A company buys tracking software for its warehouse which, along with the computer system and ancillaries to run it, will cost $1.6 million. This purchase will be deducted over five years. It is expected that the software will reduce inventory by $10.7 million at the end of the first year after it is installed, though there will be an annual cost of $120,000 per year to run the system. If the company's marginal tax rate is 40%, how will the purchase of this item change the company's free cash flows in the first year
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A company buys tracking software for its warehouse which, along with the computer system and ancillaries to run it, will cost $1.6 million. ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Helmsman Products sells a special type of navigation equipment for $ 1 comma 400. Variable costs are $ 900 per unit.
Answers (1)
The Mixing Department of Healthy FoodsHealthy Foods had 65 comma 00065,000 equivalent units of materials for OctoberOctober.
Answers (1)
At year end, Rebos Company's financial statements showed sales of $820 million, net income of $425 million, total assets of $750 million, total liabilities (including preferred stock) of $735 million, and 1.
Answers (1)
Which of the following is true of good salespeople? Question 1 options: They know how to oversell their product so the customer can't say no. They have tenacity but know when to walk away and move on to the next sales prospect.
Answers (2)
5. Country P has an unemployment rate of. 10, and there are 100,000 unemployed people living in the country. What is the total workforce in Country P?
Answers (1)
New Questions in Business
Judy is a cash basis attorney. This year, she performed services in connection with the formation of a corporation and received stock with a value of $4,000 for her services. By the end of the year, the value of the stock had decreased to $2,000.
Answers (1)
Compute the average days in inventory ratio using the following information: Net sales is $200,000 for the year, cost of goods sold are $80,000, last year's total assets were $900,000, and this year's total assets are $1,100,000.
Answers (1)
You are the project manager of the BHY Project. Your project customer has demanded that the project becompleted by December 1. December 1 is an example of which one of the following? A. ConstraintB. AssumptionC. Project boundaryD.
Answers (1)
Harrison Recyclers Company uses the indirect method to prepare its statement of cash flows. Refer to the following information for 2017: 1. Retained Earnings, beginning balance, $142,000 2. Retained Earnings, ending balance, $122.000 3.
Answers (1)
Assume that total costs assigned to the setup activity cost pool in March are $120,000 and 100 setups were completed in March. Further, assume that during March machines were setup 20 times to make product X5.
Answers (1)