In order to increase production capacity, Gunning Industries is considering replacing an existing production machine with a new technologically improved machine effective January 1.The following information is being considered by Gunning Industries:· The new machine would be purchased for $160,000 in cash. Shipping, installation, and testing would cost an additional $30,000.· The new machine is expected to increase annual sales by 20,000 units at a sales price of $40 per unit. Incremental operating costs include $30 per unit in variable costs and total fixed costs of $40,000 per year.· The investment in the new machine will require an immediate increase in working capital of $35,000. This cash outflow will be recovered after 5 years. · Gunning uses straight-line depreciation for financial reporting and tax reporting purposes. The new machine has an estimated useful life of 5 years and zero salvage value.· Gunning is subject to a 40% corporate income tax rate. Gunning uses the net present value method to analyze investments and will employ the following factors and rates:Gunning Industries' discounted annual depreciation tax shield for the year of replacement is
Answer(s): A
Gunning uses straight-line depreciation. Thus, the annual charge is $38,000 [($160,000 ÷ $30,000) + 5 years], and the tax savings is $15,200 ($38,000 x 40%). That benefit will be received in 1 year, so the present value is $13,817 ($15,200 tax savings x .909 present value of $1 for 1 year at 10%).
In order to increase production capacity, Gunning Industries is considering replacing an existing production machine with a new technologically improved machine effective January 1. The following information is being considered by Gunning Industries:· The new machine would be purchased for $160,000 in cash. Shipping, installation, and testing would cost an additional $30,000.· The new machine is expected to increase annual sales by 20,000 units at a sales price of $40 per unit. Incremental operating costs include $30 per unit in variable costs and total fixed costs of $40,000 per year.· The investment in the new machine will require an immediate increase in working capital of $35,000. This cash outflow will be recovered after 5 years. · Gunning uses straight-line depreciation for financial reporting and tax reporting purposes. The new machine has an estimated useful life of 5 years and zero salvage value.· Gunning is subject to a 40% corporate income tax rate. Gunning uses the net present value method to analyze investments and will employ the following factors and rates:The acquisition of the new production machine by Gunning Industries will contribute a discounted net-of-tax contribution margin of
Answer(s): D
The new machine will increase sales by 20,000 units a year. The increase in the pretax total contribution margin will be $200,000 per year [20,000 units x ($40 SP -- $30 VC)], and the annual increase in the after tax contribution margin will be $120,000 [$200,000 x (1.0-- .4)]. The present value of the after-tax increase in the contribution margin over the 5-year useful life of the machine is $454,920 ($120,000 x 3.791 PV o f an ordinary annuity for 5 years at 10%).
In order to increase production capacity, Gunning Industries is considering replacing an existing production machine with a new technologically improved machine effective January 1. The following information is being considered by Gunning Industries: · The new machine would be purchased for $160,000 in cash. Shipping, installation, and testing would cost an additional $30,000.· The new machine is expected to increase annual sales by 20,000 units at a sales price of $40 per unit. Incremental operating costs include $30 per unit in variable costs and total fixed costs of $40,000 per year.· The investment in the new machine will require an immediate increase in working capital of $35,000. This cash outflow will be recovered after 5 years. · Gunning uses straight-line depreciation for financial reporting and tax reporting purposes. The new machine has an estimated useful life of 5 years and zero salvage value.· Gunning is subject to a 40% corporate income tax rate. Gunning uses the net present value method to analyze investments and will employ the following factors and rates:The overall discounted cash flow impact of Gunning Industries' working capital investment for the new production machine would be
Answer(s): C
The $35,000 of working capital requires an immediate outlay for that amount, but it will be recovered in 5 years. Thus, the net discounted cash outflow is $13,265 [$35,000 initial investment--($35,000 future 1inflow x .621 PV of $1 for 5 years at 10%)].
