
sole proprietorship.
Explanation:
An exclusive property can be defined as a business structure that is managed and owned by a single person, so there is no legal distinction between the owner and his company. This is a type of simple business structure, and is generally used by people who are starting some kind of enterprise.
Therefore, this is the most appropriate business form for the statement of the issue, since in this structure there is only a single owner in the company, which guarantees its sole responsibility for all profits, debts and losses inherent to the business.
What does qualitative research and quantitative research means?
Answers
Answer:
Quantitative research is expressed in numbers and graphs. It is used to test or confirm theories and assumptions. This type of research can be used to establish generalizable facts about a topic.
Common quantitative methods include experiments, observations recorded as numbers, and surveys with closed-ended questions.
Qualitative research
Qualitative research is expressed in words. It is used to understand concepts, thoughts or experiences. This type of research enables you to gather in-depth insights on topics that are not well understood.
Common qualitative methods include interviews with open-ended questions, observations described in words, and literature reviews that explore concepts and theories.
Answer:
Qualitative research involves collecting and analyzing non-numerical data (e.g., text, video, or audio) to understand concepts, opinions, or experiences. It can be used to gather in-depth insights into a problem or generate new ideas for research.
Quantitative research is a research strategy that focuses on quantifying the collection and analysis of data.
2. Which are the market structures that deal with differentiated products? Explain how product differentiation. is created in the market.
Answers
Monopoly, Oligopoly, and Monopolistic Competition are the market structures that deal with differentiated products.
Product differentiation is created in the market when firms offer products that are unique in some way. This can be done through branding, product features, or other means.
What is product?
A product in marketing is an object, system, or service made accessible for consumer usage based on consumer demand; it is anything that may be given to a market to satisfy a customer's want or need. Products are frequently referred to as merchandise in selling, while products are purchased as raw materials and then sold as finished things in manufacturing. A service is also considered a product.
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______ Is a market in which a large number of suppliers compete with each other to satisfy the needs and wants of a large numbers of consumers at a competitive price.???
Answers
Answer : Monopolistic competition
Answer:
Monopolistic Competition
Explanation:
In a monopolistic competitive market, there are large numbers of sellers who do not sell identical products instead they sell differential products. They compete with each other at a competitive price. The products could be differentiated in many ways including quality, style, location and even brand name. Since they compete at a competitive price, if there is a substantial rise in the price of any of the products, the buyers could quickly shift from one product to another. The most crucial factor behind product differentiation is because of geographical factors. Under a monopolistic competitive market, the sellers do not have any influence over customer loyalty and limited control over the price.
What kind of skill is persuasion?
soft skill
hard skill
neutral skill
high skill
Answers
Answer:
Persuasion is convincing others to change their point of view, agree to a commitment, purchase a product or service, or take a course of action. Oral and written persuasive skills are valued in the workplace. Sales is the most obvious form of persuasion, but this skill is used in many other positions as well.
Explanation:
You are looking at a sales report from last month. You notice one metric is much lower than expected, so you click on that metric to get more details from last month. Being able to get additional information on the underlying details of a value is an example of using the ______ _______ feature of the sales report dashboard.
Answers
You are looking at a sales report from last month. You notice one metric is much lower than expected, so you click on that metric to get more details from last month. Being able to get additional information on the underlying details of a value is an example of using the drilldown feature of the sales report dashboard.
What is drilldown ?By clicking on a measure in a dashboard or report, users can rapidly switch from an overview of data to a more specific and granular view within the same dataset they are examining thanks to the analytics feature known as drill down. It allows users to descend from one level of a specified data hierarchy to the next, allowing them to examine a particular piece of information in a report from a variety of perspectives.
By focusing on a particular region, a user may be able to better understand why one region outperformed another by using a tabular report on sales performance statistics by region.
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all income that a business receives over a period of time is called profit. True/False
Answers
Untrue Profit is the term used to describe all income that only a business makes over time.
Which income do you mean?In general, the phrase "income" refers to the sum of money, assets, and other transfers in value obtained over a predetermined time frame in exchange for goods or services. The definition of income depends on the context where it's utilized; there isn't a single, universal definition.
Describe the income formula.A net income formula is determined by the distinction between the total amount of revenue and total expenses. Net Income ≈ Total Revenue – Total Costs is the formula used to calculate it.
