Moonbeam Company is considering purchasing a new machine for $80,000. The new facility will generate annual net cash inflows of $20,000 for six years. At the end of the six years the machine will have no residual value. The company uses straight-line depreciation, and its stockholders demand an annual return of 12% on investments of this nature.
Requirements
1. Compute the payback, the ARR, the NPV, the IRR, and the profitability index of this investment.
2. Recommend whether the company should invest in this project.
Requirement 2: The company should make the investment. The payback period is less than the operating life, the net present value is positive, and the ARR and IRR are greater than the company's required rate of return.
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Delisa invests office equipment with a fair market value of $70,000, delivery equipment with a fair market value of $89,000, and cash of $54,000 . She owes $68,000, represented by a note on the delivery equipment. If Delisa's office equipment cost $80,000 and has accumulated depreciation of $30,000, the amount at which the asset should be entered on the books of the new partnership would be
a. $50,000. b. $70,000. c. $80,000. d. $89,000.
What is data?
A. Data converted into a meaningful and useful context. B. Skills, experience, and expertise, coupled with information and intelligence, that create a person's intellectual resources. C. Raw facts that describe the characteristics of an event or object. D. Information collected from multiple sources that analyzes patterns, trends, and relationships for strategic decision making.
Which of the following statements is true about the Foreign Commerce Clause of the United States?
A) Regulation of foreign commerce by state governments is unconstitutional. B) A state can enact a law that forbids a foreign country from doing business in that state, if that country engages in activities that are not condoned by that state. C) Direct regulation of foreign commerce by the federal government violates the Commerce Clause. D) A state government is only permitted to regulate foreign trade indirectly.
Weston, Inc., produces widgets. To manufacture a new type of widget, it took 11 iterations before the process reached a steady state of 18 hours. If Weston has a 95% learning rate, use the logarithmic approach to calculate the time it took to manufacture the first widget.
a. 21.49 hours b. 22.26 hours c. 19.58 hours d. 20.80 hours