Jackson Corporation uses net present value techniques in evaluating its capital investment projects. The company is considering a new equipment acquisition that will cost $100,000, fully installed, and have a zero salvage value at the end of its five-year productive life. Jackson will depreciate the equipment on a straight-line basis for both financial and tax purposes. Jackson estimates $70,000 in annual recurring operating cash income and $20,000 in annual recurring operating cash expenses. Jackson's desired rate of return is 12% and its effective income tax rate is 40%. What is the net present value of this investment on an after-tax basis?
Annual cash outflow for taxes is $12,000 {[$70,000 inflows -- $20,000 cash operating expenses `--($100,000 ÷ 5) depreciation] x 40%}. The annual net cash inflow is therefore $38,000 ($70,000 --$20,000-- $12,000). The present value of these net inflows for a 5-year period is $136,990 ($38,000 x 3.605 present value of an ordinary annually for 5 years at 12%)1 and the NPV of the investment is $36,990 ($136,990 -- $100,000 investment).
A weakness of the internal rate of return (IPP) approach for determining the acceptability of investments is that it
The IRR is the rate at which the discounted future cash flows equal the net investment (NPV = 0). One disadvantage of the method is that inflows from the early years are assumed to be reinvested at the IRP. This assumption may not be sound. Investments in the future may not earn as high a rate as is currently available.
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Question 6:Here’s how question 6 works. Key constraint: All new and extended objects must be in an existing model named FinanceExt. Creating a brand-new model is not allowed. Why the two correct options work:
Question 2:I don’t have the text for Question 2 here. Please paste the exact Question 2 (including all answer choices) or describe the topic it covers. Once I have it, I’ll:
Which statement is true about using default environment variables? The environment variables can be read in workflows using the ENV: variable_name syntax. The environment variables created should be prefixed with GITHUB_ to ensure they can be accessed in workflows The environment variables can be set in the defaults: sections of the workflow The GITHUB_WORKSPACE environment variable should be used to access files from within the runner.Correct answer: The statement "The GITHUB_WORKSPACE environment variable should be used to access files from within the runner." is true. Why the others are false:
${{ env.VARIABLE }}
$VARIABLE
GITHUB_
defaults:
run
GITHUB_WORKSPACE
${{ github.workspace }}
$GITHUB_WORKSPACE/...
${{ github.workspace }}/...
As an administrator for this subscription, you have been tasked with recommending a solution that prohibits users from copying corporate information from managed applications installed on unmanaged devices. Which of the following should you recommend? Windows Virtual Desktop. Microsoft Intune. Windows AutoPilot. Azure AD Application Proxy.
Question 34:
Policy
function of appnav in sdwan
Question 1:
Question 5:
Why this is correct
Question 7:
Question 104:
clustering keys
Q23: Fabric Admin is correct. Because Domain admin cannot create domains. Only Fabric Admin can among the given options. Q51: Wrapping @pipeline.parameter.param1 inside {} will return a string. But question requires the expression to return Int, so correct answer should be @pipeline.parameter.param1 (no {})
Question 62:
ZDX
Analyze Score
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Question 32:
Question 3:
date = sys.argv[1]
sys.argv[1]
date = spark.conf.get("date")
input()
date = dbutils.notebooks.getParam("date")
dbutils.notebook.run
Question 528:
Question 23:The correct answer is Domain admin (option B), not Fabric admin.
Question 2:For question 2, the key concept is the Longest Prefix Match. Routers pick the route whose subnet mask is the most specific (largest prefix length) that still matches the destination IP. From the options:
Question 129:Correct answer: CNAME
compute.osAdminLogin
enable-oslogin
Question 2:
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For Question 7 - while the answer description indicates the correct answer, the option no. mentioned is incorrect. Nice and Comprehensive. Thankyou
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The DP-900 exam can be tricky if you aren't familiar with Microsoft’s specific cloud terminology. I used the practice questions from free-braindumps.com and found them incredibly helpful. The site breaks down core data concepts and Azure services in a way that actually mirrors the real test. As a resutl I passed my exam.
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Passed this exam 2 days ago. These questions are in the exam. You are safe to use them.
Helpful to test your preparedness before giving exam
Really helped
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