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
Step2247 [10]
2 years ago
15

Forge Company wants to purchase a new cutting machine for its sewing plant. The investment is expected to generate annual cash i

nflows of $120,000. The required rate of return is 10% and the current machine is expected to last for four years. What is the maximum dollar amount the company would be willing to spend for the machine, assuming its life is also four years
Business
1 answer:
Katyanochek1 [597]2 years ago
5 0

Answer:

$380,280

Explanation:

Calculation for the maximum dollar amount

Using this formula

Maximum dollar amount =Annual cash inflows*Present value Annual amount

Where

Annual cash inflows=$120,000

PV Annual 4 (10%)=3.169

Let plug in the formula

Maximum dollar amount=$120,000*3.169

Maximum dollar amount=$380,280

Therefore the maximum dollar amount the company would be willing to spend for the machine will be $380,280

You might be interested in
Which of the following is true of first movers? a. The first mover cannot be able to establish brand loyalty. b. Being a first m
boyakko [2]

Answer:

The first mover that creates a revolutionary product is in a monopoly position.

Explanation:

First Mover is the big initiator of a new product, which gains a competitive 'first mover advantage' for being the pioneer of the idea in the market.

  • The first mover can be able to establish brand loyalty
  • Being a first mover doesn't guarantee instant success
  • The first mover can create switching costs for its customers to deter rivals.

The only apt statement is : The first mover that creates a revolutionary product is in a monopoly position. The first mover enters the market when there is no major supplier & the customer's demand is unmet. If it enables to leverage the potential huge unsatisfied market in a revolutionary way, it can be able to create unparalleled brand loyalty. And this can make it secure monopoly position in market

7 0
2 years ago
Lakeland Chemical manufactures a product called Zing. Direct materials are added at the beginning of the process, and conversion
Ulleksa [173]

Answer:

Lakeland Chemical

Equivalent Units of Direct Materials total 82,000 units.

Explanation:

1. Calculations:

Beginning Work in process Inventory = 15,200 (100% complete)

Direct materials started in May =           66,800 (100% complete)

Equivalent units of direct materials =    82,000 units

2. The equivalent units of direct materials is the sum of equivalent unit of beginning inventory and the units added during the period.

3. The equivalent cost of the direct materials is the sum of the equivalent costs of beginning and the costs of units added during the period.

4 0
2 years ago
Novak Company purchased Machine #201 on May 1, 2020. The following information relating to Machine #201 was gathered at the end
blondinia [14]

Answer:

i am stuck as well

Explanation:

5 0
2 years ago
Riley Company borrowed $36,000 on April 1, Year 1 from the Titan Bank. The note issued by Riley carried a one year term and a 5%
IRINA_888 [86]

Answer:

The amount of cash flow from operating activities that would appear on the Year 2 statement of cash flows would be -$850 or $850 outflow

Explanation:

The computation of the cash flow from the operating activities for year 2 is shown below:

= Cash revenue in year 2 - interest on notes payable

= $950 - $1,800

= -$850

The negative amount shows an outflow of cash .

The interest on the note payable is computed by

= Borrowed amount × interest rate

= $36,000 × 5%

= $1,800

7 0
2 years ago
Could the product flow operate independently from other channel flows?
11111nata11111 [884]
It could, as long as it fulfills these two conditions
- The products could generate enough profit without the boost that givenn by other channel flows.
- The independent operation would not cause a decrease in profit for other channels flow because eventually, business owners only want to do the combination that bring the most profit.
4 0
2 years ago
Other questions:
  • What's a possible opportunity cost when you spend $100 on a pair of sneakers?
    12·1 answer
  • Suri is graduating from college soon and has been contemplating her career choices. She is graduating with a bachelor’s degree i
    14·2 answers
  • Marlon needs to add a code that indicates the information he will be including on a page. Which of the following codes should he
    11·1 answer
  • An investment project has annual cash inflows of $4,400, $3,900, $5,100, and $4,300, for the next four years, respectively. The
    12·1 answer
  • Below are data from the income statement of Brown, Inc: Beginning finished goods inventory $16,000Ending finished goods inventor
    8·1 answer
  • Nan presents her plan for a slip-on shoe that is water repellent, inexpensive, and highly fashionable. She believes that the mar
    11·1 answer
  • Henkes Corporation bases its predetermined overhead rate on the estimated labor-hours for the upcoming year. At the beginning of
    6·1 answer
  • Question #1: Assume an initial starting Ft of 300 units, a trend (Tt) of eight units, an alpha of 0.30, and a delta of 0.40. If
    11·1 answer
  • XYZ borrowed $50,000 this year. Half of the loan will be repaid next year and the remainder will be paid the following year. How
    10·2 answers
  • Oversight Inc.’s board of directors votes to empower corporate officers to make decisions regarding ordinary, daily corporate af
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!