Select the correct answer.
Which critical factor must Mac, an entrepreneur, consider to select his suppliers?
A.
the assurance that the supplier will provide 100 percent original material
B.
the assurance that the supplier will always provide a flat discount rate regardless of the market condition
C.
the assurance that the supplier will be able to meet urgent and immediate demands at all times
D.
the assurance that Mac will earn customer loyalty by producing goods sold by the supplier
E.
the assurance that Mac’s business will expand every financial year

Answers

Answer 1
I think it would be C.

Related Questions

The controller of Norton Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs.
Month Total Maintenance Costs Total Machine Hours
January $2,700 300
February $3,000 350
March $3,600 500
April $4,500 690
May $3,200 500
June $5,500 700
1. Determine the variable cost components using the high-low method. (Round variable cost to 3 decimal places e.g. 12.250.)
Variable cost per machine hour $ _
2. Determine the fixed cost components using the high-low method. (Round answer to 0 decimal places e.g. 2,520.)
Total fixed costs $ _

Answers

Answer:

Results are below.

Explanation:

Giving the following information:

January $2,700 300

February $3,000 350

March $3,600 500

April $4,500 690

May $3,200 500

June $5,500 700

To calculate the variable and fixed costs, we need to use the following formulas:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (5,500 - 2,700) / (700 - 300)

Variable cost per unit= $7

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 5,500 - (7*700)

Fixed costs= $600

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 2,700 - (7*300)

Fixed costs= $600

Which option identifies the most likely basic requirement in the following scenario?

A developing country needs to shift from smallholding to modern state-of-the-art agribusiness-style farming, and wants to do this in a fully independent, self-sustainable manner.

A) access to advanced chemical supplements and pesticides

B) a substantial body of skilled, traditional subsistence farmers

C) an infrastructure providing educated workers and advanced machines

D) an infrastructure providing cheap, unskilled labor

Answers

Answer: C. an infrastructure providing educated workers and advanced machines

Explanation:

Since the developing country needs to shift from smallholding to a modern state-of-the-art agribusiness-style farming, it's vital for the country to have an infrastructure providing educated workers and advanced machines. The educated workers will help in handling the technical know-how of the.machines used for the modern agribusiness.

An infrastructure that's providing cheap

and unskilled laborr isn't ideal in this case. Also, traditional subsistence farming won't help since the country is moving to a modern style.

FIN issues a $1000 par value bond that pays 7 precent annula interest and will mature in 14 years. The current market price for the bond is $950. Flotation costs will be 14 percent of market price. The company's marginal tax rate is 25%. What will be FIN's aafter tax cost of debt? g

Answers

Answer:

7.05 %

Explanation:

After tax cost of debt = interest x ( 1 - tax rate)

so, the initial step is to determine the interest rate :

The Bond Yield (i/yr) presents the market rate and this is what we want for our interest rate.

thus,

PV = -  [$950 - ($950 x14%)] = - $817(remove floatation cost from market price)

FV = $1000

PMT = $1000 x 7 % = $70.00

P/YR = 1

N = 14

i/yr = ??

Using a financial calculator to input the values as above, the Bond Yield (i/yr) will be 9.40 %

therefore,

After tax cost of debt = 9.40 % x (1 - 0.25)

                                    = 7.05 %

Stockholders' Equity: Transactions and Balance Sheet Presentation Torey Corporation was organized on April 1. with an authorization of 25,000 shares of six percent, $50 par value preferred stock and 200,000 shares of $5 par value common stock. During April, the following transactions affecting stockholders' equity occurred:
Apr. 1 Issued 80,000 shares of common stock at 540 cash per share:
3 Issued 2,000 shares of common stock to attorneys and promoters in exchange for their services in organizing the corporation. The services were valued at 3 531,000
8 Issued 3,000 shares of common stock in exchange for equipment with a fair market value of $55,000
20 Issued 6,000 shares of preferred stock for cash at $80 per share.
Required :
a. Prepare journal entries to record the above transactions.
b. Prepare the stockholders' equity section of the balance sheet at April 30.

