Molton Inc. made a $80,000 cash expenditure this year (year 0). Compute the after-tax cost if Molton must capitalize the expenditure and amortize it ratably over four years, beginning in year 0. Molton has a 21% marginal tax rate and uses a 8% discount rate.
Answers
To compute the after-tax cost of the cash expenditure, we need to consider both the amortization expense and the tax impact.
First, let's calculate the annual amortization expense:
Amortization expense per year = Total expenditure / Number of years
Amortization expense per year = $80,000 / 4
Amortization expense per year = $20,000
Next, let's calculate the tax savings from the amortization expense:
Tax savings per year = Amortization expense per year x Marginal tax rate
Tax savings per year = $20,000 x 0.21
Tax savings per year = $4,200
Now, we can calculate the after-tax cost by subtracting the tax savings from the amortization expense:
After-tax cost per year = Amortization expense per year - Tax savings per yearAfter-tax cost per year = $20,000 - $4,200
After-tax cost per year = $15,800
To calculate the present value of the after-tax costs, we need to discount them using the discount rate:
Present value of after-tax costs = After-tax cost per year / (1 + Discount rate)^Number of years
Present value of after-tax costs = $15,800 / (1 + 0.08)^4
Present value of after-tax costs = $15,800 / (1.08)^4
Present value of after-tax costs ≈ $11,428.76Therefore, the after-tax cost, considering the amortization and tax impact, is approximately $11,428.76.
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Related Questions
A quantitative method used to evaluate single locations based primarily on proximity is: break-even analysis. the load-distance method. a preference matrix. the transportation method.
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The quantitative method used to evaluate single locations based primarily on proximity is the load-distance method.
The load-distance method is a technique used in location analysis and facility location planning. It focuses on determining the total cost or effort required to transport goods or services between potential facility locations and the demand points or markets they serve. The method takes into account the distance or travel time between locations and the quantity or load being transported.
In the load-distance method, the proximity or closeness of potential locations to the markets or demand points is a key factor in evaluating their suitability. The idea is that minimizing the distance or travel time required to transport goods or services can reduce transportation costs and improve efficiency.
The load-distance method involves calculating a score or measure for each potential location based on the combination of load (demand) and distance (proximity) factors. These scores can then be used to compare and rank the locations, with the goal of identifying the optimal or most favorable location.
While other methods mentioned, such as break-even analysis, preference matrix, and the transportation method, may also involve quantitative evaluation in location analysis, the load-distance method specifically emphasizes proximity as a primary consideration.
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A hamburger factory produces 75,000 hamburgers each week. The equipment used costs $8,000 and will remain productive for three years. The labor cost per year is $10,500.
What is the productivity measure of "units of output per dollar of input" averaged over the three-year period? Assume that there are 52 weeks per year. Round your answer to one decimal place.
Productivity: ______ hamburgers/dollar
The company has the option of purchasing equipment for $10,500, with an operating life of four years. It would reduce labor costs to $8,500 per year. Should it consider purchasing this equipment (using productivity arguments alone)? Assume that there are 52 weeks per year. Round your answer for productivity to one decimal place.
For the expensive machine, productivity is ______ hamburgers/dollar input. Because the productivity of the expensive machine is _________, it would be a _______ investment based on this single criterion.
Answers
Productivity is a measure of the efficiency of a production system. It is calculated by dividing the output by the input. Here, we need to calculate the productivity of the hamburger factory for both the existing and the new equipment.
Existing equipment:
The equipment cost is 8,000, and the labor cost is 10,500 per year.
Total cost over 3 years = 8,000 + (10,500 x 3) = 39,500
Total hamburgers produced over 3 years = 75,000 x 3 = 225,000
Productivity over 3 years = 225,000 / 39,500 = 5.7 hamburgers/dollar
The productivity of the existing equipment is 5.7 hamburgers/dollar.
For the new equipment, the equipment cost is 10,500, and the labor cost is 8,500 per year.
Total cost over 4 years = 10,500 + (8,500 x 4) = $45,500
Total hamburgers produced over 4 years = 75,000 x 4 = 300,000
Productivity over 4 years = 300,000 / 45,500 = 6.6 hamburgers/dollar
The productivity of the new equipment is 6.6 hamburgers/dollar.
The productivity of the new equipment is higher than the existing equipment.
So, it would be a good investment based on this single criterion.
Answer:
Productivity: Existing equipment = 5.7 hamburgers/dollar
New equipment = 6.6 hamburgers/dollar
Expensive machine productivity is 6.6 hamburgers/dollar input.
Because the productivity of the expensive machine is higher, it would be a good investment based on this single criterion.
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When participating in the
___________ ___________ ___________ students and FBLA Chapters
are able to compete with students and chapters ranked the best in the state in competitive events.
The election of State officers occurs at this event.
O National Leadership Conference
O Fall Leadership Conference
O State Leadership Conference
O Regional Leadership Conference
Answers
Answer:
At the National Leadership Conference
Explanation:
Inflation can cause difficulty in many ways. Which group would have the greatest problem during periods of high inflation?
Answers
Answer:
Inflation can cause difficulty in many ways. Which group would have the greatest problem during periods of high inflation that last several years? Older, working couples saving for retirement. Older people living on fixed retirement income.
The recommended questions when finding root causes of an accident consists of the following EXCEPT. A. What caused the workers' behaviour that contribute to the accident? B. Why cannot the workers think and are so careless in doing his job? C. Why was the work condition not checked and corrected earlier? D. Why the equipment used was not checked and maintained?
Answers
The recommended questions when finding root causes of an accident consists is except why cannot the workers think and are so careless in doing his job?. Option b is correct.
An accident is an unplanned event or occurrence that occurs, resulting in death or injury to people, damage to the environment, and damage to equipment or materials. The root cause of an accident is the main reason why an accident occurred. Identifying the root cause of an accident can help prevent it from happening again.
The recommended questions when finding root causes of an accident consists of the following:
What happened?What was the cause?What could be done to prevent it from happening again?Why the equipment used was not checked and maintained?What caused the workers' behavior that contributed to the accident?Why was the work condition not checked and corrected earlier?Therefore, b is correct.
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would the market-value debt ratio tend to be higher than the book-value debt ratio during a stock market boom or a recession?
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The market-value debt ratio would tend to be higher than the book-value debt ratio during a stock market boom.
The market-value debt ratio is a financial ratio that measures the proportion of a company's market value that is financed by debt. It is calculated by dividing a company's total debt by its market capitalization. Market capitalization is the current market value of a company's outstanding shares of stock.
During a stock market boom, the market value of a company's shares of stock tends to increase significantly, which means that the company's market capitalization would also increase. This would cause the market-value debt ratio to increase, even if the company's total debt remains the same.On the other hand, the book-value-debt ratio measures the proportion of a company's book value that is financed by debt. The book value is the value of a company's assets as recorded on its balance sheet, minus its liabilities and intangible assets.During a recession, a company's book value may decrease due to asset write-downs, inventory write-offs, or other non-cash charges, which would cause the book-value debt ratio to increase, even if the company's total debt remains the same.Therefore, during a stock market boom, the market-value debt ratio would tend to be higher than the book-value debt ratio, while during a recession, the book-value debt ratio would tend to be higher than the market-value debt ratio.
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Mary is earning a weekly salary of $521.60 as a payroll clerk. She has accepted a new assignment in the tax-processing department. In her new position, she will be paid an annual salary of $30,534.00. How much more would she earn per week in her new position?
Answers
Answer:
$65.60
Explanation:
Mary's current is $521.60.
In her new position, she will be earning $30,534.00. Her new weekly income will be as follows. Assuming one year has 52 weeks.
New pay = $30,534.00/ 52
New pay =587.20
In her new job, she will earn more by( $587.20 - $521.60.) =$65.60
=$65.60
What would his savings rate need to be to accomplish his goal of contributing $4,000 a year towards his college education? Explain your answer.
