Income from a precious metals mining operation has been decreasing uniformly for 5 years. If incomein year 1 was $300,000 and it decreased by $30,000 per year through year 4, the annual worth of theincome at 10% per year is closest to:(a) $310, 500(b) $203, 900(c) $258, 600(d) $164, 800(e) None of the aboveade

In general mining is process of obtaining or in simple words extracting valuable resources from…

Answered: Income from a precious metals mining…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Thorpe Mfg., Inc., is currently operating at only 87 percent of fixed asset capacity. Current sales are $410,000. Suppose fixed assets are $350,000 and sales are projected to grow to $479,000. How much in new fixed assets is required to support this growth in sales? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.) New fixed assets
A small company heats its building and spends $8,400 per year on natural gas for this purpose. Cost increases of natural gas are expected to be 8% per year starting one year from now (i.e., the first cash flow is $9,072 at EOY one). Their maintenance on the gas furnace is $335 per year, and this expense is expected to increase by 12% per year starting one year from now (i.e., the first cash flow for this expense is $375.20 at the EOY one). If the planning horizon is 13 years, what is the total annual equivalent expense for operating and maintaining the furnace? The interest rate is 18% per year. Click the icon to view the interest and annuity table for discrete compounding when i = 8% per year. Click the icon to view the interest and annuity table for discrete compounding when i = 12% per year. Click the icon to view the interest and annuity table for discrete compounding when i = 18% per year. The total annual equivalent expense for operating and maintaining the furnace is $ two…
Suppose you are a financial consultant and the following item has been brought to your attention: Turner Company received a new geological report informing it that the amount of coal in its coal mine is 30% greater than in previous estimates. As a result, the cost per ton of coal has decreased. Also, the cost of goods sold reported for the year had decreased by $175,000. Required: a. From the pull-down menu, select the appropriate income statement classifications of the item. b. Determine the amount related to the item that would appear in the income statement. c. Determine whether the item will increase or decrease the net income. Notes: 1. Assume a tax rate of 42% 2. All items are material. Classification What is the amount related to the item? Would net income increase or decrease? O Increase i Choose One $0 O Decrease
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A company monitored the cost of its product inspection for 8 years. The costs were AED 170 per year for the first 4 years, but increased consistently by AED S0 per year the last 4 years. The interest rate was 10% per year. Answer the below questions by matching with the closest answer. v Calculate the total present worth in year-0. A AED-1164.71 Calculate the future worth in year-&. B. AED -1906.63 C. AED-2743.40 D.AED -2496.65 E. AED-722.16 F. AED-875.71
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