The supervisor of the county Department of Transportation (DOT) is considering the replacement of some machinery. This machinery has zero book value but its current market value is $840. One possible alternative is to invest in new machinery, which has a cost of $39,400. This new machinery would produce estimated annual operating cash savings of $12,700. The estimated useful life of the new machinery is four years. The DOT uses straight-line depreciation. The new machinery has an estimated salvage value of $2,040 at the end of four years. The investment in the new machinery would require an additional investment in working capital of $3,000, which would be recovered after four years. If the DOT accepts this investment proposal, disposal of the old machinery and investment in the new equipment will take place on December 31, 20x1. The cash flows from the investment will occur during the calendar years 20x2 through 20x5. Use Appendix A for your reference. (Use appropriate factor(s) from the tables provided.) Required: Prepare a net-present-value analysis of the county DOT’s machinery replacement decision. The county has a 10 percent hurdle rate. (Round your "Discount factors" to 3 decimal places and final dollar amounts to whole dollars. Negative amounts should be indicated by a minus sign.)
Answers
The net-present-value analysis of the county DOT’s machinery replacement decision shows that it is financially feasible to invest in new machinery. The initial cost of $39,400 would be offset by the estimated annual operating cash savings of $12,700 for four years, resulting in a net cash inflow of $50,760. After deducting the salvage value of $2,040 and the recovery of working capital of $3,000, the net present value of the investment is $5,482. The hurdle rate of 10 percent is surpassed, indicating that the investment is worth considering. The present value factor for four years at a discount rate of 10 percent is 0.683. Therefore, the net present value of the investment is $3,744, indicating that it is a financially viable option.
The county DOT's machinery replacement decision can be analyzed using net-present-value (NPV). The initial investment includes the cost of new machinery ($39,400) minus the market value of old machinery ($840), plus the additional working capital ($3,000), resulting in a total investment of $41,560.
The annual cash flow is the operating cash savings of $12,700. Since the DOT uses straight-line depreciation, the annual depreciation is ($39,400 - $2,040) / 4, which equals $9,340. The net annual cash flow is $12,700 - $9,340 = $3,360.
Using a 10% discount rate, the present value of the net annual cash flows can be calculated. Using discount factors of 0.909, 0.826, 0.751, and 0.683 for years 1 through 4, the present value of cash flows is $9,102.
The salvage value of $2,040 at the end of year 4, discounted at 10%, has a present value of $1,392 (0.683 * $2,040).
The NPV of this investment is the sum of the present values of cash flows and salvage value minus the initial investment: $9,102 + $1,392 - $41,560 = -$31,066. Since the NPV is negative, the machinery replacement decision is not financially beneficial at the 10% hurdle rate.
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Related Questions
To calculate the number of montly payments required to pay off a loan or meet an investment goal, use the _______ function.
Answers
To calculate the number of monthly payments required to pay off a loan or meet an investment goal, use the nper function.
In finance, lending is the lending of money by one or more individuals, organizations, or other entities to other individuals and organizations, etc. The beneficiary incurs a debt and usually has to pay interest on that debt until that debt is also repaid. to repay the principal borrowed.
The promissory note will typically state, among other things, the principal amount of the loan, the interest rate charged by the lender, and the date of repayment. A loan involves reallocation of assets in question over a period of time, between the lender and the borrower.
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Investment 2 Study questions Practice Questions: 1. On January 1, Stacy's portfolio was valued at $96,534. During the year Stacy received $3,285 in interest and $4,100 in dividends. She also sold one stock at a gain of $850. The value of the portfolio on December 31 of the same year was $113,201. At the end of June, Stacy withdrew $5,000 from the portfolio. What is the holding period return for the year? (refer slides for the formula) Sol: 25. 8% 2. Six months ago, Suzanne purchased a stock for $28 a share. Today she sold the stock at a price of $32 a share. During the time she owned the stock, she received a total of $1. 30 in dividends per share. What is her holding period return? Sol: 18. 9% 3. On January 1, Tim's portfolio was valued at $432,098. During the year Tim received $10,563 in interest and $15,060 in dividends. He also sold stock at a net loss of $12,870 and used the proceeds to purchase another stock. Tim did not contribute any more funds nor withdraw any funds during the year. On December 31 of the same year, Tim's portfolio was valued at $398,189. What is the holding period return for the year? Sol: -1. 9%
Answers
The holding period return for Stacy's portfolio for the year is 25.8%. The holding period return for Suzanne's stock is 18.9%.Tim's holding period return for the year is -4.67%, indicating a negative return.
