you choose to open an auto shop that specializes in work for rental fleets, leasing companies, and dealerships. of the following, which customer group will you support?

Answers

Answer 1

Businesses customer group will support you when opening an auto shop that specializes in work for rental fleets, leasing companies, and dealerships.

What are customer groups?

Customer groups are collections of customers who cooperate to consume data on a specific issue and then provide comments. Producers, resellers, governments, and institutions make up the four fundamental kinds of business purchasers. Companies that produce are those that buy products and services to turn into other goods.

Both producers and service providers fall under this category. Customer groups are collections of customers who cooperate to consume data on a specific issue and then provide comments. Client segmentation is the activity of breaking down a customer base into groups of people who are comparable in particular ways useful to marketing, such as age, gender, interests, and spending patterns.

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Related Questions

Brainstorming helps coworkers


feel respected

free to share their voice

all the answers are helpful in brainstorming

try out new ideas for validity

Answers

Answer:

free to share their voice

Explanation:

Brainstorming helps coworkers "free to share their voice."

This is because Brainstorming is an act in which people or coworkers or employees come together to share varying thoughts, ideas, and opinions about a particular topic or issue to solve the problem involved.

It is an informal way of getting ideas to solve issues.

I don't know what write here.

Answers

Answer:

a question

Explanation:

UM SAY HELLO AND HI

Ivanhoe Inc. uses the conventional retail method to determine its ending inventory at cost. Assume the beginning inventory at cost (retail) were $383500 ($584000), purchases during the current year at cost (retail) were $3208000 ($4993600), freight-in on these purchases totaled $149500, sales during the current year totaled $4466000, and net markups were $404000. What is the ending inventory value at cost? Hint: Round intermediate calculation to 3 decimal places, e.g. 0.635 and final answer to 0 decimal places.

Answers

Answer:

$962406

Explanation:

Calculation to determine the ending inventory value at cost

Ending inventory value at cost=

($584000 + $4993600 + $404000 - $4466000)

*[($383500 + $3208000 + $149500) ÷ ($584000 + $4993600 + $404000)]

Ending inventory value at cost=$1,515,600*($3,741,000÷$5,891,600)

Ending inventory value at cost=$1,515,600*0.635

Ending inventory value at cost=$962406

Therefore the ending inventory value at cost is $962406

Dwyer Company reported the following results for the year ended December 31, 2007, its first year of operations: 2007 Income (per books before income taxes) $ 1,500,000 Taxable income 2,400,000 The disparity between book income and taxable income is attributable to a temporary difference which will reverse in 2008. What should Dwyer record as a net deferred tax asset or liability for the year ended December 31, 2007, assuming that the enacted tax rates in effect are 40% in 2007 and 35% in 2008?

Answers

Answer: $315,000 deferred tax asset

Explanation:

The amount that Dwyer should record as a net deferred tax asset or liability for the year ended December 31, 2007 will be calculated thus:

= ($2400000 – $1500000) × 35%

= $900000 × 35%

= $900000 × 35/100

= $900000 × 0.35

= $315000.

Therefore, the answer is $315,000 deferred tax asset

Perez Modems has excess production capacity and is considering the possibility of making and selling paging equipment. The following estimates are based on a production and sales volume of 2,200 pagers. Unit-level manufacturing costs are expected to be $32. Sales commissions will be established at $2.20 per unit. The current facility-level costs, including depreciation on manufacturing equipment ($72,000), rent on the manufacturing facility ($62,000), depreciation on the administrative equipment ($15,600), and other fixed administrative expenses ($77,950), will not be affected by the production of the pagers. The chief accountant has decided to allocate the facility-level costs to the existing product (modems) and to the new product (pagers) on the basis of the number of units of product made (i.e., 6,200 modems and 2,200 pagers). Required a. Determine the per-unit cost of making and selling 2,200 pagers. (Do not round intermediate calculations. Round your answer to 3 decimal places.) b. Assuming the pagers could be sold at a price of $46 each, should Perez make the pagers

Answers

Answer and Explanation:

a. The computation of the per unit cost is shown below:

= Manufacturing cost per unit + sales commission per unit

= $32 + $2.20

= $34.20

Here we just add the two cost so that the per unit cost could come

b. Yes it should make the pagers as the cost per unit would be lower than the selling price i.e, $46

Therefore the above should be relevant for the given situation

Hsung Company accumulates the following data concerning a proposed capital investment: cash cost $226,445, net annual cash flows $40,500, and present value factor of cash inflows for 10 years is 5.89 (rounded). (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45).) Determine the net present value, and indicate whether the investment should be made.

