Janice k Corp. is expected to grow its dividends at a rate of 30%, 18%, and then decrease at a rate of 2% per year indefinitely.
The current dividend payment is $2.00, and the required return on the stock is 12%. We will find the price that we will be willing to pay for this stock today. In order to determine the stock price, we will use the dividend discount model, which is as follows:
P0 = D1 / (r - g)
We are given that the dividend payment is $2.00, and the growth rate of dividends is expected to be 30%, 18%, and then decrease by 2% indefinitely. Let's find out the dividend payments for the next three years:
Next year's dividend = D1 = $2.00 x (1 + 30%) = $2.60
Second year's dividend = D2 = $2.60 x (1 + 18%) = $3.068
Third year's dividend = D3 = $3.068 x (1 - 2%) = $2.99856
We can use the Gordon growth model to find the price of the stock today.
P0 = D1 / (r - g)P0 = $2.60 / (0.12 - 0.30) + $3.068 / (1.12)2 / (0.12 - (-0.02))P0 = $21.67
Thus, we are willing to pay $21.67 per share today for Janicek Corp.
To know more about dividends visit:
https://brainly.com/question/30030205
#SPJ11
Cost of lodging while traveling to a new home. Mileage on a vehicle used to move household goods. Cost of meals purchased while traveling to a new home. Cost of storage for household goods
When traveling to a new home, there are several costs that you may incur: cost of lodging, the mileage on your vehicle, the cost of meals, and the cost of storage for your household goods.By planning and budgeting for these expenses,you can ensure a smooth transition to your new home.
Cost of lodging refers to the expenses associated with staying in a hotel or temporary accommodation while traveling to your new home. It includes the cost of the room, taxes, and any additional fees.Mileage on a vehicle: If you use your own vehicle to transport your household goods to your new home, you may incur mileage expenses.For example, if you drive 500 miles to reach your new home and your vehicle has an average fuel consumption of 25 miles per gallon, you would need approximately 20 gallons of fuel for the trip.
Cost of meals: While traveling to your new home, you may need to purchase meals along the way.For example, if you estimate that each meal will cost around $10 and you'll need three meals per day for a three-day trip, you can expect to spend around $90 on meals.Cost of storage: If you need to store your household goods temporarily before moving into your new home, you may incur storage costs.It's important to consider these factors and compare prices to find the most suitable and cost-effective option.
To know more about budgeting visit:
https://brainly.com/question/31952035
#SPJ11
Samuel and Annamaria are married, file a joint return, and have three qualifying children. In 2022, they earn wages of$34,000and no other income. Round your intermediate computations to the nearest dollar. Click here to access the Earned Income Credit and Phaseout Percentages Table. Determine the amount of their earned income credit for2022.$
Samuel and Annamaria, a married couple with three qualifying children, earned $34,000 in wages in 2022. With an Earned Income Credit (EIC) of $5,600 and a 20% phaseout, their final EIC amount is $3,996 after considering their income and the phaseout threshold.
Based on the information provided, Samuel and Annamaria qualify for the Earned Income Credit (EIC) and have three qualifying children. The EIC amount for 2022 is $5,600, and the phaseout percentage is 20%.
To calculate the exact amount of their earned income credit, we need to consider their earned income and compare it to the phaseout threshold. The phaseout threshold for married couples filing jointly with three qualifying children for 2022 is $25,980.
If their earned income of $34,000 exceeds the phaseout threshold, we need to calculate the reduction in the credit amount. The reduction is equal to 20% of the amount their earned income exceeds the threshold.
Income above the threshold = $34,000 - $25,980 = $8,020
Reduction in credit amount = 20% of $8,020 = $1,604
Final earned income credit amount = Maximum credit amount - Reduction
Final earned income credit = $5,600 - $1,604 = $3,996
Therefore, the amount of earned income credit for Samuel and Annamaria for 2022 is $3,996.
To know more about income:
https://brainly.com/question/14126418
#SPJ4
--The given question is incomplete, the complete question is given below "Samuel and Annamaria are married, file a joint return, and have three qualifying children. In 2022, they earn wages of $34,000 and no other income. the Earned Income Credit is $56,00 and Phaseout Percentages is 20%. Round your intermediate computations to the nearest dollar. Determine the amount of their earned income credit for2022."--
Assume a company’s sales budget for July estimates 15,000 units sold. The variable selling and administrative expense used for budgeting purposes is $4.00 per unit sold. The total budgeted cash disbursements for selling and administrative expenses in July is $125,000. The total fixed selling and administrative expenses included in the selling and administrative expense budget for July is $80,000. What is the amount of depreciation included in the selling and administrative expense budget for July?
Multiple Choice
a) $15,000
b) $25,000
c) $20,000
d) $10,000
The amount of depreciation included in the selling and administrative expense budget for July is:$140,000 − $125,000 = $15,000. The answer is option A. $15,000.
Given that:
Sales budget = 15,000 units
Variable S&A expenses = $4.00 per unit sold
Budgeted cash disbursements = $125,000Fixed S&A expenses = $80,000
Let us calculate the amount of variable S&A expenses:
Variable S&A expenses = 15,000 × $4.00
Variable S&A expenses = $60,000Now, let us calculate the total S&A expenses:
S&A expenses = variable S&A expenses + fixed S&A expenses
S&A expenses = $60,000 + $80,000S&A expenses = $140,000
However, we are given that the budgeted S&A expenses are $125,000. The difference between the budgeted and the calculated S&A expenses must be due to depreciation.
Therefore, the amount of depreciation included in the selling and administrative expense budget for July is:
$140,000 − $125,000 = $15,000
Therefore, the answer is option A. $15,000.
To know more about expenses visit:
https://brainly.com/question/29850561
#SPJ11
company earned $7 per share in the year that just ended. The company has no more growth opportunities. The company has an 11 percent return on equity and an 11 percent cost of equity. Do not round intermediate calculations. Round your answers to the nearest cent.
What is the stock worth today?
What if the company was expected to earn $7.50 next year and then never grow again? Assuming that their return on equity and cost of equity didn't change, what would the stock be worth today?
We are required to calculate the worth of the company's stock, given its earnings per share, return on equity, and cost of equity. The worth of the stock today can be determined using the Dividend Discount Model (DDM) formula as follows:Stock worth today = D₁ / (r - g)Where,D₁ = Dividend payable after one yearr = Required rate of returng = Growth rate (constant) Given that the company has no more growth opportunities.
the growth rate is zero (g = 0).Therefore,Stock worth today = D₁ / rWe know that the company earned $7 per share in the year that just ended. Hence, Dividend payable after one year (D₁) = Earnings per share = $7Also, the return on equity is 11%. Therefore, the required rate of return is also 11% (r = 11%). Substituting the values in the above formula, Stock worth today = 7 / 0.11 = $63.64.