Holding Period Return = [(Ending Value - Beginning Value) + Dividends + Gain] / Beginning Value
In Stacy's case, the beginning value of her portfolio on January 1 was $96,534, and the ending value on December 31 was $113,201. She received $3,285 in interest, $4,100 in dividends, and had a gain of $850 from selling a stock. She also withdrew $5,000 at the end of June.
Holding Period Return = [($113,201 - $96,534 + $3,285 + $4,100 + $850) - $5,000] / $96,534
= ($24,902 + $4,100 + $850 - $5,000) / $96,534
= $24,852 / $96,534
= 0.257 or 25.8%
Therefore, the holding period return for Stacy's portfolio for the year is 25.8%.
Holding Period Return = [(Ending Value - Beginning Value) + Dividends] / Beginning Value
In Suzanne's case, the beginning value of the stock was $28 per share, and the ending value was $32 per share. She received $1.30 in dividends per share.
Holding Period Return = [($32 - $28) + $1.30] / $28
= ($4 + $1.30) / $28
= $5.30 / $28
= 0.189 or 18.9%
Therefore, Suzanne's holding period return for the stock is 18.9%.
In the case of Tim's portfolio, the holding period return for the year is -1.9%.
Tim's portfolio had an initial value of $432,098 on January 1 and a value of $398,189 on December 31. He received $10,563 in interest and $15,060 in dividends. However, he sold stock at a net loss of $12,870 and used the proceeds to purchase another stock. Tim did not contribute any additional funds or make any withdrawals during the year.
Holding Period Return = [(Ending Value - Beginning Value) + Dividends + Gain] / Beginning Value
= [($398,189 - $432,098) + $10,563 + $15,060 + (-$12,870)] / $432,098
= (-$33,909 + $10,563 + $15,060 - $12,870) / $432,098
= -$20,156 / $432,098
= -0.0467 or -4.67%
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Why do you think a higher percentage of those over 35 years old invest in the market compared to those under 35? Help please!
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Answer:
Yes I think those over 35 invest in a market compared to people not 35, because they been though school, and have more experience in the market company.
Explanation:
What is demand comprised of
Answers
In order to satisfy the needs and wants that people have, businesses must combine factors of production. The factors of
production are: Capital, Enterprise, Land, Labour.
Case Study:Freshz Coffee
Freshz Coffee has just opened in Dubai. FreshZ will need factors of production.
Give examples of the factors of production it will need and how they will be used.
Answers
Answer:
by utilizing the goods by their proper uses
Determine which of the statements below are accurate regarding how a petty cash fund is created and used in a business. (Check all that apply.)
A. When the fund is replenished, the Petty Cash fund account is debited.
B. Any employee may disburse cash from the fund as long as they bring back a receipt for their purchase.
C. The petty cashier is responsible for making payments from the petty cash fund.
D. The petty cashier is responsible for keeping the cash in the fund safe.
E. The sum of all petty cash receipts plus the remaining cash should equal the total of the fund amount at any given time
F. A check is drawn by the company cashier to establish the petty cash fund
Answers
Answer:
Options C,D,E and F are correct
Explanation:
Petty cash fund is used to provide sufficient cash to business units to spend on minor expenditures such as postage, taxi fares, etc.
The following statements are accurate regarding how a petty cash fund is created and used in a business:
C. The petty cashier is responsible for making payments from the petty cash fund.
D. The petty cashier is responsible for keeping the cash in the fund safe.
E. The sum of all petty cash receipts plus the remaining cash should equal the total of the fund amount at any given time
F. A check is drawn by the company cashier to establish the petty cash fund
why is it important to be a good communicator for a successful future?
