Man-U-Facturing Inc. will buy a machine that has a cost of $850,000 and is expected to be useful for 10 years. At the end of the 10th year, the firm intends to sell the machine for an estimated price of $52,036. In addition, the yearly benefits are expected to be $201,952 while the annual maintenance costs are predicted to be $51,300. The company uses a 9% interest rate for this project and it is currently being taxed at a flat tax rate of 21%. Assume Man-U-Facturing Inc. uses SOYD depreciation. What the is the after-tax benefit-cost ratio?
In: Economics
Man-U-Facturing Inc. will buy a machine that has a cost of $850,000 and is expected to be useful for 10 years. At the end of the 10th year, the firm intends to sell the machine for an estimated price of $52,036. In addition, the yearly benefits are expected to be $201,952 while the annual maintenance costs are predicted to be $51,300. The company uses a 9% interest rate for this project and it is currently being taxed at a flat tax rate of 21%. Assume Man-U-Facturing Inc. uses SOYD depreciation. What the is the after-tax net present value (NPV)?
In: Economics
Man-U-Facturing Inc. will buy a machine that has a cost of $850,000 and is expected to be useful for 10 years. At the end of the 10th year, the firm intends to sell the machine for an estimated price of $52,036. In addition, the yearly benefits are expected to be $201,952 while the annual maintenance costs are predicted to be $51,300. The company uses a 9% interest rate for this project and it is currently being taxed at a flat tax rate of 21%. Assume Man-U-Facturing Inc. uses SOYD depreciation. What the is the after-tax IRR?
In: Economics
Equipment acquired on January 6 at a cost of $335,190, has an estimated useful life of 13 years and an estimated residual value of $68,690. A. What was the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation? B. What was the book value of the equipment on January 1 of Year 4? C. Assuming that the equipment was sold on January 3 of Year 4 for $256,655, journalize the entry to record the sale. Refer to the Chart of Accounts for exact wording of account titles. D. Assuming that the equipment had been sold on January 3 of Year 4 for $287,515 instead of $256,655, journalize the entry to record the sale. Refer to the Chart of Accounts for exact wording of account titles.
In: Accounting
The Jones Company has the following cost schedule. Fill the blanks in the table to compute (a) average total cost and (b) marginal cost schedules for the firm. (round to the second digit after the decimal)
(a) | (b) | ||
Average | |||
Output | Total Cost | Total Cost | Marginal Cost |
0 | $3000 | --- | --- |
50 | 3750 | $75.00/unit | $15.00/unit |
100 | 4275 | 42.75 | 10.50 |
150 | 4675 | 31.17 | 8.00 |
200 | 5000 | 25.00 | 6.50 |
250 | 5300 | ? | ? |
300 | 5700 | ? | ? |
350 | 6250 | ? | ? |
400 | 7050 | ? | ? |
450 | 8225 | ? | ? |
In: Economics
Your Company purchased equipment that cost $55,000 cash on January of Year One. The equipment had an expected useful life of six years and an estimated salvage value of $4,000. Your Company depreciates its assets under the straight line method. What is the amount of depreciation expense (Blank) appearing on the Year Four income statement and the amount of accumulated depreciation (Blank) appearing on the Year Four balance sheet?
In: Accounting
Manufacturing companies are not required to allocate joint-process costs in the valuation of inventories and cost of goods sold for
a. Managerial reporting
b. Tax reporting
c. Financial reporting
d. All of the above
What would the initial cash flows associated with an investment project include?
a. asset, freight and installation costs.
b. cash proceeds from disposing of existing assets made redundant or unnecessary by the new project.
c. income tax effect of gain(loss) on disposal of existing assets.
d. all of the above
Decentralization requires significant overnight from top management.
Cash bonuses and profit sharing are used to reward employees for achieving short-term goals.
Direct labor variances stem from:
In: Accounting
please no plagiarism in this
In: Operations Management
4. Why do marketers take the time and cost associated with test marketing?
In: Economics
The cost, in thousands of dollars, of airing x television commercials during a sports event is given by
C(x) = 20 + 5,000x + 0.05x2.
(a) Find the marginal cost function
Use it to estimate how fast the cost is increasing when x=4 ............. thousand dollars
Compare this with the exact cost of airing the fifth commercial.
The cost is going up at the rate of $ per television commercial. The exact cost of airing the fifth commercial is $ . Thus, there is a difference of $ .
(b) Find the average cost function C, and evaluate C(4).
What does the answer tell you?
The average cost of airing the first four commercials is $ per commercial.
In: Math