Answers

Answer:

Hsung Company

a. The net present value is:

= $12,100.

b. Since the investment could yield a net present value of $12,100, the investment should be made.

Explanation:

a) Data and Calculations:

Cash cost of proposed capital investment = $226,445

Net annual cash inflows = $40,500

Present value factor of cash inflows for 10 years = 5.89 (rounded)

Present value of net annual cash inflows = $238,545 ($40,500 * 5.89)

The net present value of the proposed capital project = Present value of net annual cash inflows minus the initial investment cost

= $12,100 ($238,545 - $226,445)

Answer:

12100

Explanation:

40500*5.89=238545

238545-226445=12100

12100

Duo, Inc., carries two products and has the following year-end income statement (000s omitted): Product AR-10 Product ZR-7 Budget Actual Budget Actual Units 3,600 5,000 9,200 8,600 Sales $ $ 10,800 $ 13,500 $ 18,400 $ 18,060 Variable costs 2,880 5,000 9,200 9,030 Fixed Costs 1,800 1,900 2,400 2,400 Total Costs $ 4,680 $ 6,900 $ 11,600 $ 11,430 Operating income $ 6,120 $ 6,600 $ 6,800 $ 6,630 The net effect of AR-10's sales volume variance on profit is:

Answers

Answer:

Sales volume variance $2,380 favorable. The net effect on profit of AR-10's sales is that it will increase profit by $2,380

Explanation:

The sales volume variance is calculated as the difference between the budgeted and the actual sales volume multiplied by he standard profit per unit

Standard profit per unit = 6,120/3,600=$1.7

                                                                    Unit

Budgeted sales units                               3,600

Actual sales units                                     5,000

Sales volume                                             1,400

Standard profit per unit                            × $1.7

Sales volume variance                            2,380 Favorable

Sales volume variance $2,380 favorable

The net effect on profit of AR-10's sales is that it will increase profit by $2,380

why do private and public sector cannot br looked up as two separate entities​

Answers

Answer:

The private sector and the public sector cannot be viewed as separate entities because the two of them are closely intertwined.

Explanation:

The public sector defines the rules and conditions under which the private sector develops, and the private sector contributes to the finances of the private sector.

For example, a regulatory agency in an economic sector sets the rules of the mining economic sector in a country, and private mining companies abide by these rules in order to develop their business activity. Part of the revenue earned from these business activities are taken as taxes by the public sector, in order to finance the regulatory agency.

Sometimes, the public sector can also consists in public companies that can work together with private firms in common projects.

Fill in the missing numbers for the following income statement. (Input all amounts as positive values. Do not round intermediate calculations.)
Sales Costs Depreciation EBIT Taxes (22%) Net income 747,300 582,600 89,300
a. Calculate the OCF. (Do not round intermediate calculations.)
b. What is the depreciation tax shield? (Do not round intermediate calculations.)
a. OCF
b. Depreciation tax shield

Answers

Answer: See explanation

Explanation:

Sales = 747300

Less: Costs = 582600

Less: Depreciation = 89300

EBIT = 75400

Less: Taxes at 22% = 22% × 75400 = 16588

Net income = EBIT - Taxes = 75400 - 16588 = 58812

a. Calculate the OCF.

OCF will be calculated as:

= Net income + Depreciation

= 58812 + 89300

= 148,112

b. What is the depreciation tax shield?

Depreciation tax shield will be:

= Depreciation × Tax rate

= 89300 × 22%

= 89300 × 0.22

= 19646

example of small scale business​

Answers

Found this online:

Few examples of small scale industries are paper, toothpick, pen, bakeries, candles, local chocolate, etc.

I hope this helps.
If it doesn’t than I would maybe get a second opinion. :)

Members of Generation Z are most likely to influence? Furniture design. B) health and insurance. C) retirement plans. D) e-textbooks E) furniture design?