Answers
A person is the goal to saving the money as the contributing the $4,000 it was the saves the mostly of the $2400.
What is savings?
The term saving refer to the total amount was to spend on the expenses and the how-to saves. The savings are the always benefit in the future. A person is the saved in the money to bank are create the more interest.
According to the information as the saving to the per hour $10. The saving to the number of hours to the week, 20 hours. There was the total money in the week $200. The conclusion was the summer that is 12 weeks are $200 x 12 weeks = $2400.
As a result, the total money of the savings to $2400.
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Answer it please the question is in the pic T_T
Answers
Answer:
Economics:
Explanation:
Political Economy or Economics is a study of mankind in the ordinary business of life; it examines that part of individual and social action which is most closely connected with the attainment and with the use of the material requisites of wellbeing.
i hope this helped you
The real estate market life cycle will affect the ___________ attitudes of the buying public.
Answers
The real estate market life cycle will affect the Social attitudes of the buying public.
What are the four stages of a property's life cycle?The real estate cycle is a four-phase wave pattern through which commercial real estate and housing markets move. The four phases of the real estate cycle are recovery, expansion, hyper-supply, and recession.To learn more about it, refer
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8) How can using a credit card affect your credit score in a good way? In a bad way?
Answers
Answer:
Explanation:
Good way: using your credit card and paying off the balance each month and on time can increase your credit score. Also, having a large credit limit affects the credit positively
Bad way: paying your balances late or not at all is bad for your credit.
Why is perception important in the study of OB? Simply because people’s behavior is based on their perception of what reality is, not on reality itself.
Answers
Perception is important in the study of Organizational Behavior (OB) simply because people's behavior is based on their perception of what reality is, not on reality itself.
Perception plays a significant role in shaping human behavior. It is the process through which people receive, interpret, and organize information from their surroundings. Perception is a mental process that enables people to make sense of their world by processing sensory information. Perceptions are subjective, and people's behavior is often based on their perception of reality, not reality itself.
In the study of Organizational Behavior, perception is essential because it affects how people think, feel, and behave in the workplace. People's perception of themselves, their co-workers, their jobs, and the organization as a whole can shape their attitudes and behaviors. For example, if an employee perceives that they are being treated unfairly at work, they might become demotivated and start to underperform. Another employee who perceives that they are being rewarded fairly might be motivated to work harder.
Perception also influences the way people communicate and interact with one another. It affects how they perceive messages, interpret information, and form judgments about other people. This can lead to misunderstandings, miscommunications, and conflicts in the workplace.
In conclusion, perception is an essential aspect of the study of Organizational Behavior. People's behavior is not based on reality itself but on their perception of reality. Perception shapes how people interpret and respond to their surroundings, influencing their attitudes and behaviors. Understanding perception is critical for managers and leaders to create a positive work environment and foster healthy relationships between employees. By being aware of the power of perception, managers can improve communication, reduce conflicts, and increase productivity in the workplace.
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an economy’s potential output is equal to $2.40 trillion, and its current output is equal to $2.42 trillion. if the marginal propensity to consume has a value of 0.4, then the government should decrease spending by ________ billion to return the economy to the long-run equilibrium.
Answers
Based on the current economic output and the potential output, the government should decrease spending by $12 billion.
First find the difference between the potential output and the current output:
= 2.42 - 2.40
= $0.02 trillion
= $20 billion
Then find the expenditure multiplier:
= 1 / ( 1 - Marginal propensity to consume)
= 1 / ( 1 - 0.4)
= 1.67
The government should reduce spending by:
= Difference between potential and current / Multiplier
= 20 / 1.67
= $12 billion
In conclusion, the government should reduce spending by $12 billion.
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Mangroves and coral reefs are examples of ________ in the ocean.
