Reference no: EM131210672
You are graduating in June and would like to start your own business making wine coolers. You collect the following information on the initial costs:
Cost of Plant & Equipment = $ 500000
Licensing & Legal Costs = $ 50000
You can claim an investment tax credit of 10% on plant & equipment. You also have been left a tidy inheritance that will cover the initial cost, and is currently invested in a CD earning 10%.
You estimate that you can sell one million bottles a year at $1/bottle. You estimate your costs as follows:
Variable costs/bottle = 50 cents
Fixed Costs/ year = $ 200000
Adding up state, local and federal taxes, you note that you will be in the 50% tax bracket. To be conservative, you assume that you will terminate the business in five years and that you will get nothing from the plant and equipment as salvage. (You also use straight line depreciation.) As a final consideration, you note that starting this business will mean that you will not be able to take the investment banking job you have been offered (which offered $ 75000/year for the next five years.). Should you take on the project?
Is the vedanta philosophy reasonable
: Is the Vedanta philosophy reasonable? Does it accurately describe reality? Why or why not? Consider the notion of a higher or "transcendental" reality. Could it be true that there is an "immaterial" realm, or do you agree with the materialist view?
|
Appropriate opportunity cost
: The actual cost of materials used to produce each unit is $ 20. Your tax rate will be 40% and the appropriate opportunity cost is 12%.
|
Indicate if it is relevant or not to the related decision
: The costs listed below relate to a variety of different decision situations.- For each cost listed, indicate if it is relevant or not to the related decision.
|
C++ code for a function that receives five double numbers
: Use the following numbers and variable as the actual arguments: 45.67, 8.35, 125.78, 99.56, and num Avg.
|
Inheritance cover the initial cost
: You can claim an investment tax credit of 10% on plant & equipment. You also have been left a tidy inheritance that will cover the initial cost, and is currently invested in a CD earning 10%. You estimate that you can sell one million bottles a ye..
|
Straight line depreciation
: Your superior is a cantankerous and very stubborn man who believes that the simplest approaches are the best. Your firm has just bought a van, with a five-year lifetime, for $10000. You superior wants you to use straight line depreciation.
|
Show the desk-check table after the calc end function ends
: Also show it after the statement in the calc End function is processed. Finally, show the desk-check table after the calc End function ends.
|
Should all prevailing parties able to recover attorney fees
: The rules of civil procedure provide that a motion for attorney fees and costs must be filed within 30 days after the action is completed. If there is no basis for a claim for attorney fees, the prevailing party can only recover for costs, such as..
|
Whether job cost system or a process cost system appropriate
: For the list of product manufacturers, indicate whether a job-cost system (J) or a process cost system (P) would be most appropriate.
|