answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
navik [9.2K]
2 years ago
6

Granfield Company has a piece of manufacturing equipment with a book value of $44,000 and a remaining useful life of four years.

At the end of the four years the equipment will have a zero salvage value. The market value of the equipment is currently $22,800. Granfield can purchase a new machine for $128,000 and receive $22,800 in return for trading in its old machine. The new machine will reduce variable manufacturing costs by $19,800 per year over the four-year life of the new machine. The total increase or decrease in net income by replacing the current machine with the new machine (ignoring the time value of money) is:
Business
1 answer:
Troyanec [42]2 years ago
6 0

Answer:

$26,000

Explanation:

The calculation of Net increase or decrease in income on replacement is shown below:-

Net savings in Variable cost for 4 years = Variable manufacturing costs × Life

= $19,800 × 4

= $79,200

Net Investment to be made in New machine = Initial investment of new machine - Traded in value of old machine

= $128,000 - $22,800

= $105,200

Net financial disadvantage of replacement = Net savings in Variable cost for 4 years - Net Investment to be made in New machine

= $79,200 - $105,200

= $26,000

So, for computing the net financial disadvantage of replacement we simply applied the above formula.

You might be interested in
A carpenter was nailing a strap onto a residential single-story home construction project using a nail gun with a 16d nail to af
Rudiy27

Answer: Struck by hazards.

Explanation:

Struck by hazards is caused when there is a sudden forceful contact between an object and an injured person.

Classes of stuck by hazards include

1. Falling objects, for example a falling wood from a construction site.

2.Rolling objects.

3.Swinging objects.

4.Flying objects.

• It is important to note that putting in place and using the right safety measures can serve as a means of protection against any form of job related hazard.

4 0
2 years ago
Your Insurance company bills you $687.89 every 6 months for your premium payments. You decide to pay per month.
eimsori [14]

Answer:

$114.65

Explanation:

If you divide $687.89 by 6 months you'll get $114.64833333333333333 but if you simply you'll get 114.65 and you'll only pay $0.11 over.

3 0
2 years ago
Trapper Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Und
mariarad [96]

Answer:

EPS

Plan I     $2.03 per share

Plan II    $1.78 per share

Explanation:

Plan I

As this plan is all equity plan, so there is no debt and no interest expense as well.

In the absence of taxes, We will use the EBIT  in the calculation of EPS

EPS  = Net Earning / Outstanding numbers of shares = $375,000 / 185,000 = $2.03 per share

Plan II

In this levered plan we have debt and equity combination. We also have to deduct the interest expense from EBIT to calculate the net income.

Interest Expense = $2,700,000 x 5% = $135,000

Net Income  = EBIT - Interest Expense = $375,000 - $135,000 = $240,000

EPS = Net Income / Outstanding numbers of shares = $240,000 / 135,000 = $1.8 per share

3 0
2 years ago
The market for household appliances in Richland is monopolistically competitive. Some firms in this market are incurring losses.
alina1380 [7]

Answer:

Monopolistic competition exists in industries that have many firms offering similar products or services. In monopolistic competition, those similar products are not perfect substitutes for one another. Barriers in entry and exit of these industries are low and decisions made by one firm do not directly affect its competitors. In the short term, a monopolistically competitive industry can incur losses nut <em>only if those loses are higher than the fixed costs the organization will stop operations</em>.

8 0
2 years ago
The effects of bad database design, implementation, and management are magnified in an environment in which the number of transa
murzikaleks [220]

The effects of bad database design, implementation, and management are magnified in an environment in which the number of transactions is less than one hundred is False.

B. False

<u>Explanation:</u>

Database Design is an assortment of procedures that encourage the structuring, improvement, usage, and upkeep of big business information the executives frameworks. It helps produce database frameworks. That meets the prerequisites of the clients.

The way toward creating a point by point information model of a database containing all the required sensible and physical plan decisions and physical stockpiling parameters expected to produce a structure of a database. So the effects of bad database design, implementation, and management are magnified in an environment in which the number of transactions is less than one hundred is false.

8 0
2 years ago
Other questions:
  • "a monopolist earns $50 million annually and will maintain that level of profit indefinitely, provided no other firm enters the
    15·1 answer
  • Assume that when the price of cantaloupes is $2.50 the demand for cantaloupes is unit-elastic, and that the demand curve for can
    7·1 answer
  • Suppose that in a month the price of movie rentals decreases from​ $3.25 to​ $3. At the same​ time, the quantity of movie rental
    5·1 answer
  • Resources are adequate, but demand varies widely over the life of the project. Delaying noncritical activities to lower peak dem
    5·1 answer
  • What is the time of the slowest workstation in a production​ system?
    15·1 answer
  • A ten-year, inflation-indexed bond has a par value of $10,000 and annual coupon rate of 5 percent. During the first six months s
    5·1 answer
  • You are a COR and your contract for a critical barracks construction project is three weeks behind schedule. Two hundred soldier
    14·1 answer
  • How might a Product Owner (PO) adjust team events to take advantage of this capability and promote the flow of value?
    11·1 answer
  • A company has annual sales of $32,000 and accounts receivables of $2,200. The gross profit margin is 31.3%. The receivable days
    5·1 answer
  • Assume that instead of distributing a stock dividend, Sharper did a 3-for-1 stock split. Required: (1) Prepare the updated stock
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!