USE THE FOLLOWING INFORMATION TO ANSWER QUESTIONS 23 THROUGH 25Philburn Files manufactures a variety of saws and tools for the commercial building industry. The company is considering the construction of a new facility to update its manufacturing process. The company's CFO has collected the following information about the proposed new facilityproject. (Note: You may or may not need to use all of this information, use only the information that is relevant.)
- The project has an anticipated economic life of 10 years.
- The new facility will be constructed on a piece of land that Philburn currently owns. The land has a current market value of $5 million. If Philburn does not use the land for this project, the land will instead be sold.
- Last year Philburn spend $500,000 to grade the land and to put in sewer and water lines. The company has capitalizedthese costs and is recording them on their income statement at $100,000 per year over the next 5 years.
- Construction of the new production facility will require an immediate outlay (at t=0) of $15 million.
- The production facility will be depreciated on a straight-line basis over 10 years to a $5 million salvage value. Philburn plans to sell the production facility to a competitor at the end of the 10-year period for $5 million.
- If the company accepts the project, the land will be sold with the productionfacility in 10 years for its current book value, which is $2 million.
- If the company goes ahead with the proposed project, it will require an immediate increase in inventory of $1,800,000, but will also result in an immediate increase of $800,000 in accounts payable. Each of these positions will be reversed at the completion of the project (that is, any change in net working capital that occurs at the beginning of the project will be recovered at the end of the project).
- The new facility is expected to reduce annual operating expenses, excluding management salaries, by $8 million per year for each of the next 10 years. No change in annual revenue is expected.
- The accounting department plans to allocate the annual salaries of 5 managers to this new facility, however, only 2 new managers will actually be hired by the company. Each of these managers will earn $200,000 per year for the next 10 years.
- The company's interest expense each year will be $300,000.
- The company's cost of capital (i.e., the required rate of return on this project) is 12 percent.
- The company's tax rate is 40 percent.
Record your final numerical answer to each of the following questions on the answer sheet. Show your work on the back of the answer sheetfor possible partial credit.
1. What is the initial investmentfor the project?
2. What is the fourth year expected incremental operatingcash flow?
3. What is the 10th year incremental non-operatingcash flow?
Answers
25Philburn Files manufactures a variety of saws and tools for the commercial building industry. The initial investment for the project is $16,500,000. The fourth year expected incremental operating cash flow is -$12,720,000. The 10th-year incremental non-operating cash flow is $1,800,000.
1. The initial investment for the project is the sum of the immediate outlay, the increase in inventory, and the capitalized costs for grading and installing sewer and water lines:
Initial investment = $15,000,000 + $1,800,000 - $800,000 + $500,000 = $16,500,000
2. The fourth year expected incremental operating cash flow is the operating cash flow for the fourth year minus the operating cash flow for the third year:
Operating cash flow = EBIT - Taxes + Depreciation
EBIT = Revenue - Operating expenses - Managerial salaries - Interest expense
Operating expenses = $8,000,000
Managerial salaries = 5 x $200,000 - 2 x $200,000 = $600,000
Revenue = 0 (no change)
Depreciation = ($15,000,000 - $5,000,000) / 10 = $1,000,000
EBIT = -$9,800,000
Taxes = 40% x $9,800,000 = $3,920,000
Operating cash flow for the third year is the same as for the fourth year since there is no change in revenue or operating expenses.
Operating cash flow = -$9,800,000 - $3,920,000 + $1,000,000 = -$12,720,000
3. The 10th-year incremental non-operating cash flow is the sum of the after-tax salvage value of the production facility and the after-tax proceeds from the sale of the land:
After-tax salvage value of the production facility = (Salvage value - Book value) x (1 - Tax rate)
= ($5,000,000 - $2,000,000) x (1 - 0.40)
= $1,800,000
After-tax proceeds from the sale of the land = (Sale price - Book value) x (1 - Tax rate)
= ($5,000,000 - $5,000,000) x (1 - 0.40)
= $0
Incremental non-operating cash flow = $1,800,000 + $0 = $1,800,000
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Related Questions
what is business ? please tell us
Answers
Answer:
Noun, a person's regular occupation, profession, or trade.
Explanation:
you should not buy a car from nissan or bmw! you are putting people here out of a job."" anti-dumping laws prevent unfair competition. national security requires that strategically important goods be produced domestically. protection can help infant industries develop. foreign competition may lead to job losses. trade should not enable foreign firms to skirt u.s. regulations.
