Premier steel, inc. is considering the purchase of a new machine for $100,000 that has a useful life of 3 years. the firm’s cost of capital is 11.0% and the tax rate is 40%. this machine will be sold for its salvage value of $20,000 at the end of 3-years. the machine will require an investment of $2,500 in spare parts inventory upon installation. the machine will cost $8,000 to ship and $4,000 to install and modify it. sales are as follows: year 1 = $90,000; year 2 = $97,500; year 3 = $105,000. operating expenses are year 1 = $25,000; year 2 = $27,000; year 3 = $29,000. the investment in working capital will be liquidated at termination of the project at the end of year 3. macrs rates 33% 45% 15% 7% using macrs, what is the operating cash flow in year 1?

Reactive power generation has the following capital structure. its corporate tax rate is 40%. security market value required rate of return debt $ 30 million 4 % preferred stock 30 million 6 common stock 40 million 10 what is its wacc? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.)

Yael decides that she no longer enjoys her job, and she quits to open a gluten-free, dairy-free kosher bakery. she pays a monthly rent for her store of $2,000. her labor costs for one month are $4,500, and she spends $6,000 a month on nut flours, sugar, and other supplies. yael was earning $2,500 a month working as a bank teller. these are her only costs. her monthly revenue is $14,000. which of the following statements about yael’s costs and profit are correct? correct answer(s) an accountant would say she is earning a monthly profit of $1,500. her implicit costs are $2,500 a month. an economist would tell her that she is experiencing a loss. her total costs are $12,500 a month. her explicit costs include the labor, rent, and supplies for her store. her economic profit is $1,500 a month.

When selecting a savings account, you should look at the following factors except annual percentage yield (apy) fees minimum balance interest thresholds taxes paid on the interest variable interest rates