Answer:
Hence the correct option is d) The discount rate used in computing the net present value was less than 8.7 percent.
Explanation:
As the discount rate increases, the present value decreases, and also at IRR the present value is zero, thus the answer is:-
d) The discount rate used in computing the net present value was less than 8.7 percent
Answer:
D). The discount rate used in computing the net present value was less than 8.7 percent.
Explanation:
'Net Present Value' is described as the 'difference that exists between existing values of cash inflows, as well as, cash outflows for a particular time period.' This assists in evaluating the profitability of an investment and make worthy decisions regarding investment.
As per the details provided, the discount rate considered for estimating the Net Present Value of the investment had been lesser than 8.7% which shows that the Net Present Value in positive i.e. $ 393. However, the investment project is not beneficial at all rather it may cause losses because the required return rate is 9.5% which is actually lesser and therefore, the project would prove incompetent and it must be rejected at once. Thus, option D is the correct answer.
The manager of the bank where you work tells you that your bank has $6 million in excess reserves. She also tells you that the bank has $400 million in deposits and $362 million in loans. Given this information you find that the reserve requirement must be
Answer and Explanation:
The computation of the reserve requirement is given below;
Required reserves is
= Deposits - loans - excess reserves
= $400 - $362 - $6
= 32 million
And,
Required reserve ratio is
= Required reserves ÷ Deposits
= 32 ÷ 400
= 8%
In this way, it should be determined so that the correct value & percentage could come
Welcome Inn Hotels is considering the construction of a new hotel for $90 million. The expected life of the hotel is 30 years, with no residual value. The hotel is expected to earn revenues of $26 million per year. Total expenses, including depreciation, are expected to be $15 million per year. Welcome Inn management has set a minimum acceptable rate of return of 14%.
a. Determine the equal annual net cash flows from operating the hotel.
b. Calculate the net present value of the new hotel. Use 7.003 for the present value of an annuity of $1 at 14% for 30 periods.
c. Does your analysis support construction of the new hotel?
Answer:
a. Annual Net cash flows:
= Revenue - Expenses + Depreciation
= 26,000,000 - 15,000,000 + (90,000,000 / 30 years)
= 11,000,000 + 3,000,000
= $14,000,000
b. Net present value:
= Present value of cashflows - Investment cost
= (Annual cashflow * present value of an annuity, 14%, 30 periods) - Investment cost
= (14,000,000 * 7.003) - 90,000,000
= $8,042,000
c. Company should construct the hotel as it would bring a positive Net Present Value
Note: In "b" the cashflow was treated as an annuity because it is constant.
A buyer’s agent represents the buyer, and the seller’s agent represents the broker true or false?
Answer: False
Explanation:
seller is not represent broker
Use the following data to calculate the cost of goods sold for the period:
Beginning Raw Materials Inventory $30,600
Ending Raw Materials Inventory 70,600
Beginning Work in Process Inventory 40,600
Ending Work in Process Inventory 46,600
Beginning Finished Goods Inventory 72,600
Ending Finished Goods Inventory 68,600
Cost of Goods Manufactured for the period 246,600
Answer:
The cost of goods sold for the period is:
= $250,600.
Explanation:
a) Data and Calculations:
Beginning Raw Materials Inventory $30,600
Ending Raw Materials Inventory 70,600
Beginning Work in Process Inventory 40,600
Ending Work in Process Inventory 46,600
Beginning Finished Goods Inventory 72,600
Ending Finished Goods Inventory 68,600
Cost of Goods Manufactured for the period 246,600
To determine the cost of goods sold:
Beginning Finished Goods Inventory $ 72,600
Cost of Goods Manufactured for the period 246,600
Cost of goods available for sale $319,200
Ending Finished Goods Inventory (68,600)
Cost of goods sold $250,600
In a board of directors election for five directors and straight voting, a majority group of shareholders will elect a. four directors. b. five directors. c. four or five depending on how the cumulative voters vote. d. the same proportional share of directors as their ownership share.
Answer: b. five directors
Explanation:
Straight voting refers to a voting convention where shareholders are allowed to cast a single vote towards each director seat for each share they own. This is in contrast to cumulative voting where a single shareholder can decide to cast all their votes to one director.
