Answer:
$-2.38 million
$1.40 million
Explanation:
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Project 1
cash flow in year 1 = 9 million
cash flow in year 2 = 5 million
i = 8%
pv = 12.6
12.6 - 15 = -2.38
Project 2
cash flow in year 1 = 10 million
cash flow in year 2 = 6 million
i = 8%
pv = 14.40
14,40 - 13 = 1.40
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
CSUN Corp. reported EBITDA of $2,767,000 for the fiscal year ended December 31, 2019. During the same period, the company had $189,000 in interest expense, $596,000 in depreciation and amortization expense, and an average corporate tax rate of 25 percent. What was the cash flow to investors from operating activity (CFOA) during 2019
Answer: $2,271,500
Explanation:
Cash flow to investors is:
= EBITDA - Taxes
Taxes = (EBITDA - Depreciation - Interest) * tax rate
= (2,767,000 - 596,000 - 189,000) * 25%
= $495,500
Cash flow to investors from operating activities is:
= 2,767,000 - 495,500
= $2,271,500
contractor decided to bid for a major commercial project. The total price of her bid is $10 million. Estimate the total cost of estimating and preparing the bid proposal.
Answer: $150,000
Explanation:
The total cost of estimating and preparing the bid would normally fall between 1% and 2% of the total price of the bid.
It would therefore be best to use an average rate of these:
= ( 1 + 2) / 2
= 1.5%
The estimate will therefore be:
= 1.5% * 10,000,000
= $150,000
viết lý do chọn đề tài hay về chiến lược xúc tiến của công ty grab
Answer:
đồ án phân tích việc thực hiện chiến lược marketing của Grab tại Việt Nam ... soát ... lược giá (Price) 18 1.3.3 Chiến lược phân phối .20 1.3.4 Chiến lược Xúc tiến hỗn ... lược cấp công ty Tổng tài sản Grab Singapore 2014 - 2015 Doanh thu Grab ... lý Trong trình học tập hướng dẫn thầy Đỗ Thanh Tùng em hoàn thành đề tài .
Computing and Assessing Plant Asset Impairment
On January 1, Zeibart Company purchases equipment for $225,000. The equipment has an estimated useful life of 10 years and expected salvage value of $25,000. The company uses straight-line depreciation. Four years later, economic factors cause the fair value of the equipment to decline to $90,000. On this date, Zeibart examines the equipment for impairment and estimates undiscounted expected cash inflows from this equipment of $125,000
(a) Compute the annual depreciation expense relating to this equipment.
(b) Compute the equipment's net book value at the end of the fourth year.
(c) Apply the test of impairment to this equipment as of the end of the fourth year. Is the equipment impaired?
Answer:
a. Depreciation expense = (Cost - Salvage value / Useful life
Depreciation expense = ($225,000 - $25,000) / 10 years
Depreciation expense = $20,000
b. Equipment's net book value = Cost of equipment - Depreciation for 4 years
Equipment's net book value = $225,000 - ($20,000 * 4)
Equipment's net book value = $225,000 - $80,000
Equipment's net book value = $145,000
c. When the sum of undiscounted expected cash flows < Net book value of asset, then the asset is impaired
Here, $125,000 < $145,000. So, the equipment is impaired.
Impairment loss = Net book value of asset - Fair value of asset
Impairment loss = $145,000 - $90,000
Impairment loss = $55,000
Mariott Condominium, located near San Diego, California, plans to renovate its main building. The project will begin April 1, and the goal is to complete by August 1 (in 17 weeks). The condominium manager identifed the renovation activities and their estimated time below.
a) Draw a project network. You may want to draw on paper then do it here by connecting the given nodes with arcs (i.e, arrows). You might not use all of the given arcs.
b) What are the critical activities?
c) What activity has the most slack time?
d) Will the project be completed by August 1?
Answer:
7
Explanation:
because
Martin used his credit card to buy a new bike. Which statement is true?
Answer: A.