Answers
Answer: I hope this is helpful
Explanation:
Sea is the answer because it shows that what apart of I think this is the answer
Mangroves and coral reefs are examples of marine ecosystem in the ocean.
What is an ecosystem?An ecosystem is a group or community of living organisms with the non-living components and their interaction with each other and the surrounding environment.
An ecosystem is a structural and functional unit of ecology where the living organisms interact with each other and their surrounding environment.
The structure of an ecosystem is characterized by the organization or interaction of both biotic and abiotic components. It includes the distribution of energy in the environment and also the climatic conditions prevailing in that particular environment.
Like mangroves and coral reefs are examples of marine ecosystem in the ocean.
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There is always some degree of government involvement in a mixed economy.a. Trueb. False
Answers
The given statement " there is always some degree of government involvement in a mixed economy because of the involvement of public as well as private sector in the economy" is false because of government would be involved in arranging the utilization of specific resources as well as could indeed exert control accented with oil - rubbed the private sector's businesses..
A mixed economy protects private property and permits some economic freedom in the use of capital, but it also permits government intervention to further social objectives.
A mixed economy seeks to address the drawbacks of both a capitalism and a socialist economy in order to create a novel framework. It respects the idea of private property ownership and the freedom that comes with it.
However, it recognizes the drawbacks of uncontrolled capitalism. Therefore, it suggests government regulation and economic planning to prevent prejudice toward the most vulnerable populations.
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how can communication matrix be distorted?
Answers
Communication distortion occurs when the meaning of a message is lost during transmission, typically as a result of misunderstanding or misrepresentation. It can also happen if a message's proper or comprehensive information is inadequate.
What negatively affects the exchange of information?When one frequency component tries to modulate another frequency component—for example, when a high audio frequency attempts to modulate a low audio frequency—nonlinearities in the system cause intermodulation distortion. The three distortion kinds that can be heard the loudest in audio systems are amplitude, frequency, and intermodulation distortion.
How does the transfer of data prevent distortion?The Data Delay distortion issue can be solved by a certain technique that enables us to manually alter the frequency and speed of the medium network signal. We can use a variety of amplifiers or repeaters to the delay distortion issue, depending on the needs of the signal.
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what are the sources of income of the government? where do these taxes go?
Answers
Answer:
The taxes go in the national income of country
a video game manufacturer has just come out with a new video game. the company wants to develop demand for the product before the holiday shopping season, so it is focusing on advertising the features of the game and how it is different from other games on the market. what type of advertising would be best for building demand for this product?
Answers
Based on the video game manufacturer wanting to build demand for the product by advertising the features of the game, the type of advertising that would be best is promotional advertising.
What is promotional advertising?Promotional advertising is the type of advertising that is used when a new product is to be introduced into the market. This type of advertising is meant to make people interested in the new product being offered by talking about the features of the product.
There would also be an emphasis on how the product is different from other products, but not only different, better than them as well. This is why the video game manufacturer would be better off advertising the new video game with promotional manufacturing.
This is because it would help them talk up the features of the game as the new and improved product that it is.
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What type of factors of production would you need to provide services to your clients?
Answers
The idea cited is Factors of production, which are the inputs used to supply an amazing or carrier with the intention to produce income. The answer is land, labor, entrepreneurship, and capital.
The four factors of production namely land, labor, capital, and entrepreneurship can be viewed as part of the economy. The land has a broad definition as a factor of production and can take many forms, from agricultural land to commercial real estate to the resources available on a given piece of land.
Labor refers to the effort a person puts into marketing a product or service. Capital generally refers to money.
Instead, it facilitates the processes used in production and allows entrepreneurs and contractors to purchase capital goods or land or pay wages. Entrepreneurship is the secret ingredient that brings together all the other factors of production into a product or service for the consumer market.
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Internal analysis enables a firm to determine what the firm:__________.
a. can do.
b. should do.
c. will do.
d. might do.
Answers
what will happen to your credit score if you do not manage your debt wisely?