Answers
Answer:
Explanation:
Being an excellent communicator can help you land that first job in your new career and ensure a positive future. It can separate you from other applicants, help you be a more effective employee and serve as a stepping stone to leadership responsibilities and career advancement.
In the process of brainstorming his goals, Robert realized his Web business was more about money than creativity. His decision to include a minimum monthly income of $5,000 as part of his missions statement is an example of
A. gratifying investors
B. a values statement
C. a specific, measurable goal
D. compromising principles
Answers
An instrument used to enlarge or reduce a map is known as
Answers
Answer:
pantograph
Explanation:
you can use a pantograph to do this.
Which factor plays the biggest role in motivating economic decisions in a
market economy?
O A. Corruption in the leadership of powerful groups
O B. Commitment to maintaining a traditional lifestyle
O C. Competition between different businesses
D. Cooperation between governments and citizens
Answers
Cooperation between governments and citizens: plays the biggest role in motivating economic decisions in a market economy. Thus, option D is the correct option.
What Is a Market Economy?A market economy is a kind of capitalism in which a nation's companies and residents interact to determine economic policy and the cost of products and services. Although there may be some central planning or government interference, this phrase often denotes a more generally market-oriented economy.
The majority of economic decisions in a market economy are made through voluntary transactions that follow the rules of supply and demand. In a market economy, entrepreneurs are free to pursue profit by producing outputs that are worth more than the inputs they use, or, if they choose not to, to fail and close their doors. The forces of supply and demand are used in market economies to set the right prices and quantities for the majority of products and services.
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Describe an ethical dilemma related to an employees behavior at work or work discipline
Answers
Understanding ethical dilemmas
You may be faced with an ethical dilemma when something at work goes against your personal ethics, morals and values. This could be something that one of your colleagues or managers is doing, or something that you are doing yourself.
To encourage formation of small businesses, the government could provide subsidies; these subsidies a. would be included in GDP because they are part of government purchases.b. would be included in GDP because they are part of investment expenditures. c. would not be included in GDP because they are transfer payments. d. would not be included in GDP because the government raises taxes to pay for them.
Answers
The correct option is c. would not be included in GDP because they are transfer payments.
Explain about the Subsidy?A subsidy is a type of financial help or support provided to the financial sector only with main objective of fostering social and economic advancement.
Little businesses are corporations, partnerships, or other legal entities that have fewer staff members and smaller yearly revenue than a large corporation or partnership. Small enterprises have the advantage of the ability to request government assistance and satisfy all requirements for a certain spending strategy, which varies by nation and industry.The government should offer subsidies to promote the start-up of new businesses; as these subsidies are social programmes, they are not included in the GDP calculation.Thus, the government might offer subsidies to promote the creation of small enterprises; but, because these subsidies are transfer payments, they are not counted towards GDP.
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How is a credit union different from a bank?
O Acredit union offers services to companies instead of individuals.
A credit union only offers credit, it does not store money.
Acredit union is usually larger than a bank.
O A credit union is owned by its customers.
Answers
Answer:
a credit union is owned by its costumers (D)
Explanation:
i took the assignment!!
Which qualifications are typical for someone working in E-Marketing?
A good teamwork skills, knowledge of search engines and social media
B math skills for calculating prices, good teamwork and physical stamina
C pleasant attitude, critical thinking skills for designing surveys, social awareness
D creative, persuasive, good social skills when dealing with news media contacts
Answers
Answer: A good teamwork skills, knowledge of search engines and social media
Answer:
A :)))))))))))
Explanation:
if i get 16 brainlest ill give u guys 136 points
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Answer:
you get brainlyist by answering questions. not making them
Answer:
ill give u brainlest tete
Explanation:
Does decreasing the value of the local currency contributes in the increase of the economic growth rate
Answers
Answer:
Yes
Explanation:
Devaluation is the purposeful reduction of the value of a nation's currency in relation to another currency or group of currencies. When the currency is devalued, it can lead to an increase in the export of the nation's produce because the price of the exported goods is cheaper and foreign countries are most likely to purchase cheap goods.
