Thomasville Furniture Industries offers several types of high-performance fabrics that are capable of withstanding chemicals as harsh as chlorine. A Midwestern manufacturing company that uses fabric in several products has a report showing that the present worth of fabric purchases over a specified 5-year period was $900,000. If the costs are known to have increased geometrically by 5% per year during that time and the company uses an interest rate of 15% per year for investments, what was the cost of the fabric in year 1?

Q: Silastic-LC-50 is a liquid silicon rubber designed to provide excellent clarity, superior mechanical…

A: Computation:

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A: Depreciation- Depreciation is the gradual decrease in the value of assets caused by wear and tear.…

Q: zero. Annual receipts is ar study period. The con a good investment using

A: As per rule, allowed to answer first three subparts and post the remaining in the next submission.

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A: Computation of discounting factor at the rate of 10% is as follows:

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A:

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A: --------------

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A:

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A: The present worth of the machine is operating cost is the present value of all future cash outflow

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A: Present worth of investment = Present value of increase in revenue - Initial costs where. Present…

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A: Present Worth or Net present Value refers to the difference between the discounted value of cash…

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A: Net cash flow is the amount that a company generates from a project.  Net cash flow = Total cash…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.