Answers

Answer:

a. See the journal entries below.

b. Stockholders' equity = $3,766,000

Explanation:

Note: There are little errors in this question where dollar signs are used as figures. These are however corrected before answering the question. The complete question with the correction is therefore presented as follows:

Stockholders' Equity: Transactions and Balance Sheet Presentation Torey Corporation was organized on April 1. with an authorization of 25,000 shares of six percent, $50 par value preferred stock and 200,000 shares of $5 par value common stock. During April, the following transactions affecting stockholders' equity occurred:

Apr. 1 Issued 80,000 shares of common stock at $40 cash per share:

3 Issued 2,000 shares of common stock to attorneys and promoters in exchange for their services in organizing the corporation. The services were valued at $31,000

8 Issued 3,000 shares of common stock in exchange for equipment with a fair market value of $55,000

20 Issued 6,000 shares of preferred stock for cash at $80 per share.

Required :

a. Prepare journal entries to record the above transactions.

b. Prepare the stockholders' equity section of the balance sheet at April 30.

Explanation of the answers is now given as follows:

a. Prepare journal entries to record the above transactions.

Let APIC represents additional paid in capital, the journal entries can be prepared as follows:

Date      Particulars                                               Dr ($)                Cr ($)    

Apr. 1   Cash (80,000 * $40)                            3,200,000

              Common stock (80,000 * $5)                                      400,000

              APIC - Common stock                                               2,800,000

             (To record common stock issued in excess of par value.)            

Apr. 3   Attorney and promoters service exp.      31,000

               Common stock (2,000 * $5)                                          10,000

               APIC - Common stock                                                   21,000

            (To record common stock issued to attorneys and promoters for services at a premium.)

Apr. 8     Equipment (Fair value)                         55,000

                  Common stock (3,000 * 5)                                        15,000

                  APIC - Common stock                                              40,000

              (To record common stock issued for equipment at a premium.)

Apr. 20   Cash (6,000 * $80)                           480,000

                 Preferred stock (6,000 * $50)                                300,000

                 APIC - Preferred stock                                             180,000

              (To record preferred stock issued in excess of par value.)        

b. Prepare the stockholders' equity section of the balance sheet at April 30.

Using the figures from the journal entries above, this can be prepared as follows:

Torey Corporation

Stockholders' Equity Section of the Balance Sheet

At April 30.

Details                                                                                       Amount ($)  

Common stock ($400,000 + $10,000 + $15,000)                     425,000

Preferred stock                                                                            300,000

APIC - Common stock ($2,800,000 + $21,000 + $40,000)   2,861,000

Additional paid in capital - Preferred stock                                180,000  

Stockholders' equity                                                                3,766,000  

a. Prepare journal entries to record the above transactions.

Date     Particulars                                             Dr ($)                Cr ($)    

Apr. 1   Cash (80,000 * $40)                            3,200,000

             Common stock (80,000 * $5)                                      400,000

             APIC - Common stock                                               2,800,000

            (To record common stock issued in excess of par value.)            

Apr. 3   Attorney and promoters service exp.      31,000

              Common stock (2,000 * $5)                                          10,000

              APIC - Common stock                                                   21,000

           (To record common stock issued to attorneys and promoters for services at a premium.)

Apr. 8     Equipment (Fair value)                         55,000

                 Common stock (3,000 * 5)                                        15,000

                 APIC - Common stock                                              40,000

             (To record common stock issued for equipment at a premium.)

Apr. 20   Cash (6,000 * $80)                           480,000

                Preferred stock (6,000 * $50)                                300,000

                APIC - Preferred stock                                             180,000

             (To record preferred stock issued in excess of par value.)        

b. Prepare the stockholders' equity section of the balance sheet at April 30.