Explanation: egde 2021
Answer: A, he borrowed money
Explanation:
Bramble Corp. borrowed $870000 from Liber Bank on January 1, 2019 in order to expand its mining capabilities. The note required annual payments of $220776 and carried an annual interest rate of 8.5%. What is the balance in the notes payable account at December 31, 2020 if payments are made at the end of each year
Answer:
$563,867.79
Explanation:
Notes annual payments = $220,776
Notes payable January 1, 2019 = $870,000
Interest for the year 2019 = $870,000*8.5% = $73,950
Principal payment for 2019 = $220,776 - $73,950 = $146,826
Notes payable at the end of year 2019 = $870,000 - $146,826 = $723,174
Interest for the year 2020 = $723,174 * 8.5% = $61,469.79
Principal payment for 2020 = $220,776 - $61,469.79 = $159,306.21
Notes payable at the end of year 2021 = $723,174 - $159,306.21 = $563,867.79
Vaughn Corporation had income from continuing operations of $10,653,500 in 2020. During 2020, it disposed of its restaurant division at an after-tax loss of $200,300. Prior to disposal, the division operated at a loss of $321,100 (net of tax) in 2020 (assume that the disposal of the restaurant division meets the criteria for recognition as a discontinued operation). Vaughn had 10,000,000 shares of common stock outstanding during 2020. Prepare a partial income statement for Vaughn beginning with income from continuing operations.
Answer:
Bonita Corporation
Income statement (Partial)
For the year 2020
Particulars Amount ($) Amount ($)
Income from continuing operations 10,653,500
Discontinued Operations:
Loss from operations of discontinued (321,100)
restaurant division
Loss from disposal of restaurant division (200,300)
Total loss on discontinued operations (521,400)
Net Income 10,132,100
Earning Per Share:
Income from continuing operations $1.07 [$10,653,500 / 10,000,000]
Discontinued Operations $0.06 [$521,400 /10,000,000]
Net Income $1.01 [$10,132,100 / 10,000,000]
Ziegler Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows: Units Produced Total Costs
3,300 $168,000
1,300 108,000
2,390 149,040
a. Determine the variable cost per unit and the total fixed cost.
b. Based on part (a), estimate the total cost for 1,660 units of production.
Answer:
Ziegler Inc.
a) The variable cost per unit = $60
b) The total fixed cost = $30,000
c) The total cost for 1,660 units = $129,600
Explanation:
a) Production Data and Calculations:
Units Total
Produced Costs
3,300 $168,000
1,300 108,000
2,390 149,040
High-low method:
High 3,300 $168,000
Low 1,300 108,000
Diff. 1,000 $60,000
Variable cost = $60 ($60,000/1,000)
Fixed cost = $30,000 ($108,000 - ($60 * 1,300)
Total cost for 1,660 units:
Variable costs = $99,600 ($1,660 * $60)
Fixed cost = 30,000
Total costs = $129,600
You are planning to make monthly deposits of $490 into a retirement account that pays 10 percent interest compounded monthly. If your first deposit will be made one month from now, how large will your retirement account be in 30 years
Answer:
$1,107,639.08
Explanation:
The amount in future of the dollar invested today is known as the Future Value (FV) . We compound the payments or principle amount to determine the future value using the effective interest.
Using a financial calculator, this can simply be calculated as follows :
PMT = - $490
P/YR = 12
I = 10 %
N = 30 x 12 = 360
PV = $ 0
FV = ??
The Future Value (FV) is $1,107,639.08
therefore
The retirement account will be $1,107,639.08 in 30 years
Outback Outfitters sells recreational equipment. One of the company’s products, a small camp stove, sells for $110 per unit. Variable expenses are $77 per stove, and fixed expenses associated with the stove total $161,700 per month. Required: 1. What is the break-even point in unit sales and in dollar sales? 2. If the variable expenses per stove increase as a percentage of the selling price, will it result in a higher or a lower break-even point? (Assume that the fixed expenses remain unchanged.) 3. At present, the company is selling 15,000 stoves per month. The sales manager is convinced that a 10% reduction in the selling price would result in a 25% increase in monthly sales of stoves. Prepare two contribution format income statements, one under present operating conditions, and one as operations would appear after the proposed changes. 4. Refer to the data in Required 3. How many stoves would have to be sold at the new selling price to attain a target profit of $77,000 per month?
Suppose the European and Japanese economies succumb to a recession and reduce their demand for U.S. goods for several years. Using AS/AD framework, explain the macroeconomic consequences of this shock, both immediately and over time.
The standard materials cost to produce 1 unit of Product R is 5 pounds of material at a standard price of $41 per pound. In manufacturing 7,000 units, 34,000 pounds of material were used at a cost of $42 per pound. What is the total direct materials cost variance?
a. $40,000 unfavorable.
b. $8,000 unfavorable.
c. $48,000 favorable.
d. $48,000 unfavorable.
e. $8,000 favorable.