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The percentage of total workers who are out of work but seeking jobs and
willing to work is known as the
_______ rate.
Answers
Answer:
its either labor force participation rate or unemployment rate.
since he is still seeking a job, this leads me to believe that it is the labor force one, but to get the labor force participation rate you need the employed and the unemployed.
Explanation:
Which of the following is an example of direct distribution channels?
Wholesaler sales
middlemen
E-commerce sales
Retail sales
Answers
Answer:
E-commerce sales
Explanation:
A direct-distribution channel is where the manufacturer sells directly to the end customer like with an E-commerce sale
As a result of compounding, the effective annual rate on a bank deposit (or a loan) is always equal to or greater than the nominal rate on the deposit (or loan). True False
Answers
It should be noted that the effective annual rate on a bank deposit is always equal to or greater than the nominal rate on the deposit. Therefore, it is true.
What is effective annual rate?The effective interest rate is the interest rate on a loan restated from the nominal interest rate and it is expressed as the equivalent interest rate when compound interest was payable annually in arrears.
As a result of compounding, the effective annual rate on a bank deposit (or a loan) is always equal to or greater than the nominal rate on the deposit.
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5. A man has $ 10,000 to invest. He invests $ 4000 at 5 % and $ 3500 at 4 %. In order to have a yearly income of $ 500, he must invest the remainder at:
(a) 6 % ,
(b) 6.1 %,
(c) 6.2 %,
(d) 6.3 %,
(e) 6.4 %
Answers
200 from the 5% of 4000
140 from 4% on 3500
160 on 6.4% on 2500
Income from $ 4000 at 5 % in one year = $ 4000 of 5 %.
= $ 4000 × 5/100
= $ 4000 × 0.05
= $ 200
Income from $ 3500 at 4 % in one year = $ 3500 of 4 %.
= $ 3500 × 4/100
= $ 3500 × 0.04
= $ 140
Total income from 4000 at 5 % and 3500 at 4 % = $ 200 + $ 140 = $ 340.
Remaining income amount in order to have a yearly income of $ 500 = $ 500 - $ 340.
= $ 160
Total invested amount
= $ 4000 + $ 3500
= $7500
Remaining invest amount
= $ 10000 - $ 7500
= $ 2500
We know that, Interest = Principal × Rate × Time
Interest = $ 160
Principal = $ 2500
Rate = r [we need to find the value of r]
Time = 1 year
160 = 2500 × r × 1
160 = 2500r
160/2500 = 2500r/2500 [divide both sides by 2500
0.064 = r
r = 0.064
Therefore, he invested the remaining amount $ 2500 at 6.4 %. (answer= option e)
MRP can be performed based on three concepts; which one of the following is NOT necessary?A. job sequencing rulesB. backward schedulingC. the bill of materialD. explosion of the bill of material
Answers
Job Sequencing Rules is one of three principles that may be used to do MRP; however, it is not required.
What does MRP mean?
A technique called material requirements planning (MRP) determines the materials and parts required to make a certain product. It consists of three main steps: listing the materials and components already present, deciding which more are required, and then planning for their manufacture or acquisition.
MRP and ERP systems: what are they?
Both MRP and ERP systems are pieces of software that assist you in managing your business through wise forecasting and your selected business goals; however, MRP has a manufacturing-specific focus, whilst ERP covers both a business and supply chain management.
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Where would you measure angles?
A) Driveline components
B) Bolt
C) Fasteners
D) All of the above
Answers
Driveline components (option A) are where I would measure angles.
What is angle measurement?The amount of rotation from point A to point B is described as an angle measurement. It is important to mention that the if the rotation is carried in a clockwise direction, then such an angle is called a positive angle. If the rotation is carried out in the anticlockwise direction. Then such an angle is called a negative angle.
Driveline components are described as the various components in a vehicle that allows the wheels to rotate by transferring power to the wheels from the transmission. Angles are measured in a driveline and the angle is kept within one degree with respect to the other components.
It can be concluded that driveline components (option A) are where I would measure angles.
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2. Answer the following questions about the letter:
a. Who is the sender of this letter? (1 point)
b. Who is the recipient of this letter? (1 point)
c. What is the purpose of this letter? (2 points)
Answers
Note that the letter referenced in this question is unavailable so we can look at an alternative. (See the attached.)
In this case:
The Sender is: James JohnThe recipient is the Manager at Sun Bank; andThe purpose of the letter is to apply for a job.What is a letter important?
A letter is important as it serves as a means of communication and helps convey thoughts, ideas, and information from one person to another.
A letter can be used for personal or official purposes and can play a significant role in establishing relationships, resolving conflicts, or making important decisions.
A well-written letter is an effective tool for conveying messages, as it allows for clear and concise communication, and provides a record of the message for future reference.
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star inc. licenses use of its intellectual property to customers. the benefit the customer receives from the license is not affected by star's ongoing activity. star should recognize revenue:
Answers
Star Inc. licenses use of its intellectual property to customers. The benefit the customer receives from the license is not affected by Star's ongoing activity. Star should recognize revenue at the beginning of the license period.
What does revenue mean?
Revenue is the total amount of income generated by the sale of goods or services related to the company's primary operations. Revenue, also known as gross sales, is often referred to as the "top line" because it sits at the top of the income statement.
What is revenue in a business?
Your annual revenue is the amount of money your company earns from sales over a year; it does not include costs and expenses. To calculate your annual revenue, you multiply the quantity of each product you sold by its sale price, and then add each product's annual sales to determine your gross annual revenue.
Is revenue same as profit?
Revenue and profit are both good signs for your business, but they're not interchangeable terms. Both represent an important way to understand your business. Revenue describes income generated through business operations, while profit describes net income after deducting expenses from earnings.
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8. A company with 750,000 shares outstanding that sell for $120 per share has announced a 3-for-5 reverse stock split. Assuming there are no market imperfections or tax effects, what will the stock sell for after the split?
Answers
The new stock price after the 3-for-5 reverse stock split is $200.
A reverse stock split is a reduction in the number of a company's shares outstanding that increases the par value of its stock. In a 3-for-5 reverse stock split, for every 5 shares outstanding, 3 new shares are issued. This means that the total number of shares outstanding is reduced, and the value of each share increases.
To calculate the new stock price after the reverse stock split, we can use the formula:
New stock price = (Old stock price * Old shares outstanding) / New shares outstanding
In this case, the old stock price is $120, the old shares outstanding is 750,000, and the new shares outstanding is (750,000 * 3) / 5 = 450,000.
So, the new stock price after the reverse stock split is:
New stock price = ($120 * 750,000) / 450,000 = $200
Therefore, after the 3-for-5 reverse stock split, the stock will sell for $200 per share.
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Which of the following statements best characterizes the bottom line of security for e-commerce?
A) Good security is expensive but critical, and it is the responsibility of the customer to ensure that his or her private information is secure.
B) Good security is inexpensive but critical, and it is the responsibility of the customer to ensure that his or her private information is secure.
C) Good security is expensive but critical, and it is the responsibility of the business to ensure that the customer's private information is secure.
D) Good security is inexpensive but critical, and it is the responsibility of the business to ensure that the customer's private information is secure.
Answers
Answer:
Good security is expensive but critical, and it is the responsibility of the business to ensure that the customer's private information is secure. C
Explanation:
During 2021, Barry (who is single and has no children) earned a salary of $13,100. He is age 30. His earned income credit for the year is:
Answers
Barry's earned income credit for 2021 is approximately $1,001.15
To calculate Barry's earned income credit (EIC) for 2021, we need to consider his income, filing status, and age. Here's the step-by-step explanation:
Determine Barry's filing status:
Since he is single with no children, his filing status is Single/Head of Household.
Check his income eligibility:
With a salary of $13,100, Barry meets the income requirement for EIC as a single filer with no children (the limit for 2021 is $15,820).
Calculate the EIC: For 2021, the maximum EIC for a single filer with no children is $543. As Barry's earned income falls within the eligible range, his EIC would be a percentage of his income (7.65% for no children).
EIC = $13,100 × 7.65% ≈ $1,001.15
Barry's earned income credit for 2021 is approximately $1,001.15.
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which statement is correct? a. both customs unions and free-trade areas have a common external tariff. b. a free-trade area has a common external tariff and a custom union does not. c. neither free-trade areas nor customs unions have a common external tariff. d. a customs union has a common external tariff but a free-trade area does not.
Answers
Customs union has a common external tariff but a free-trade area does not statement is correct.
