Use the Information for the Question(s)below

question 2

Essay

Use the information for the question(s)below.
Kinston Industries is considering investing in a machine that will cost $125,000 and will last for three years.The machine will generate revenues of $120,000 each year and the cost of goods sold will be 50% of sales.At the end of year three the machine will be sold for $15,000.The appropriate cost of capital is 10% and Kinston is in the 21% tax bracket.
-Assume that Kinston's new machine will be depreciated straight line to a salvage value of $5000 at the end of year three.What is the after-tax salvage value of this project?

Calculate the costs added to production in a processing department.

Understand the application of the step-down method for allocating service department costs.

Determine the total department cost after service department allocations.

Calculate the total cost transferred from one processing department to the next.

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Definitions:

Job Security

the probability that an individual will keep their job; a sense of certainty that one's employment is stable.

Zand's Model

A theory focusing on trust within organizational change, suggesting that trust in leadership and among colleagues can significantly impact the success of change initiatives.

Mentors

Experienced individuals who provide guidance, advice, and support to less experienced people, typically in a professional setting.

Periodic Interaction

Interaction that occurs at regular, defined intervals rather than continuously.