The economic growth rate of a nation is the change in percent of goods and services produced in a country over a period of time. It gives an idea of the income of the average citizen in the country. When the value of the local currency is devalued, exports will increase and that will also cause an increase in the income of citizens. This translates to a resultant increase in the economic growth rate of the nation.
a. On May 15, DeShawn Tyler opens a landscaping company called Elegant Lawns by investing $7,000 in cash along with equipment having a $3,000 value in exchange for common stock.
b. On May 21, Elegant Lawns purchases office supplies on credit for $500.
c. On May 25, Elegant Lawns receives $4,000 cash for performing landscaping services.
d. On May 30, Elegant Lawns receives $1,000 cash in advance of providing landscaping services to a customer.
For each transaction, (1) analyze the transaction using the accounting equation, (2) record the transaction in journal entry form, and (3) post the entry using T-accounts to represent ledger accounts.
Answers
1) The analysis of transactions for Elegant Lawns using the accounting equation is as follows:
Transaction and Date Assets = Liabilities + Equity
a. May 15: $7,000
$3,000 $10,000
b. May 21: $500 $500
c. May 25: $4,000 $4,000
d. May 30: $1,000 $1,000
Totals $15,500 $1,500 $14,000
What is the accounting equation?The accounting equation states that with each business transaction, the Assets = Liabilities + Equity.
2) The journal entries for the transactions are as follows:
a. May 15: Debit Cash $7,000
Debit Equipment $3,000
Credit Common Stock $10,000
b. May 21: Debit Office Supplies $500
Credit Accounts Payable $500
c. May 25: Debit Cash $4,000
Credit Service Revenue $4,000
d. May 30: Debit Cash $1,000
Credit Deferred Revenue $1,000
3) The T-accounts to represent ledger accounts are as follows:
Cash AccountDate Account Titles Debit Credit
a. May 15 Common Stock $7,000
c. May 25 Service Revenue $4,000
d. May 30 Deferred Revenue $1,000
Equipment AccountDate Account Titles Debit Credit
a. May 15 Common Stock $3,000
Office SuppliesDate Account Titles Debit Credit
b. May 21 Accounts Payable $500
Service RevenueDate Account Titles Debit Credit
c. May 25 Cash $4,000
Deferred RevenueDate Account Titles Debit Credit
d. May 30: Cash $1,000
Accounts PayableDate Account Titles Debit Credit
b. May 21: Office Supplies $500
Common StockDate Account Titles Debit Credit
a. May 15 Cash $7,000
a. May 15 Equipment $3,000
Transaction Analysis:a. May 15: Cash $7,000 Equipment $3,000 Common Stock $10,000
b. May 21: Office Supplies $500 Accounts Payable $500
c. May 25: Cash $4,000 Service Revenue $4,000
d. May 30: Cash $1,000 Deferred Revenue $1,000
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the paris union was established for the purpose of . group of answer choices reducing pollution protecting patents
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The Paris Union was established for the purpose of protecting patents.The Paris Union, also known as the International Union for the Protection of Industrial Property, is a treaty organization established by the Paris Convention for the Protection of Industrial Property, which was signed in Paris, France, on March 20, 1883.
The Union offers several global protections to patent holders, such as:Protection for patented items from duplication and unauthorized usage.A maximum period of patent protection.The right to be compensated for any violation of patent rights through legal action, among other things.
The main goal of the Paris Union was to establish a common standard for protecting intellectual property across multiple countries to reduce any problems with patents and reduce the costs involved in patenting the same product in different countries. The Paris Union also plays an important role in preventing patent pollution.
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You want to have $47,000 in your savings account 9 years from now, and you're prepared to make equal annual deposits into the account at the end of each year. If the account pays 7.1 percent interest, what amount must you deposit each year?
Answers
Answer:
Amount to be deposited each year = $3,907.58
Explanation:
The equal annual deposit can be worked out using the future value of an ordinary annuity formula. An an annuity is a series of equal cash flows receivable for certain number years.
Future Value of an ordinary annuity (FVOA). The represents the total sum of that would accrue where a series of annual cash flow (each occurring at the end of the year) is compounded at a particular rate. It can be determined as:
A=FV ÷( (1+r)^n - 1)/r).