In such a convention therefore, the majority will elect all five seats because the majority that voted for each seat will decide which director will be elected.
Joshua borrowed $1,400 for one year and paid $70 in interest. The bank charged him a service charge of $12. If Joshua repaid the loan in 12 equal monthly payments, what is the APR? (Enter your answer as a percent rounded to 1 decimal place.)
APR %
Answer: 10.81%
Explanation:
The annual percentage rate is the percentage cost of credit on yearly basis.
APR will be calculated
= [(2 x n x I) /( P x ( N + 1)]
where,
n = number of months = 12
I = Finance cost = Interest + service charge = $70 + $12 = $82
P = Borrowed amount = $1,400
N= Loan period = 12
We'll then slot the values into the annual percentage rate (APR) formula and this will be:
= ( 2 x n x I) /( P x ( N + 1))
= ( 2 x 12 x 82) /( 1400 x ( 12 + 1))
= 0.1081
=10.81 %
For the remaining questions, please consider the following transactions that happened upon the incorporation of Berry Company by its owner, John Berry, during the first week of January:
· It received €50,000 in cash from John Berry as capital.
· It borrowed €30,000 from a local bank.
· It purchased €15,000 of equipment for cash.
· It purchased €20,000 of inventory on account.
· It pre-paid €3,000 for the office rent and €2,000 for the insurance.
What is the total current assets at the end of the week?
Answer: €100,000
Explanation:
Cash received is an assetThe money borrowed is also cash so assets increaseEquipment was exchanged for cash. Both of them are assets so there is NO EFFECT on assets here. Inventory purchased on account will increase assets because assets were acquired with liabilities in this instance. Prepayments are assets but because this was paid with cash, there is NO EFFECT on assets as they cancel each other out.Total assets at the end of the week are:
= Cash + Cash borrowed + Inventory purchased on account
= 50,000 + 30,000 + 20,000
= €100,000
Kết luận sự thích ứng tâm lý của sinh viên năm nhất
Answer:
I think I should ask in English language
A friend wants to borrow money from you. He states that he will pay you $4,700 every 6 months for 9 years with the first payment exactly 2 years and six months from today. The interest rate is an APR of 5.8 percent with semiannual compounding. What is the value of the payments today
Answer:
PV= $56,508.47
Explanation:
Giving the following information:
Semmiannual payment= $4,700
Number of periods (n)= 9*2= 18 semesters
Interest rate= 0.058/2= 0.029
First, we need to calculate the value of the payments at the moment of the first payment:
PV= A*{(1/i) - 1/[i*(1 + i)^n]}
A= Semmiannual payment
PV= 4,700*{(1/0.029) - 1/[0.029*(1.029^18)]}
PV= $65,191.42
Now, the present value using the following formula:
PV= FV / (1 +i)^n
n= 2.5*2= 5 semesters
PV= 65,191.42 / (1.029^5)
PV= $56,508.47
Because of the compounding effect:
a. large yearly growth rates are needed to achieve sustained growth.
b. large yearly growth rates are needed to achieve sustained growth.
c. small changes in economic growth rate lead to large GDP changes over time.
d. small changes in economic growth rate lead to large GDP changes over time.
e. interest compounding allow the economy to grow faster.
Answer: c. small changes in economic growth rate lead to large GDP changes over time.
Explanation:
If there is even a small change in the rate at which the economy is growing, this increase will increase by even more the year afterward and then even more as time goes on. This is because the interest is being compounded overtime.
Look at the future value formula that shows compounding for instance:
Future value = Amount * (1 + rate) ^ number of periods
Assume even a change of 2% in the growth rate. In 30 years, this rate would have increased the economy by:
= 1 * ( 1 + 2%)³⁰
= 1.81
Which is a rate of:
= 1.81 - 1
= 81%
What started off as only 2% became 81% in 30 years. This is what compounding does.
The Nearside Co. just paid a dividend of $1.65 per share on its stock. The dividends are expected to grow at a constant rate of 5 percent per year, indefinitely. Investors require a return of 12 percent on the stock. a. What is the current price
Answer:
$24.7
Explanation:
The first step is to calculate D1
1.65(1+5/100)
1.65(1+0.05)
1.65(1.05)
=>1.73
Therefore the current price can be calculated as follows
= D1/required rate-growth rate
= 1.73/0.12-0.05
= 1.73/0.07
= 24.7
Hence the current price is $24.7
What is the loan amount if the interest rate is 7.5% per year and the monthly interest payment is $1,250?