                                              Torey Corporation

      Stockholders' Equity Section of the Balance Sheet  on April 30

Details                                                                                       Amount ($)  

Common stock ($400,000 + $10,000 + $15,000)                     425,000

Preferred stock                                                                            300,000

APIC - Common stock ($2,800,000 + $21,000 + $40,000)   2,861,000

Additional paid in capital - Preferred stock                                180,000  

Stockholders' equity                                                                3,766,000  

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Good Investments Company forecasts a $2.44 dividend for 2017, $2.62 dividend for 2018 and a $2.77 dividend for 2019 for Mountain Vacations Corporation. For all years after 2019, Good Investments Company forecasts that Mountain Vacations will pay a $2.94 dividend. Using the dividend discount valuation model determine the intrinsic value of Mountain Vacations Corporation, assuming the company's cost of equity capital is 7%. Select one:

a. $18.12
b. $24.48
c.$29.37
d. $27.91

Answers

Answer:

c.$29.37

Explanation:

First and foremost, it should be borne in mind that  the intrinsic value of Mountain Vacations Corporation is the present value of its future dividends for the forecast period(2017-2019) plus the present value of dividend terminal value beyond the forecast period as shown thus:

Year 1 (2017) dividend $2.44

Year 2 (2018) dividend $2.62

Year 3  (2019) dividend $2.77

the terminal value of dividend=expected dividend per year after 2019/ cost of equity capital

expected dividend per year after 2019= $2.94

cost of equity capital =7%

terminal value=$2.94 /7%=$42.00

PV of future dividend=dividend/(1+cost of equity capital)^n

n is the year in which the future dividend is expected, it is 1 for 2017, 2 for 2018 , 3 for 2019 dividend and the terminal value(since the  terminal value is already stated in 2019 terms)

intrinsic value of share=$2.44/(1+7%)^1+$2.62/(1+7%)^2+$2.77/(1+7%)^3+$42.00/(1+7%)^3

the intrinsic value of share=$41.11

It is obvious that the options are not correct

The question's inputs are wrong

2017 dividend should have been $1.74

2018 dividend should have been $1.87

2019  dividend should have been $1.98

dividend beyond 2019 should have been $2.10

terminal value=$2.10/7%=$30.00

intrinsic value of share=$1.74/(1+7%)^1+$1.87/(1+7%)^2+$1.98/(1+7%)^3+$30.00/(1+7%)^3

intrinsic value of share=$29.36(closest to c.$29.37)

A customer has requested that Lewelling Corporation fill a special order for 2,200 units of product S47 for $38 a unit. While the product would be modified slightly for the special order, product S47's normal unit product cost is $16.90:
Direct materials $ 4.60
Direct labor $ 4.00
Variable manufacturing overhead $ 1.70
Fixed manufacturing overhead $ 6.60
Unit product cost $ 16.90
Assume that direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like modifications made to product S47 that would increase the variable costs by $1.90 per unit and that would require an investment of $16,000.00 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. The annual financial advantage (disadvantage) for the company as a result of accepting this special order should be:_________
a) $40,760
b) ($15,700)
c) $16,200
d) ($2,000)

Answers

The answer is c did

What is a downside of receiving a tax
refund?

Answers

Answer:

It's a free loan to the government.

Explanation:

you're essentially giving the government a free loan with no interest.

Brief Exercise 22-07 Sunland Company classifies its selling and administrative expense budget into variable and fixed components. Variable expenses are expected to be $26,020 in the first quarter, and $5,140 increments are expected in the remaining quarters of 2020. Fixed expenses are expected to be $41,120 in each quarter. Prepare the selling and administrative expense budget by quarters and in total for 2020.

Answers

Answer:

So whats the question???

Explanation:

All of the following are criticisms of the payback period criterion EXCEPT Group of answer choices time value of money is not accounted for. it deals with accounting profits as opposed to cash flows. None of the above; they are all criticisms of the payback period criteria. cash flows occurring after the payback are ignored.