Answers

Answer:

e textbooks due to the fact internet and technological processes tend to be our motif

Explanation:

E textbook I believe is the answer

On October 1, 2021, Blue Corp. issued $744,000, 7%, 10-year bonds at face value. The bonds were dated October 1, 2021, and pay interest annually on October 1. Financial statements are prepared annually on December 31. (a) Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Oct. 1, 2021 enter an account title for the journal entry on October 1, 2021enter an account title for the journal entry on October 1, 2021 enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter an account title for the journal entry on October 1, 2021enter an account title for the journal entry on October 1, 2021 enter a debit amountenter a debit amount enter a credit amountenter a credit amount

Answers

Answer:

Blue Corp.

Journal Entry

Date            Account Titles and Explanation   Debit   Credit

Oct. 1, 2021 Cash                                        $744,000

                   Bonds Liability                                     $744,000

To record the issuance of the 7%, 10-year bonds at face value.

Explanation:

a) Data and Analysis:

Face value of 7%, 10-year bonds = $744,000

Bonds issue = at face value

Issue date = October 1, 2021

Interest payment = annual

Interest payment date = October 1

Annual interest payment = $52,080 ($744,000 * 7%)

Records on December 31, 2021:

Accrual of interest for the year:

Interest Expense $13,020

Interest payable $13,020

To accrue interest for 3 months.

Records on October 1, 2022:

Interest Expense $39,060

Interest payable $13,020

Cash $52,080

To record the interest payment.

... is a systematic and planned introduction of employees to their jobs, their co-workers and the
organisation.
a. Job evaluation
b. Investiture orientation
c. Orientation
d. Placement​

Answers

Answer:

c. orientation

Explanation:

The word orientation means finding out where something is supposed to be, and job orientation tells an employee everything important about their job,

Pet Supplies Inc., a pet wholesale supplier, was organized on January 1. Projected sales for each of the first three months of operations are as follows: January $310,000 February 350,000 March 510,000 All sales are on account. 58% of sales are expected to be collected in the month of the sale, 37% in the month following the sale, and the remainder in the second month following the sale. Prepare a schedule indicating cash collections from sales for January, February, and March.

Answers

Answer:

Results are below.

Explanation:

Giving the following information:

Sales:

January $310,000

February 350,000

March 510,000

58% of sales are expected to be collected in the month of the sale

37% in the month following the sale

5% in the second month following the sale

Cash collection January:

Cash from sales in account January= (310,000*0.58)= 179,800

Total cash collection= $179,800

Cash collection February:

Cash from sales in account January= (310,000*0.37)= 114,700

Cash from sales in account February= (350,000*0.58)= 203,000

Total cash collection= $317,700

Cash collection March:

Cash from sales in account January= (310,000*0.05)= 15,500

Cash from sales in account February= (350,000*0.37)= 129,500

Cash from sales in account March= (510,000*0.58)= 295,800

Total cash collection= $440,800

1 points Time Remaining 1 hour 14 minutes 35 seconds01:14:35 eBookPrintReferencesCheck my workCheck My Work button is now enabledItem 13 Time Remaining 1 hour 14 minutes 35 seconds01:14:35 Alice is single and self-employed in 2020. Her net business profit on her Schedule C for the year is $196,000. What is her self-employment tax liability and additional Medicare tax liability for 2020

Answers

Answer:

Self employment tax liability = $‭22,323.97Additional Medicare tax liability = $0

Explanation:

According to the IRS, the amount subject to self-employment tax is 92.35% of net income from self-employment for the year.

Alice's taxable income is:

= 92.35% * 196,000

= $181,006

Self employment tax-liability:

Social security tax for 2020 is 12.4% for the first $137,700 of income.

= 12.4% * 137,700

= $17,074.80

Medicare tax:

= 2.9% on taxable income

= 2.9% * 181,006

= $‭5,249.17

Self-employment tax is:

= 17,074.80 + 5,249.17

= $‭22,323.97

Additional Medicare tax applies on only amounts above $200,000 so it is $0 in this case.

A key difference between the APV, WACC, and FTE approaches to valuation is: how debt effects are considered; i.e. the target debt to value ratio and the level of debt. how the initial investment is treated. how the ratio of equity to debt is determined. how the unlevered cash flows are calculated. whether terminal values are included or not.

Answers

Answer: how debt effects are considered; i.e. the target debt to value ratio and the level of debt.

Explanation:

The Weighted Average Cost of Capital (WACC) values a project by using a discount rate that encompasses all the costs of raising capital. It therefore includes the effects of debt financing in that rate.

