Galvanized products is considering purchasing a new computer system for their enterprise data management system. the vendor has quoted a purchase price of $100,000. galvanized products is planning to borrow 1/4th of the purchase price from a bank at 12.00 % compounded annually. the loan is to be repaid using equal annual payments over a 3-year period. the computer system is expected to last 5 years and has a salvage value of $6,000 at that time. over the 5-year period, galvanized products expects to pay a technician $24,000 per year to maintain the system but will save $50,000 per year through increased efficiencies. galvanized products uses a marr of 15.00 %/year to evaluate investments. a) what is the present worth of this investment? b) should the new computer system be purchased?
Answers: 2
Another question on Business
Business, 22.06.2019 12:40
Evan company reports net income of $232,000 each year and declares an annual cash dividend of $100,000. the company holds net assets of $2,130,000 on january 1, 2017. on that date, shalina purchases 40 percent of evan's outstanding common stock for $1,066,000, which gives it the ability to significantly influence evan. at the purchase date, the excess of shalina’s cost over its proportionate share of evan’s book value was assigned to goodwill. on december 31, 2019, what is the investment in evan company balance (equity method) in shalina’s financial records?
Answers: 2
Business, 22.06.2019 13:50
Diamond motor car company produces some of the most luxurious and expensive cars in the world. typically, only a single dealership is authorized to sell its cars in certain major cities. in less populous areas, diamond authorizes a single dealer for an entire state or region. the manufacturer of diamond automobiles is using a(n) distribution strategy for its product.
Answers: 2
Business, 22.06.2019 20:00
During the month of march 2017, weimar world, a tax-preparation service, had the following transactions. * billed $496,000 in revenues on credit * received $164,000 from customers' accounts receivable * incurred expenses of $194,000 but only paid $87,700 cash for these expenses * prepaid $32,220 for computer services to be used next month what was the company's accrual basis net income for the month? select one: a. $302,000 b. $264,080 c. $ 41,860 d. $408,300 e. none of the above
Answers: 3
Business, 22.06.2019 20:00
With the slowdown of business, how can starbucks ensure that the importance of leadership development does not get overlooked?
Answers: 3
You know the right answer?
Galvanized products is considering purchasing a new computer system for their enterprise data manage...
Questions
Computers and Technology, 26.02.2020 19:57
Mathematics, 26.02.2020 19:57