Answers
When considering whether to buy a car from Nissan or BMW, it is important to consider various factors. While it is true that purchasing cars from foreign companies may lead to job losses in the domestic automobile industry, it is essential to note that trade and competition also have their benefits.
Anti-dumping laws are in place to prevent unfair competition and ensure that prices are not artificially lowered by foreign companies. This protects domestic industries from being undercut and helps maintain a level playing field.
National security considerations come into play when strategically important goods need to be produced domestically. This ensures that the country is not overly dependent on foreign sources for critical products.
Protectionism can also help infant industries develop by providing them with a temporary shield from foreign competition. This gives them time to grow and become competitive before facing international competition.
However, it is important to strike a balance as foreign competition can also bring benefits, such as innovation and lower prices for consumers. The automobile industry, for example, benefits from global collaboration and competition, which can lead to advancements in technology and improved products.
Lastly, it is crucial to ensure that trade does not enable foreign firms to bypass U.S. regulations. All companies, whether foreign or domestic, should adhere to the same regulatory standards to maintain fair competition and protect consumer interests.
Ultimately, the decision to buy a car should be based on individual preferences, considering factors like price, quality, and personal values.
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form utility is created by making a product available at a location where customers wish to purchase it.
Answers
Place utility is created by making a product available at a location where customers wish to purchase it.
What is utility?
In economics, the term "utility" is used to define the value or worth of a good or service. More precisely, utility is the total enjoyment or value derived from utilizing a product or service. In economic theories of rational choice, it is frequently assumed that consumers would aim to maximise their utility.
The economic utility of a good or service must be understood since it directly affects demand and pricing. In practise, consumer utility is frequently difficult to measure or quantify. However, some economists believe that by combining a number of models, they may evaluate an economic good or service's effectiveness in an indirect manner.
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2. Which of the following is not an effective way for a manager to imple-
ment change?
a. Do not move too quickly to implement change.
b. Do not communicate with employees about the change until a final
decision has been made.
101
C. Ask employees for ideas on effective solutions and procedures.
d. Be less critical of mistakes made by employees while changes are
being made.
Answers
for a loan, what do you call the amount that you borrow?
Answers
Answer:
principal
Explanation:
economics is the study of how limited resources are used to satisfy human wants. economists look at the causes and effects of the choices people make. list 3 decisions that you have made in the last 24 hours.
Answers
Answer:
whether I should buy 1killo of orange or 2killo banana
A fundamental law of nature states that the quantities of labor, capital, land, and entrepreneurial resources that can be employed to produce products and services are finite. It implies that there are a finite number of resources available to the economy at any given time to produce products and services.
What three problems must an economic system solve?It's possible to question and remove unsourced material. The three basic economic questions that must be addressed and resolved by economic systems as a sort of social system are: "How much and which alternative commodities and services shall be created?" and "What kinds and amounts of goods shall be produced." How should products be made?
Limitations on resources and insatiable human desire are the root causes of all economic issues. It develops as a result of a lack of resources that can be used in other ways. Each community must make choices about how to use its limited resources. In general, resource allocation is the main issue in an economy.
Thus, The amount of labor, money, land and entrepreneurial resources that can be used to create goods and services is limited, according to a fundamental rule of nature.
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The Consumer Price Index in Period 1 is 108.5. It is ( 105.8 ) in Period ( 2 . ) Is this a situation of inflation or deflation? What is the rate?
Answers
The average price of a basket of goods and services is tracked over time by the Consumer Price Index (CPI). We contrast the CPI readings between two periods in order to establish if there is inflation or deflation.
In this instance, the CPI is 108.5 in Period 1 and 105.8 in Period 2. Since the CPI fell from Period 1 to Period 2, this points to a deflationary condition. A continuous drop in the level of prices for goods and services is referred to as deflation.We employ the following formula to determine the rate of deflation(CPI in Period 1 - CPI in Period 2 / CPI in Period 1) * 100 is the formula for the rate of deflation.the rate of inflation is as follows: Rate of Deflation = ((108.5 - 105.8) / 108.5) * 100
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If a property owner is willing to give a broker exclusive right to serve as a broker for the property, but wants to retain the right to sell it by him/herself, the owner will want a(n)__________.
Answers
If a property owner is willing to give a broker exclusive right to serve as a broker for the property, but wants to retain the right to sell it by him/herself, the owner will want a(n) "exclusive agency agreement."