Adjusted Present Value (APV) on the other hand, takes the net present value of a project assuming it was solely financed by equity and then adds the present value of the benefits of debt financing such as interest tax shields and costs of debt issuance. Debt is therefore not included in the model like WACC and so considers the effects of debt differently.

Ziva is an organic brocolli farmer, but she also spends part of her day as a professional organizing consultant. As a consultant, Ziva helps people organize their houses. Due to the popularity of her home-organization services, Farmer Ziva has more clients requesting her services than she has time to help if she maintains her farming business. Farmer Ziva charges $40 an hour for her home-organization services. One spring day, Ziva spends 9 hours in her fields planting $130 worth of seeds on her farm. She expects that the seeds she planted will yield $300 worth of brocolli.

Required:
What is the total opportunity cost of the day that Farmer Ziva spent in the field planting brocolli?

Answers

Answer:

$790

Explanation:

$300 --- ($40 * 9 hours) + 130

Add

300 + 130

430

Then, multiply

40 and 9

= 360.

Therefore, Add the results together to get your answer, which is $790

Objectives of pep stores

Answers

Answer:

The answer is below

Explanation:

PEP is a big store that is located in South Africa and other African countries.

Based on the PEP mission and vision and according to the company's website, the Objectives of PEP stores are:

1. To be the friendliest and most trusted retailer for this market.

2. To offer wanted products and services at the lowest possible prices

3. To meet changing consumer needs.

A firm's sustainable growth rate represents the:
percentage change in sales times the profit margin.
possible growth without jeopardizing net working capital.
highest growth rate without decreasing the dividend.
highest growth rate without increasing financial leverage.
What is the sustainable growth rate for a firm with net income of $2.90 million, cash dividends of $1.90 million, and return on equity of 16%? (Do not round intermediate calculations.)
a. 9.12%
b. 1.32%
c. 5.52%
d. 3.72%

Answers

Answer:

1. A firm's sustainable growth rate represents the:

highest growth rate without increasing financial leverage.

2. The sustainable growth rate of a firm with net income of $2.90 million, cash dividends of $1.90 million, and return on equity of 16% is:

= c. 5.52%

Explanation:

a) Data and Calculations:

Sustainable growth rate = Return on equity * Retention rate

Net income =  $2.90 million

Cash dividends 1.90 million

Retained earnings = $1.0 million

Retention rate = $1.0/$2.90 * 100 = 34.48%

Return on equity = 16%

Therefore, the sustainable growth rate = 16% * 34.48%

= 5.5168%

= 5.52%

b) Sustainable growth rate is the rate of revenue growth, which an entity can attain without increasing its financial leverage (debts).  The sustainable growth rate answers the question of how much a company can grow without additional equity or debt financing.  It is a ratio that investment analysts and investors widely seek.  There are four main ways of increasing an entity's sustainable growth rate, including sale of debt, issue of equity, increased profitability through efficient sales revenue, and reduced dividends payout to increase retained earnings.

4. Suppose the spot Yuan/dollar exchange rate is 6.79. Sue, a Chinese national, has 10,000 Yuan that she wants to invest in a U.S. asset that promises an annual interest of 7 percent. If the expected exchange rate (Yuan/dollar) after a year is 7.2, how much will Sue earn in Yuan

Answers

Answer:

Spot exchange rate (Yaun / Dollar) = 6.79 > Therefore, exchanging Yuan for Dollar:    10,000 Yuan.

Explanation:

Yuan/Dollar existing exchange rate is 6.79           Sue has 10,000 Yuan which is converted to 10,000 / 6.79

A machine costing $450,000 with a four-year life and an estimated $30,000 salvage value is installed by Lux Company on January 1. The factory estimates the machine will produce 1,050,000 units of product during its life. It actually produces the following units for the first 2 years: year 1, 260,000; year 2, 275,000. What is the depreciation amount for year 2 under the double declining balance method

Answers

Answer:

$112,500

Explanation:

Depreciation expense using the double declining method = Depreciation factor x cost of the asset

Depreciation factor = 2 x (1/useful life)  