Answers

Answer:

I dont know

Explanation:

Dman

XYZ Insurance Company uses class rating to determine the rate to charge for insurance.
For one type of insurance the pure premium XYZ actuaries calculated is $75 per unit.
If XYZ's expense ratio is 30%, what is the gross rate for this coverage?
O a. $107.14
O b. $96.28
O C. $85.19
O d. $115.62​

Answers

Answer:  a. $107.14

Explanation:

The gross rate for insurance coverage represents the amount that the insurance provider needs to pay for losses as well as the amount needed to pay for expenses such as sales expenses and still be able to have a profit.

Given the expense ratio and the pure premium is:

= Premium / ( 100 - expense ratio)

= 75 / (100 - 30%)

= $107.14

Gillstrap Promotions has projected the following values for the next three months:
January February March
Sales $352,000 $379,000 $404,077
Purchases on Trade Credit $218,000 $240,000 $260,000
Cash Expenses $88,000 $91,000 $94,000
Taxes, interest, and dividends$18,000 $20,000 $41,000
Capital Expenditures $50,0000 $25,000
All sales are credit sales with 40% collected in the month of sale, 50% collected the following month, and the remainder collected in the second month after the sale. Credit purchases are paid in 30 days and all other items require immediate payment.
Compute the net cash inflow for March.

Answers

Answer:

1.9058n n=15x x=17g g=5L

Explanation:

McGill and Smyth have capital balances on January 1 of $60,000 and $48,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $16,000 for McGill and $20,000 for Smyth, (2) interest at 10% on beginning capital balances, and (3) remaining income or loss to be shared 60% by McGill and 40% by Smyth.

Required:
a. Prepare a schedule showing the distribution Of net income, assuming net income is $67,000.
b. Prepare a schedule showing the distribution of net income, assuming net income is $24,000.

Answers

Answer and Explanation:

The preparation of the schedule for the following cases are

a.

Particulars            McGill            Smyth           Total

Salary allowance  $16,000       $20,000       $36,000

Interest allowance   $6,000      $4,800         $10,800

Total salaries &

interest                  $22,000      $24,800       $46,800

Left income or

deficiency            $12,120             $8,080       $20,200

Total division of

Net income            $34,120          $32,880     $67,000

b.

Particulars            McGill            Smyth           Total

Salary allowance  $16,000       $20,000       $36,000

Interest allowance   $6,000      $4,800         $10,800

Total salaries &

interest                  $22,000      $24,800       $46,800

Left income or

deficiency            -$13,680        -$9,120       -$22,800

Total division of

Net income            $8,320         $15,680    $24,000

When a supplying profit center is operating at full capacity, the minimum transfer price should be:____.
A. Enough to cover all fixed and variable per-unit costs.
B. Enough to cover all variable per-unit costs and any contribution margin lost by dropping customers.
C. Enough to cover all variable per-unit costs.
D. Enough to generate a reasonable gross profit.

Answers

Answer:

B. Enough to cover all variable per-unit costs and any contribution margin lost by dropping customers.

Explanation:

As the supplying profit center would be run at the full capacity and earn the profit from selling outside to the customer at full capacity so here the supplying center would have to provide the unit to the other center so it would involve the profit because of the internal transfer and the same should be involved in the transfer price as it would be worked on the full capacity

Therefore the option b is correct

At the end of 2003, Ritzcar Co. fails to accrue sales commissions earned during 2003, but paid in 2004. The error is not repeated in 2004. What was the effect of this error on 2003 ending working capital and on the 2004 ending retained earnings balance

Answers

Answer:

The effect of this error on 2003 ending working capital is that it overstated the ending 2003 working capital.

The error does not have effect on the 2004 ending retained earnings balance.

Explanation:

Let the amount of the commission expense be xxxx.

At the end of 2003, the journal entries should have been as follows:

Debit Commission expense for xxxx

Credie Commission payable for xxxx

Also, we have:

Working capital = Current assets – Current liabilities ………… (1)

From equation (1), current liabilities are understated because commission payable which was not recorded is an item under current liabilities. Since the current liabilities are understated, that indicates that the working capital in equation is overstated. Therefore, the effect of this error on 2003 ending working capital is that it overstated the ending 2003 working capital.

