Afarmer has the opportunity to purchase the pioneer appli-pro super low volume (slv) applicator system which is a new way to apply inoculant to silage using low volumes of inoculant. microbial inoculants can make silage fermentation more efficient, thereby preserving more nutrients and dry matter, and sometimes improve animal performance. some inoculants have also been designed to specifically improve aerobic stability. this is important because a large portion of dry matter (dm) lost in a silo is actually due to aerobic spoilage. the farmer believes that this new inoculant system can be purchased for $1,600 and it will cost $1.25/ton for the inoculant. he believes this process will reduce silage spoilage and save $600/year in feed costs (after any application, labor or chemical costs). he plans to keep the inoculant system for 5 years. at the end of 5 years he believes he will scrap the system and it will be worthless. the farm’s accountant has done some preliminary work. the marginal tax rate is 30%, the pre-tax risk-adjusted discount rate is 12% and inflation is assumed to be zero. the accountant calculates the present value of the tax savings from depreciation to be $379.29, and the present value of the after-tax terminal value to be $0. how much money does the farmer save after taxes each year if he purchases slv applicator?

King fisher aviation is evaluating an investment project with the following case flows: $6,000 $5,500 $7,000 $8,000 discount rate 14 percent what is the discounted payback period for these cash flows if the initial cost is 15,000? what if the initial cost is $12,000? what if the cost is $16,000?

Instructions: use the following information to construct the 2000 balance sheet and income statement for carolina business machines. round all numbers to the nearest whole dollar. all numbers are in thousands of dollars. be sure to read the whole problem before you jump in and get started. at the end of 1999 the firm had $43,000 in gross fixed assets. in 2000 they purchased an additional $14,000 of fixed asset equipment. accumulated depreciation at the end of 1999 was $21,000. the depreciation expense in 2000 is $4,620. at the end of 2000 the firm had $3,000 in cash and $3,000 in accounts payable. in 2000 the firm extended a total of $9,000 in credit to a number of their customers in the form of accounts receivable. the firm generated $60,000 in sales revenue in 2000. their cost of goods sold was 60 percent of sales. they also incurred salaries and wages expense of $10,000. to date the firm has $1,000 in accrued salaries and wages. they borrowed $10,000 from their local bank to finance the $15,000 in inventory they now have on hand. the firm also has $7,120 invested in marketable securities. the firm currently has $20,000 in long-term debt outstanding and paid $2,000 in interest on their outstanding debt. over the firm's life, shareholders have put up $30,000. eighty percent of the shareholder's funds are in the form of retained earnings. the par value per share of carolina business machines stock is

Croy inc. has the following projected sales for the next five months: month sales in units april 3,850 may 3,875 june 4,260 july 4,135 august 3,590 croy’s finished goods inventory policy is to have 60 percent of the next month’s sales on hand at the end of each month. direct material costs $2.50 per pound, and each unit requires 2 pounds. raw materials inventory policy is to have 50 percent of the next month’s production needs on hand at the end of each month. raw materials on hand at march 31 totaled 3,741 pounds. 1. determine budgeted production for april, may, and june. 2. determine the budgeted cost of materials purchased for april, may, and june. (round your answers to 2 decimal places.)