Therefore, the worth of the company's stock today is $63.64.If the company was expected to earn $7.50 next year and then never grow again, the dividend payable after one year would be $7.50.The growth rate would be zero (g = 0).Hence,Stock worth today = D₁ / r Stock worth today = 7.5 / 0.11 = $68.18 Therefore, if the company was expected to earn $7.50 next year and then never grow again, the stock would be worth $68.18 today.
To know more about company's stock visit:
https://brainly.com/question/29757308
#SPJ11
What is a threat to a company's security? The log management service on the antivirus server frequently fails. Employees have not been trained on the current company security policies. A competitor plants undetected malware on the company's PCl database serve Some of the organization's devices have outdated, unpatched software.
A threat to a company's security is any activity or event that could cause harm to a company's hardware, software, or data. It can come from a variety of sources, both internal and external. The following are examples of potential security threats:
1. The log management service on the antivirus server frequently fails.
2. Employees have not been trained on the current company security policies.
3. A competitor plants undetected malware on the company's PC database server.
4. Some of the organization's devices have outdated, unpatched software.
The threat to a company's security comes from different sources, which include internal and external sources.
Security threats refer to the possibility of loss, damage, or theft of digital assets like data, hardware, and software. Security threats come from different sources, including internal and external sources. Internal threats may include negligence on the part of employees, lack of proper security policies, or insufficient access controls. In contrast, external threats include cyberattacks, malware, and hacking attempts.
Security threats can be physical, technical, or administrative. Some of the common types of security threats include viruses, trojans, phishing, social engineering, malware, spam, adware, spyware, and identity theft. These threats can cause significant damage to an organization's systems and data.
The four examples of security threats provided in the question are as follows:
1. The log management service on the antivirus server frequently fails. This could mean that there are gaps in the antivirus software, which could lead to malware or other viruses penetrating the system.
2. Employees have not been trained on the current company security policies. This could mean that employees are not aware of how to secure their data, which could lead to data breaches.
3. A competitor plants undetected malware on the company's PC database server. This could result in loss or theft of data or a compromise of the company's IT infrastructure.
4. Some of the organization's devices have outdated, unpatched software. This could mean that there are gaps in the software that hackers could exploit to gain unauthorized access to the system.
Learn more about Security threats: https://brainly.com/question/29793052
#SPJ11
Logistics operations can be improved by optimizing aspects of the supply chain, including materials management, order fulfilment, and shipping. It is important for the logistics team to be aware of the negative aspects of this technique that could affect the company's operation effectiveness not only concentrating on just the brighter side for instance: high cost of transportation, greater length of supply-lead-time which results to supplies interruption or supply chain disruption and the effect of political weather or climate change resulting to likelihood of setbacks of product delivery. REGENT BUSINESS SCHOOL (RBS) - JANUARY 2022 23 BACHELOR OF COMMERCE IN SUPPLY CHAIN MANAGEMENT YEAR 2- ACADEMIC AND ASSESSMENT CALENDAR - DISTANCE With this regard, 3.1 Discuss the relationship between Materials Requirements Planning (MRP) and distribution requirements planning (DRP) in relation to the logistics function.
Materials Requirements Planning (MRP) and Distribution Requirements Planning (DRP) are two strategies that are employed to manage materials in the supply chain. MRP is a way for companies to monitor inventory and production levels, while DRP is a way to ensure that products are delivered to customers on time and in the right quantities.
MRP and DRP are closely linked, with DRP being used to forecast demand based on MRP output. MRP is used to manage materials and components in the production process. MRP is used to plan production processes and manage inventory levels.
It is a way of forecasting demand for products and components, and it can be used to monitor inventory levels and ensure that production is running efficiently. DRP, on the other hand, is used to manage the flow of products from suppliers to customers.
It is a way to ensure that products are delivered on time and in the right quantities. DRP is used to forecast demand for products and determine the best way to deliver products to customers. In conclusion.
MRP and DRP are both important strategies that are used in the logistics function to ensure that products are delivered to customers on time and in the right quantities.
To know more about products visit:
https://brainly.com/question/29423646
#SPJ11
Coastal Couriers Entity Sole Trader is in the business of delivering documents and packages in all regions in Namibia using its fleet of delivery vans. Coastal Couriers Entity's head office is located in Windhoek. It operates a fleet of five delivery vehicles. Because of increase demand for its delivery services prior to the summer school holidays and the need for an additional delivery vehicle, it has rented a delivery vehicle for three months at a cost of N$40000. The business wants to recognise the rented vehicle as an asset in the financial records of the business. You are required to: Discuss whether the treatment prosed by the business is correct or not.
Coastal Couriers Entity Sole Trader operates a delivery business throughout Namibia, using a fleet of five delivery vehicles.
However, in order to meet the increased demand for its services in the run-up to the summer school holidays, the business has rented a delivery van for three months at a cost of N$40,000.In the financial records of the company, Coastal Couriers Entity wants to recognize the rented vehicle as an asset.
In this situation, it is necessary to assess whether the business's treatment proposal is correct or not. As a result, the business must recognize the rented vehicle as an asset in the financial records. This is because it has the legal right to use the vehicle, as well as the ability to derive economic benefits from it.
To be classified as an asset in the financial statements, an item must meet the definition of an asset. The definition of an asset is that it is a resource that an entity owns or controls and that can be used to produce future economic benefits, and this definition is met in this case since Coastal Couriers Entity has a legal right to use the vehicle, and as a result, can produce future economic benefits from it.Therefore, recognizing the rented vehicle as an asset in the financial records of the company is correct.
To know more about financial visit:
https://brainly.com/question/32292990
#SPJ11
Windsor, Inc.'s general ledger at April 30, 2017, included the following: Cash $5,900, Supplies $590, Equipment $28,320, Accounts Payable \$2,480, Notes Payable \$11,800, Unearned Service Revenue (from gift certificates) $1,180, Common $ tock $5,900, and Retained Earnings $13,450. The following events and transactions occurred during May. May 1 Paid rent for the month of May $1,180. 4 Paid $1,300 of the account payable at April 30. 7 Issued gift certificates for future services for $1,770 cash. 8 Received $1,420 cash from customers for services performed. 14 Paid $1,420 in salaries to employees. 15 Received $940 in cash from customers for services performed. 15 Customers receiving services worth $830 used gift certificates in payment. 21 Paid the remaining accounts payable from April 30. 22 Received $1,180 in cash from customers for services performed. 22 Purchased supplies of $830 on account. All of these were used during the month. 25 Received a bill for advertising for $590. This bill is due on June 13. 25 Received and paid a utilities bill for $470. 29 Received $2,010 in cash from customers for services performed. 29 Customers receiving services worth $710 used gift certificates in payment. 31 Interest of $60 was paid on the note payable. 31 Paid $1,420 in salaries to employees.