Answer:
Total variance= $7,000 favorable
Explanation:
To calculate the direct material total variance, we need to determine the direct material price and quantity variance:
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (41 - 42)*34,000
Direct material price variance= $34,000 unfavorable
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Direct material quantity variance= (5*7,000 - 34,000)*41
Direct material quantity variance= $41,000 favorable
Total variance= 41,000 - 34,000= $7,000 favorable
The Wildhorse Company has disclosed the following financial information in its annual reports for the period ending March 31, 2017: sales of $1.484 million, cost of goods sold of $803,000, depreciation expenses of $175,000, and interest expenses of $89,575. Assume that the firm has an average tax rate of 35 percent. Compute the cash flows to investors from operating activity.
Answer: $535,251.25
Explanation:
Cash flow to investors from operating activities is calculated by:
= EBIT + Depreciation - Taxes
EBIT = Sales - Cost of goods sold - Depreciation
= 1,484,000 - 803,000 - 175,000
= $506,000
Taxes = Tax rate * (EBIT - Interest)
= 35% * (506,000 - 89,575)
= $145,748.75
Cash flow to investors = 506,000 + 175,000 - 145,748.75
= $535,251.25
Evaluation of the amount of costs incurred should be based on the actual volume of activity rather than the planned volume of activity. True False
Answer:
False
Explanation:
The Performance Evaluation may be defined as the formal as well as a productive procedure to help measure the work of the employee and results is based on their job responsibilities.
For any performance evaluation, the cost that is actually incurred should not be compared to the cost which would have been incurred to the actual volume of the activity or work rather than the planned activity.
Thus the answer is false.
Torque Corporation is expected to pay a dividend of $1.00 in the upcoming year. Dividends are expected to grow at the rate of 6% per year. The risk-free rate of return is 5% and the expected return on the market portfolio is 13%. The stock of Torque Corporation has a beta of 1.2. Torque's stock price is
Answer:
The answer is "[tex]\$11.62 \ (approx)[/tex]"
Explanation:
Using formula:
[tex]\text{Required return=risk free rate}+\text{beta}\times \text{(market rate-risk free rate)}[/tex]
[tex]=5+(13-5) \times 1.2\\\\=14.6\%\\\\\text{Intrinsic value}=\frac{D_1}{\text{(Required return-Growth rate)}}\\\\= \frac{1}{(0.146-0.06)}\\\\= \frac{1}{(0.140)}\\\\=\$11.62\ (Approx)[/tex]
You are valuing an investment that will pay you $28,000 per year for the first 4 years, $43,000 per year for the next 12 years, $69,000 per year the next 18 years, and $61,000 per year for the following 10 years (all payments are at the end of each year). If the appropriate annual discount rate is 11.00%, what is the value of the investment to you today
Answer:
Value of investment = $29139.28
Explanation:
Below is the calculation to find the value of investment:
Value of investment = 28000(P/F, 11%, 4) + 43000(P/F, 11%, 12)(P/F, 11%, 4) + 69000(P/F, 11%, 18)(P/F, 11%, 16) + 61000(P/F, 11%, 10)(P/F, 11%, 34)
Value of investment = 28000(0.6587) + 43000(0.2858)(0.6587) + 69000(0.1528)(0.1882) + 61000(0.3521)(0.0287)
Value of investment = $29139.28
Burkhardt Corp. pays a constant $15.25 dividend on its stock. The company will maintain this dividend for the next 9 years and will then cease paying dividends forever. If the required return on this stock is 9.2 percent, what is the current share price
Answer:
$90.69
Explanation:
Current share price can be determined by calculating the present value of the cash flows
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow in year 1 to 9 = 15.25
I = 9.2
PV = 90.67
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Economists who favor activist monetary policy often argue that Group of answer choices during the mid-1970s, money supply growth rates were nearly constant and still the economy went through a recession. activist monetary policy is likely to be destabilizing most of the time, but still it is the better way to proceed. during the mid-1970s, activist monetary policy was applied, and the economy was healthy and stable. activist monetary policy is inflexible, and this is one of its virtues; the money supply doesn't change every year in response to political considerations.
Answer:
during the mid-1970s, money supply growth rates were nearly constant and still the economy went through a recession
Explanation:
In the case when the economist favored that activist monetary policy determines that at the time of 1970s the growth rate related to the money supply would be the same or the constant and still keeping the same the economy would be in the recession
So as per the given situation, the first option is correct
The Chiemsee Knee Replacement Clinic (CKRC) is a sports clinic located at the northern edge of the German Alps. It specializes in knee replacements for skiers who come to CKRC from Germany, Austria, Switzerland, and Italy. The clinic currently has one operating room (OR). However, since the clinic has dramatically more demand than capacity, the management team contemplates investing in a second OR. A lean consulting firm, however, suggests that before going ahead with installing new capacity, the clinic should first look at how it uses its existing capacity. The data collected by the consulting firm reveal that:
Answer:
Another operating room is needed.
