A company has a minimum required rate of return of 10%. The company is considering investing in a factory machine, which costs $125000 and has an expected life of 5 years.The machine has a zero salvage value and will be depreciated using the straight-line depreciation method. The company expects to generate an extra $35,000 of annual cash flows each of the next 5 years because of this new factory machine. How much extra net income will the company earn each of the 5 years?Show the numbers you use to calculate your answer.
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A company has budgeted production for next year as follows:Q…
A company has budgeted production for next year as follows:QuarterFirstSecondThirdFourthRequired production (units)45,00038,00034,00048,000Each unit of product requires three pounds of direct material. The company’s policy is to begin each quarter with an inventory of direct materials equal to 30% of that quarter’s direct material requirements. Budgeted direct materials purchases for the third quarter would be:
A corporation has provided the following data concerning an…
A corporation has provided the following data concerning an investment project that it is considering:Initial investment$ 410,000Annual cash flow$ 106,000 per yearExpected life of the project4 yearsDiscount rate9 %Present Value of $1; 1 ( 1 + r ) nPeriods4%5%6%7%8%9%10%10.9620.9520.9430.9350.9260.9170.90920.9250.9070.890.8730.8570.8420.82630.8890.8640.840.8160.7940.7720.75140.8550.8230.7920.7630.7350.7080.68350.8220.7840.7470.7130.6810.650.621Present Value of an Annuity of $1 in Arrears; 1 r [ 1 – 1 ( 1 + r ) n ]Periods4%5%6%7%8%9%10%10.9620.9520.9430.9350.9260.9170.90921.8861.8591.8331.8081.7831.7591.73632.7752.7232.6732.6242.5772.5312.48743.633.5463.4653.3873.3123.243.1754.4524.3294.2124.13.9933.893.791Use the tables above to determine the appropriate discount factor(s).The net present value of the project is closest to: (Round your intermediate calculations and final answer to the nearest whole dollar amount.)
Industrial Gas Corporation supplies acetylene and other comp…
Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store’s operations for November follow:The beginning cash balance is $7,500The $15,000 balance in Accounts Receivable on November 1 is from sales on account in October.Sales are budgeted at $310,000 for November.Collections are expected to be 40% in the month of sale, and 60% in the month following the sale.Purchases of merchandise are expected to be $230,000.Payment for merchandise inventory is made 55% in the month of purchase and 45% the following month. The Accounts Payable balance is projected to be zero on November 1.Other monthly expenses to be paid in cash are $35,500.Monthly depreciation is $10,000The desired cash balance at the end of each month is $30,000The company can borrow up to $50,000 from their local bank with interest due the following month.Required:Prepare a cash budget for November. Show your calculations for the numbers you use on the budget.
Explain how communication occurs between a motor neuron and…
Explain how communication occurs between a motor neuron and a skeletal muscle fiber, including the role of calcium ions, synaptic vesicles, acetylcholine, and acetylcholinesterase.
How does the process of myelination differ between the centr…
How does the process of myelination differ between the central nervous system (CNS) and the peripheral nervous system (PNS)?
What is a protective put strategy, and how does it work?
What is a protective put strategy, and how does it work?
You purchase 30 call option contracts on Falcon Corp. stock….
You purchase 30 call option contracts on Falcon Corp. stock. Each contract controls 100 shares. The strike price is $50, and the premium is $2 per share. If the stock is selling for $50 at expiration, what are your call options worth? What is your net profit or loss?
What do we mean by discounted cash flow, or DCF, valuation?
What do we mean by discounted cash flow, or DCF, valuation?
You invest a sum of money today and receive three times your…
You invest a sum of money today and receive three times your money in 12 years. What annual rate of return are you earning?