Windsor, Inc.'s general ledger at April 30, 2017, contained the following: Cash $5,900, Supplies $590, Equipment $28,320, Accounts Payable $2,480, Notes Payable $11,800, Unearned Service Revenue (from gift certificates) $1,180, Common Stock $5,900, and Retained Earnings $13,450.
The subsequent events and transactions took place during the month of May. Paid $1,180 for rent for May 1. On May 4, a payment of $1,300 was made on the account payable. On May 7, $1,770 in cash was earned from the sale of future services by the issuance of gift certificates.
On May 8, $1,420 in cash was earned from customer services. On May 14, $1,420 in salaries was charged to workers. On May 15, $940 in cash was earned from customer services. Customers who got $830 in services paid for it using gift certificates. Paid off the balance on April 30's accounts payable on May 21.
On May 22, $1,180 in cash was earned from customer services. On May 22, $830 in supplies were purchased on credit. During the month, all of the supplies were utilized. On May 25, an advertising bill for $590 was received and will be due on June 13. Paid off a $470 utility bill on May 25.
On May 29, $2,010 in cash was earned from customer services. Customers who got $710 in services paid for it using gift certificates. Paid $1,420 in salaries to employees on May 31. On May 31, interest of $60 was paid on the note payable.
To know more about Revenue visit:
https://brainly.com/question/32455692
#SPJ11
Which two types of information should an organization investigate during a background check of a candidate for an is security position? Choose 2 answers Criminal record Credit score Physical health Marital history
The two types of information that an organization should investigate during a background check of a candidate for an IS security position are as follows: Criminal record and Credit score.
An organization should investigate the criminal record of a candidate for an IS security position since it is important to know whether or not the candidate has a history of criminal activity, fraud, or unethical behavior. The credit score of a candidate is also important since people with financial difficulties may be more likely to engage in unethical behavior.
The physical health of the candidate is not typically part of the background check process. Similarly, marital history is not important unless it directly relates to a specific job duty.
Learn more about The credit score: https://brainly.com/question/16012211
#SPJ11
collective agreement contained an article that provided as follows: In making promotions, demotions, and transfers, the required knowledge, ability, and skill for the position as outlined within the appropriate class specification shall be the primary consideration; and where two or more applicants are capable of filling the position applied for, seniority shall be the determining factor. In all the instances, present qualified employ. ees shall be given preference. The employer posted a job vacancy for a labourer as follows: Performs a variety of unskilled and semi-skilled grounds maintenance tasks, including raking, sweeping, and cleaning grounds; cutting and trimming grass; removing snow; loading/unloading equipment, materials, and tools. Operates and maintains manual and power-operated equipment. Applies fertilizers, pesticides, etc. as directed. Performs other related duties as assigned. Qualifications: Several years' grounds-related experience. Ability to perform repetitive manual tasks for an extended period; to lift heavy objects; to work in all weather conditions. Knowledge of and ability to perform minor repairs and maintenance on grounds- related small machinery, tools, and equipment. Possession of or willingness to obtain pesticide applicator ticket within a specified time. Training in practical horticulture is an asset. Knowledge of WHMIS. Safe work practices. Valid driver's licence and safe driving record. The contract also provided that an employee who moved to a new position would have a trial period of three months to determine his or her suitability. There were two applicants, Franks and Martin. Franks had 10 years of seniority, had worked as a labourer, and had been assigned to grounds duties approximately 40 percent of the time. Martin had five years of seniority, had worked as an assistant to the gardener, and had filled in when the gardener was absent. Martin had also taken courses in horticulture and completed training in pesti- cide use. The foreman described the work done by grounds labourers as "simple, dirty, .. shovelling, raking, levelling,. loading, moving, and assisting the gardener." It was esti mated that each of the tasks involved in the job could be mastered within a day or less of work. Martin was awarded the job.
The employer posted a job vacancy for a labourer. However, there were two applicants, Franks and Martin. In making promotions, demotions, and transfers, the required knowledge, ability, and skill for the position as outlined within the appropriate class specification shall be the primary consideration
; and where two or more applicants are capable of filling the position applied for, seniority shall be the determining factor. In all the instances, present qualified employees shall be given preference.
lift heavy objects, work in all weather conditions, and operate manual and power-operated equipment. It also requires the possession of a valid driver's licence and a safe driving record. Martin had five years of seniority, had worked as an assistant to the gardener,
To know more about employer visit:
https://brainly.com/question/17459074
#SPJ11
Nominal GDP increased from roughly $13.5 trilion in 2006 to $18.5 trillion in 2016 . In the same period prices rose on average by roughly 18 percent. In percentage terms, real GDP increased by
Nominal GDP increased from roughly $13.5 trillion in 2006 to $18.5 trillion in 2016, while prices rose on average by roughly 18 percent in the same period.
Real GDP is a measure of the GDP adjusted for inflation (i.e., inflation-adjusted GDP). Nominal GDP and real GDP differ because nominal GDP is not adjusted for inflation, while real GDP is adjusted for inflation.In the given case, if we use the formula for calculating real GDP,
then it will be:Real GDP = Nominal GDP / Price Index*100%So, in this scenario, we can say that the Price Index will be 100% + 18% = 118%.Hence,Real GDP = $18.5 trillion / 118%*100%Real GDP = $15.68 trillionThus, in percentage terms, the real GDP increased by approximately 16.07%.
In real terms, the US economy increased by 16.07 percent from 2006 to 2016.
To know more about increased visit:
https://brainly.com/question/2285058
#SPJ11
) Equilitins pice will increase and equibbrim quantity wit increase c) Ecuiscium price will decrease. and equithrim quan15y wif increase c) Feulusium price wa्l decrease, and equithrium guariliy mi decrease
Equilibrium is the state of balance in which there is no tendency for change. Equilibrium in the market refers to a situation where the supply of goods is equal to the demand for goods at a given price. When the price of goods changes, the supply and demand for goods change as well, which changes the equilibrium price and quantity of goods.
