Our company is deciding whether to invest in a new machine. the new machine will increase cash flow by $324,000 per year. you believe the technology used in the machine has a 10-year life; in other words, no matter when you purchase the machine, it will be obsolete 10 years from today. the machine is currently priced at $1,740,000. the cost of the machine will decline by $110,000 per year until it reaches $1,190,000, where it will remain.

a. if your required return is 13 percent, calculate the npv today?

b. if your required return is 13 percent, calculate the npv if you wait to purchase the machine until the indicated year. (a negative answer should be indicated by a minus sign. do not round intermediate calculations and round your answers to 2 decimal places, e. g., 32.16.)

npv

year 1 $

year 2 $

year 3 $

year 4 $

year 5 $

year 6 $

Who is better at multi-tasking? in business, employees are often asked to perform a complex task when their atten-tion is divided (i. e., multi-tasking). human factors (may 2014) published a study designed to determine whether video game players are better than non–video game play-ers at multi-tasking. each in a sample of 60 college stu-dents was classified as a video game player or a non-player. participants entered a street crossing simulator and were asked to cross a busy street at an unsigned intersec-tion. the simulator was designed to have cars traveling at various high rates of speed in both directions. during the crossing, the students also performed a memory task as a distraction. two variables were measured for each student: (1) a street crossing performance score (measured out of 100 points) and (2) a memory task score (measured out of 20 points). the researchers found no differences in either the street crossing performance or memory task score of video game players and non-gamers. “these results,” say the researchers, “suggest that action video game players [and non-gamers] are equally susceptible to the costs of dividing attention in a complex task”

If a seller prepaid the taxes of $4,400 and the closing is set for may 19, using the 12 month/30 day method what will the buyer owe the seller as prorated taxes?

Trey morgan is an employee who is paid monthly. for the month of january of the current year, he earned a total of $4,538. the fica tax for social security is 6.2% of the first $118,500 earned each calendar year, and the fica tax rate for medicare is 1.45% of all earnings for both the employee and the employer. the amount of federal income tax withheld from his earnings was $680.70. his net pay for the month is .