This agreement allows the owner to market the property and find a buyer on their own, while still giving the broker the exclusive right to be the only one who can earn a commission by finding a buyer. In this arrangement, if the owner sells the property themselves, they don't have to pay the broker a commission.
However, if the broker successfully finds a buyer, they are entitled to a commission. This type of agreement can provide the owner with more flexibility and control over the sale of their property while still benefiting from the expertise and resources of a professional broker.
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If correct will mark brainliest :)
The Federal Reserve has recently added new rules pertaining to Debit Cards. One of the new rules is that:
A. you need to be 21 to have a debit card.
B. overdraft protection is now mandatory for consumers.
C. overdraft protection is now the consumer's choice.
D. banks can no longer charge late fees on debit card accounts.
Answers
The Federal Reserve has recently added new rules pertaining to Debit Cards. One of the new rules is overdraft protection is now the consumer's choice.
Not all checking bills price a rate for overdraft safety transfers. But after they do, the price is normally considerably much less than paying an overdraft rate. It may also permit tests to clear, which in flip will let you keep away from lower back take a look at charges from merchants. It can offer get entry to finances in instances of emergency.
If a renter with overdraft safety writes an $800 take a look at on an account with a stability of $650, the overdraft safety from their related account kicks in as quickly because the take a look at is cashed—and the take a look at clears as opposed to bouncing because of inadequate finances.
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Question: 3 of 15
QUESTION:
The location of which of the following should be indicated on evacuation floor plans?
POSSIBLE ANSWERS:
COMPLETED:
O Emergency equipment
Emergency coordinator offices
Answers
The location of emergency equipment and emergency coordinator offices should be indicated on the evacuation floor plan. Thus, option (c) and (d) is correct.
This information is critical for staff who have been designated to assist with emergency evacuation protocols, as well as first responders who may need to remove an evacuation schematic for directional guidance through the building.
The floor plan should also show utility shutoffs, evacuation waiting spaces, and what to do in the event of a fire or when the fire alarm goes off.
As a result, the significance of the location of which of the following should be indicated on evacuation floor plans are the aforementioned. Therefore, option (c) and (d) is correct.
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Select all that apply.
Common skills assessments administered during the employment interview process include:
none of the above
science
keyboarding
math
Answers
Answer:
Keyboarding and Math :)
Explanation:
Broadly defined, how many types of customers are there?.
Answers
When it comes to customers, there are different types but in a broad measure, there are 4 types of customers.
Which types of customers are there?There are four broad types of customers which include:
Value buyers. Relationship buyers. Price buyers. Mix of value and relationship buyers.As the names imply, buyers are motivated by various things with some being motivated by the relationship they have with the seller, and others being motivated by the price of goods.
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Lightskins or Darkskins
Or Other ?
Answers
Answer:
any kind of boy
Explanation:
I have no type
Question :Get the name and initials of each player who has incurred two or more penalties of more than $40.
What the professor wants me to do: move test of count and group by into a single select query for finding playerno. Should get one row as result
This is the code that has to be fixed:
select players.NAME,players.INITIALS
FROM PLAYERS,PENALTIES
WHERE PLAYERS.PLAYERNO = PENALTIES.PLAYERNO AND amount > 40
GROUP BY PLAYERS.PLAYERNO
HAVING COUNT(PENALTIES.PLAYERNO) > 2;
Answers
The corrected SQL query for getting the name and initials of each player who has incurred two or more penalties of more than $40 is given below:```
SELECT NAME, INITIALS
FROM PLAYERS
WHERE PLAYERS.PLAYERNO IN (
SELECT PENALTIES.PLAYERNO
FROM PENALTIES
WHERE PENALTIES.AMOUNT > 40
GROUP BY PENALTIES.PLAYERNO
HAVING COUNT(*) >= 2
);
```The `GROUP BY` and `COUNT` operations have been moved into the subquery, which returns a list of `PLAYERNO`s that satisfy the condition of having two or more penalties of more than $40. The outer query then selects the `NAME` and `INITIALS` of the players whose `PLAYERNO` is in this list.Note that `>=` has been used instead of `>` in the `HAVING` clause to include players who have exactly two penalties of more than $40.
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help fast! Ed and Maria’s gross monthly income is $3,700 and monthly debt is $2,500. What is their debt-to-income ratio to the nearest percent?
A. 53%
B. 68%
C. 82%
D. 25%
Answers
Answer:
C. 68
Explanation:
if an increase of an equal percentage in all factors of production increases output of the same percentage, then a production function has the property called:
Answers
if an increase of an equal percentage in factors of production increases output of the same percentage, then a production function has property called constant returns to scale.