Answer:
The amount of the loan was $ 13,953.48.
Explanation:
To determine what is the loan amount if the interest rate is 7.5% per year and the monthly interest payment is $ 1,250, the following calculation must be performed:
1250 x 12 = 15,000
1,075X = 15,000
X = 15,000 / 1,075
X = 13,953.48
Therefore, the amount of the loan was $ 13,953.48.
có 3 bi đỏ và 1 bi đen. tính xác xuất lấy phải bi đỏ
Answer:
3/4
Explanation:
không gian mẫu bằng 3+1
P=3, xác suất = P/omega
An income statement under absorption costing includes which of the following: ______________
a. Direct materials
b. Direct labor
c. Variable overhead
d. Fixed overhead
Answer:
a. Direct materials
b. Direct labor
c. Variable overhead
d. Fixed overhead
Explanation:
The absorption costing is the costing in which the income statement should includes all types of production cost i.e. direct material cost, direct labor cost, variable overhead and the fixed overhead
So as per the given statement, all the four types of costing should be involved while preparing the income statement under the absorption costing
Hence, all 4 options should be considered
Inc. has just now paid a dividend of $2.50 per share (Div0); its dividends are expected to grow at a constant rate of 4 percent per year forever. If the required rate of return on the stock is 14 percent, what is the current value of the stock, after paying the dividend?
a. $26
b. $25
c. $17.86
d. $21.33
Answer: a. $26
Explanation:
Given the details in the question, the value of the stock can be calculated by the Gordon Growth Model:
= Next dividend / (Required return - growth rate)
= (Current dividend * growth rate) / (Required return - growth rate)
= (2.50 * (1 + 4%)) / (14% - 4%)
= 2.625 / 10%
= $26.25
= $26
Fruit boat company manufacturers 10 fruit themed boats per month. A navigation system is included in each boat. Fruit Boat COmpany manufacturers the navigation system in-house but is considering the possiblity of outsourcing thsi function. At present, the variable cost per unit is $300, and the fixed costs are $39,000 per month. If it outsources the naviagation system, fxed costs could be reduced by half, and the vacant facilitiescould be rented out to earn 400 per month of rental income. What is the maximum contract cost that Fruit Boat Company should pay for outsourcing?
a. any cost lower than $3900 per unit
b. any cost lower than $2325 per unit
c. any cost lower than $2225 per unit
d. any cost lower than $275 per unit
Answer:
the cost should be lower than $2,650 per unit
Explanation:
The computation of the maximum contract cost should pay for outsourcing should be
Variable cost $300
Avoidable Fixed cost per unit (19,500÷ 10) 1,950
Opportunity cost (400 ÷ 10) 400
Total 2,650
Hence, the cost should be lower than $2,650 per unit
This is the answer but the same is not provided in the given options
True or false: Interest expense and income tax expense are considered general and administrative expenses and, therefore, are included on the general and administrative expense budget. True false question. True False
Answer: True
Explanation:
Interest expense and income tax expenses generally are stand-alone expenses but they fall under general and administrative expenses required to run the business.
Interest expense is charged on debt that was taken to run the company so will be an admin expense and tax is part of the expenses that a company has to take care of in order to run the company so it is an admin expense as well.