When the 2003 commission expense in the entries above was paid in 2004, it would have been recognized as an expense. This made the error to counterbalance. This implies that the 2004 ending retained earnings balance is still correct despite that there are errors in the earnings of the two years. Therefore, the error does not have effect on the 2004 ending retained earnings balance.

Terps Company purchased a plant, including land, building, and machinery, for $110,000. These items were carried on the books of the seller as follows: land, $30,000; building, $80,000, and machinery, $40,000. Immediately after the purchase, the assets were appraised at the following values: land, $24,000; building, $30,000, and machinery, $66,000. What cost should the company record for the land, building and machinery

Answers

Answer:

Land = $22,000

Building = $27,500

Machinery = $60,500

Explanation:

Use the appraised values to apportion the Purchase Price ($110,000) to the asset categories.

Total appraised value = $24,000 + $30,000 + $66,000 = $120,000

1. A location’s risks can make a difference in premium costs. Think about two houses, one built on a mesa (a high desert plateau) in Arizona and the other built on the Louisiana coast (below sea level). Which location is more likely to experience flooding? Which house would have lower premiums for flood insurance?

Answers

Answer:

House with lower premiums for flood insurance -- house built on Mesa in Arizona.

Location more likely to experience flooding --- Louisiana coast which is below sea level.

Explanation:

Insurances provides a protection in exchange for a amount of fee known as a premium. An insurance is a policy or an agreement where the person availing the policy gets a financial protection against the calamities or losses that occurs to the person as promised by the other party. But for that the person needs to a pay a fee called as the premium to the other party.

In the context, the house which is built on the mesa, which is a high desert plateau in Arizona is less prone to floods. Since the location of the house is in a high altitude place, it is less likely to experience floods as compared to the other place in Louisiana coast which is below sea level and is more likely to experience flooding because of its location near the coast and elevation.

Therefore, the house located in Arizona will have to pay lower premiums for flood as there will be less likely to occur flood in the region of the high elevation of the place.

And since house built on Louisiana coast is below sea level, it will more likely to experience floods.

Weighted Average Method, Equivalent Units, Unit Cost, Multiple Departments
Fordman Company has a product that passes through two processes: Grinding and Polishing. During December, the Grinding Department transferred 20,000 units to the Polishing Department. The cost of the units transferred into the second department was $40,000. Direct materials are added uniformly in the second process. Units are measured the same way in both departments.
The second department (Polishing) had the following physical flow schedule for December:
Units to account for:
Units, beginning work in process 4,000 (40% complete)
Units started ?
Total units to account for ?
Units accounted for:
Units, ending work in process 8,000 (50% complete)
Units completed ?
Units accounted for ?
Costs in beginning work in process for the Polishing Department were direct materials, $5,000; conversion costs, $6,000; and transferred in, $8,000. Costs added during the month: direct materials, $32,000; conversion costs, $50,000; and transferred in, $40,000.
Required:
1. Assuming the use of the weighted average method, prepare a schedule of equivalent units. Enter percentages as whole numbers.
Fordman Company
Schedule of Equivalent Units
For the month of December
Direct Materials Conversion Costs Transferred In
Units completed
Ending WIP:
x
%
x
%
Total equivalent units
2. Compute the unit cost for the month. If required, round your answer to the nearest cent.
$ per equivalent unit

Answers

Answer:

Fordman Company

1. Fordman Company

Schedule of Equivalent Units

For the month of December

                                     Direct Materials  Conversion Costs  Transferred In

Units completed                    16,000               16,000                20,000

Ending WIP:                             4,000                4,000                

                                         (8,000 * 50%)       (8,000 * 50%)

Total equivalent units          20,000              20,000               20,000

2. Cost per equivalent unit:

                                    Direct Materials Conversion Costs  Transferred In

Total costs of production     $37,000         $56,000              $48,000

Total equivalent units            20,000            20,000                20,000

Cost per equivalent unit       $1.85                $2.80                  $2.40

Explanation:

a) Data and Calculations:

Transferred in units = 20,000

Cost of units transferred in = $40,000

Units to account for:

Units, beginning work in process 4,000 (40% complete)

Units started                                20,000

Total units to account for            24,000

Units accounted for:

Units, ending work in process     8,000 (50% complete)

Units completed                          16,000

Units accounted for                   24,000

                                            Materials     Conversion   Transferred in

Beginning work in process    $5,000         $6,000           $8,000

Costs added during month    32,000         50,000           40,000

Total costs of production     $37,000       $56,000         $48,000

he Glowing company could produce an operating cash flow of $56,200 a year for 5 years. The initial fixed asset investment in the project will be $238,900. The net aftertax salvage value is estimated at $67,000 and will be received during the last year of the project's life. What is the net present value of the project if the required rate of return is 15.2 percent

Answers

Answer:

-$18,375

Explanation:

The computation of the net present value is shown below;

In the case when the operating cash flow is $56,200 for 5 years and the rate of return is 15.2% so the present value is $187,502 by using the financial calculator

In the case when the net after tax salvage value is $67,000 for the 5 year  and the rate of return is 15.2% so the present value is $33,023 by using the financial calculator

Now the net present value is

= $18,7502 + $33,023 - $238,900

= -$18,375

The Pan American Bottling Co. is considering the purchase of a new machine that would increase the speed of bottling and save money. The net cost of this machine is $56,000. The annual cash flows have the following projections. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods.

Year Cash Flow
1 $23,000
2 23,000
3 25,000
4 28,000
5 16,000

Required:
a. If the cost of capital is 10 percent, what is the net present value of selecting a new machine?
b. What is the internal rate of return?

Answers

Answer and Explanation:

The computation is shown below;

a. the net present value is

Year   cash flow        factor at 10%     Discounted cash flows

0         -$56,000         1                         $56,000

1           $23,000         0.9091               $20,909.09

2         $23,000          0.8264              $19,008.26

3         $25,000         0.7513                 $18,782.87

4         $28,000         0.6830               $19,124.38

5        $16,000          0.6209               $9,934

Net present value                               $31,759.34

b. The internal rate of return is

Here we apply the formula

= IRR()

After this, the irr is 30.75%

The risk-free rate is 3%. MCD currently prices at $25. The Delta of a 1-year at-the-money European call on MCD is 0.5. John has a portfolio made of the following: (1) One bond maturing in 1 year paying $1000. (2) Three 1-year at-the-money European MCD calls. (3) Two 1-year at-the-money European MCD puts. How many shares of MCD should John long (or short) to make his portfolio delta-neutral

Answers

Answer:

Short 1.5 shares

Explanation:

Given data :

Risk free rate = 3%

current price ( market price ) = $25

Delta of  1-year at money European call on MCD = 0.5

Determine how many shares of MCD John should either Long or short to achieve a delta-neutral

use the relation below

4 * 0.5  + 1 ( 0.5 - 1 )  + x = 0

x ( number of shares ) =  - [ 4 * 0.5  + 1 ( 0.5 - 1 ) ]

                                     = - 1.5 shares

negative ( - ) means MCD should short 1.5 shares

A profit is the money a business:
oooo
CCC
earns.
spends.
earns after paying expenses.
pays in wages or salaries.

Answers

Answer:

A profit is the money a business:

earns after paying expenses.

Explanation:

For a business entity, the profit is the excess of the money that the entity earns after deducting all of the expenses incurred in running the business from its revenue.  There are many levels at which profit can be ascertained.  For example, the gross profit is the excess of revenue over costs of goods sold.  It is not the same as contribution margin, which the excess of revenue over variable costs.  We also have operating profit as another level of profit.  It is the profit generated from operating activities only.  Another important level of profit is the net income or profit.  This is mostly determined after paying company income taxes.  It is the profit which can be distributed to stockholders and other stakeholders.

Kelly Slater owns a parcel of land in Palm Springs and is considering two possible development options which both use his signature Kelly Slater Wave Pool technology.

