Business, 27.06.2020 17:01, tstaples02

You must evaluate a proposal to buy a new milling machine. The base price is $178,000, and shipping and installation costs would add another $14,000. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $71,200. The applicable depreciation rates are 33%, 45%, 15%, and 7%. The machine would require a $9,500 increase in net operating working capital (increased inventory less increased accounts payable). There would be no effect on revenues, but pretax labor costs would decline by $37,000 per year. The marginal tax rate is 35%, and the WACC is 10%. Also, the firm spent $5,000 last year investigating the feasibility of using the machine. How should the $5,000 spent last year be handled

Answers: 1

Show answers

Other questions on the subject: Business

Business, 22.06.2019 20:20, wavymoney77yt

Direct materials (4.2 x $15) $ 63direct labor ($12 x 17.5) $210manufacturing overhead ($2.40 x 17.5) $42total job cost $ 315dougan, inc. allocates overhead based on a predetermined overhead rate of $2.40 per direct labor hour. employees are paid $12.00 per hour. job 24 requires 4.2 pounds of direct materials at a cost of $15.00 per pound. employees worked a total of 17.5 hours to complete the job. actual manufacturing overhead costs totaled $80,000 for the year for the company. how much is the cost of job 24?

Answers: 1

continue

Business, 22.06.2019 21:40, mackenziemelton26

Which of the following is one of the main causes of inflation? a. wages drop so workers have to spend a higher percentage of income on necessities. b. demand drops and forces producers to charge more to meet their costs. c. rising unemployment cuts into national income. d. consumers demand goods faster than they can be supplied.

Answers: 3

continue

Business, 22.06.2019 22:20, PrisonKing3749

David consumes two things: gasoline (q 1) and bread (q 2). david's utility function is u(q 1, q 2)equals70q 1 superscript 0.5 baseline q 2 superscript 0.5. let the price of gasoline be p 1, the price of bread be p 2, and income be y. derive david's demand curve for gasoline. david's demand for gasoline is q 1equals nothing. (properly format your expression using the tools in the palette. hover over tools to see keyboard shortcuts. e. g., a subscript can be created with the _ character.)

Answers: 1

continue

Business, 22.06.2019 23:40, step35

When randy, a general manager of a national retailer, moved to a different store in his company that was having difficulty, he knew that sales were low and after talking to his employees, he found morale was also low. at first randy thought attitudes were poor due to low sales, but after working closely with employees, he realized that the poor attitudes were actually the cause of poor sales. randy was able to discover the cause of the problem by utilizing skills.

Answers: 2

continue

Do you know the correct answer?

You must evaluate a proposal to buy a new milling machine. The base price is $178,000, and shipping...