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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

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Dimas [21]

Answer:

Option A is correct one.

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Explanation:

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When one person seeks to satisfy his or her interests regardless of the impact on the other parties to the conflict, he is competing. The competition involves authoritative and assertive behaviours.

8 0
2 years ago
The following information relates to the manufacturing operations of the JNR Printing Company for the year: Beginning Ending Raw
grin007 [14]

Answer: $117,000

Explanation:

So we are to calculate the Raw Materials purchased during the year.

Logically speaking the following should hold,

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8 0
2 years ago
Which sentence describes a factor that Helen could use to differentiate her coffee shop from branded coffee houses?
Aleonysh [2.5K]

"She decided to rent this location for her shop."

She is differentiating by choosing to operate in a location where there are not a lot of other competitors.

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2 years ago
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In addition to inflation and consumer demand, what is another economic factor that can affect career opportunities
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An investor paid $43,000 for a lot and $520,000 to have a strip mall constructed on it. he has depreciated the property for the
horrorfan [7]
<span>The depreciation of the property over 39 years in a straight-line manner will be 520/39 = 13.333 thousand per year. Since it has been 15 years, the total depreciation to date is 13.333*15 = $200,000. Thus the book value of the building at this time is $520,000 - $200,000 = $320,000 for the building. We add to that the $43,000 book value of the land to get a total value of 320+43 = $363,000. If the property sells for $710,000, then the capital gain is 710-363 = $347,000.</span>
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1 year ago
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