Explanation:
The data collected by the consulting firm reveal that the existing facility does not fulfill the requirement due to more number of people so for this reason they have to build another operating room to quickly facilitate more number of people in less time. There are more number of people comes to the clinic as compared to previous years which compels the authority to build up new operating rooms for the convenience of people that comes for knee replacement.
Briggs Company has operating income of $36,000, invested assets of $180,000, and sales of $720,000. Use the DuPont formula to compute the return on investment and show (a) the profit margin, (b) the investment turnover, and (c) the return on investment
Answer:
a. 5 %
b. 4.00
c. 20 %
Explanation:
(a) the profit margin,
profit margin = Net Income / Sales x 100
= $36,000 / $720,000 x 100
= 5 %
(b) the investment turnover, and
investment turnover = Sales ÷ Total Assets
= $720,000 ÷ $180,000
= 4.00
(c) the return on investment
return on investment = Net Income ÷ Total Assets
= $36,000 /$180,000 x 100
= 20 %
North Corp. EBIT is $200. It has a debt-equity ratio of 25% and a WACC of 16%. Debt interest is 12%. Without taxes, what is the value of the firm?
Answer:
Value of the firm = 25000
Explanation:
Use the below formula to find the value of firm.
Degree of Financial Leverage = EBIT / ( EBIT - Interest)
Degree of Financial Leverage = 0.25
0.25={200/ {200-Interests}
Interests amount = - 600
Interest amount = debt × Cost of Debts
Debt amount = Interest amount / Cost of Debt
Debt amount = - 600 / 0.12.
Debt amount = -5000
Now find the debt equity ratio:
Debt-equity ratio = debt / equity
Given Debt amount = 5000
0.25= 5000 / Equity
Equity =5 000 /0.25
The value of Equity = 20,000
Now, the value of the firm = Equity amount + Debt amount
The value of the firm = 20000 + 5000
The value of the firm = 25000
Write the president (me) a memo explaining your reasoning and suggest a new pricing strategy. (You can decide what kind of business we’re in)
Answer:
To: President
From: General Manager Finance
Subject : Pricing strategy for existing products
Date : 20th June 2021
As you are aware about the declining sales of our various products. The main reason identified by our sales and marketing analysts for the declining sales is over pricing of various products. There have been increase competition in the market and new entrants have adopted strategy of economies of scale which enable them to sell the product at low price and gain market share. There we need to cut our costs and then reduce our profit margin to boost sales of our products. We can be profitable from volume sales strategy.
If you need to discuss further on this matter, we can arrange a meeting with head of different department to discuss the business strategy in more detail.
The following transactions are for Marin Company. 1. On December 3, Marin Company sold $492,200 of merchandise to Cullumber Co., on account, terms 2/10, n/30. The cost of the merchandise sold was $325,100. 2. On December 8, Cullumber Co. was granted an allowance of $22,900 for merchandise purchased on December 3. 3. On December 13, Marin Company received the balance due from Cullumber Co.a. Prepare the journal entries to record these transactions on the books of Oriole Company. Oriole Company uses a perpetual inventory system.b. Assume that Oriole Company received the balance due from Cullumber Co. on January 2 of the following year instead of December 13. Prepare the journal entry to record the receipt of payment on January 2.
Answer and Explanation:
The journal entries are shown below:
On Dec 3
Account receivable Dr $492,200
To Sales Revenue $492,200
(being the goods sold on credit)
Cost of goods sold Dr $325,100
To Inventory $325,100
(being the cost of the merchandise is recorded)
On Dec 8
Sales Returns and Allowances $22,900
To Accounts Receivable $22,900
(Being the sales return & allowance is recorded)
On Dec 13
Cash $459,914
Sales Discounts (2% of $469,300) $9,386
To Accounts Receivable ($492,200 - $22,900) $469,300
(being cash receipt is recorded)
On Jan 2
cash Dr ($492,200 - $22,900) $469,300
To account receivable $469,300
(being cash receipt is recorded)
As a manager of a medium sized manufacturing organization, you have noticed productivity has steadily gone down recently. You have made a study and discovered the team is lacking motivation. Invoking any two theories you have learnt explain how you would go about re-energizing the workers to regain and even surpass the previous levels of productivity.
Answer: give them bonuses for work complete.
Explanation:people like money
Jacobi Supply Company recently ran into certain financial difficulties that have resulted in the initiation of voluntary settlement procedures. The firm currently has $150,000 in outstanding debts and approximately $75,000 in liquidatable short-term assets. Each creditor will be paid 50 cents on the dollar immediately, and the debts will be considered fully satisfied. Indicate whether the plan is an extension, a composition, or a combination of the two. Indicate the cash payments and timing of the payments required of the firm under the plan.
