This question is similar to question 2 but annual revenue is given and sale value is unknown:
Suppose you have to decide whether sell an old machine or keep it with a major overhaul. You can:

A) Sell the machine at time zero for X dollars with zero book value and paying the tax of 40%.

B) Keep the machine, which requires a major overhaul cost of $1,000,000 at time zero. The overhaul cost is depreciable from time 0 to year 5 (over six years) based on MACRS 5-year life depreciation with the half year convention (table A-1 at IRS (Links to an external site.)Links to an external site.). In this case machine can produce and generate equal annual revenue of 900,000 dollars for five years (year 1 to 5) and salvage value of the machine will be $250,000 with zero book value at the end of year 5. The operating cost of the machine will be $400,000 per year from year 1 to year 5.

Calculate the sale value, X, that can break-even the NPV of keeping the machine. Consider 40% income tax rate and after-tax minimum ROR of 16%.

True or False. Draw a graph (supply and demand diagrams) to support your answer:

Technological innovation benefits society because it increases the total revenue of the producers.

If the marginal revenue of a dozen tulips is $12 and marginal cost is $8, why wouldn’t this be an optimal level of production? Please also explain your answer with a figure.

As a firm grows, it must support increases in revenue with new investments in assets. The self-supporting growth model helps a firm assess how rapidly it can grow, while maintaining a balance between its cash outflows (increases in noncash assets) and inflows (funds resulting from increases in liabilities or equity).

Consider this case:

Bohemian Manufacturing Company has no debt in its capital structure and has $150 million in assets. Its sales revenues last year were $90 million with a net income of $5 million. The company distributed $1.30 million as dividends to its shareholders last year.

What is the firm’s self-supporting, growth rate? (Note: Do not round your intermediate calculations.)

a. 0.87%

b. 4.38%

c. 0.74%

d. 2.53%

Which of the following are assumptions of the self-supporting growth model? Check all that apply.

- The firm pays out a constant proportion of its earnings as dividends.

- The firm’s total asset turnover ratio remains constant.

- The firm’s liabilities and equity must increase at the same rate.

- The firm will not issue any new common stock next year.

In a retail, wholesale or manufacturing company the most common revenue account is Sales. In a nonprofit the revenue is separated into what two classifications based on the intention of donors?

Where does Richmond, Virginia receive their revenue? What is their top source?

Reflect on the examples of generations of computer technology and comment on how this affects revenue and expenses in a healthcare environment

Create a new plan that will bring in more revenue to the state of Georgia from the public in a way that they will support for paying taxes. it must increase taxation, but will not anger the public. try to innovate new ways to gain additional revenue

A. Why is the equality of marginal revenue and marginal cost essential for profit maximization in all market structures?

B. Explain why price can be substituted for marginal revenue in the MR=MC rule when an industry is purely competitive