Business, 09.12.2019 20:31 mileskamron979

Dexter smith & co. is replacing a machine simply because it has worn out. the new machine will not affect either sale or operating cost and will not have any salvage value at the end of its five year life. the firm has a 34 percent tax rate, uses straight line depreciation over an asset life, and has a positive net income. given this, which one of the following statements is correct?

as a project, the new machine has a net present value equal to minus one times the machines purchase price.

the new machine will have a zero rate of return.

the new machine will generate positive operating cash flow.

the new machine will create a cash outflow when the firm disposes of it at the end of its life.

the new machine creates erosion effects.

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 20:50

Last year, western corporation had sales of $5 million, cost of goods sold of $3 million, operating expenses of $175,000 and depreciation of $125,000. the firm received $40,000 in dividend income and paid $200,000 in interest on loans. also, western sold stock during the year, receiving a $40,000 gain on stock owned 6 years, but losing $60,000 on stock owned 4 years. what is the firm's tax liability?

Answers: 2

Answer

Business, 22.06.2019 08:40

Which of the following is not a characteristic of enterprise applications that cause challenges in implementation? a. they introduce "switching costs," making the firm dependent on the vendor. b. they cause integration difficulties as every vendor uses different data and processes. c. they are complex and time consuming to implement. d. they support "best practices" for each business process and function. e. they require sweeping changes to business processes to work with the software.

Answers: 1

Answer

Business, 22.06.2019 11:00

In each of the following cases, find the unknown variable. ignore taxes. (do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) accounting unit price unit variable cost fixed costs depreciation break-even 20,500 $ 44 $ 24 $ 275,000 $ 133,500 44 4,400,000 940,000 8,000 75 320,000 80,000

Answers: 3

Answer

Business, 22.06.2019 15:00

Why entrepreneurs start businesses. a) monopolistic competition b) perfect competition c) sole proprietorship d) profit motive

Answers: 1

Answer

You know the right answer?

Dexter smith & co. is replacing a machine simply because it has worn out. the new machine will...

Questions