A cherry processing facility in Northern Michigan processes both sweet and tart cherries for local growers. The facility needs to install a new cherry pitter. An analyst recently obtained the following estimates. Preliminary feasibility study (this year, year 0) $5,000 Purchase & install system (this year, year 0) $250,000 Annual operating costs (years 1-8) $15,000 in year 1, increasing by $3,000 each year Salvage value (year 8) $25,000 Other phase-out activities (year 8) $3,750 The cherry pitter would be used for eight years. The facility uses a before-tax MARR of 8% per year for these types of decisions. (Round to nearest dollar.) What is the capital recovery (CR) cost of the system? $ What is the annual equivalent worth of the operating costs? $ What is the annual equivalent cost of this project? $

Two HVAC systems are being evaluated to improve ventilation at a grocery store.  The property manager must choose one of the systems. Use an interest rate of 9% per year and a 7‑year study period. Fuss Monters First cost, $ 116,000 51,000 Annual O&M, $/year 84,000 65,000 Benefits, $/year 220,000 165,000 Disbenefits, $/year 0 50,000 (Round ratios to 2 decimal places) What is the Benefit-Cost ratio for “Fuss?”   What is the Benefit-Cost ratio for “Monters?”   Based on a Benefit-Cost analysis, which system should be selected, Fuss or Monters?  

A school must purchase new equipment for its chemistry lab. Two providers submitted the following estimates. The salvage values are not expected to change. The school evaluates laboratory equipment purchases over a 4-year study period using a present worth analysis. The annual effective interest rate is 8%. Provider A Provider B First cost, $ 19,000 20,900 Annual maintenance & operating costs, $ per year 3,400 1,700 Salvage value 1,900 2,090 Life, years 5 8 What is the present worth of the cash flow for Provider A that should be used in the analysis?   $ (round to nearest dollar) The net present worth of the cash flows for Provider B is −$24,990. Based on a present worth analysis, which provider should the school select, A or B?

In order to expand tele-health services, a provider must invest in technology for video and audio calls. The cost for the new equipment is $1,900,000. The equipment would be depreciated as a 5-year property using the MACRS method. Gross income from this investment is expected to be $750,000 in year 1 and increase by $30,000 each year. Annual operating expenses are expected to be $150,000 in year 1 and increase by $20,000 each year. The provider’s combined marginal tax rate is 39%. The provider uses a study period of 6 years for these purchases and plans to keep the equipment indefinitely. What is the cash flow after taxes for Year 2?    $ (round to nearest dollar) Refer to the CFAT summary below. Use the CFAT that you calculated in (a) for Year 2. What is the after-tax Rate of Return over the study period?    % (round percentage to one decimal) If their MARR is 14%, should the provider invest in this equipment, YES or NO?      Year CFAT,$ 0 −1,900,000 1 514,200 2 (a) CFAT 3 520,472 4 469,663 5 475,763 6 439,182  

what does the expression “laissez faire” mean in French, and how was it applied in the late 1800s in the USA?

Pierce directly owns 100% of three restaurants, named R1, R2, and R3. All three restaurants commenced operations in the current year. The legal structure and current-year operating results of the three restaurants are as follows:   Type of entity Taxable income (loss) Distributions to owner R1 C corporation $190,000 $30,000 R2 S corporation $125,000 $115,000 R3 LLC $(45,000) None Pierce has not filed an IRS Form 8832, Entity Classification Election, with respect to the LLC. What is the total amount of current-year corporate and individual income taxes imposed on the income earned and distributions made by the three businesses?  The corporate tax rate is 21%. The individual tax rate is 37% except for dividends which are taxed at 23.8%. Round to the nearest whole dollar amount and do not enter a dollar sign or a decimal point (e.g., enter 89, not $89.00).

 Holding checks for clients is recommended when they cannot pay for services the same day.

Withdrawing employee accounts receivable from the employee paycheck is an acceptable form of payment.

The longer a client waits to be seen for his appointment, the more likely:

Appointment lengths may vary for all of the following except: