John Adams has a $95,000 adjusted gross income from Apple Corp. and allowable itemized deductions of $7200. Mary Eve has a $75,000 adjusted gross income and $3000 of allowable itemized deductions. Compute the total tax they would pay as unmarried individuals. Then compute their tax as a married couple filing a joint return.

Answers

Answer 1

As unmarried individuals, John Adams, with an adjusted gross income of $95,000 and itemized deductions of $7,200, would pay a total tax of $13,690.

Mary Eve, with an adjusted gross income of $75,000 and itemized deductions of $3,000, would pay a total tax of $11,619.

If they were to file a joint return as a married couple, with a combined adjusted gross income of $170,000 and combined itemized deductions of $10,200, their total tax would amount to $25,774.

To calculate the tax for John Adams and Mary Eve as unmarried individuals, their taxable incomes are determined by subtracting their allowable itemized deductions from their respective adjusted gross incomes.

Using the 2021 tax brackets, their taxable incomes are then subject to different tax rates. John Adams, with a taxable income of $87,800, would pay $13,690 in total tax, while Mary Eve, with a taxable income of $72,000, would pay $11,619.

When they file a joint return as a married couple, their individual adjusted gross incomes are combined to yield a total adjusted gross income of $170,000.

Similarly, their individual itemized deductions are combined to give a total of $10,200. The resulting taxable income of $159,800 is then subjected to the applicable tax rates, resulting in a total tax of $25,774.

By filing a joint return, John Adams and Mary Eve's combined income may push them into higher tax brackets, resulting in a higher overall tax liability compared to when they file as unmarried individuals.

To know more about tax, click here-

brainly.com/question/30157668

#SPJ11


Related Questions

How is the poverty rate to income distribution?

Answers

Answer:n the U.S., poverty has averaged around 26.92 percent of the population with an income less than 50 percent of the country's median income, after taxes and benefits are added (how the OECD defines “relative income poverty”). ... So the higher the score, the more income equality there is.

Hope this helps!! Brainlist?

Landscapers must be
knowledgable of which of the
following?
A. Pesticides
B. Economics
C. Human Relations
D. Crop Rotation

Answers

Answer:

B

Explanation:

because they need to deal with all practices that are done by people on environment

Answer:

C

Explanation:

Landscapers need to know human relations because if they want to get something to do for their job, marketing and having an asset is important for the business, if you don't know anyone that needs help, it wouldn't be very good for your business.

Have an awesome day!! I hope this helped!! ^ ^

Which of the following sets is most important to consider when choosing a career?

(A) needs and demographics
(B) hobbies and friends
(C) diversity and interests
(D) personal values and work values​

Answers

The sets that is most important to consider when choosing a career is (C) diversity and interests.

What is a career ?

Career can be described as the  occupation  that ios been undertaken for a significant period  whgich one can focus on, through ouut hios or her life with opportunities for progress.

It should be noted that when choosing ba career one should be able to seek for the things that interest you about tyhe field because ythis will help you when the journey is getting tough because to get to the peak of the career can not be seen as one that ios easy.

Therefore, option C is correct.

Learn more about career at:

brainly.com/question/6947486

#SPJ1

21. What are employee incentive plans and what do they offer?

Answers

Employees that create more are encouraged to do so and are rewarded accordingly under the incentive plan. The phrase "Pay for Performance" describes remuneration choices such merit pay, commission, individual incentive, group incentive, and gain-sharing plans.

What exactly are employee incentive programs?

A company may decide to adopt an employee incentive program to encourage staff productivity. Employee incentives are a system that recognizes and rewards effort and success in the workplace by providing employees with the chance to receive prizes or recognition.

Why do workers appreciate incentive plans?

Businesses may boost productivity, lower attrition, and reduce production costs by implementing reward programs for their staff. It raises morale, motivates staff, and fosters collaboration by increasing employee involvement. The incentive programs benefited the labor as much as the businesses.

Learn more about incentive plan: https://brainly.com/question/14443076

#SPJ1

QUESTION 19 If the dividend yield for year 1 is expected to be 7% based on a stock price of $30, what will the year 5 dividend be if dividends grow annually at a constant rate of 8% (in $ dollars)? 5 QUESTION 20 Jefferson's recently paid an annual dividend of $3 per share. The dividend is expected to decrease by 4% each year. How much should you pay for this stock today if your required return is 17% (in $ dollars)? S QUESTION 21 A stock is expected to pay dividends of $1.45 per share in Year 1 and $1.68 per share in Year 2. After that, the dividend is expected to increase by 3.5% annually. What is the current value of the stock at a discount rate of 15% (in $ dollars)? $

Answers

The year 5 dividend for the stock with a constant growth rate of 8% is expected to be approximately $2.88 per share. The current value of the stock with a decreasing dividend, a recent annual dividend of $3 per share, and a required return of 17% is approximately $22.15 per share

To calculate the year 5 dividend for a stock that grows its dividends annually at a constant rate of 8%, we can use the dividend discount model.

Given that the dividend yield for year 1 is 7% based on a stock price of $30, we can calculate the dividend for year 1 as follows:

Dividend for Year 1 = Dividend Yield * Stock Price

Dividend for Year 1 = 0.07 * $30 = $2.10 per share

Using the constant growth rate of 8%, we can calculate the dividend for year 5 as follows:

Dividend for Year 5 = Dividend for Year 1 * (1 + Growth Rate)^4

Dividend for Year 5 = $2.10 * (1 + 0.08)^4

Calculating this, we get:

Dividend for Year 5 = $2.10 * (1.08)^4

Dividend for Year 5 ≈ $2.10 * 1.3605

Dividend for Year 5 ≈ $2.88 per share

Therefore, the year 5 dividend is expected to be approximately $2.88 per share.

Moving on to the second question, to determine the current value of the stock, which has a decreasing dividend, we can use the dividend discount model as well.

Given that the stock recently paid an annual dividend of $3 per share and the dividend is expected to decrease by 4% each year, we can calculate the dividend for Year 1 as follows:

Dividend for Year 1 = Initial Dividend * (1 - Decrease Rate)

Dividend for Year 1 = $3 * (1 - 0.04)

Dividend for Year 1 = $3 * 0.96

Dividend for Year 1 = $2.88 per share

To calculate the stock price today, we can use the dividend discount model formula:

Stock Price = Dividend for Year 1 / (Required Return - Decrease Rate)

Stock Price = $2.88 / (0.17 - 0.04)

Stock Price ≈ $2.88 / 0.13

Stock Price ≈ $22.15 per share

Therefore, you should pay approximately $22.15 for this stock today if your required return is 17%.

Finally, for the third question, to calculate the current value of the stock at a discount rate of 15% with increasing dividends, we can use the dividend discount model formula:

\(\[\text{{Stock Price}} = \frac{{\text{{Dividend for Year 1}}}}{{(1 + \text{{Discount Rate}})}} + \frac{{\text{{Dividend for Year 2}}}}{{(1 + \text{{Discount Rate}})^2}} + \ldots + \frac{{\text{{Dividend for Year n}}}}{{(1 + \text{{Discount Rate}})^n}}\]\)e stock is expected to pay dividends of $1.45 per share in Year 1 and $1.68 per share in Year 2, and the dividend is expected to increase by 3.5% annually, we can calculate the current value of the stock as follows:

Stock Price \(= ($1.45 / (1 + 0.15)) + ($1.68 / (1 + 0.15)^2) + ...\)

To simplify the calculation, we can use the formula for the sum of an infinite geometric series:

Sum = a / (1 - r)

where "a" is the first term and "r" is the common ratio.

In this case, the first term (a) is $1.45 and the common ratio (r) is (1 + Growth Rate). Therefore, we can rewrite the formula as:

Stock Price = ($1.45 / (1 - 0.035))

Calculating this, we get:

Stock Price ≈ $1.45 / 0.965

Stock Price ≈ $1.50 per share

Therefore, the current value of the stock, at a discount rate of 15%, is approximately $1.50 per share.

To learn more about growth rate

https://brainly.com/question/18485107

#SPJ4

Where is market equilibrium located
on a supply and demand curve?
A. at the origin of supply and demand
B. at the intersection of supply and demand
C. at the highest points of supply and demand

Answers

Answer:

B. at the intersection of supply and demand

Explanation:

Equilibrium is a market condition where there no excess or shortage in demand and supply. It is when the quantity demanded matches the quantity supplied. At equilibrium, buyers and sellers are happy with the prevailing prices.

In a graph showing the demand and supply curve, the equilibrium point is the intersection of the supply and demand curve.  

What does the Texas Privacy Act require that police

show in order to use a drone to

"search"

over someone's

property? Is this standard the same or different as

required in the Constitution?

What must police show in order to perform a search or

seizure within the requirements of the Constitution? For

example, what must police show in order to obtain a

search warrant (i.e., probable cause v. reasonable

suspicion)?

What does the Texas Privacy Act require that police

show in order to use a drone to

"search"

over someone's

property? Is this standard the same or different as

required in the Constitution?

The first 10 amendments to the Constitution are called

the Bill or Rights. Does the

"Texas Privacy Act'

a.k.a.

the Texas Drone Act violate our Civil Liberties? If so,

why?

Do you believe that if a case involving the Texas Privacy

Act went all the way to the U.S. Supreme Court, that it

would be upheld or struck down as Unconstitutional?

What if police discovered a dog fighting ring while

searching using the drone? Is it a legal search? Why or

why not?

Please copy and paste below a section of the Texas

Privacy Act that deals with civil law.

Please copy and paste below a section of the Texas

Privacy Act that deals with criminal law.

Answers

The Texas Privacy Act requires that police show sufficient probable cause to a magistrate that a drone search of someone's property is necessary.

This is the same standard required by the Constitution to obtain a search warrant. The Texas Privacy Act protects civil liberties by requiring police to obtain a search warrant or have consent from the property owner before using a drone to search a property. It also prohibits the use of drones to conduct surveillance of people or their property without a warrant. However, it does allow police to use drones in certain emergency situations.

In terms of criminal law, the Texas Privacy Act prohibits the use of drones to search or gather evidence without a search warrant or consent from the property owner. It also prohibits the use of drones to conduct surveillance or record images of people without a search warrant. Furthermore, the Act prohibits the use of drones to unlawfully intercept communication or collect data without a search warrant. Finally, it prohibits the use of drones to interfere with or harass people or obstruct their lawful activities.

Know more about Texas Privacy Act here

https://brainly.com/question/30160634#

#SPJ11

A network consists of the activities in the following list. Times are given in weeks. Activity Preceding Time 8 A B C A A.B C D 18 How many weeks should this project take?

Answers

The total duration of the project is 44 weeks.

To determine the total duration of the project, we need to calculate the critical path, which is the longest path through the network of activities. Based on the information provided, the activities and their respective durations are as follows:

Activity A: 8 weeks

Activity B: 8 weeks

Activity C: 8 weeks

Activity A.B: 18 weeks

Activity C.D: 18 weeks

To calculate the critical path, we add up the durations of the activities along the longest path:

A (8 weeks) → A.B (18 weeks) → C.D (18 weeks)

Therefore, the total duration of the project is 8 weeks + 18 weeks + 18 weeks = 44 weeks.

Learn more about project link:

https://brainly.com/question/28476409

#SPJ11

Use the as/ad model to describe the effect of each of the following events on the economy of snezhanka (a fictitious nation). beginning with the economy in equilibrium carefully show the shift involved and the new equilibrium. state whether the p (price level) and rgdp at the new equilibrium are higher or lower. for each part of this question, start again at the original equilibrium. what will happen if:

a. taxes on households are decreased?
b. taxes paid by firms are decreased?
c. the value of the national currency, the snezhankan lev, declines in the international currency market?
d. a revolutionary new machine, the aparat, increases worker productivity?

Answers

The following would happen

Aggregate income would increase for households. They would have a rise in output.

taxes on households are decreased

When the taxes are decreased, the households would have a rise in their purchasing power. Their output would go up form q to q2.

taxes paid by firms are decreased

The cost of the firms production is going to fall. The firm would then be able to raise their production hence increasing their supply. Output would rise and price level would fall.

the value of the national currency, the snezhankan lev, declines in the international currency market?

If the value of the currency should fall, then it would cause the demand for foreign goods to rise then there would be a new equilibrium in the market.

a revolutionary new machine, the apparat, increases worker productivity

An increase in productivity would raise supply for the producer hence bringing about a new rise in the price level.

Read more on aggregate demand and aggregate supply here:

https://brainly.com/question/25749867

#SPJ1

Type the correct answer in the box. Spell all words correctly.
Which type of facility layout groups similar machines together so that they carry out specific functions?

In the case of a (blank) layout, similar machines are grouped together to carry out specific functions.

Answers

Answer:

A process layout groups similar activities together according to the functions they perform.

Explanation:

Answer:

process

Explanation:

Plato/Edmentum

Under what conditions should a sponsor approve a project change, and when is it okay for the project manager to authorize a change? a. Sponsor approval is needed if a change requires additional funding; a project manager is generally authorized to make most other decisions b. Sponsor approval is needed only if the project manager is not available c. Sponsor approval is always needed d. Sponsor approval is needed if a change requires a change to the project charter; a project manager is generally authorized to make most other decisions

Answers

Answer:

never

Explanation:

A business is defined as an organization or enterprising entity engaged in commercial, industrial, or professional activities. ... The term "business" also refers to the organized efforts and activities of individuals to produce and sell goods and services for profit.

the first thing you need to determine in order to reach an investment goal after accumulating the capital is the:

Answers

The first thing you need to determine in order to reach an investment goal after accumulating the capital is the investment objective.

An investment objective defines the purpose of investing and what the investor hopes to achieve by investing. It is essential to set clear, specific, measurable, achievable, relevant, and time-bound (SMART) investment objectives that align with your overall financial goals.

Investment objectives can be categorized into short-term, medium-term, and long-term goals, and the appropriate investment strategy will depend on the time horizon and risk tolerance of the investor. Investors must also consider their liquidity needs, tax implications, and overall financial situation while setting their investment objectives.

A well-defined investment objective can help investors stay focused, disciplined, and patient while navigating the ups and downs of the investment markets, and ultimately, achieve their financial goals.

To know more about investment refer here:

https://brainly.com/question/14682309#

#SPJ11

What system did merchants in early centuries use to make commercial transactions easier

Answers

In the early centuries, merchants made use of the Mercantilism system for commercial transactions.

What is Mercantilism?

In simple terms, it is an economic theory and practice known as "mercantilism," which was prevalent in Europe from the 16th to the 18th century.

Mercantilism advocated governmental regulation of a country's economy with the goal of enhancing state power at the expense of competing for national powers.

According to the theory, a strong nation should have a sizable population because a sizable population would offer a supply of labor, a market, and soldiers.

Learn more about Mercantilism here:

https://brainly.com/question/599745

#SPJ1

What are the two main concerns in dealing with the currency of a foreign country when selling your product internationally?

A. currency denominations and foreign exchange fees
B. currency fluctuation and local government regulations
C. Currency exchange fees and currency fluctuation

Answers

Answer:

Explanation:

B is out because we are only dealing with Currency, what government officials will do.

I would pick C. You have to worry about what banks are going to do when they exchange funds. You also have to be concerned about the currency does.

For example The Canadian dollar is worth about 78 cents American.

If the Canadian Dollar drops to 70 cents and the American dollar goes up 10c

The new spread is 8+ 10 = 18 cents. That can cost you a lot of money that you weren't counting on.

the total value of inputs used in the production of 100,000 units of a good manufactured in a country is $150,000. assume that the country produces only this good and each unit of the good sells for $10. what is the gdp of the country? group of answer choices

Answers

The total value of inputs used in the production of 100,000 units of a good manufactured in a country is $150,000. assume that the country produces only this good and each unit of the good sells for $10. The gdp  of the country is $1,000,000

Total valve of input = $150,000
Total valve of production = 100,000 \(\times\) $10 = $1,000,000
So the correct answer is $1,000,000

What is GDP?
A monetary indicator of the market worth of all the finished goods and services produced in a nation over a given time period is called the gross domestic product (GDP).This measurement is frequently changed before it can Because it is so intricate and subjective, it cannot be trusted as an indicator. Using GDP per capita at buying power parity as a benchmark, one can compare the standard of life of nations (PPP) may be more useful, whereas nominal GDP is more useful for comparing national economies on the global market. However, GDP (nominal) per capita does not take into account variations in the countries' inflation rates and cost of living. It is also possible to quantify the contribution of each industry or sector to the overall GDP.


To learn more about GDP
https://brainly.com/question/1383956

#SPJ4

By law, manufacturers and distributors are responsible for providing Safety Data Sheets.
Who else is responsible for providing Safety Data Sheets?
Select the best option.
O
O
Managers
Workers
Importers
Employers

Answers

Managers are responsible for providing Safety Data Sheets.

According to the Hazard Communication Standard (HCS) (29 CFR 1910.1200(g)), which was updated in 2012, the chemical manufacturer, distributor, or importer must give downstream users Safety Data Sheets (SDSs) (previously known as Material Safety Data Sheets or MSDSs) for each hazardous chemical in order to inform them of the hazards.

The SDS and MSDS both include virtually the same information, but today the SDSs must be presented in a standardized, user-friendly, 16-section format. This guideline helps workers who handle dangerous chemicals become accustomed to the format and comprehend the SDSs' contents.

The SDS contains details about the physical, physiological, and environmental dangers of each chemical, as well as information about how to handle, store, and transport each chemical safely.

Learn more about Safety Data Sheets here:

https://brainly.com/question/1442958

#SPJ9

Suppose that the consensus forecast of security analysts of your favorite company is that earnings next year will be E1 = $5.00 per share. Suppose that the company tends to plow back 50% of its earnings and pay the rest as dividends. If the Chief Financial Officer (CFO) estimates that the company's growth rate will be 8% from now onwards, answer the following questions. (a) If your estimate of the company's required rate of return on its stock is 10%, what is the equilibrium price of the stock? (b) Suppose you observe that the stock is selling for $50.00 per share, and that this is the best estimate of its equilibrium price. What would you conclude about either (i) your estimate of the stock's required rate of return; or (ii) the CFO's estimate of the company's future growth rate? (c) Suppose your own 10% estimate of the stock's required rate of return is shared by the rest of the market. What does the market price of $50.00 per share imply about the market's estimate of the company's growth rate?

Answers

a. The equilibrium price of the stock can be calculated using the Gordon growth model. The model can be represented as: P = D₁ / (r - g), where P is the equilibrium price of the stock, D₁ is the dividend paid at the end of the first year, r is the required rate of return, and g is the expected growth rate. In this case, D₁ can be calculated as 50% of E₁, or $2.50.

Therefore, using a required rate of return of 10% and a growth rate of 8%, the equilibrium price of the stock can be calculated as $50.00.

b. If the stock is selling for $50.00 per share, and that is the best estimate of its equilibrium price, then it implies that the market believes the required rate of return on the stock is equal to the CFO's estimate of the company's future growth rate of 8%.

This would mean that the market believes the company will be able to continue growing at a rate of 8% in the future, which is consistent with the CFO's estimate.

c. If the market price of the stock is $50.00 per share, and the market's estimate of the required rate of return on the stock is 10%, then using the Gordon growth model, the market's estimate of the company's growth rate can be calculated as 2%.

This is because if r = 10% and P = $50.00, then D₁ = $2.50, and plugging these values into the Gordon growth model, we get: 50 = 2.5 / (0.1 - g), which yields a growth rate of 2%.

To know more about Gordon growth model refer here:

https://brainly.com/question/28861455#

#SPJ11

The consensus forecast of security analysts of your favorite company is that earnings next year will be E1 = $5.00 per share. shareholders the Gordon growth model can be used to determine the stock's equilibrium price.

The Gordon growth model can be used to determine the stock's equilibrium price. P = D,/(r - g), where P is the equilibrium price of the stock, D, is

the dividend paid at the end of the first year, r is the required rate of return, and g is the anticipated growth rate, can be used to illustrate the model. In this scenario, D is equal to $2.50 or 50% of E.

The stock's equilibrium price can be computed as $50.00 utilising a 10% needed rate of return and an 8% growth rate. If the best estimate of the stock's equilibrium price is $50 per share,

then this suggests that the market is in a state of equilibrium. This would imply that the market agrees with the CFO's prediction that the business will be able to grow at a rate of 8% going forward.

c. Using the Gordon Growth Model, it is possible to determine the market's estimated annual growth rate of the company as 2% if the market price of the stock is $50 per share and the required rate of return on the stock is estimated by the market to be 10%.

This is due to the fact that when these variables are entered into the Gordon growth model, we obtain the following result: 50 = 2.5/ (0:1 - g), which results in a growth rate of 2% if r=10% and P=$50.00, then D, = $2.50.

To know more about Shareholders visit:

https://brainly.com/question/30738565

#SPJ4

an option's value is determined by its exercise value, which is the market price of the stock less its striking price. thus, an option can't sell for more than its exercise value.

Answers

An option's value is indeed determined by its exercise value, which is calculated as the difference between the market price of the underlying stock and the striking price of the option. As a result, it is generally not possible for an option to sell for more than its exercise value.

However, it is important to note that there are other factors that can influence the value of an option, such as the time remaining until expiration, volatility in the underlying stock, and interest rates. These factors can all impact the perceived likelihood of the option being exercised and therefore affect its market value.

An option's value is influenced by its exercise value, which represents the difference between the market price of the stock and its strike price. However, it's important to note that an option's price can be more than its exercise value due to factors like time value and volatility.

While the exercise value (intrinsic value) plays a significant role in determining an option's value, other factors contribute as well. These factors include the time value (the remaining time until the option expires) and the volatility of the underlying asset, which impacts the potential for the option to become more profitable. Therefore, an option can indeed sell for more than its exercise value, as it takes these additional factors into consideration.

Learn more about strike price: https://brainly.com/question/14643527

#SPJ11

find out what has happened to UK Industry over the past 10 year
and why is this?

Answers

It has increased over time due to increase in population as more people means more demand for resources
Over the past 10 years, the UK industry has been significantly declining. The reason for this was a desire to modernize economy and it failed. From 2007 to 2022, the United Kingdom has been struggling.

Which of the following will be accomplished by efficient allocations of the factors of production?

guaranteeing economic success
understanding whether a product will fail
fulfilling many needs and wants of society
replenishment of limited resources

Answers

Answer:C

Explanation: Just took the test:)

What will be accomplished by efficient allocations of the factors of production is fulfilling many needs and wants of society

What are factors of production?

factors of production can be regarded as those factor that make production possible such as capital and land.

Therefore, fulfilling many needs and wants of society is one of beauty of production.

Learn more about factors of production

https://brainly.com/question/13171394

s the initial transaction in a new margin account, a customer buys 1,000 shares of XYZ stock at $30. The market value increases to $50. Which statements are TRUE? I Equity increases by $10,000 II Equity increases by $20,000 III SMA increases by $5,000 IV SMA increases by $10,000

Answers

Answer:

Equity increases by $20,000 an SMA by $10,000

Explanation:

While equity is defined as the remaining value of an owner's interest in a business , the simple moving average is defined as the average of a selected range of prices , usually the closing prices by the number of periods in that range.

For every $1 increase in market value , the SMA increase by $0.5 and the equity by $1

Workings

1000 shares at $30 = $30,000

Market value  = 1000* $50 = $50,000

Equity increase - 50,000-30,000 = 20,000

SMA = 20,000 *0.5 = 10,000

Saved Help Save & Exit Flesch Corporation produces and sells two products. In the most recent month, Product C90B had sales of $25,800 and variable expenses of $7,740. Product Y45E had sales of $24,030 and variable expenses of $14,418. The fixed expenses of the entire company were $16,800. If the sales mix were to shift toward Product C90B with total dollar sales remaining constant, the overall break- even point for the entire company:

Answers

The overall break-even point for the entire company would decrease if the sales mix shifts towards Product C90B while keeping the total dollar sales constant.

The break-even point is the level of sales at which the company's total revenue equals its total expenses, resulting in zero profit or loss. The break-even point is determined by dividing the fixed expenses by the contribution margin ratio, where the contribution margin is the difference between sales revenue and variable expenses. In this scenario, if the sales mix shifts towards Product C90B, which has a lower variable expense ratio ($7,740/$25,800 = 0.3) compared to Product Y45E ($14,418/$24,030 = 0.6), the overall contribution margin ratio for the company would increase. As a result, the overall break-even point would decrease, as it is determined by dividing the fixed expenses ($16,800) by the contribution margin ratio.

learn more about:- expenses here

https://brainly.com/question/29850561

#SPJ11

ChemX, Inc. is a manufacturer of chemical products with locations in the United States. Its manufacturing plant in Harrisburg, PA is considering the purchase of a new mixing machine. The cost of goods sold will be $6,850,000 in year 1, and will increase by $200,000 each year. The cost of the machine is $2,600,000 and it is expected to result in cost savings of 10.0% of that location's cost of goods sold over the life of the mixing machine which is 8 years. Over the 8 years an annual investment in working capital will be required of $2,000 (needs to be input at the beginning of year). At the end of its life it can be sold for 3% of the original cost. Five year MACRS depreciation will be used for tax purposes, which has the depreciation rate of 20%, 32%, 19%, 12%, 12% and 5% for the first five years. The company's marginal tax rate is 25%.


Required:

You are to prepare the net present value and internal rate of return, payback period, discounted payback period, profitability index of the project and recommend whether to ACCEPT or REJECT the project and WHY?

Answers

ChemX, Inc. should invest in the new mixing machine at its Harrisburg plant.

To calculate the net present value (NPV) of the project, we need to calculate the annual cash flows. The annual cost savings from the new mixing machine will be 10% of the location's cost of goods sold, which is equal to $685,000 in year 1 and will increase by $20,000 each year. The annual cash flows for the project can be calculated as follows:

Year 0: -$2,600,000 (cost of the machine)

Year 1: $83,750 (savings from new machine) + $682,000 (reduction in working capital) = $765,750

Year 2: $103,750 + $682,000 = $785,750

Year 3: $98,150 + $682,000 = $780,150

Year 4: $73,800 + $682,000 = $755,800

Year 5: $73,800 + $682,000 = $755,800

Year 6: $54,400 + $682,000 = $736,400

Year 7: $54,400 + $682,000 = $736,400

Year 8: $32,380 + $682,000 + $78,000 (proceeds from sale of machine) = $792,380

Next, we need to calculate the present value of each annual cash flow using a discount rate of 10%, which is the company's cost of capital. The present value for each year is as follows:

Year 0: -$2,600,000

Year 1: $696,136

Year 2: $726,901

Year 3: $634,688

Year 4: $511,309

Year 5: $450,325

Year 6: $339,697

Year 7: $297,793

Year 8: $374,841

The NPV of the project is the sum of these present values, which is $452,547.

To calculate the internal rate of return (IRR), we need to find the discount rate that makes the NPV of the project equal to zero. Using Excel or a financial calculator, we can find that the IRR for this project is approximately 16.5%.

The payback period is the amount of time it takes for the initial investment to be recovered. In this case, the payback period is as follows:

Payback Period = 2 + ($1,000,000 - $765,750) / $785,750 = 3.09 years

The discounted payback period is similar to the payback period, but uses the present value of cash flows instead of actual cash flows. The discounted payback period for this project is approximately 4.23 years.

The profitability index (PI) is the ratio of the present value of the future cash flows to the initial investment. A PI greater than 1 indicates that the project is profitable. In this case, the PI is as follows:

PI = ($452,547 + $2,600,000) / $2,600,000 = 1.174

Based on the calculations above, the net present value of the project is positive, the internal rate of return exceeds the company's cost of capital, the payback period is less than the project's life, discounted payback period is also satisfactory and the profitability index is greater than 1. All of these metrics indicate that the project is financially viable and should be accepted. Therefore, ChemX, Inc. should invest in the new mixing machine at its Harrisburg plant.

learn more about invest here

https://brainly.com/question/17252319

#SPJ11

A student in public administration wants to determine the mean amount members of city councils earn. The error in estimating the mean is to be less than $100 with a 99% level of confidence. The student found a report by the department of labor that estimated the standard deviation to be $1000. What is the required sample size?

Answers

Answer:

663.58

Explanation:

From the problem:

E, the maximum allowable error, is $100

The value of z for a 99 percent confidence level is 2.576

Estimate of standard deviation is $1,000.

n = [(z x s)/ E] ^ 2

n = [(2.576 x 1000) / 100}^2

= 25.76^2

=663.58

A state licensing fee on sales of medical devices causes the supply curve for one type of device to shift from S1 (without the fee) to S2 (with the fee). The fee is based on number of units sold and therefore works like a per-item tax paid by sellers. Use the area tool to draw the area representing the state's monthly revenue from the licensing fee for this one type of device.

Answers

Answer: hello your question is incomplete attached below is the complete question

answer ; Government revenue from tax = $750,000 per month

Explanation:

Attached below is the required graph

Government revenue from tax ( per month )

= ( 450 - 30 ) ( 50 - 0 )

= $750,000 per month

A state licensing fee on sales of medical devices causes the supply curve for one type of device to shift
A state licensing fee on sales of medical devices causes the supply curve for one type of device to shift
A state licensing fee on sales of medical devices causes the supply curve for one type of device to shift

Who was the last queen of the hawaiian islands, deposed because american business interests wanted to annex hawaii to the u. S. ?.

Answers

The last queen of the Hawaiian Islands, who was deposed because American business interests wanted to annex Hawaii to the U.S, was Queen Liliuokalani.

She was overthrown on January 17, 1893, and was replaced by a provisional government that was led by American businessmen, Sanford B. Dole. A group of American businessmen, backed by U.S. Marines, deposed Queen Liliuokalani and established a provisional government. Sanford B. Dole, a lawyer and politician from the Kingdom of Hawaii, was named the first president of the Republic of Hawaii. The Kingdom of Hawaii had been an independent monarchy for more than eight decades.

However, American missionaries, who arrived in Hawaii in the early 19th century, gained influence over the islands, and their descendants became wealthy sugar and pineapple plantation owners. These American planters wished to annex Hawaii to the United States to avoid tariffs that were levied on foreign sugar imports. In 1898, Hawaii was annexed by the United States through the Newlands Resolution. However, it was not until 1959 that Hawaii became a state in the Union. Liliuokalani never regained the throne and died in 1917, but she remains a symbol of Hawaiian resistance and pride.

Learn more about Hawaiian Islands:

https://brainly.com/question/5605743

#SPJ11

Which of the following is the best way to help build your self-esteem?
OA. Adapt.
B. Be critical.
C. Speak clearly
D. Know your abilities.

Answers

Answer:

The correct answer is D. Know your abilities.

Explanation

Self-esteem is the feeling that makes people worry about themselves and arouses the feeling of self-preservation; this is related to the way we value ourselves and we feel confident about our abilities, personality, and attributes. Due to this, one of the first steps to build or improve self-esteem is to know yourself and appreciate positive aspects such as attributes, strengths, talents, abilities, etc. Also, it is important to recognize negative aspects but to avoid focusing on these. As a result, you can understand your own value and appreciate or love yourself for this. So, the correct answer is A. Know your abilities.

Answer:

D

Explanation:

To know your abilities so you will know what you can do

A college graduate expects to earn a salary of $60,000 during the first year after graduation and receive a 4% raise every year after that. What is the total income he will have received after ten years?

a. $720,366. 43

b. $634,967. 72

c. $624,000. 00

d. $809,181. 8

Answers

The total income the college graduate will have received after ten years is $720,366.43. So correct answer is option a.

To calculate the total income after ten years, we can use the concept of a geometric sequence. The initial salary is $60,000, and it increases by 4% each year. This can be represented as a geometric sequence with a common ratio of 1.04. The formula to calculate the sum of a geometric sequence is:

Total Income = Initial Salary * (1 - (Common Ratio ^ Number of Years)) / (1 - Common Ratio)

Plugging in the values, we have:

Total Income = $60,000 * (1 - (1.04^10)) / (1 - 1.04) = $720,366.43

Therefore, the correct answer is option a. $720,366.43.

To know more about total income here: brainly.com/question/30418401

#SPJ11

the lag from ordering an item until it is received and ready for use or sale is referred to as

Answers

The lag from ordering an item until it is received and ready for use or sale is commonly referred to as the lead time. Lead time can be measured in different ways depending on the nature of the product, the suppliers involved, and the shipping methods used.


Lead time can be divided into several components, including order processing time, manufacturing or production time, transportation time, and receiving and inspection time. Each of these components has its own variables and challenges that can affect the overall lead time.


The length of lead time is an important consideration for businesses, particularly those that operate in competitive markets with high customer expectations. Longer lead times can result in higher inventory costs, lower customer satisfaction, and reduced profitability.


In summary, the lead time refers to the lag from ordering an item until it is received and ready for use or sale. It is a critical factor in supply chain management that impacts inventory levels, customer satisfaction, and overall business performance.

To know more about Lead time, refer to the link:

https://brainly.com/question/31634145#

#SPJ11

when does the owner's contractual rights begin under an individual annuity contract?

Answers

The owner's contractual rights under an individual annuity contract typically begin at the time of contract issuance.

This is the point at which the insurance company accepts the applicant's proposal and issues the annuity contract.

From this moment, the annuity owner gains certain rights and responsibilities, including the right to make premium payments, designate beneficiaries, and exercise options such as annuitization or surrender.

To recap, the owner's contractual rights under an individual annuity contract begin when the insurance company issues the contract, granting them various rights and responsibilities related to premium payments, beneficiaries, and annuity options.

To know more about owner's contractual rights refer here: https://brainly.com/question/30587932#

#SPJ11

Other Questions
How do you form affirmative t commands? *1 pointGo to the yo form, drop the o, add the opposite ending and an s.Go to the yo form, drop the o, add the opposite ending and an n.Go to the yo form, drop the o, add the opposite ending.Use the same form as l/ella/usted present tense. Find the solutions to the equation below . Check all that apply . X^2-4=0 13 Which TWO sentences have correct usage of pronouns and possessives? a company had total revenue during the year of $88,000, and total expenses of $66,000. to close the income summary account at the end of the year requires a: Discuss how certain therapies and treatments that psychologists used to cure mental disorders in the past are no longer in use and have become obsolete. You may use online resources to support your answer. 12pt Consider functions f and g Consider a pyramid of height 9 whose base is a square with side length 6. Use the integral of cross-sectional areas to calculate the volume of the pyramid. Find the area of a cross-sectional square at height y. Area = Volume = which synthetic polymer has two forms, crystal and expandable? You feed your pet 1/4 cup of food each morning.You do this for 5 days. How much total food haveyou fed your pet after 5 days? What do critics and activists fear most about the concentration of media ownership? Traditional project management (TPM)the waterfall approach applies when the problem/goal and the solution/end-item are well-understood and can be clearly defined early in the project.a. Trueb. False a ................... is the residence of monarch What is drug allergiey PLEASE HELPFind the solution in the system of equations using substitution:Equation #1 has a slope of 2 and a y-intercept of 3Equation #2 has a slope of -6 and a y-intercept of -5( , ) -6(7 + x) plzzzz help What is 30 below sea level n early ______, Beijing began to provide military assistance to the Vietminh to burnish its revolutionary credentials and protect its own borders from hostile forces.1950 Lymphocytes are generally categorized asT-cells and B-cells.basophils and neutrophils.granulocytes and eosinophils.macrophages and dendritic cells. The United States is a large country. It produces two goods, beers and brooms. Itimports beers from Mexico and exports brooms to Mexico. Mexico is a smallcountry. It produces two goods, beers and brooms. It imports brooms from U.S. andexports beers to U.S..11. If U.S. imposes a tariff on beer imports from Mexico,a. the trade volume falls and the terms of trade declines for U.S..b. the trade volume falls and the terms of trade increases for U.S..c. the trade volume increases and the terms of trade declines for U.S..d. the trade volume falls at a constant terms of trade.e. none of the above.B Zachary is interested in football. Which is the BEST choice for an argumentative essay on this topic?