Your firm has estimated the following cash flows for two mutually exclusive capital investment projects. The firm's required rate of return is 13%.
Year Project A Cash Flow Project B Cash Flow
0 -$100,000 -$100,000
1 28,900 48,000
2 28,900 40,000
3 28,900 40,000
4 28,900 5 28,900
Which of the following statements best describes projects A and B?
a) Project A should be accepted because it has the highest NPV.
b) Project A should be accepted because it has the highest EAA.
c) Project B should be accepted because it has the highest EAA.
d) Both projects should be accepted because they have positive NPVs and EAAs.
e) Neither project is acceptable.

Answer:

the difference between operating incomes under absorption costing and variable​ costing is $180,000 .

Explanation:

The difference between the two Operating Incomes lies in the amount of Fixed Overheads that has been deferred in Inventory.

So, calculation of the difference will be as follows :

Beginning fixed manufacturing overhead in inventory              $230,000

Less Ending fixed manufacturing overhead in inventory           ($50,000)

Difference  between  absorption costing and variable​ costing $180,000

Answer:

Results are below.

Explanation:

Giving the following information:

Production= 2,500

Each unit requires 3 pounds of materials at $6 per pound and 0.5 of labor at $16 per hour. The overhead rate is 75% of direct labor.

First, we need to calculate the total cost for direct material, direct labor, and manufacturing overhead:

Direct material= (3*2,500)*6= $45,000

Direct labor= (0.5*2,500)*16= $20,000

Manufacturing overhead= 20,000*0.75= $15,000

Total cost= $80,000

Now, the unitary cost:

unitary cost= 80,000/2,500= $32

Answer: A. $26.25

Explanation:

Using the Gordon Growth model, the value of the stock can be determined using the available variables.

The formula is;

Value of a Stock = Next Dividend / (Required Return - Growth Rate)

Value of a Stock  = Current Dividend (1 + Growth Rate) / (Required Return - Growth Rate)

= 2 ( 1 + 0.05) / ( 0.13 - 0.05)

= (2 * 1.05) / 0.08

= $26.25

Answer:

it can be to be and so

Explanation:

Answer:

Manufacturing Overhead Budget

Quarter                              1st                 2nd                 3rd               4th

Variable Overheads    $63,250         $55,775          $57,500    $62,100

Fixed Overheads         $78,000        $78,000          $78,000    $78,000

Total Overheads         $141,250        $133,775          $135,500   $140,100

Explanation:

When Preparing the Manufacturing Overhead Budget Note the following :

Question

The question is incomplete. The complete version is given below:

IBM just paid a dividend of $3.5 and expects these dividends to grow at 7% a year. The price of IBM is $100 per share. What is? IBM's cost of equity? capital?

Answer:

Cost of equity = 10.7%

Explanation:

Cost of equity can be ascertained using the dividend valuation model. The dividend valuation model states that the price of a stock is the present value of future dividends discounted at the required rate of return.  The required rate of return is the cost of equity.

The cost is the minimum rate of return that ordinary shareholders are willing to accept considering the opportunity cost of their capital

Cost of equity (Ke) =( Do( 1+g)/P ) + g

DATA

Ke- ?

D0- 3.5

P-100

g-7%

Ke= 3.5×(1.07)/100  + 0.07 = 0.10745

Ke- 0.10745 × 100 = 10.7%

Cost of equity = 10.7%

Answer:

Instructions are below.

Explanation:

Giving the following information:

Fixed costs= $27,600,000

Unitary variable cost= $805

Unit selling price= $1,150

To calculate the break-even point in units, we need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 27,600,000 / (1,150 - 805)

Break-even point in units= 80,000 units

Desired income= $5,175,000

Break-even point in units= (fixed costs + desired profit) / contribution margin per unit

Break-even point in units= (27,600,000 + 5,175,000) / 345

Break-even point in units= 95,000 units

Answer:

Portfolio beta = 1.1075

Explanation:

The portfolio beta is a function of the weighted average of the individual stocks betas' that form up the portfolio. To calculate the portfolio beta, we use the following formula,

Portfolio beta = wA * Beta of A + wB * Beta of B + ... + wN * Beta of N

Where,

Portfolio beta = 0.30 * 0.95  +  0.25 * 1.12  +  0.25 * 1.13  +  0.20 * 1.30

Portfolio beta = 1.1075

Answer:

Results are below.

Explanation:

Giving the following information:

Unit produced 11,000

Variable cost per unit:

Direct materials $150

Direct labor $450

Variable manufacturing overhead $47

Fixed costs:

Fixed manufacturing overhead $790,000

The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.

The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead).