Option A: Create a private surf club, in which case he would have to invest $10 million today (EOY 0). The club would then generate an annual free cash flow of $2 million in perpetuity starting EOY 1.
Option B: Create a surf resort and hotel open to the public, in which case he would have to invest $50 million today (EOY 0). The resort would then generate an annual free cash flow of $6.5 million in perpetuity starting EOY 1.

Assume Kelly's discount rate is 10% and that he can only invest in one of the two options. Kelly should: ________

a. Accept both options because they both have positive NPV
b. Choose Option A because it has a higher IRR
c. Reject both options because both have an IRR less than 10%
d. Choose Option B because it has a higher NPV

Answers

Answer:

d. Choose Option B because it has a higher NPV

Explanation:

The computation is shown below:

For Option A:

Investment = $10 million

Present Value of cash flows = Cash flow ÷ Discounting rate

= $2 ÷  10%

= $20 million

Now

NPV = $20 - $10

= $10 million

We know that

IRR is the rate at which the NPV will be zero

So,  2 ÷  r - 10 = 0

r = 20%

For Option B:

Investment = $50 million

Present Value of cash flows = $6.5 ÷  10% = $65 million

NPV = $65 - $50 = $15 million

we know that

IRR is the rate at which the NPV will be zero

So, 6.5÷ r -50 = 0

r = 13%

Based on NPV, Option B should be selected as it contains higher NPV as compared to option A.

However, Based on IRR, Option A should be chosen as it contains higher IRR and a higher IRR represent a higher profit percentage

 

A "Narrow bank" is a bank that only holds cash for its depositors -- specifically, in our example from class, a narrow bank would take the 1000 deposits of $1,000 each and simply deposit $1,000,000 in its Federal Reserve account. 1. Would this kind of bank be immune to bank runs and financial crises? 2. Why or why not?

Answers

Answer:

Theoretically, the bank should be immune to bank runs and financial crises. A narrow bank just receivers deposits and manages them. It does not borrow money, so the deposits should be safe and available when required by the customers. The problem with this type of banks is that the only way they can make a profit is by charging depositors a fee instead of paying interest rates.

Explanation:

Max is considering an investment proposal that requires an initial investment of $91,100, has predicted cash inflows of $30,000 per year for four years and no salvage value. At a discount rate of 10 percent the projects net present value is

Answers

Answer:

$3,995.96

Explanation:

Cash flow summary for the project as entered in financial calculator is :

- $91,100 CF0

$30,000 CF1

$30,000 CF2

$30,000 CF3

$30,000 CF4

i/yr = 10 %

therefore,

Shift NPV gives a net present value of $3,995.96

thus,

At a discount rate of 10 percent the projects net present value is $3,995.96

In a large company, a small team of employees is tasked with conducting monthly tests of security controls. Each month, they select a small number of controls, attempt to exploit vulnerabilities, and report results to management. This is an example of:

Answers

Answer:

Vulnerability scanning

Explanation:

Vulnerability scanning is aimed at identifying and classifying system weaknesses that can be exploited in a computer network or a company system.

The vulnerabilities are reported to management and this will guide countermeasures to prevent future security breaches.

So in the scenario where a small team of employees is tasked with conducting monthly tests of security controls by selecting a small number of controls and attempting to exploit vulnerabilities, they are doing vulnerability scanning.

Answer:

The question is incomplete, the options are missing. The options are the following:

a) Vulnerability scanning.

b) Red team exercises.

c) Penetration testing.

d) Risk analysis.

And the correct answer is the option B: Red team exercises.

Explanation:

To begin with, in the area of cybersecurity and business management the term known as "Red Team" refers to method or technique used by the larges companies in the world whose main purpose is to complete exercises of cybersecurity breaches in where the "red team" has to attack the company in order to reach for the vulnerabilities of the organization's most important systems. In that situation, a blue team is the one in charge of defending the business' information. And it is all done with the purpose of getting feedback about what the real danger could be in a situation in the reality.

Which of the following examples demonstrate common education and qualifications for Transportation Operations careers? Check all that apply.