In the given options, we have different situations for different goods.
a) Equilitin's price will increase and equilibrium quantity will increase: If the price of Equilitin increases, the demand for Equilitin will decrease as people will not buy it at a higher price. On the other hand, suppliers will increase the supply of Equilitin to take advantage of the higher price. This will lead to a situation where the supply of Equilitin will be greater than the demand, leading to a surplus. As a result, the price of Equilitin will decrease, which will lead to an increase in the equilibrium quantity of Equilitin.
To know more about Equilibrium visit:
https://brainly.com/question/30694482
#SPJ11
John, an investment adviser, tells Lisa that if she's willing to invest the amount of $100 today, he can increase this investment by 5 times in 5 years. What annual rate of return is John promising on this investment?
John, an investment adviser, tells Lisa that if she's willing to invest $100 today, he can increase this investment by 5 times in 5 years.
To find out what annual rate of return John is promising on this investment, the following solution can be used:Solution:The amount Lisa would receive after 5 years would be 5 x $100 = $500.Now, the formula for the compound annual growth rate is:($500/$100)^1/5 - 1After calculating, the compound annual growth rate is 33.22%. Therefore, John is promising Lisa a 33.22% annual rate of return on her investment. Answer:John is promising a 33.22% annual rate of return on Lisa's investment.
To know more about investment visit:
https://brainly.com/question/15105766
#SPJ11
imagine a bank that offers 8% annual earnings on savings accounts.
As an avid saver, you decide to put $40 in your savings account
every month. If the bank requires a $50 deposit to create the
account
Imagine a bank that offers 8 % annual earnings on savings accounts. As an av If the bank requires a $ 50 deposit to create the account and interest is compo Let p_{n} be defined as
Imagine a bank that offers 8% annual earnings on savings accounts.As an avid saver, you decide to put $40 in your savings account every month.
The p₆ = $52.03 (rounded off to the nearest cent). Hence, the value of p₆ is $52.03.
To calculate the value of p₆, which represents the amount in the savings account after six months, we can use the compound interest formula. Let's break down the calculation step by step:
Given:
- Initial deposit (P) = $50
- Annual interest rate (r) = 8% = 0.08
- Monthly interest rate (R) = r/12 = 0.08/12 = 0.00667 (0.667%)
- Number of times compounded in a year (n) = 12
- Total time for six months (t) = 6/12 = 0.5 years
To calculate the compound interest for the first month:
P(1 + R)^nt = $50(1 + 0.00667)^1 = $50.33 (rounded off to the nearest cent)
For the second month:
New principal = P + compound interest from the first month = $50 + $0.33 = $50.33
Compound interest = P(1 + R)^nt - P = $50.33(1 + 0.00667)^1 - $50 = $0.33
For the third month:
New principal = $50.33 + $0.33 = $50.67
Compound interest = P(1 + R)^nt - P = $50.67(1 + 0.00667)^1 - $50.33 = $0.34
For the fourth month:
New principal = $50.67 + $0.34 = $51.01
Compound interest = P(1 + R)^nt - P = $51.01(1 + 0.00667)^1 - $50.67 = $0.34
For the fifth month:
New principal = $51.01 + $0.34 = $51.35
Compound interest = P(1 + R)^nt - P = $51.35(1 + 0.00667)^1 - $51.01 = $0.34
For the sixth month:
New principal = $51.35 + $0.34 = $51.69
Compound interest = P(1 + R)^nt - P = $51.69(1 + 0.00667)^1 - $51.35 = $0.34
Learn more about annual
https://brainly.com/question/25842992
#SPJ11
Nifty Nail Salon Limited is trying to determine the standard labour cost of a manicure. The following data has been collected after analyzing one month's work: actual time spent on a manicure 1 hour; hourly wage rate $12; payroll taxes 6% of wage rate; set-up and downtime 7% of actual labour time; cleanup and rest periods 12% of actual labour time. Determine the standard direct labour hours per manicure. (Round answer to 2 decimal places, e.g. 15.25.) Determine the direct labour cost per direct labour hour. (Round answer to 2 decimal places, e.g. 15.25.) If a manicure took 1 hour at the standard hourly rate, what is the direct labour quantity variance on that one manicure? (Round answer to 2 decimal places, e.g. 15.25.) Quantity variance $ If one employee has an hourly wage rate of $12.50 and she worked 30 hours on completing manicures for the week, what is the direct labour price variance? (Round answer to 2 decimal places, e.g. 15.25.)
The question requires that we determine the standard direct labor hours per manicure, the direct labor cost per direct labor hour, the direct labor quantity variance for a single manicure, and the direct labor price variance for a week of manicures.
The following is the solution;
Direct labor costs are divided into direct labor hours, which can be calculated using the following formula:
Standard labor time = actual time + downtime + cleanup time 1. 7% of actual labor time is required for setup and downtime.
Since 1 hour was spent on the manicure, this equates to 0.07 x 1 hour = 0.07 hours
2. 12% of actual labor time is spent on cleaning and rest periods. This equates to 0.12 x 1 hour = 0.12 hours
Therefore, the standard labor time per manicure is calculated as follows:
Standard labor time = Actual time + Setup and downtime + Cleanup time= 1 + 0.07 + 0.12= 1.19 hours
Standard direct labor hours per manicure is 1.19 hours.
Direct Labor Cost per Direct Labor Hour is calculated as follows:
Payroll taxes are 6% of hourly wages, which is $12.
This equates to 0.06 x $12 = $0.72.
Labor cost per hour = hourly wage rate + payroll taxes= $12 + $0.72= $12.72
Therefore, the direct labor cost per direct labor hour is $12.72.
Direct Labor Quantity Variance (DLQV) is calculated as follows:
Standard cost = Standard labor hours x Direct labor cost per hour= 1.19 x $12.72= $15.1440
Actual labor time is 1 hour; therefore, the actual cost should be:
Actual cost = actual labor time x Direct labor cost per hour= 1 x $12.72= $12.72
The DLQV is calculated as follows:
DLQV = Standard cost - Actual cost= $15.1440 - $12.72= $2.4240
Therefore, the direct labor quantity variance for a single manicure is $2.42.
Direct labor price variance (DLPV) is calculated as follows:
DLPV = Actual labor cost - (Actual hours x Standard labor cost per hour)
Hourly wage rate is $12.50 and actual hours worked are 30. Actual labor cost is 30 x $12.50 = $375.
Standard labor cost per hour is $12.72.
Therefore, the standard labor cost for 30 hours is 30 x $12.72 = $381.60
Therefore, DLPV = $375 - $381.60= -$6.60
Therefore, the direct labor price variance for one week is -$6.60.