Variable costing:

Unitary cost= 150 + 450 + 47= $647

Absorption costing:

Unitary fixed overhead= 790,000/11,000= $71.82

Unitary cost= 647 + 71.82= $718.82

Answer:

a. The after-tax nominal interest rate in year 2 is __________

after tax nominal interest rate = 20% x (1 - tax rate ) = 20% x 0.8 = 16%

b. The after-tax real interest rate in year 1 is ______________

after tax real interest rate = [(1 + after tax nominal interest rate) / (1 + inflation rate)] - 1

after tax nominal interest rate yer 1 = 10% x 0.8 = 8%

inflation rate = 4%

after tax real interest rate = [1.08 / 1.04] - 1 = 3.85%

c. The after-tax real interest rate in year 2 is ______________

after tax real interest rate = [(1 + after tax nominal interest rate) / (1 + inflation rate)] - 1

after tax nominal interest rate yer 1 = 16%

inflation rate = 4%

after tax real interest rate = [1.16 / 1.14] - 1 = 1.75%

Explanation:

year 1

inflation rate 4%

nominal interest rate 10%

real interest rate 6%

year 2

inflation rate 14%

nominal interest rate 20%

real interest rate 6%

Answer: higher; lower

Explanation:

From the question, we are informed that three firms are currently producing and selling in a market. When one of the three firms exits the market, economists expect that there will be a rise in the equilibrium price while there will be a reduction in the equilibrium quantity.

This is because when one producer leaves, there will be less supply of the good that is sold, this will eventually lead to a rise in price.

Explanation:

I would answer some questions honestly but if there are some questions which i can't tell the truth i will tell some lies. because if u really like this job and don't want to loose it, it's ok to give wrong answers just for once! That's my opinion. :p. But be careful u might get in trouble if they find out ur lying!

Answer:

Coupon rate = 0.08402 or 8.402%

Explanation:

To calculate the price of the bond, we need to first calculate the coupon payment per period. We assume that the interest rate provided is stated in annual terms. As the bond is a semi annual bond, the coupon payment, number of periods and semi annual YTM will be,

Coupon Payment (C) = x

Total periods (n)= 16.5 * 2 = 33

r or YTM = 7.7% * 1/2 = 3.85% or 0.0385

The formula to calculate the price of the bonds today is attached.

Using the bond price formula and the available values, we calculate the coupon rate to be,

1065 = x * [( 1 - (1+0.0385)^-33) / 0.0385]  +  1000 / (1+0.0385)^33

1065 = x * (18.50739407)  +  287.4653284

1065 - 287.4653284 = x * 18.50739407

777.5346716 / 18.50739407  = x

x  =  42.012 rounded off to $42.01

If the semi annual coupon payment is $42.01, the annual coupon payment will be 42.01 * 2 = $84.02

The coupon rate on bonds is = 84.02 / 1000

Coupon rate = 0.08402 or 8.402%

Answer:

The Prior Period Adjustment to be recorded in 2025 will include a $90 debit as adjustment to Retained Earnings

Explanation:

Correct depreciation would have been = ($500-$100)/5 = $80

Depreciation charged wrongly as ($500-$400)/8 = $50

Therefore depreciation has been charged short by $30 for three years, thereby reflecting income greater by $30 each year for 3 years.

Since due to wrong depreciation retained earnings is higher by $90, therefore we have to debit retained earnings by $90

Answer:

he should have multiplied by 10, not 100

Explanation:

Answer:

The insurance company would only sell the Select Policy insurance to a smoker with systolic blood pressure of 230 if after carrying out a medical test, t was found out that, the probability of him or her having a stroke is actually less than 0.01.

This is to insure that, the smoker didn't capitalise on his dying nature in-order to obtained the insurance thereby defrauding the insurance company.

Explanation:

Answer:

g

Explanation:

g

Answer:

EPS = 2.2

Explanation:

Earning per share is the amount due to each of the ordinary shareholders after settlement of interest due on loans , preferred dividends and tax.

Earnings per share (EPS) = Earnings attributable to ordinary shareholders ÷ Units of shares

Where ;

Earnings attributable to ordinary shareholders = Net income - Preferred dividends

EPS = $770,000 - 0 ÷ 350,000 shares

EPS = $2.2

Answer:

debt-to-equity ratio is 1.33 .

Explanation:

Given the debt equity ratio at the beginning and at end of the year, we can estimate the debt equity ratio of a company as the average of the two.

Average debt-to-equity ratio = (1.40 + 1.25) ÷ 2

                                                = 1.325 or 1.33

Answer:

Net operating income= $26,140

Explanation:

Giving the following information:

Fixed costs= $23,000

The contribution margin ratio is 63%.

Sales=  $78,000

First, we need to calculate the contribution margin:

Contribution margin= contribution margin ratio*sales

Contribution margin= 0.63*78,000

Contribution margin= 49,140

Net operating income= 49,140 - 23,000= $26,140

Answer:

Explanation:

1. Equilibrium Output or GDP is calculated by the expression;

Output or Y = Consumption + Investment + Government expenditure + Net exports

Net exports and Government expenditure are assumed to be 0.