A production function's attribute known as constant returns to scale (CRS) describes how inputs also known as factors of production and outputs are related to one another. When a production function displays CRS, all inputs must increase by the same percentage in order to produce an increase in output of the same proportion.
In other words, a company's output will double if all of its inputs are doubled. Its output will also triple if its inputs are increased thrice. Constant returns to scale refer to the fact that this connection is true regardless of the production scale. Therefore, a production function has the property known as constant returns to scale if an increase of an equivalent proportion in components of production increases output by an equal percentage.
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a financing statement is group of answer choices a series of steps the secured party must take to protect its rights in the collateral against people other than the debtor.
Answers
A financing statement is a legal document filed by a secured party to give notice of their security interest in collateral owned by a debtor.
A financing statement is an important legal document that allows a secured party to protect its rights in the collateral against other creditors or third parties. It is typically filed with the relevant state agency, such as the Secretary of State or the County Clerk's office, and contains information about the debtor, the secured party, and the collateral.
The information included in the financing statement is used to provide public notice of the security interest, and to establish the priority of the secured party's claim over other parties who may also have an interest in the collateral. By filing a financing statement, the secured party establishes a public record of their security interest in the collateral, which can help protect their rights in the event of default or bankruptcy by the debtor.
It also helps prevent other creditors or third parties from claiming an interest in the collateral that could interfere with the secured party's ability to collect on the debt. Overall, a financing statement is an essential tool for secured parties to protect their interests in the collateral and ensure that they are paid in the event of default.
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does anyone know any good spells
Answers
Answer:
abra cadabra
Explanation:
Question 10 of 20
What is the difference between a market economy and a command
economy?
A. A market economy is determined by central authority and a
command economy is determined by consumers,
B. A market economy is determined by consumers while a command
economy is determined by both consumers and central authority
C. A market economy is determined by both central authority and
consumers while a command economy is determined by only
consumers
D. A market economy is determined by consumers and a command
economy is determined by central authority,
Answers
What is moral myopia? Why do you think an advertising professional might experience this phenomenon?
Answers
Answer: See Explanation
Explanation:
Moral myopia occurs when someone is unable to clearly see ethical issues. In this case, people decide not to say anything even though they see the unethical behavior of others.
An advertising professional might experience moral myopia in the sense that such person looks away when he or she sees an unethical act because of fear of losing his or her job and also because of fear of losing a customer.
Macroeconomics is the study of economics on a very small scale
Answers
25) As Monty Corp., a shoe manufacturer, grows more profitable, it wants to become more competitive as an employer in the labor market. Juliet, the human resource manager, urges the company to develop a more attractive package of benefits, rather than simply raising salaries. Which statement best supports Juliet's argument?
A) Employees do not pay income taxes on most benefits they receive.
B) Benefits are harder for employees to understand than pay structures.
C) Employees could get a better deal if they bought their own insurance policies.
D) Higher cash compensation gives employees more purchasing power.
E) Different employees look for different types of benefits.
Answers
The statement that best supports Juliet's argument is:
Different employees look for different types of benefits. Option(E)
This statement highlights the fact that employees have varying preferences when it comes to the types of benefits they value. By offering a more attractive package of benefits, Monty Corp. can cater to the diverse needs and preferences of its employees. This approach recognizes that not all employees prioritize salary increases and that a comprehensive benefits package can be a valuable tool for attracting and retaining talent.
Options A, B, C, and D do not directly support Juliet's argument for developing a more attractive package of benefits. Option A focuses on tax implications but does not specifically address the attractiveness of benefits. Option B suggests that benefits are harder to understand, but it does not argue for their attractiveness. Option C mentions insurance policies, but it does not relate to developing a more competitive employer package. Option D discusses cash compensation but does not address the benefits package.
In contrast, option E acknowledges that employees have different preferences for benefits, which aligns with Juliet's argument for offering a diverse and appealing benefits package to enhance competitiveness as an employer.
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Name and briefly describe the quantitative methods of control (ABM)
Answers
Budgets such as: (i) The regular operating, capital expenditure, sales and cash budgets; and. ...
Control Centres.
Audits such as: (i) Internal audits, ...
Ratio analysis (RA).
Break-even (BE) analysis.
Time-preference charts and techniques such as:
Mathematical and statistical techniques are the two main categories of quantitative management methods.