Materials Variances Krumple Inc. produces aluminum cans. Production of 12-ounce cans has a standard unit quantity of 4.5 ounces of aluminum per can. During the month of April, 300,000 cans were produced using 1,240,000 ounces of aluminum. The actual cost of aluminum was $0.18 per ounce and the standard price was $0.08 per ounce. There are no beginning or ending inventories of aluminum. Required: Calculate the materials price and usage variances using the columnar and formula approaches. Enter amounts as positive numbers and select Favorable or Unfavorable. Materials Price Variance$fill in the blank 1 Material Usage Variance$fill in the blank 3
Solution :
Variance Calculations Result
Direct material 0.08(300,000 x 4.5 - 1,240,000) 8,800 favorable
usage variance
Direct material 1,240,000 x (0.08 - 0.18) 124,000 unfavorable
price variance
The standard quantity = actual production x standard quantity per unit
= 300,000 x 4.5
= 1,350,000
Use the following information to determine the break-even point in units (rounded to the nearest whole unit): Unit sales 53,000
Units Unit selling price $14.65
Unit variable cost $7.80
Fixed costs $189,000
12,901
27,591
8,419
46,545
24,231
Answer:
27,591 units
Explanation:
The computation of the break even point in units is shown below:
Contribution margin is
= (Sales - Variable costs)
= ($14.65 - $7.80)
=$6.85
Now
breakeven point in units is
= fixed cost ÷ Contribution margin
= ($189,000 ÷ $6.85)
= 27,591 units
ased on a predicted level of production and sales of 22,000 units, a company anticipates total variable costs of $99,000, fixed costs of $30,000, and operating income of $36,000. Based on this information, the budgeted amount of operating income for 20,000 units would be:
Answer:
$142,000
Explanation:
Sales of 22,000 units
Total variable costs is $99,000
The fixed cost is 30,000
Operating income $36,000
Therefore budgeted amount for 20,000 units can be calculated as follows
= 99,000+30,000+36,000
= 156,000
The selling percentage is
=156,000/22,000
= 7.1
7.1× 20,000
= 142,000
Hence the bugected anou t for 30,000 units $142,000
Wildhorse Corporation has fixed costs of $301,500. It has a unit selling price of $9.15, unit variable cost of $7.65, and a target net income of $1,545,000. Compute the required sales in units to achieve its target net income.
Answer:
the required sales in units to attain the target net income is 1,231,000 units
Explanation:
The computation of the required sales in units to attain the target net income is given below:
= (Fixed cost + target net income) ÷ (contribution margin per unit)
= ($301,500 + $1,545,000) ÷ ($9.15 - $7.65)
= 1,231,000 units
Hence, the required sales in units to attain the target net income is 1,231,000 units
Joss is a marketing consultant. Iris and Daphne are potential customers interested in commissioning Joss to undertake a market survey and compile the findings in a report. Iris is willing to pay $500 for the service while Daphne is willing to pay $800. Suppose that the opportunity cost of Joss's time is $1,200. Assume that Iris and Daphne do not know each other. Which of the following statements is true?
a. only Iris will purchase Joss's services and Joss will undertake the job for her.
b. only Daphne will purchase Joss's services and Joss will undertake the job for her.
c. both Iris and Daphne will purchase Joss's services and Joss will undertake the job.
d. both Iris and Daphne will want to purchase Joss's services but Joss will not be willing to undertake the job.
Answer: d. both Iris and Daphne will want to purchase Joss's services but Joss will not be willing to undertake the job.
Explanation:
Iris will want Joss's services but they will be unable to afford them as Iris is only willing to pay $500 whereas Joss wants $1,200 for the job.
The same goes for Daphne who is only willing to pay $800.
Both of them will therefore want to hire Joss but will be unable to.
Joss could however charge both of them their willingness to pay and then sum the cash up and give them both the research whilst still making a profit.
Under IFRS, when a lessee recognizes a balance sheet asset and liability for a new lease: the asset and liability are equal. the asset is typically greater than the liability. the liability is typically greater than the asset.
Answer:
the asset and liability are equal.
Explanation:
IFRS 16 lease and IAS 17 deals in important changes where the lease transactions are reported in the lessee financial statement
In this the assets and liabilities that are occured from the lease should be initially determined on the present value basis
Also the assets and liability are equivalent to each other
Therefore the first option is correct
The Banking Act of 1933 accomplished the following: A. Prohibited commercial banks from underwriting or trading (for their own account) stocks, bonds, or other risky securities. The major exceptions were U.S. government securities, general obligation bonds of state and local governments, and bank securities such as CDs. B. Limited the debt securities that commercial banks could purchase for their own account to those approved by bank regulatory authorities. C. Prohibited individuals and firms engaged in investment banking from simultaneously engaging in commercial banking. D. all of the above. E. A and B only.
Answer:
C,)Prohibited individuals and firms engaged in investment banking from simultaneously engaging in commercial banking.
Explanation:
The Banking Act of 1933 can be regarded as an act that set up Federal Deposit Insurance Corporation and brings about some banking reforms.