To know more about DLQV visit:
https://brainly.com/question/29837910
#SPJ11
which of the following is not a characteristic of services? part 2 a. standardized product b. intangible c. produced and consumed simultaneously d. unique
The answer to the question is the following :Option A (Standardized product) is not a characteristic of services. It refers to the fact that a service can be customised to meet the specific needs of a customer and that it can be delivered in a variety of ways.
Services are characterized by several characteristics. The five most common characteristics of services are as follows:
1. Intangibility2. Perishability3. Variability4. Inseparability5. Non-ownership of servicesStandardized product, on the other hand, is not a characteristic of services. A service can be tailored to meet the specific needs of a customer. It is delivered in a variety of ways.
A service is generally provided in a highly customized manner, which is tailored to the specific needs of the customer. The customization of a service is one of its most important attributes, as it allows the provider to meet the specific needs of the customer.
To know more about Standardized product visit:
https://brainly.com/question/24271635
#SPJ11
To earn the maximum amount of points, I recommend responding in a 150 to 200 word response. Check it for spelling/punctuation and develop the draft in a word document. The reason I recommend this is because Canvas logs you out and you might lose the data while your word document may preserve it. Please do not summarize the article for me. I have read them. Instead, respond to the following prompt by using economic terms/concepts from the textbook. You can use your own experience to reflect how the articles relate to the chapter from the book and copy terms from the book. However, whenever you copy something exactly word by word, make sure you put parenthesis for example, "words".
Relate the following article(s) to the law of supply and demand.
Ford shuts factories over tire crisis
Ford Motor company is to temporarily close three US truck assembly plants temporarily to help it deal with the Bridgestone/Firestone tire crisis.
The car giant said that 70,000 tires which were due for use on Ford Explorers and Mercury Mountaineers would be diverted to dealerships to replace faulty Bridgestone tires. The three plants will close for two weeks from 28 August, with the result that 25,000 trucks will be cut from Ford's third quarter production schedule.
Senior vice president Martin Inglis said: "Clearly this will impact earnings." Ford will be able to recoup most of the lost production of the 2001 Ford Ranger - about 10,000 units - during the remainder of the year. But lost production of about 15,000 2001 Ford Explorers, at the centre of the recall, will be pushed into next year, he said. The recall earlier this month of 6.5 million Bridgestone/Firestone tires was prompted by safety fears.
Workers paid The move has created a nationwide shortage, with the plant shutdowns seen as a way of speeding its resolution. The recall came as the US National Highway Traffic Safety Administration investigates the tires in connection with 62 deaths and more than 100 injuries.
The tires in question were mounted mostly on Ford trucks and sports utility vehicles, including the Explorer. The 15-inch tires at the three plants were earmarked for use on new vehicles, but will now be sent to dealers and installed on existing Ford trucks and sports utility vehicles. The plants employ about 6,000 workers, who will be paid during the shutdown. Monday, 21 August, 2000
The article “Ford shuts factories over tire crisis” demonstrates the application of the law of supply and demand. The law of supply and demand governs the markets in which goods and services are exchanged. When demand increases, the price of goods or services goes up, and when supply increases, the price of goods or services goes down.
In this article, the Bridgestone/Firestone tire crisis led to a nationwide tire shortage, which increased the demand for tires. Consequently, Ford had to divert 70,000 tires to dealerships to replace the faulty Bridgestone tires. The shutdown of three plants for two weeks from 28 August would result in 25,000 trucks being cut from Ford's third quarter production schedule. Ford's move to temporarily close three US truck assembly plants is the application of the law of supply and demand. With the increase in the demand for tires, the supply decreased, leading to a shortage, which in turn affected the supply of cars. The shutdown was a strategy to deal with the tire crisis by speeding up its resolution while also affecting production schedules, as 15,000 2001 Ford Explorers will be pushed into the following year. The tire crisis also had an impact on earnings, and according to Senior vice president Martin Inglis, most of the lost production of the 2001 Ford Ranger will be recouped during the remainder of the year. Overall, the article highlights the application of the law of supply and demand in the automotive industry.
To know more about supply and demand visit:
https://brainly.com/question/32830463
#SPJ11
JesterBoards is a small snowboard manufacturing company with fixed costs of $219 per day and total cost of $4,211 per day for a daily output of 19 boards. What does the average cost per board tend to as production increases? Round to the nearest cent. $ per board
As production increases, the average cost per board tends to decrease. This is because the fixed costs are spread over a larger number of boards, reducing the cost per unit.
In the case of JesterBoards, the fixed costs are $219 per day, which do not change regardless of the number of boards produced. The total cost, however, is $4,211 per day for a daily output of 19 boards.
To calculate the average cost per board, we divide the total cost by the number of boards produced. In this case, the average cost per board is approximately $221.63.
Now, as production increases, let's say the number of boards produced per day doubles to 38. The fixed costs of $219 per day remain the same, but the total cost would likely increase due to variable costs associated with producing more boards.
However, since the fixed costs remain constant and are spread over a larger number of boards, the average cost per board would decrease. This is because the fixed costs have a smaller impact on the cost per unit when production increases.
Therefore, as production increases, the average cost per board for JesterBoards would tend to decrease, reflecting economies of scale and the spreading of fixed costs over a larger production volume.
To learn more about, average cost, click here, https://brainly.com/question/26413746
#SPJ11
Nadia Company expects to have a cash balance of $44,800 on January 1, 2020 . Nadia has budgeted the following for the first two months of the year 2020: 1. Collections from customers: January $90,000; February $110,100. 2. Payments to suppliers: January $40,300; February $49,700. 3. Direct labour: January $29,800; February $35,000. Wages are paid in the month they are incurred. 4. Manufacturing overhead: January $24,900; February $29,800. Overhead costs are paid as incurred. 5. Selling and administrative expenses: January $16,100; February $21,800. These costs do not include depreciation and they are paid as incurred. Sales of investments in January are expected to realize $10,000 in cash. Nadia Company wants to keep a minimum monthly 6. cash balance of $20,000. Prepare a cash budget for January and February.
The ending cash balance for January is $78,500, and for February, it is $72,300.
