Business, 16.04.2020 00:24 miguel454545
The president of the company you work for has asked you to evaluate the proposed acquisition of a new chromatograph for the firm’s R&D department. The equipment's basic price is $190,000, and it would cost another $47,500 to modify it for special use by your firm. The chromatograph, which falls into the MACRS 3-year class, would be sold after 3 years for $47,500. The MACRS rates for the first three years are 0.3333, 0.4445, and 0.1481. Use of the equipment would require an increase in net working capital (spare parts inventory) of $9,500. The machine would have no effect on revenues, but it is expected to save the firm $76,000 per year in before-tax operating costs, mainly labor. The firm's marginal federal-plus-state tax rate is 30%.a. What is the Year-0 net cash flow?
b. What are the net operating cash flows in Years 1, 2, and 3?
Year 1 $
Year 2 $
Year 3 $
c. What is the additional (nonoperating) cash flow in Year 3?
d. If the project's cost of capital is 14%, should the chromatograph be purchased?
Answers: 1
Business, 22.06.2019 00:30
Aprice ceiling is “binding” if the price ceiling is set below the equilibrium price. suppose that the equilibrium price is $5. if a price ceiling is set at $6, this will not affect the market in any way since $5 remains a legally allowable price (since $5 < $6). a price ceiling of $6 is called a “non-binding” price ceiling. on the other hand, if the price ceiling is set at $4, the price ceiling is “binding” because the natural equilibrium price is $5 but that is no longer allowed. what happens when there is a binding price ceiling? at a price below the equilibrium price, quantity demanded exceeds quantity supplied. there is a shortage. normally, price increases eliminate shortages by increasing quantity supplied and decreasing quantity demanded. in this case, however, price increases are not allowed past the price ceiling. we therefore predict that the observed market price will be right at the price ceiling and there will be a permanent shortage. the observed quantity bought and sold will be dictated by the quantity supplied at the price ceiling. although consumers would like to buy more, there are no more units for sale
Answers: 1
Business, 22.06.2019 05:30
Eliza works for a consumer agency educating young people about advertisements. instead of teaching students to carefully read advertisement claims, she encourages them to develop a strong sense of self and to keep their life goals and dreams separate from commercial products. why might eliza's advice make sense?
Answers: 2
Business, 22.06.2019 08:30
Which actions can you improve your credit score? (multiple can be selected)having a good credit score should be your prime objective as credit companies analyze your creditworthiness before giving you a loan. there are certain guidelines you can follow to ensure you have a good credit score. always pay your mortgage interest on time. if you are a student, make student loan inquiries before taking any loan. if you have multiple credit cards, manage them judiciously. maintain a healthy balance in your bank account.1. always pay your mortgage interest on time.2. if you are a student, make student loan inquiries before taking any loan.3. if you have multiple credit cards, manage them judiciously.4. maintain a healthy balance in your bank account.
Answers: 1
Business, 22.06.2019 12:00
Need today! will get brainliest for right answer! compare and contrast absolute advantage and comparative advantage.
Answers: 1
The president of the company you work for has asked you to evaluate the proposed acquisition of a ne...
English, 07.11.2020 01:00
Mathematics, 07.11.2020 01:00
Chemistry, 07.11.2020 01:00
English, 07.11.2020 01:00
Mathematics, 07.11.2020 01:00
Mathematics, 07.11.2020 01:00
Mathematics, 07.11.2020 01:00
Biology, 07.11.2020 01:00
Mathematics, 07.11.2020 01:00
Social Studies, 07.11.2020 01:00
Arts, 07.11.2020 01:00
Mathematics, 07.11.2020 01:00