Depreciation expense in year 1 = 2/4 x $450,000 = $225,000

Book value at the beginning of year 2 =  $450,000 - $225,000 =  $225,000

Depreciation expense in year 2 = 2/4 x $225,000 = $112,500

Assets Liabilities and Equity Current assets: Current liabilities: Cash $ 60 Accounts payable $ 240 Accounts receivable (net) 170 Other current liabilities 80 Notes receivable 50 Total current liabilities 320 Inventory 200 Long-term liabilities 110 Prepaid expenses 25 Total liabilities 430 Total current assets 505 Shareholders' equity: Equipment (net) 255 Common stock 150 Retained earnings 180 Total shareholders' equity 330 Total assets $ 760 Total liabilities and equity $ 760 The current ratio is (Round your answer to 2 decimal places.):

Answers

Answer:

the current ratio is 1.58 times

Explanation:

The computation of the current ratio is shown below:

As we know that

Current ratio = Current assets ÷ current liabilities

= $505 ÷ $320

= 1.58 times

By dividing the current assets from the current liabilities we can get the current ratio

hence, the current ratio is 1.58 times

It is used for analyzing the liquidating position of the company

Wallace Company provides the following data for next year: MonthBudgeted Sales January$ 120,000 February 108,000 March 132,000 April 144,000 The gross profit rate is 35 % of sales. Inventory at the end of December is $ 21,600 and target ending inventory level are 20 % of next month's sales, stated at cost. What is the amount of purchases budget for January

Answers

Answer:

$70440

Explanation:

Given data :

Month             Budgeted sales

January           $120,000

February         $108,000

March              $132,000

April                 $144,000

Gross profit rate = 35% of sales

Inventory at end of December = $21600

Target ending inventory level = 20% of next month sales

Determine the amount of purchases budget for January

First step : calculate

Cost of goods for January = Budgeted sales - Gross profit

= $120,000 - $42,000 =  $78000

Next : determine ending inventory in January

= 20% * ( Budgeted sales in Feb * 65% )

= 20% * ($108000 * 65%) = $14040

Determine budgeted purchase using the Relation below

Cost of goods sold = Beginning inventory + Budgeted purchases - Ending inventory

78,000 = 21600 + Budgeted purchases - 14040

therefore

Budgeted purchases for January = ( 78,000 + 14040 - 21600 )

                                                       = $70440

For February, sales revenue is $700,000, sales commissions are 5% of sales, the sales manager's salary is $96,000, advertising expenses are $90,000, shipping expenses total 2% of sales, and miscellaneous selling expenses are $2,500 plus 1/2 of 1% of sales. Total selling expenses for the month of February area.$161,000b.$235,000c.$241,000d.$237,500

Answers

Answer:

C. $241,000

Explanation:

Sales commission = $35,000              (5% of $ 700,000)

Salary of sales manager = $96,000

Advertising expenses = $90,000

Shipping expenses = $14,000               (2% of $ 700,000)

Miscellaneous selling expenses = $6,000          

($ 2,500 add 1/2 * 1% * $ 700,000)

Total = $241,000

A firm has the following production relationship between labor and output, for a fixed capital stock.
Libor
0
1
Output
0
5
2
3
4
5
19
23
26
According to the above table saatis the average product of labor when three laborers are employed?
03

Answers

Answer:

12 i think but what are the answer choices.

Explanation:

Expenses recognition Sun Microsystems uses the accrual basis of accounting and recognizes revenue at the Lime it sells goods or renders services. It applies U.S. GAAP and reports in U.S. dollars. Indicate the amount of expenses (if any) the firm recognizes during the months of June. July, and August in each of the following hypothetical transactions. The firm does the following:
a. Pays $180,000 on July 1 for one year’s rent on a warehouse beginning on that date.
b. Receives a utility bill on July 2 totaling $4,560 for services received during June. It pays the utility bill during July.
c. Purchases office supplies on account costing $12,600 during July. It pays $5,500 for these purchases during July and the remainder during August. Office supplies on hand on July 1 cost $2,400, on July 31 cost $9,200, and On August 31 cost $2,900.
d. Pays $7,200 on July 15 for property taxes on office facilities for the current calendar year.
e. Pays $2,000 on July 15 as a deposit on a custom-made delivery van that the manufacturer will deliver on September 30.
f. Pays $4,500 on July 25 as an advance on the August salary of an employee.
g. Pays $6,600 on July 25 for advertisements that appeared in computer journals during June.