Answer: Composition
Explanation:
The company owes $150,000 and would pay $0.50 on every dollar immediately.
The cash payment required of the company would therefore be:
= Amount of debt in $ - Amount to be paid per dollar.
= 150,000 * 0.5
= $75,000
Timing of payment is immediately.
A composition refers to an agreement between a debt and its creditors that would allow it to pay off part of its debt in lieu of the total value. This is usually done when the debt risks being insolvent or bankrupt but can still pay off part of its debt.
The agreement would enable it pay off some of the debt and the entire debt would be written off. The benefit to the debtor is that they avoid bankruptcy and the benefit to the creditor is that they get more than they would have gotten had bankruptcy been declared.
A composition is what happened here as a part of debt was paid to satisfy the full thing.
n June, one of the processing departments at Football Corporation had beginning work in process inventory of $12,700. During the month, $433,000 of costs were added to production and the cost of units completed and transferred out from the department was $411,000. In the department’s cost reconciliation report for January, the cost of ending work in process inventory for the department would be:
Answer:
$34,700
Explanation:
Calculation to determine what the cost of ending work in process inventory for the department would be:
Using this formula
Cost of ending work in process inventory=Beginning work in process inventory +Costs added to production-Units completed and transferred out
Let plug in the formula
Cost of ending work in process inventory=$12,700+$433,000- $411,000
Cost of ending work in process inventory=$34,700
Therefore the cost of ending work in process inventory for the department would be: $34,700
A company that has never previously issued securities registered with the Securities and Exchange Commission, can register in a State by:
Answer:
C. II and III
Explanation:
These are the options for the question
I Filing
II Coordination
III Qualification
A. I only
B. II only
C. II and III
D. I, II, III
The Securities and Exchange Commission (SEC) can be regarded as an oversight agency of U.S. government, which responsible for regulation of securities markets as well as protection of investors. civil actions can be taken by SEC against lawbreakers, they aworks hand in hand along with Justice Department on criminal cases. For a company to register under them , there must be Coordination and Qualification. It should be noted that company that has never previously issued securities registered with the Securities and Exchange Commission, can register in a State by Coordination and Qualification
A company produces two products, A and B, which have profits of $9 and $7, respectively. Each unit of product must be processed on two assembly lines, where the required production times are as follows. Product Hours/Unit Line 1 Line 2 A 12 4 B 4 8 Total hours 60 40 a) Formulate a linear programming model to determine the optimal product mix that will maximize profit. b) Transform this model into standard form.
Answer:
Following are the solution to the given question:
Explanation:
The decision variable of the green is defined in the given graph:
unit production of [tex]A = X_1[/tex]
unit production of [tex]B = X_2[/tex]
The objective function of the yellow is defined in the given graph:
maximize profit:
[tex]\to 9X_1 + 7X_2[/tex]
Using the excel: [tex]C10 = SUM(C8:C9)[/tex]
Constraints:
1)
For Line 1: maximum 60 hours
[tex]\to 12X_1 + 4X_2 \leq 60, \ \ in \ excel: D4 \leq 60[/tex]
2)
For Line 2: maximum 40 hours
[tex]\to 4X_1 + 8X_2 \leq 40, in\ \ excel: F4 \leq 40[/tex]
3) [tex]X_1,X_2 \geq 0[/tex]
by solve the value we get [tex]X_1 = 4, X_2 = 3,[/tex] maximum profit [tex]= 57[/tex]
For point b:
[tex]maximize: 9X_1 + 7X-2\\\\subject\ \ to:\\\\12X_1 + 4X_2 \leq 60\\\\4X_1 + 8X_2 \leq 40\\\\X1,X2 \geq 0[/tex]
Inventory records for Marvin Company revealed the following: Date Transaction Number of Units Unit Cost Mar. 1 Beginning Inventory 1,000 $ 7.20 Mar. 10 Purchase 600 7.25 Mar. 16 Purchase 800 7.30 Mar. 23 Purchase 600 7.35 ________________________________________ Marvin sold 2,300 units of inventory during the month. Cost of goods sold assuming FIFO would be:
Answer:
$16,660
Explanation:
FIFO method assumes that the units to arrive first will be sold first. Hence the valuation of cost of goods sold is based on earlier prices.
Cost of goods sold = 1,000 x $ 7.20 + 600 x 7.25 + 700 x 7.30
= $16,660
Therefore,
Cost of goods sold assuming FIFO would be: $16,660.