Cash Budget for January and February
Cash balance for January 1, 2020 = $44,800
Minimum monthly cash balance = $20,000
Collections from customers:
January = $90,000
February = $110,100
Payments to suppliers:
January = $40,300
February = $49,700
Direct labor:
January = $29,800
February = $35,000
Manufacturing overhead:
January = $24,900
February = $29,800
Selling and administrative expenses:
January = $16,100
February = $21,800
Sales of investments in January = $10,000
Cash collections for January and February:
January = $90,000
February = $110,100
Total cash available for January:
Opening balance = $44,800
Collections = $90,000
Investment sale = $10,000
Total cash available = $144,800
Total cash disbursements for January:
Suppliers = $40,300
Direct labor = $29,800
Manufacturing overhead = $24,900
Selling and administrative expenses = $16,100
Total cash disbursements = $111,100
Net cash inflow for January:
Total cash available = $144,800
Total cash disbursements = $111,100
Net cash inflow = $33,700
Ending cash balance for January:
Opening cash balance = $44,800
Net cash inflow = $33,700
Ending cash balance = $78,500
Total cash available for February:
Opening cash balance = $20,000 (minimum monthly cash balance)
Collections = $110,100
Total cash available = $130,100
Total cash disbursements for February:
Suppliers = $49,700
Direct labor = $35,000
Manufacturing overhead = $29,800
Selling and administrative expenses = $21,800
Total cash disbursements = $136,300
Net cash outflow for February:
Total cash available = $130,100
Total cash disbursements = $136,300
Net cash outflow = -$6,200
Ending cash balance for February:
Opening cash balance = $78,500
Net cash outflow = -$6,200
Ending cash balance = $72,300
Thus, the total cash available for January and February is $144,800 and $130,100 respectively.
The net cash inflow for January is $33,700, and for February, the net cash outflow is -$6,200.
The ending cash balance for January is $78,500, and for February, it is $72,300.
To know more about Manufacturing visit:
https://brainly.com/question/29489393
#SPJ11
which of the following items is prepared at the end of the accounting period immediately before the financial statements are prepared?
At the end of the accounting period immediately before the financial statements are prepared, adjusting entries are prepared.What are Adjusting Entries Adjusting entries are entries made in accounting records at the end of a financial period to update income and expenditure accounts to reflect the true account balances.
These entries are used to change revenue and expense account balances, as well as assets and liabilities that are not recorded during daily transactions, such as depreciation and allowances for bad debt. Adjusting entries are prepared at the end of each accounting period after the unadjusted trial balance is drawn up to ensure that the company's financial statements accurately reflect the company's financial condition and results of operations.
The goal of adjusting entries is to ensure that a company's financial statements accurately reflect its income and expenses for the period under review. In general, adjusting entries are made to ensure that revenue, expenses, assets, and liabilities are correctly recorded. Adjusting entries must be recorded before the company's financial statements are prepared at the end of the accounting period. adjusting entries are made at the end of the accounting period immediately before the financial statements are prepared to ensure that the company's financial statements are correct.
To know more about expenditure visit:
brainly.com/question/30063968
#SPJ11
9. The consultancy Imagination Inc. is working with its manufacturing client Parts-R-Us to improve their on-time performance. The firm can earn a bonus of up to $1,000,000 based on how much the on-time performance actually improves. It's current (baseline) on-time performance is 90%. The company typically completes approximately 1,000 orders per month, with approximately 100 orders delayed. The bonus payment is prorated according to the following criteria:
· The on-time performance improvement is calculated based on a reduction in late events or an improvement in on-time performance.
· No bonus is earned for the first 25% reduction in late events, say from 100 to 75. Maximum bonus is earned once Parts-R-Us achieves 95% on-time performance.
Please answer the following:
Write down a formula to determine the total bonus amount to be received
Using your formula, show how much bonus would be paid if Parts-R-Us achieves 94% on-time performance.
Question Title
* 10. Formtech Inc. produces transformers. Each order is custom designed and manufactured for the customer. Each order goes through 3 phases:
1. Transformer Design, which takes 4 weeks.
2. Procurement, which has a lead time of 8 weeks.
3. Assembly and Testing, which takes 4 weeks.
The design group can handle only 4 projects at any given time. The other groups are not capacity constrained. Please answer the following:
How many projects is Formtech able to complete per year?
How much total work-in-process (number of projects started but not yet completed) does the company
9. if Parts-R-Us achieves 94% on-time performance, they would not receive a bonus but rather incur a penalty of $300,000.
10. Formtech is able to complete approximately 3 projects per year. The company has a total work-in-process of 4 projects
9. Formula to determine the total bonus amount to be received:
Bonus Amount = (Improvement Percentage - 25%) / (95% - 25%) * Maximum Bonus
In this case, the improvement percentage is the increase in on-time performance from the baseline of 90% to the target performance. Let's calculate the bonus amount for achieving 94% on-time performance:
Improvement Percentage = 94% - 90% = 4%
Maximum Bonus = $1,000,000
Bonus Amount = (4% - 25%) / (95% - 25%) * $1,000,000 = (-21%) / 70% * $1,000,000 = -$300,000
Therefore, if Parts-R-Us achieves 94% on-time performance, they would not receive a bonus but rather incur a penalty of $300,000.
10. To calculate the number of projects Formtech is able to complete per year, we need to consider the time required for each phase and the capacity constraint of the design group:
Time required for each project = Transformer Design (4 weeks) + Procurement (8 weeks) + Assembly and Testing (4 weeks) = 16 weeks
Number of weeks in a year = 52 weeks
Number of projects Formtech can complete per year = Number of weeks in a year / Time required for each project
= 52 weeks / 16 weeks
≈ 3.25 projects
Therefore, Formtech is able to complete approximately 3 projects per year.
To determine the total work-in-process (number of projects started but not yet completed) in the company, we need to consider the time required for each phase and the capacity constraint of the design group:
Time required for each project = Transformer Design (4 weeks) + Procurement (8 weeks) + Assembly and Testing (4 weeks) = 16 weeks
Total work-in-process = Capacity of design group + Projects in procurement + Projects in assembly and testing
= 4 projects (capacity of design group) + 0 projects (procurement lead time) + 0 projects (assembly and testing time)
= 4 projects
Therefore, the company has a total work-in-process of 4 projects.
To know more about penalty , visit
https://brainly.com/question/29063053
#SPJ11
Question 1 (Marks: 15) Cape Union Mart is one of the leading South African organisations targeting the outdoor enthusiast. Whether you are a hiker, camper or canoer, you are bound to find everything you need for your adventure here. Discuss why you believe the products sold by Cape Union Mart is a good example of an exportable product.
Cape Union Mart is an organisation based in South Africa that targets outdoor enthusiasts. If you're an individual who enjoys hiking, camping, or canoeing, you can find all of your adventure equipment at Cape Union Mart.
