Tyson Enterprises is considering investing in a machine that costs $30,000. The machine is expected to generate revenues of $10,000 per year for six years. The machine would be depreciated using the straight-line method with no half-year convention over its six year life and have no salvage value. The company considers the impact of income taxes in all of its capital investment decisions. The
company has a 40 percent income tax rate and desires an after-tax rate of return of 12 percent on its investment. The net present value of the machine is:
A) $2,891.
B) $(5,332).
C) $(13,555).
D) $15,225.
A
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Royer Corporation engaged in this transaction: Retired long-term debt with cash. Indicate which section, if any, the above transaction would appear in, or relate to, on a statement of cash flows
a. Operating activities section b. Does not represent a cash flow c. Investing activities section d. Financing activities section
A search for various feasible combinations of resources and methods that will increase functionality and reduce costs is referred to as ______________________________
Fill in the blank(s) with correct word
Which of the following statements regarding the center-of-gravity method is FALSE?
A) It is designed to minimize the maximum possible travel distance to any of the locations. B) The optimal x- and y-coordinates are calculated separately. C) The optimal solution is unconstrained, so it could suggest a location in the middle of a body of water. D) The weights used are the quantity of goods moved to or from each location. E) The origin of the coordinate system and the scale used are arbitrary, just as long as the relative distances are correctly represented.
When clustering only by dummy variables that represent categorical variables, the simplest measure of similarity between two observations is called the
A. matching coefficient. B. Jaccard's coefficient. C. Euclidean distance. D. antecedent.