Answers

Answer:

Sun Microsystems

Amount of Expenses to recognize during the months of June, July, and August in each of the following transactions:

a. Rent Expense = $30,000

b. Utility Expense = $4,650

c. Supplies Expense = $9,700

d. Property Taxes = $1,800

e. No expense is recognized.

f. Salary Expense = $4,500

g. Advertising Expense = $6,600

Explanation:

Data and Calculations:

a. Rent Expense = $180,000/12 * 2 = $30,000 Rent Prepaid $150,000

b. Utility Expense $4,560

c. Supplies Expense $9,700 ($12,600 - $2,900)

d. Property Taxes = $7,200 *3/12 = $1,800

e. No expense is recognized for the advance payment for delivery van.

f. Salary Expense $4,500

g. Advertising Expense $6,600

Pinacle Corp. budgeted $350,000 of overhead cost for the current year. Actual overhead costs for the year were $325,000. Pinacle's plantwide allocation base, machine hours, was budgeted at 50,000 hours. Actual machine hours were 40,000. A total of 10,000 units was budgeted to be produced and 9,800 units were actually produced. Pinacle's plantwide factory overhead rate for the current year is: Group of answer choices

Answers

Answer:

Pinacle Corp.

Pinacle's plantwide factory overhead rate for the current year is:

= $7 per machine hour.

Explanation:

a) Data and Calculations:

Budgeted overhead cost for the current year = $350,000

Actual overhead costs for the year = $325,000

Plantwide allocation base, machine hours = 50,000

Actual machine hours = 40,000

Budgeted production units = 10,000

Actual production units = 9,800

The plantwide factory overhead rate for the current year is:

= Budgeted overhead cost/Budgeted machine hours

= $350,000/50,000 = $7 per machine hour

Allocated overhead = 40,000 * $7 = $280,000

Under-absorbed overhead = $45,000 ($325,000 - $280,000)

Sheila and Jim live in an island where they are the only two workers. Sheila can either catch 10 fish or gather 40 pounds of berries each day, and Jim can either catch 8 fish or gather 24 pounds of berries each day. Both of them work 200 days per year. At current world prices 1 fish trades for 3.5 pounds of berries. Who has the comparative advantage in producing berries

Answers

Answer:

SHEILA

Explanation:

A person has comparative advantage in production if it produces at a lower opportunity cost when compared to other people.

Sheila's opportunity cost in producing berries = 10/40 = 0.25

Jim's opportunity  cost in producing berries = 8/24 = 0.33

Sheila has a lower opportunity cost in the production of berries and thus has a comparative advantage in the production of berries

A general rule in contract law is that for a promise to be enforce by a court, there must be

Answers

Answer:

a written agreement

Explanation:

A contract is a form of a written agreement.

A general rule in contract law is that for a promise to be enforced by a court, there must be a written agreement. Thus option D is appropriate.

What is a Law?

A law is referred to as a set of rules and regulations, guidelines given in the constitution and implemented by the ruling government to maintain cordial relationships among people and helps to conduct the functioning of any country properly.

A contract is referred to as a written agreement that is enforceable by the law and has mutual consent of both the contract where all the features of a valid contract are fulfilled.

The feature of a valid contract is that there must be two-party having mutual consent to participate in the agreement in exchange for something in return with lawful consideration.

Therefore, option D is appropriate.

Learn more about Contract, here:

https://brainly.com/question/2669219

#SPJ2

Crossroad Corporation is trying to decide whether to invest to automate a production line. If the project is accepted, labor costs will decrease by $753,000 per year. However, other cash operating expenses will increase by $216,000 per year. The equipment will cost $105,000 and is depreciable over 9 years using simplified straight line to a zero salvage value. Crossroad will invest $24,000 in net working capital at installation. The firm has a marginal tax rate of 34%. Calculate the firm's annual cash flows associated with the new project.

Answers

Answer:

The incremental revenue the company gets is:

= Labor cost decrease - Other cash increase

= 753,000 - 216,000

= $537,000

Depreciation = 105,000/ 9

= $11,667

Annual Cashflows (Year 1 - 9)

= (Incremental revenue - Depreciation) * ( 1 - tax) + Depreciation

= (537,000 - 11,667) * (1 - 34%) + 11,667

= $‭358,386.78‬

Cashflow in year 0

= Cost of equipment + Investment in net working capital

= -105,000 - 24,000

= -$129,000

Other Questions
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