Answers
Answer:
it will go down
Explanation:
common sense
Answer: Your credit score will decrease.
Explanation: High debt to earning ratio, high percentage of revolving credit utilization, late or nonpayment of debt are all things that negatively impact credit scores.
Everything else held constant, when prices in the art market become more uncertain:______.
Answers
the demand curve for the bonds shifts to the left and the interest rate rises
when the market is volatile , then the risk associated with the bond is very high . there is an inverse relation ship between risk and demand. when the risk is high, the demand for the bond decrease and the demand curve shifts to the left. also there is an inverse relation ship between the demand and interest rate. hence, when the demand decrease , the interest rate on the bond rises
the explanation for correct option because of an inverse relationship between the risk demand and demand interest rate, the interest rate cant fall when the demand curve shift to the left and when the risk is high , the demand curve shifts to the left only, not to the right .
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How important is money
Answers
Answer:
very important
Explanation:
money is a global income source for everyone. we all have different types but it is all still money. now say one country got rid of money and had people pay for stuff using other things. if china did that lots of different countries wouldn't be able to get stuff from there unless they had so much of that product they could just give it up.
It is not advisable for a worker who is satisfied with their job to improve their skills. Please select the best answer from the choices provided T F
Answers
Answer: False
Explanation: I just took the practice test
Answer:
False
Explanation:
Solve the simultaneous equation
y+x=4
2y-x=5
Answers
Answer:
Value of X = 1Value of y = 3Solution,
Using substitution method,
y + x = 4
Move 'x' to the left hand side and change its sign:
y = 4 - x --------> equation (i)
Now,
2y - X = 5
putting the value of y from equation (i)
2( 4 - x ) - X = 5
8 - 2x - x = 5
8 - 3x = 5
- 3x = 5 - 8
- 3x = - 3
The difference sign (-) will be cancelled in both sides
3x = 3
3x/3 = 3/3
X = 1
Value of X is 1
Now, replacing the value of X in equation (i)
y = 4 - x
= 4 - 1
= 3
Value of y is 3
Hope this helps...
Good luck on your assignment...
Hey Yall I am giving 100 points away and a brainliest!!!!!!!!!!!!
Answers
Answer:
tysm
Explanation:
Answer:
ty
Explanation:
What word does this caution,lookout,danger
is the signal word used for more sever hazards.
Answers
Answer:
danger is used for the most severe hazards
Explanation:
Furtastic manufactures imitation fur garments. On June 1, 2021, Furtastic made a sale to Willett’s Department Store under terms that require Willett to pay $200,000 to Furtastic on June 30, 2021. In a separate transaction on June 15, 2021, Furtastic purchased brand advertising services from Willett for $22,000. The fair value of those advertising services is $10,000. Furtastic expects that 2% of all sales will prove uncollectible. Prepare the journal entries to record the transactions above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answers
Answer and Explanation:
The Journal entry is presented below:-
1. Accounts receivable Dr, $200,000
To Sales revenue $200,000
(Being sales revenue is recorded)
2. Advertising expense Dr, $10,000
Sales revenue Dr, $12,000
To Cash $$22,000
(Being expenses is recorded)
Cash Dr, $200,000
To Accounts Receivable $200,000
(Being cash receipt is recorded)
start a conversation with me and you get points plus brainliest
Answers
Answer:ok
Explanation:
Hi
Hi! So how long have you been using brainly?
What can a boosted post help an advertiser achieve?
Answers
A boosted post helps an adviser to connect with the audience and gain trust.
Boosted post is a kind of post that is used on social media platforms in order to enhance the page of the platform and to attract audience to the page. Boosted post can help better communication with the audience along with the increase in a greater number of messages, calls and texts. Boosted posts help for better advertisements of the product. For example, A Chocolate brand may use Boosted posts to gain audience as well as consumers. Boosted posts helps an adviser to be discovered among people, to establish a benchmark in the market and to gain more and more customers. It's a kind of marketing strategy used for publicity purpose.
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