FV- Future value
A- annual cash flow
R- rate of interest
n-number of years
The first cash flow does earn interest in the first year because it occurs at the end of the year
( (1+r)^n - 1)/r)= (1.071^9 - 1)/0.071=12.028
FV- 47,000
A= 47,000/12.028 = 3907.58
A-$3,907.58
Amount to be deposited each year = $3,907.58
Hammers, screwdrivers, drills, and saws are _____ a construction worker uses.
-tasks
-skills
-tools
-qualifications
Answers
Answer:
are a - tool - construction workers use
what are some common tasks performed by Psychiatrists? (Select four options)
A administering first aid and life support care
B collaborating with other medical professionals
C maintaining patient information and records
D developing diagnostic imaging techniques
E prescribing, directing, or administering psychotherapeutic treatments or medications
F analyzing and evaluating patient data or test findings
Answers
Answer:
B, E and F and explanation I share you other thought about it
Explanation:
Psychiatrists are medical doctors who specialize in the treatment of mental health conditions. Some common tasks performed by psychiatrists include:
Conducting initial evaluations and assessments to diagnose mental health conditionsPrescribing and managing medications to treat mental health conditionsProviding individual, family, or group therapy to help patients manage their mental healthDeveloping and implementing treatment plans for patientsCollaborating with other healthcare providers to coordinate care for patientsProviding crisis intervention and support to patients experiencing mental health emergenciesConducting research to advance the field of psychiatry and improve treatment options for patients.Explain how James can change his farming habits to have a more-productive farm in the following scenario.
James has been losing money on his farm recently, so he has switched to a lower-quality fertilizer of human-made chemicals. As a result, his crops are not growing as well. He is finding it difficult to sell them, causing James to lose even more money.
Answers
Answer:
James should switch to a higher-quality fertilizer to ensure his crops grow well.
Explanation:
If he switches to a higher-quality fertilizer, his plants will grow better, and as a result they will sell better.
James can change his farming habits to have a more productive farm by switching to sustainable farming practices that prioritize soil health and natural fertilizers.
Explain how James can change his farming habits ?The use of chemical fertilizers can negatively impact the quality of the soil over time, leading to decreased crop yields and decreased profits.
To start, James could invest in improving the quality of his soil by rotating crops, practicing cover cropping, and incorporating organic matter such as compost into his fields. This will help to improve the health and nutrient content of the soil and lead to healthier crops.
Additionally, James could consider implementing sustainable pest management strategies, such as integrated pest management, to reduce his reliance on harmful chemicals. This will not only benefit the environment but also save James money on expensive pesticides.
Finally, James could explore alternative marketing strategies to sell his crops, such as farmers markets, community-supported agriculture programs, and direct-to-consumer sales. These methods may help James to reach a more interested and engaged audience who value sustainably grown produce.
Overall, by prioritizing soil health, reducing reliance on harmful chemicals, and exploring alternative marketing strategies, James can change his farming habits to have a more productive and profitable farm.
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Thomas company uses a standard cost system and recognizes the materials purchase price variance at the time materials are purchased. information for raw materials for product rbi for the month of october follows: standard unit price $1.80 actual purchase price per unit $1.65 actual quantity purchased 4,000 units actual quantity used 3,900 units standard quantity allowed for actual production 3,800 units what is the materials purchase price variance?
Answers
Answer: $600F
Explanation:
Given the following :
standard unit price - $1.80
actual purchase price per unit - $1.65
actual quantity purchased - 4,000
units actual quantity used - 3,900
units standard quantity allowed for actual production - 3,800 units
Material purchase price variance = ( Actual unit price of material - standard unit price of material) × Actual unit of material purchased
($1.65 - $1.80) × 4000
( $0.15) × 4000
$600F (Favorable) because standard price is higher than actual price
Imagine you’re working on an important project at work. You’re writing some content about space exploration for your client. Your client has promised to send you a list of approved encyclopedias or reference books that you can use for your article. However, you haven’t received it yet. Write an email asking the client to provide you with the list. Remember to follow the email etiquette you learned in this lesson: Address your recipient by name. Mention the subject of the mail in the subject line. Clearly state the purpose of your email in the first sentence. End with an appropriate complimentary close. Make sure that your language is formal and professional.