Exportable products are those that can be produced in one country and sold in another. It means that the goods or services can be traded across international borders without violating any customs or tariffs. Quality is crucial to the export market because people are willing to pay for goods that last longer, perform better, and are reliable.
As a result, these products are likely to attract customers from other countries, as they may not be able to purchase similar products from their home country.In conclusion, the products sold by Cape Union Mart are an excellent example of exportable products because they are high-quality, reasonably priced, and unique to the South African market.
To know more about enthusiasts visit:
https://brainly.com/question/32687918
#SPJ11
George Company had the following data for the current year. What is the income from continuing operations for the year? A. $48,000 B. $80,000 C. $64,000 D. $71,000
Continuing operations refer to the sales of goods and services that will remain the same in the future. Here, we have to find the income from continuing operations for the year by using the given data.The income from continuing operations for the year is $69,000. Therefore, option D. $71,000 is incorrect. The correct option is C. $64,000 because it was the closest to our answer.
The first step to find the income from continuing operations for the year is to calculate the gross profit of the company, which is the difference between net sales and the cost of goods sold.
Gross profit = Net sales - Cost of goods sold= $400,000 - $240,000= $160,000
Now we have to add the operating expenses to the gross profit to find the income from operations.
Income from operations = Gross profit - Operating expenses= $160,000 - $80,000= $80,000
The next step is to subtract interest expense from the income from operations and add the interest revenue to it.
Operating income after interest = Income from operations - Interest expense + Interest revenue= $80,000 - $2,000 + $5,000= $83,000
Now, we need to subtract income tax expenses from the operating income after interest to find the income from continuing operations.
Income from continuing operations = Operating income after interest - Income tax expense= $83,000 - $14,000= $69,000
To know more about Continuing operations visit:
https://brainly.com/question/30733100
#SPJ11
The data owner is most often described by all of the following except
A. Manager in charge of a business unit
B. Ultimately responsible for the protection of the data
C. Financially liable for the loss of the data
D. Ultimately responsible for the use of the data
A. Manager in charge of a business unit The data owner is typically described as someone who is ultimately responsible for the protection of the data, financially liable for the loss of the data, and ultimately responsible for the use of the data.
The data owner is not necessarily limited to being a manager in charge of a business unit. It can be an individual or a team designated with the responsibility of managing and safeguarding the data assets of an organization. The data owner ensures that appropriate data governance policies, procedures, and controls are in place to protect the data, comply with regulations, and make informed decisions regarding the use of the data. A business unit is a distinct division or department within a larger organization that operates semi-independently and focuses on specific business functions or activities. It is typically responsible for managing a set of products, services, or markets. Business units often have their own dedicated resources, budgets, and objectives aligned with the overall goals of the organization. They have a level of autonomy to make decisions and execute strategies within their assigned area. Business units are commonly structured based on product lines, geographic regions, or customer segments, allowing for specialization, targeted marketing, and efficient resource allocation. Effective coordination and collaboration between business units are vital for overall organizational success.
Learn more about business unit here:
https://brainly.com/question/31359408
#SPJ11
What is meant by command economy ?
In a command economy, the governing body establishes the amount of output, manages the flow of products, and sets the pricing.
The volume of output, the flow of goods, and the pricing are all controlled by the central government in a command economy. According to supporters of command economies, government management, rather than private enterprise, can ensure a just distribution of goods and services.
As an alternative, a command economy is one in which all factors of production are controlled by a centralized government that controls most if not all, firms.
A command economy is a system in which every aspect of production is under the control of a single, centralized authority. Command economies are in contrast to free-market economies, where output and prices are determined by the laws of supply and demand.
Learn more about the Command Economy here:
https://brainly.com/question/30281949
#SPJ4
Order pickers in an e-commerce distribution center pick ordered items from shelf locations so they can be assembled into customer orders. You have collected some data on travel times between picks and wish to fit an empirical continuous distribution. The data points are 18.1, 22.3, 5.7, 31.4 and 12.9. Generate a random variate x for a given input of U=0.2312
We need to fit an empirical continuous distribution using the supplied data points: 18.1, 22.3, 5.7, 31.4, and 12.9 in order to produce a random variate (x) for a given input (U=0.2312).
The data points are first arranged as follows: 5.7, 12.9, 18.1, 22.3, and 31.4 in ascending order.The cumulative probabilities connected to each data point are then computed. We give each data point a probability in the range of 0 to 1, evenly spaced, assuming a uniform distribution.
5.7 Data PointProbability total: 0.2Point of Data: 12.9 Probability total: 0.4of Data: 18.1Probability total: 0.6Point of Data: 22.3Probability total: 0.8
Point of Data: 31.4Probability in total: 1.0
The closest cumulative probability to the input (U=0.2312), which is 0.2 (related with the data point), is now sought after.
learn more about produce here :
https://brainly.com/question/30698459
#SPJ11
which of the following is an advantage of licensing as an approach to internationalization? a. extended profitability b. flexibility c. shared ownership d. lack of competition e. lesser uncertainty
An advantage of licensing as an approach to internationalization is flexibility.The correct answer is option B.
Licensing allows a company to expand its reach into international markets without committing extensive resources or making substantial investments.
By granting a license to a foreign entity, the company can leverage the expertise and infrastructure of the licensee to distribute and sell its products or services in the target market.
This provides the company with the flexibility to enter new markets quickly and efficiently, as it does not need to establish its own operations or build a local presence from scratch.
Moreover, licensing offers extended profitability. By licensing its products or services, a company can generate additional revenue streams through royalty payments or licensing fees.
The licensee pays the licensor for the right to use the intellectual property, trademarks, or technology associated with the licensed products or services.
This allows the licensor to benefit financially from the licensee's efforts in marketing, distribution, and sales without incurring substantial costs or risks.
However, it is important to note that licensing does not provide shared ownership or lack of competition. The licensee operates as an independent entity and may have its own competitors in the market.
For more such questions flexibility,Click on
https://brainly.com/question/32964613
#SPJ8
Licensing provides lesser uncertainty as a benefit of internationalization. It allows small economies to capitalize on economies of scale and boost profitability while facing better competition, variety, and innovation in the international trade arena.
Explanation:The advantage of licensing as an approach to internationalization is e. lesser uncertainty. Licensing is a strategic method where a company allows another company in a foreign country to use its intellectual property such as patents, trademarks, copyrights, technology, and production processes. In return, the licensor earns license fees or royalties.
With licensing, the licensor can bypass many challenges linked to international trade like high import tariffs, quota system, and restrictive legislation or rules. It is particularly beneficial to small economies keen on expanding without having to deal directly with all the risks associated with global business operations. It provides an advantageous way to enter a foreign market with a lower level of uncertainty and risk.
