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 inv…
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…
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…
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…
Holding checks for clients is recommended when they cannot pay for services the same day.
Withdrawing employee accounts receivable from the employee p…
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, th…
The longer a client waits to be seen for his appointment, the more likely:
Appointment lengths may vary for all of the following except…
Appointment lengths may vary for all of the following except:
If you worked for the U.S. weather service and wanted to pro…
If you worked for the U.S. weather service and wanted to promote the “Lay Expertise” model of science communication, you would: Teach viewers about the science behind the weather Teach viewers how to monitor and report weather conditions in their area Teach viewers about climate change Teach viewers about your degree in meteorology
If you are using the “Inverted Pyramid” to write a news arti…
If you are using the “Inverted Pyramid” to write a news article about scientific research, what comes at the end of the article? Conclusions Definitions Hypothesis Research details