What distinguishes a free trade region from a customs union?
The fundamental distinction between a customs union and a free trade agreement is the additional bureaucracy required to benefit from zero (or decreased) tariffs that are included in an FTA.
What does common outside trade mean?
When a collection of nations creates a customs union, a common external tariff (CET) must be implemented. No matter which country within the region the products are entering, the same customs tariffs, import quotas, preferences, or other non-tariff trade obstacles apply to all goods arriving.
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Maya is concerned about her credit problems and is worried
about the debt she's accumulated throughout college. Which
of the following strategies is the most advisable for Maya?
automatically apply for bankruptcy
immediately consolidate her loans
look for a reputable credit counselor
Answers
Answer:
C!
Explanation:
Debts are often referred to as money owed by individuals and they have no way to pay for it. The
best strategy that is the most advisable for Maya is to look for a reputable credit counselor
A credit counselor often tells an individual the right steps to take concerning any credit be it debt or any other things.If you can't make a payment or meet the options given, it is better to discuss payment options, contact your lenders to explain your situation or a credit counselor.
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During a certain six-year period, the consumer price index (CPI) increased by 35%, but during the next six-year period, it increased by only 10%. Which of these conditions must have existed during the second six-year period?
A. Inflation
B. Depression
C. Deflation
D. Recession
I'll pu the person who answers this brainliest
Answers
Answer:
A. Inflation
Explanation:
CPI is an abbreviation for the consumer price index. The CPI is a measure of the average changes in the prices of consumer goods and services in the economy. The CPI index measures changes in prices of products that represent the general consumption in the economy. Economists use the CPI index to ascertain the rate of inflation.
Inflation is described as the increase in prices of goods and services in the economy in a period. If prices in the economy are increasing at a high rate, the CPI index will be high. A high CPI index indicates the inflation rate is high.
which of the following is not an employability skill?
1. ethical behavior
2. teamwork
3. technology
4. sales
Answers
Sales is not an employability skill. Employability skills are the general skills, personal qualities, and attitudes that are necessary for success in any job or career. They include things like communication, problem-solving, teamwork, time management, leadership, adaptability, and ethical behavior, among others.
Sales, on the other hand, refers to a specific job function that involves selling products or services to customers. While sales may require certain skills such as communication, negotiation, and customer service, it is not considered a general employability skill.
TRUE/FALSE. Goods are dominated by credence and experience qualities, and services are mostly comprised of experience and search qualities.
Answers
The correct answer is False. The statement is not entirely accurate. Goods and services can possess a combination of search, experience, and credence qualities, but the distribution of these qualities varies.
Typically, goods tend to have more search and experience qualities, while services are more likely to exhibit experience and credence qualities. Search qualities are characteristics of a product or service that can be evaluated before the purchase. These are more prevalent in goods, as consumers can easily examine and compare them based on attributes like color, size, and price. Experience qualities are attributes that can only be assessed after the consumption or use of a product or service. Both goods and services can have these qualities, but they are often more prevalent in services, as their outcomes depend on factors such as individual preferences, service provider's performance, and environmental factors.
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what is the inventory turnover ratio for fair isle inc. for 2020 if the inventory at the beginning of the year was $210,500 and at the end of the year was $195,500 and during the year the company had net sales of $1,243,750 which had a corresponding cost of sales of $995,000?
Answers
Fair Isle Inc.'s inventory turnover ratio for 2020 is 4.90. The ratio is calculated by dividing cost of sales by average inventory, where the average inventory is calculated as the average of the beginning and ending inventory.
The inventory turnover ratio measures how many times a company sells and replaces its inventory during a period. It is calculated as
Inventory Turnover Ratio = Cost of Sales / Average Inventory
To calculate the average inventory, we take the average of the beginning and ending inventory
Average Inventory = (Beginning Inventory + Ending Inventory) / 2
In this case, the beginning inventory was $210,500, and the ending inventory was $195,500. Therefore, the average inventory is
Average Inventory = ($210,500 + $195,500) / 2 = $203,000
The cost of sales was $995,000, as given in the problem. Therefore, the inventory turnover ratio is
Inventory Turnover Ratio = $995,000 / $203,000 = 4.90
Therefore, Fair Isle Inc. had an inventory turnover ratio of 4.90 for the year 2020.
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