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Daniel [21]
2 years ago
9

A major equipment purchase is being considered Metro Atlanta. The initial cost is determined to be $1,000,000. It is estimated t

hat this new equipment will save $100,000 the first year and increase gradually by $50,000 for the next 6 years. MARR= 10%.
A) The payback period for this equipment purchase is______
B) The B/C ratio for this investment is ________
C) The NFW of this investment is ________
Business
2 answers:
natka813 [3]2 years ago
5 0
The Payback period is 5 years

Tcecarenko [31]2 years ago
5 0
The answer is 5 years ....
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Bob's electronics company has quite a buzz around a new television they're launching, called UltraView1000. This television is e
Elan Coil [88]

Answer:

Bob’s ad will appear if search terms contain at least all three of the keywords or variations of those terms.

Explanation:

Bob’s ad will appear if search terms contain at least all three of the keywords or variations of those terms.: Adding a + sign in front of a keyword turns it into a broad match modifier. This prompts your ads to appear only if the keyword or its close variations are in any part of the search terms.

If Bob uses the broad match modifier keywords “television,” “accessible,” and “voice.” His ads will appear for people searching for any combination of these terms in a search (and possibly including additional terms). However, the ads won’t appear if any one of these keywords aren’t in the search term.

7 0
2 years ago
You are conducting a discounted cash flow analysis (DCF). You purchased an asset for $400,000 at time point zero. The asset was
andrew11 [14]

Answer: $112000

Explanation:

First, we calculate the book value in year 7 which will be:

= Depreciation × Balance life

= $400,000 × 3/10

= $120,000

Then, the cash flow as a result of the transaction will be:

= Asset sale - (Asset - Book value) × Tax rate

= 110000 - [(110000 - 120000) × 20%]

= 110000 - (-2000)

= 110000 + 2000

= 112000

6 0
2 years ago
At January 1, 2021, Café Med leased restaurant equipment from Crescent Corporation under a nine-year lease agreement. The lease
marusya05 [52]

Answer:

$11,750

$189,750

Explanation:

1: Calculation for the effect of the lease on Café Med's earnings for the first year

Based on the information given we were told that the lease agreement has annual payments of the amount $29,000 which means that Corporation will recognized a rental revenue of the amount $29,000 each year

Now let Compute for the depreciation to be charged on equipment using this formula

Annual depreciation = Cost of equipment / Useful life

Let plug in the formula

Annual depreciation= $207,000 / 12

Annual depreciation= $17,250

Second step is to Compute for Crescent Effect on earnings using this formula

Crescent Effect on earnings = Rental revenue - Depreciation expense

Let plug in the formula

Crescent Effect on earnings= $29,000 - $17,250

Crescent Effect on earnings= $11,750

2. Calculation for the balances in the balance sheet accounts

Using this formula

Equipment balance at the end of 2021 = Cost - Accumulated depreciation

Let plug in the formula

Equipment balance (net) at the end of 2021= $207, 000 - $17, 250

Equipment balance (net) at the end of 2021= $189,750

Deferred lease revenue will be the Rental amounts that was received in advance on 31. DEC.2021 for 2019 year = $29,000

5 0
2 years ago
Chrzan, Inc., manufactures and sells two products: Product E0 and Product N0. Data concerning the expected production of each pr
joja [24]

Answer:

Predetermined manufacturing overhead rate= $53,75 per machine hour

Explanation:

Giving the following information:

Order size:

Estimated activity cost= $585,866

Estimated machine hours= 10,900

<u>To calculate the predetermined manufacturing overhead rate we need to use the following formula:</u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 585,866/10,900

Predetermined manufacturing overhead rate= $53,75 per machine hour

4 0
2 years ago
LKM, Inc. wants to issue new 20-year bonds for some much-needed expansion projects. The company currently has 6.5 percent coupon
pychu [463]

Answer:

6.75%

Explanation:

Price of bonds is equal to their par value when coupon rates match with yields to maturity. The 20-year bond with semiannual coupon payments is going to have 40 coupons payment plus 1 par value payment. Let formulate the price of this bond as below:

Bond price = [Par value x (Coupon rate/2)]/[1 + (YTM/2)] + [Par value x (Coupon rate/2)]/[1 + (YTM/2)]^2 + ...+ [Par value x (Coupon rate/2) + Par value]/[1 + (YTM/2)]^40, or:

972.78 = [1,000 x (6.5%/2)]/[1 + (YTM/2)] + [1,000 x (6.5%/2)]/[1 + (YTM/2)]^2 + ...+ [1,000 x (6.5%/2) + 1,000]/[1 + (YTM/2)]^40

Solve the equation we get YTM = 6.75%.

So, the company should set 6.75% coupon rate on its new bonds if it wants to sell them at par.

4 0
2 years ago
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