What is quantitative management?Computers and mathematical methods are used in quantitative management to sort through financial statistics and choose stocks. Managers use previous quantitative linkages they have observed to inform "models" that aid in stock selection.
Screening is the process of examining historical information on businesses using a computer. A quantitative manager may develop a program to screen 2,000 stocks based on a specific set of traits or criteria.
The manager might prove, for instance, that historically, stocks with low price-to-earnings ratios and rapid earnings growth during the previous two years outperformed the market the following year.
The simplicity of using a model once it is established is the obvious advantage. Given the constantly shifting landscape of the financial markets, developing the model is the challenging aspect.
It might be challenging to incorporate enough adaptability into a model in quantitative management without adding too many additional variables.
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Using SMART goal-Written criteria blank refers to asking how ?
A.measurable
B.timely
C.specific
D.realistic
E.attainable
Answers
Answer:
A.measurable
Explanation:
Smart is an acronym Specific, Measurable, Achievable,
Realistic and Timely. These are attributes that guide how goals or objectives should be set.
The question of " how" is answered by the attribute 'measurable.'
In this criterion, measurable describes the specific criteria to be used and the ways of measuring progress toward accomplishing the goal. The path to achieving the objective must be meaningful and motivating.
Answer:
Measurable
Explanation:
The management function that anticipates trends, then determines strategies and tactics to achieve them is:.
Answers
Planning corresponds to the management function that anticipates trends and determines strategies to achieve organizational goals and objectives.
PlanningIt is the identification of the strategy that will help a company to achieve its marketing objectives, be well positioned and competitive in the market.
Managers who will develop a company's strategic, tactical and operational planning must understand its set of values and resources and use them optimally in the form of specific actions to achieve efficiency that will make a company successful.
The correct answer is:
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Contribution margin is:
A) Revenues divided by fixed costs
B) Revenues minus variable cost
C) Revenues plus variable cost
D) Net Sales
E) None of these
Answers
The correct answer for the definition of contribution margin is B) Revenues minus variable costs.
Contribution margin is the amount of revenue that remains after deducting the variable costs associated with the production or sale of a product. It is a useful tool for determining the profitability of individual products or services, as it helps to assess the amount of revenue that contributes towards covering the fixed costs of a business.
By calculating the contribution margin, a business can determine the level of sales volume required to break even or generate a profit. This information is important for making strategic decisions regarding pricing, cost management, and product mix.
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What can be said about the culture of services?
I. Processes are invisible
II. Processes are well defined
III. More scientific
IV. Not well defined or documented
A. I, II, and III only
B. I, II, and IV only
C. II, III, and IV only
D. All of the above
Answers
In the service culture, processes are invisible and procedures are not well defined or documented. This culture is focused on customer service, to provide the best experience.
Therefore, processes are invisible, that is, the customer is not able to identify internal processes if they are not useful, but they must perceive the service as a mystery where all their needs are promptly met.
In the service culture, this is also not well defined or documented, so as not to create standardization of the service, but a personalized service that meets the needs of each customer individually.
Therefore, in the service culture, the focus is on offering the best experience for the customer, through the creation of value, excellent service and employees capable of satisfying their needs.
The service culture is capable of generating greater competitiveness, customer loyalty and positioning for a company.
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When looking at the purchase of accounting software, things to avoid include
Answers
Answer:
4) C) software that requires a high annual subscription whether you want the updates or not
Explanation:
22. Akshay worked at a cafe while he was a college senior in Boston,
Massachusetts. After graduating in June, he moved back to his home in
California and started a full-time job in September. Which of the following
statements is true?
Answers
Answer: The answer is C
Explanation: I got this correct on a test
" Please answer the following questions about an advertisement or other promotion you've seen recently. Describe the advertisement/promotion. What company/organization was responsible? Explain the general format/message communicated. Discuss how the advertisement relates to each component of the AIDA model. For example, is it effective (or not) at getting attention? Explain. What about generating interest? Desire? Action?
Answers
I recently encountered an advertisement for a new smartphone called the "TechX Pro" by the company "GizmoTech."
What company/organization was responsible?GizmoTech, a well-known technology company, designed and released the advertisement for their latest smartphone, the TechX Pro.
The advertisement showcased the TechX Pro's sleek design, advanced features, and powerful performance. It emphasized the phone's high-quality camera, fast processing speed, and immersive display. The message conveyed was that the TechX Pro offers a superior user experience and is a must-have device for tech enthusiasts.
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