Page has a special license for driving large tractor-trailer trucks.
Margarita is good at figuring out what is wrong with computer equipment.
Stan is good at staying calm and handling stressful situations.
Ernie is good at leading and supervising other workers.
Daisy is in good physical health.
Murray is persuasive, which makes him good at selling products.

Answers

Answer:

1

3

5 is correct

Explanation:

The examples below show typical school requirements and credentials for professions in transportation operations. For operating huge tractor-trailer trucks, Page has a specific license.

Stan does a superb job at handling pressure and remaining composed. Daisy has a strong physical condition. Hence, (A), (C), and (E) are accurate.

What is meant by Transportation Operations?

Operations related to transportation include tasks including route planning and optimization, vehicle dispatch, supply chain management, security standards, customer service, driver training, and cost management.

Transportation provides the crucial service of connecting a business to its suppliers and customers by moving items from locations where they are sourced to locations where they are wanted.

It supports the economic utilities of place and time and is a crucial logistics function activity. The four main forms of transportation used in logistics are truck, ship, train, and plane shipments, commonly referred to as road, marine, rail, and air shipments.

Choosing the best means of transportation for your company involves careful thought, even if each of these options offers particular advantages.

Learn more about Transportation Operations, from :

brainly.com/question/30884900

#SPJ3

The concept of economic profit is used for making a decision between your two _______ options. Earning zero economic profit is not bad. It means that your two best options make you equally well off so you are indifferent between the two. For example, I am indifferent between teaching microeconomics and macroeconomics because they make me equally well off (I get paid the same).
If economic profit is positive. you should choose the _______ option because it will make you _______ off. If economic profit is negative, you should choose the ________ option because it will make you better off.

Answers

Answer:

The concept of economic profit ....... alternative two options.

If economic profit is positive .......... Current option.

If economic profit is negative............ Other option

Explanation:

Economic Profit is the excess of revenue associated with an option, over its costs (explicit external & implicit opportunity costs).

Example : Revenue - Direct explicit cost of production - opportunity cost (like interest on money invested, salary of job left foregone).

The concept is used to make decision between two alternative options. Given, zero economic profits imply indifference.

Positive Economic Profit implies - one should choose Current option, as it will make Better off , having more benefit than other option

Negative Economic Profit implies - one should choose Other option, as it wil make better off, having more benefit than the former considered option.

FINANCIAL LITERACY
WILL MARK BRAINLIEST PLS HELP ASAP!!

Answers

Answer:

i dk

Explanation:

tthanks for the points tho

On January 1, 20X1, Como Company purchased 45% of the outstanding common shares of the Lite Company for $200,000. The net assets of Lite Company totaled $400,000. The inventory had a book value of $100,000 and a fair value of $120,000. Excess cost attributable to inventory is written off in 20X1. During 20X1, Lite Company earned $200,000 and declared a dividend of $40,000 for the year. The amount of the excess cost over book value attributable to inventory written off in 20X1 is: Multiple Choice $3,000. $7,500. $9,000. $4,500.

Answers

Answer:

C. $9,000

Explanation:

Cost of Inventory to Como company = $120,000 * 45%

Cost of Inventory to Como company = $54,000

Book value of Inventory attributable to Como company = $100,000 * 45%

Book value of Inventory attributable to Como company = $45,000

Excess of cost over book value which is written off in 20X1 is:

= Cost - Book value

= $54,000 - $45,000

= $9,000

According to the results of the 2019 expatriate survey, which of the following most accurately describes he current state of HRM efforts o staff international operations?
A. more women are accepting international assignments
B. people without family or kids are less successful in international assignments.
C. third-country nationals are quickly being replaced y localized expatriates.

Answers

Answer:

Option A is the accurate option.

Explanation:

Employers would be assigned to foreign employment, and therefore more women than ever are being sent overseas.The trend has always been rising throughout the Asia-Pacific region especially Northern America has been seeing substantial growth throughout this phenomenon or development.

The other choices aren't related to the given scenario. So the above is the appropriate solution.

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