United States Congress was responsible for enaction of this statue
The passage of this bill took place
during the Great Depression which is set up to bring stability and restoration in banking system of U.S. It should be noted that Banking Act of 1933 accomplished prohibited individuals and firms engaged in investment banking from simultaneously engaging in commercial banking.
To meet projected annual sales, Bluegill Manufacturers, Inc. needs to produce 75,000 machines for the year. The estimated January 1 inventory is 7,000 units, and the desired December 31 inventory is 12,000 units. What are projected sales units for the year? fill in the blank 1 units
Answer: 70,000 units
Explanation:
You can use the formula for the ending inventory to get this:
Ending inventory = Opening inventory + Production for the year - Projected sales
12,000 = 7,000 + 75,000 - Projected sales
12,000 + Projected sales = 82,000
Projected sales = 82,000 - 12,000
Projected sales = 70,000 units
Forner, Inc., manufactures and sells two products: Product Z1 and Product Z8. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
Estimated Expected Activity
Activity Cost Pools Activity Measures Overhead Cost Product Z1 Product Z8 Total
Labor-related DLHs $ 112,190 600 2,000 2,600
Machine setups setups 40,440 500 700 1,200
Order size MHs 609,770 3,000 3,200 6,200
$ 762,400
The activity rate for the Machine Setups activity cost pool under activity-based costing is closest to:_______.
a. $203.26 per setup
b. $190.55 per setup
c. $122.97 per setup
d. $33.70 per setup
Answer:
Machine setups= $33.7 per setup
Explanation:
Giving the following information:
Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product Z1 Product Z8 Total
Machine setups setups 40,440 500 700 1,200
To calculate the activity rate, we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Machine setups= 40,440 / 1,200
Machine setups= $33.7 per setup
Bonita Industries has several outdated computers that cost a total of $18400 and could be sold as scrap for $6400. They could be updated for an additional $3100 and sold. If Bonita updates the computers and sells them, net income will increase by $9000. At what price were the updated versions sold?
a. 13,400
b. 6600
c. 6800
d. 8000
Answer:
the updated version should be sold at $18,500
Explanation:
The computation of the selling price is given below:
= Sale value of scrap + additional amount sold + increase of net income
= $6,400 + $3,100 + $9,000
= $18,500
Hence, the updated version should be sold at $18,500
This is the answer but the same is not provided in the given options
Two investment centers at Marshman Corporation have the following current-year income and asset data:
Investment Center A Investment Center B
Investment center income$525,000 $635,000
Investment center average invested assets$4,600,000 $3,050,000
The return on investment (ROI) for Investment Center A is:________.
Answer: 11.41%
Explanation:
Return on assets refers to the amount of income earned per capital invested. It is calculated by the formula:
= Net income / Average assets invested
ROI for Center A will therefore be:
= 525,000 / 4,600,000
= 0.1141
= 11.41%
MC Qu. 101 The following information... The following information describes a company's usage of direct labor in a recent period. The direct labor rate variance is: Actual hours used 46,000 Actual rate per hour $ 16 Standard rate per hour $ 15 Standard hours for units produced 48,000
Answer:
$46,000 Unfavorable
Explanation:
Calculation to determine what The direct labor rate variance is:
Using this formula
Direct labor rate variance = Actual hours * ( Actual Rate - Standard Rate)
Let plug in the formula
Direct labor rate variance=46000*($16- $15)
Direct labor rate variance=46,000*$1
Direct labor rate variance=$46,000 Unfavorable
Therefore The direct labor rate variance is: $46,000 Unfavorable
Peterson Photoshop sold $2,700 in gift cards on a special promotion on October 15, 2021, and sold $4,050 in gift cards on another special promotion on November 15, 2021. Of the cards sold in October, $270 were redeemed in October, $675 in November, in November, and $330 in December. Of the cards sold in November, $165 were redeemed in November and $385 were redeemed in December. Peterson views the probability of redemption of a gift card as remote if the card has not been redeemed within two months.
At 12/31/2016, Peterson would show a deferred revenue account for the gift cards with a balance of: ____________
a. $1,650.
b. $0.
c. $1,100.
d. $1,485.
Answer:
1650 I think ... I think so maybe
