subject
Business, 12.12.2019 04:31 npaslayoy1bzj

Natchez, inc. is considering the purchase of a new machine costing $200,000. the company will incur $5,000 per year in cash operating expenses but it will allow the company to earn an additional $100,000 per year in revenues. natchez expects the machine to provide future benefits for 3 years and salvage value at the end of the 3-year period to be $10,000. the company uses straight-line depreciation method. the income tax rate is 30%. if the required rate of return is 10%, how much is the net present value of this projecta. $12, 629 b. none of these answers are correct. c. $43, 769 d. $20, 143

ansver
Answers: 1

Another question on Business

question
Business, 22.06.2019 17:20
“strategy, plans, and budgets are unrelated to one another.” do you agree? explain. explain how the manager’s choice of the type of responsibility center (cost, revenue, profit, or investment) affects the behavior of other employees.
Answers: 3
question
Business, 22.06.2019 19:30
Kirnon clinic uses client-visits as its measure of activity. during july, the clinic budgeted for 3,250 client-visits, but its actual level of activity was 3,160 client-visits. the clinic has provided the following data concerning the formulas to be used in its budgeting: fixed element per month variable element per client-visitrevenue - $ 39.10personnel expenses $ 35,100 $ 10.30medical supplies 1,100 7.10occupancy expenses 8,100 1.10administrative expenses 5,100 0.20total expenses $ 49,400 $ 18.70the activity variance for net operating income in july would be closest to:
Answers: 1
question
Business, 22.06.2019 20:00
Beranek corp has $720,000 of assets, and it uses no debt--it is financed only with common equity. the new cfo wants to employ enough debt to raise the debt/assets ratio to 40%, using the proceeds from borrowing to buy back common stock at its book value. how much must the firm borrow to achieve the target debt ratio? a. $273,600b. $288,000c. $302,400d. $317,520e. $333,396
Answers: 3
question
Business, 22.06.2019 21:40
Western electric has 32,000 shares of common stock outstanding at a price per share of $79 and a rate of return of 13.00 percent. the firm has 7,300 shares of 7.80 percent preferred stock outstanding at a price of $95.00 per share. the preferred stock has a par value of $100. the outstanding debt has a total face value of $404,000 and currently sells for 111 percent of face. the yield to maturity on the debt is 8.08 percent. what is the firm's weighted average cost of capital if the tax rate is 39 percent?
Answers: 2
You know the right answer?
Natchez, inc. is considering the purchase of a new machine costing $200,000. the company will incur...
Questions
Questions on the website: 13722363