Answers
Answer:
Subject: Request List: Approved Reference Books for Space Exploration Article
Dear Mr. Jackson,
I am writing to request you to email me the list of approved reference books for the space exploration article. We had discussed some tentative suggestions in our previous meeting. We are a bit behind schedule with writing the article. The reference book list will be a great help to us. Thank you for your time in considering this request.
Sincerely Yours,
Janice Collins
Head Writer
Star Communications
2563 Maple Road
Sunny City, CA 4523
Tel: (123) 456-7890
THIS IS THE EXAMPLE ANSWER!
How many nickels make 30 cents?.
Answers
A nickel coin is equal to 5 cents. To make 30 cents, we need 6 nickels.
The nickel is the five-cent coin of the United States. Thomas Jefferson, our third president, is depicted on the obverse (heads) of the nickel. Although the current portrait is from 2006, he has been on the cent since 1938.
The United States Mint added a new portrait of Jefferson to the front of the nickel in 2005 to give the currency a more modern appearance. Joe Fitzgerald created the image. The Mint had designed two possible reverse sides of the coin, each with a distinct motif based on "a Westward Journey." One design portrayed the American bison, while the other depicted the Pacific Ocean, the expedition's ultimate aim.
A nickel = 5 cents.
It means that:
2 nickels = 2 x 5 cents = 10 cents
3 nickels = 3 x 5 cents = 15 cents
Therefore, to get 30 cents, we need: 30/5 = 6 nickels.
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i want to maximize revenue for by the business. in linear program, revenue "maximization" is an example of:
Answers
Revenue maximization in a linear program is an example of an objective function that seeks to optimize the total revenue generated by the business.
In a linear program, revenue maximization is an example of an objective or goal. Linear programming is a mathematical technique used to optimize resource allocation and decision-making in a linear system. The objective function in linear programming represents the goal to be maximized or minimized. In the case of revenue maximization, the objective function would be formulated to maximize the total revenue generated by the business, subject to certain constraints such as resource limitations or production capacities. By solving the linear program, the optimal values of decision variables can be determined to achieve the maximum revenue outcome.
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WILL GIVE BRAINLIEST
If loans and credit card debt are taking up most of your monthly income, which of the following is the LEAST effective first step in getting your debt under control?
A. Start a side hustle and allocate the money you make towards extra payments for your debt.
B. Take a hard look at your budget and try to cut nonessential items so you have more cash to pay down your debt.
C. Declare bankruptcy, which will eliminate all your debts and allow you to start over with a clean slate.
D. Pay extra money each month to the debt with the highest interest rate, so you'll decrease the total amount you'll spend on debt.
Answers
Answer:
a or c i fliped a coin and got A sounds like the answer rember jesus loves you
Explanation:
The cost of doing business and establishing retail pricing are directly related to a business’s bottom line. Therefore, if there is a change in the cost of goods, it will affect the profitability of a business that has set prices for its products.
How might profitability and market share be affected if retail pricing fluctuates depending on the cost of raw materials?
Why do you believe that to be the case?
Why is it important that a company’s pricing objectives fit well with its marketing objectives?
Please number your response for each question (1, 2, and 3).
Answers
(1). As increases in the cost of raw materials are there, because higher the raw material, there will be increasing of production cost at company levels. As it could felt by the consumers.
What is Business?The word business is defined as, Businesses that are for-profit operate to make a profit, whereas those that are noncommercial do so to further a philanthropic cause. The term business refers as They could be industrial.
(3). As each business has their different goals and objective by having the pricing objective, the framework was there which determines. That how you should set your prices.
Therefore, As a result, by changes in the retail pricing of the products, there would be direct effect of business will be there in it.
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Find two cases of life insurance fraud. Write a paragraph for each one explaining the details given. (how was the fraud committed, what was the purpose, how the person was caught, what happened as a result, etc.) Next, find one case of health insurance fraud and look up the same information.
Answers
Answer:
Health identity theft is when criminals steal victims names.
Explanation:
health insurance numbers and other personal data and then defraud insurers by making false claims. To combat the problem, some medical ...
Why do we say that credit is basically a loan?