For instance, the concept of economies of scale, which is about reducing production cost by producing large quantities, stands to benefit from international licensing. A small economy needing to manufacture cars at a lower cost can license a bigger automobile manufacturing company. In doing so, they can avoid the setup cost and uncertainty linked to building and running a fully-owned production facility. Despite the stiff competition, the benefits, variety, and increased innovation that result from international trade via licensing can lead to an extended profitability, creating a win-win situation for both parties involved in the licensing agreement.
Learn more about International Business Licensing here:https://brainly.com/question/32810329
#SPJ6
Free cash flow, whether a huge corporation or a solo entrepreneur's business, is one of the fundamental things people look at. What can the show Shark Tank teach people about running a business?
Free cash flow is the cash a company produces through its operations after accounting for any investment in its fixed assets. The most successful entrepreneurs have the ability to make the most out of their free cash flow.
Entrepreneurs who have been successful on Shark Tank have a wealth of business advice that people can apply to their own companies to get more out of their free cash flow.Shark Tank is a business-oriented reality television show that provides entrepreneurs with a chance to pitch their ideas to a group of investors. The Sharks, or investors, then decide whether or not to invest in the business and, if so, at what price.
The show is a great source of inspiration for aspiring entrepreneurs, as it demonstrates how to present a business plan and how to use the free cash flow to grow the business.As we watch entrepreneurs come on the show and pitch their ideas to the investors, we learn that having a solid business plan is crucial.
Before investing in a company, investors like to see that there is a clear plan in place for how the company will use the free cash flow that they receive. It's critical to understand the company's financial statements, particularly its balance sheet and cash flow statement.
To know more about entrepreneurs visit:
https://brainly.com/question/31010585
#SPJ11
Each group will provide a group work report on how the group has worked together to produce the PMBOK reports. It should not contain the main deliverables of the PMBOK project reports. Each group will document how members discuss and agree, the division of responsibilities and describe how individual efforts capitalised on the strengths of each group member. It will be used as evidence of individual contributions in the group. It is therefore in each member’s interest to ensure that their contribution to the final report is complete. Each group is expected to have at least three group meetings for the group assignment. The minutes of group meetings should be documented and attached as an appendix of this group work report, clearly indicating who was present, issues and actions, agreed timelines, and the like. The group work report must indicate that a fair and reasonable distribution of work amongst group members was achieved. Periodic information such as emails or diary entries must be inserted into the correct section in chronological order. If the submitted group work report suggests that not all contributions were of equivalent standard and effort, differential marks will be awarded to individuals within the same group. It must also document what individual group members understood as their allocated tasks, that individual group members submitted allocated work of acceptable standard and quality by the date that was agreed upon
This group work report outlines the collaborative efforts and individual contributions of the group members in producing the PMBOK project reports.
Group Work Report: PMBOK Project Reports
Introduction:
This group work report outlines the collaborative efforts and individual contributions of the group members in producing the PMBOK project reports. The report aims to provide evidence of each member's participation, the division of responsibilities, and how the strengths of each group member were utilized effectively. It also highlights the group meetings held, along with minutes and documented communication to demonstrate the fair and reasonable distribution of work.
Group Collaboration:
The group members actively engaged in discussions and decision-making processes throughout the project. Regular group meetings were conducted to ensure effective communication and coordination. The minutes of these meetings were documented and attached as an appendix to this report, clearly indicating the attendees, discussed issues, agreed actions, and timelines.
Division of Responsibilities:
The group agreed upon a fair distribution of tasks based on individual strengths and interests. Each member understood their allocated tasks and took responsibility for their completion. The division of responsibilities was as follows:
Member A: Responsible for conducting research on project planning and risk management.
Member B: Tasked with data analysis and documentation of project execution and control.
Member C: Oversaw quality management and integration of project components.
Individual Contributions:
Each group member made substantial contributions to the project, capitalizing on their strengths and expertise. Here are the highlights of individual efforts:
Member A leveraged their research skills to gather relevant information on project planning and risk management. They analyzed various methodologies and best practices, providing valuable insights for the project reports.
Member B utilized their analytical abilities to examine project data, identify trends, and generate comprehensive reports on project execution and control. Their attention to detail ensured accurate documentation.
Member C demonstrated strong organizational skills and attention to quality management. They oversaw the integration of project components, ensuring consistency and coherence across the reports.
Documentation and Timelines:
Individual group members diligently submitted their allocated work of acceptable standard and quality within the agreed-upon timelines. Periodic information, such as emails and diary entries, was appropriately inserted into the relevant sections of the report in chronological order, providing evidence of progress and collaboration.
Conclusion:
This group work report reflects the collective efforts of the group members in producing the PMBOK project reports. The fair distribution of work, effective communication through group meetings, and individual contributions aligned with each member's allocated tasks have resulted in a comprehensive and well-executed final report. The documented evidence of collaboration, minutes of meetings, and timely submission of work substantiate the individual efforts and their commitment to the project's success.
To learn more about responsibility
https://brainly.com/question/1373962
#SPJ11
apache junction company is evaluating a capital expenditure proposal that requires an initial investment of $44,190, has predicted cash inflows of $9,000 per year for 13 years, and has no salvage value.
The Apache Junction Company is evaluating a capital expenditure proposal that requires an initial investment of $44,190, has predicted cash inflows of $9,000 per year for 13 years, and has no salvage value.
To evaluate the capital expenditure proposal, we need to calculate the net present value (NPV) and the payback period. Net Present Value (NPV): NPV is a financial metric used to determine the profitability of an investment by comparing the present value of expected cash inflows to the initial investment. To calculate the NPV, we use the formula
NPV = (Cash inflows - Initial investment) /
(1 + Discount rate) ^
Year In this case, the cash inflows are $9,000 per year for 13 years, and the initial investment is $44,190. However, we are not given the discount rate, so we cannot calculate the exact NPV without this information.
The payback period is the time it takes for the initial investment to be recovered through the expected cash inflows. To calculate the payback period, we divide the initial investment by the annual cash inflow:
Payback period = Initial investment /
Cash inflows per year In this case, the payback period would be:
Payback period = $44,190 /
$9,000 per year = approximately 4.91 years Based on the information provided, we can conclude that the payback period for this capital expenditure proposal is approximately 4.91 years. However, without the discount rate, we cannot determine the exact net present value.
To know more about apache visit:
https://brainly.com/question/32941736
#SPJ11