Consumption  = 100 + 0.9Y

Investment = $300 billion

Y = 100 + 0.9Y + 300

Y - 0.9Y = 400

Y = 400/0.1

Y = $4,000 billion

2. Y = 50 + 0.9Y + 300

Y - 0.9Y = 350

0.1Y = 350

Y = 350/0.1

Y = $3,500 Billion

Answer:

Maximum price = $ 1,325,000  

Explanation:

The maximum price to be paid for the company is the present value of the annual profit discounted at the rate of return on equity.

The return on equity can be calculated using the capital asset pricing model (CAPM)

Under CAPM,

E(r)= Rf + β(Rm-Rf)

E(r)- expected return, Rf-risk-free rate , β= Beta, Rm= Return on market.

Using this model, we can work out the value of beta as follows:

Ke= ?., Rf- 2%, Rm-Rf - 8%

Ke- 2% + 1.5× (8%)= 14 %

Price for the company can now be determined using the present value of the perpetuity formula with growth as follows:

The model is represented below:  

P = A ×(1+g)/ ke- g  

DATA

A- 100,000

g- 6%

ke- 14%

Price =  100,000× (1.06)/(0.14-0.06)= $ 1,325,000  

Maximum price = $ 1,325,000  

Complete Question:

Bark Inc. and Happy Toys Ltd. Bark Inc. and Happy Toys Ltd. are considering a merger and are worried that their two organizational cultures will clash. They perform a detailed diagnosis by collecting and analyzing data about the employees of the two companies. They identify several overlapping values, which they feel can be combined into a cohesive new culture. This process is known as:

Group of answer choices.

A. a merger strategy.

B. a bicultural audit.

C. assimilation.

D. deculturation.

Answer:

B. a bicultural audit.

Explanation:

Bark Inc. and Happy Toys Ltd. Bark Inc. and Happy Toys Ltd. are considering a merger and are worried that their two organizational cultures will clash. They perform a detailed diagnosis by collecting and analyzing data about the employees of the two companies. They identify several overlapping values, which they feel can be combined into a cohesive new culture. This process is known as a bicultural audit.

A bicultural audit can be defined as the process of analyzing and measuring the cultural relations between two companies prior to a merger, as well as identifying the extent to which there might be cultural clashes among its employees.

Generally, bicultural audit process start with the identification of cultural differences between the merging companies. In order to create a cohesive new culture between the merging companies, a good action plan and effective strategy should be developed.

Answer: True

Explanation:

The expected completion time of a project is determined when the duration of every activity that takes place on the critical path is established.

Three phenomena that tend to bias the expected completion time of projects are inflated time estimates, activity time variability with path interdependencies, and resource dependence.

Answer:

No one

Explanation:

This is because no one legally owned him and the fox escaped anyways.

Answer:

Liability of un-redeemed coupons Pending on December 31, 2018 is $60,000

Explanation:

Coupon already expired issued on Jan 01, 2018      

Coupon issued on 07/01/2018                                 $830,000

Estimated redeemable coupon value - 50%           $415,000

($830,000 * 50%)

Less : Disbursed                                                        $355,000

Liability pending on Dec. 31, 2018                         $60,000

Answer:

The printing press.

Explanation:

The printing press and its form of works are known to be an early age form that have been used and still in use for advertising. Advertisements of this form are seen in form of newspapers or magazines and are sometimes included as brochures or fliers. Write ups used in the print media to grab the attention of the specific target audience comes under the purview of print advertising.

Newspapers readers and also other publications methods have a tendency to browse the print ads that they come across. Moves to purchase these products could possibly not be instantaneous, but it does settle down in their subconscious mind. Next time they see the product in the market, they are tempted to buy it.

Answer:

Causality policy

Explanation:

This policy makes provision for an organization or individual to be insured against any damage to property as a result of negligent acts or omissions.

In this case the property–$250,000 worth of computer equipment held inside the truck was trapped in a flooded underpass, and the circumstances shows there may have likely been negligence on the part of the truck driver.

Answer:

S

Explanation:

Answer: Please find answers in explanation column

Explanation:

Double declining depreciation rate = 1/n x 2

= 1/5 x 2= 2/5 = 0.4 x 100 = 40 %

Carrying value = if depreciation rate = 40 % , then begining value = 100-40=60%

 Depreciation expense for 2019 =  Carrying value x depreciation nrate x period(jan- oct) = $8,100 x 60% x 40% x 10/12 = $1,620

Journal entry to record Depreciation expense  

Accounts                                      Debit                          Credit

Depreciation expense                   $1,620

Accumulated depreciation--Display shelving                 $1,620

Carrying value / Ending balance of shelving at October, 2019= cost - depreciation

8,100  - 8,100 x 40% + 1620 = 8,100 - 4,860= $3240

Gain/ Loss =  Sale -  the ending balance of the carrying value of the asset

                   $2700 - $3240= -540= $540 loss

Journal to record shelving for and its sale in .

Accounts                                                       Debit               Credit

Cash                                                               $2700

Accumulated depreciation--

Display shelving (3240 +1620)                       $4860

loss on sale of asset                                       $540

Shelving                                                                                $8,100