Answer:
a. 4.59 years
b. $2,944.77
c
1. 5 years
2. $25,261.96
3.I would recommend the second investment because the NPV for the second project is greater than that of the first project. It means that the second project is more profitable than the first project.
Explanation:
Payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash flows
Payback period = Amount invested / cash flow
$390,000 / $85,000 = 4.59 years
Net present value is the present value of after tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Cash flow in year 0 = $390,000
Cash flow each year from year 1 to 6 = $85,000
I = 8%
NPV = $2,944.77
For the second investment
Payback period = Amount invested / cash flow
$400,000 / $80,000 = 5 years
Cash flow in year 0 = -$400,000
Cash flow each year from year 1 to 6 = $80,000
Cash flow in year 7 = $80,000 + $15,000 = $95,000
I = 8%
NPV = $25,261.96
I would recommend the second investment because the NPV for the second project is greater than that of the first project. It means that the second project is more profitable than the first project.
To find the NPV 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
The following CVP income statements are available for Blanc Company and Noir Company. Blanc Company Noir Company Sales $510,000 $510,000 Variable costs 306,000 255,000 Contribution margin 204,000 255,000 Fixed costs 195,840 246,840 Net income $8,160 $8,160Calculate Contribution margin ratio
Answer:
Results are below.
Explanation:
Giving the following information:
Blanc Company:
Sles= 510,000
Variable costs= 306,000
Noir Company
Sales= $510,000
Variable costs= 255,000
To calculate the contribution margin ratio, we need to use the following formula:
contribution margin ratio= (sales - variable cost) / sales
Blanc:
contribution margin ratio= (510,000 - 306,000)/510,000
contribution margin ratio= 0.4
Noir:
contribution margin ratio= (510,000 - 255,000) / 510,000
contribution margin ratio= 0.5
suppose that you have an option to hire a consultant who has the ability to predict the future with 100 percent accuracy. using the consultant's reliable recommendations, you found that the expected value with perfect information is equal to $200. without the consultant's insights you determined the emv to be equal to $175. would you pay the consultant $30 for her service
Answer: d. No, because EVPI is $25, which is less than the consultant's fee of $30
Explanation:
The expected value with the consultant's input is $200 and the expected value without it is $175.
The difference of $25 is the maximum that the consultant should be paid because anything larger than this would result in an opportunity loss because if the consultant is paid $30, the net return earned will be $170 which is $5 lower than what would have been earned without her input.
The $30 is simply not worth it.
Tariffs create a(n) ___________ pressure on domestic prices.
Select the correct answer below:
A. upward
B. downward
C. constant
D. negligible amount of
Answer: A. upward
Explanation:
Tariffs are taxes that a Government imposes on imported goods in a bid to protect local producers that are making the same goods.
When a Tariff is implemented, it will make goods from outside more expensive as well as give domestic producers an opportunity to charge higher prices as imports have become more expensive.
Both of these results will pull the domestic prices up.
"A firm holds a joint cash account for a husband and wife. The wife calls the registered representative and says "Sell 500 shares of ABC out of the account immediately and send a check for the proceeds made out to my name". The representative should inform the wife that:"
Answer:
The representative should inform the wife that: it would be an impossible task to do. This is because, the account which she held in the firm happened to be a joint account with the husband. In order to sell 500 shares, she would need to obtain approval from her husband in form of signature.
Explanation:
In judging the quality of hospitals, it is well known that for complicated procedures, such as open-heart surgery, three factors are related to patient outcomes. Which of the following factors is NOT related: A. Experience: The greater the number of procedures per year, the better the results. B. Medical-school affiliation. Teaching hospitals tend to yield better outcomes. C. Location. Suburban hospitals have better results than those in the inner city. D. Size. Larger hospitals tend to yield better outcomes for major procedures than smaller ones.
Answer:
D. Size.Larger hospitals tend to yield better outcomes for major procedures than smaller ones.
Explanation:
The hospitals provide health care facilities to the public. It is crucial place where one mistake by a doctor or other staff could lead to death of a patient. The patients coming in he hospital need to be treated carefully and timely. The professional and experience will have the skills and expertise to treat the patient carefully and diagnose the problem quickly. The size of the hospital does not matter even the small clinics with professional staff can lead better results.
Farrugia Corporation produces two intermediate products, A and B, from a common input. Intermediate product A can be further processed into end product X. Intermediate product B can be further processed into end product Y. The common input is purchased in batches that cost $36 each and the cost of processing a batch to produce intermediate products A and B is $15. Intermediate product A can be sold as is for $21 or processed further for $14 to make end product X that is sold for $32. Intermediate product B can be sold as is for $44 or processed further for $28 to make end product Y that is sold for $64. Required: a. Assuming that no other costs are involved in processing potatoes or in selling products, how much money does the company make from processing one batch of the common input into the end products X and Y
Answer:
Farrugia Corporation
a. The amount made from processing one batch of the common input into the end products X and Y:
$2 ($95 - $93)
Explanation:
a) Data and Calculations:
Intermediate products = A and B
Intermediate product A processed into end product X
Intermediate product B processed into end product Y.
Cost of purchase of common input = $36
Cost of processing a batch to produce intermediate products A and B = $15
Further processing of product A into X will cost = $14
Further processing of product B into Y will cost $28
Sales price of X = $32
Sales price of Y = $64
Total price for X and Y = $95
Total cost for X and Y:
Purchase of a batch = $36
Cost of batch processing = 15
Cost of further processing A: 14
Cost of further processing B: 28
Total cost = $93
The company makes $2 ($95 - $93) from processing one batch of the common input into the end products X and Y.
A company wants to create a dynamic survey that navigates users through a different series of questions based on their previous responses. What is the recommended solution to meet this requirement
Answer:
Visualforce and Apéx
Explanation:
Visualforce is defined as a programming language that is peculiar to Salesforce. It is mostly used among developers to build and personalized user interface.
The Visualforce controller is a set of instructions that specifies what occurs in a program.
Apéx on the hand, is considered to be a proprietary language built by Salesforce.com. It is mainly used to execute flow and transaction control statements on the Force.com platform server in conjunction with calls to the Force.com API.
Hence, in this case, with the help Visualforce and Apéx, a company will be able to create a dynamic survey that navigates users through a different series of questions based on their previous responses.
Which type of disclosure must be signed by the buyer and the seller in a nonresidential transaction?
Answer: Request to use designated sales associate representation
Explanation: The buyer and the seller must sign the Request to use designated sales associate representation agreement, or disclosur notice stating that their that their assets meets the required or stated thresholds and stating that the broker must use the designated sales associate representation form When required.
you purchase a home for $200,000 that you expect to appreciate 6% in value on an annual basis. How much will the home be worth
Answer:
The answer is $358,169.53
Explanation:
Present value(PV) is $200,000
Interest rate(r) is 6%
Number of years(N) is 10years
The formula for finding future value is
FV = PV(1+r)^n
=$200,000(1+0.06)^10
$200,000(1.06)^10
$200,000 x 1.790847697
= $358,165.53
Alternatively;
Lets use a financial calculator
N = 10; I/Y = 6; PV = -200,000; PMT=0; CPT FV= $358,169.53
NOTE: The difference in final value result is due to the rounding off of decimal point.
"A customer is long the Swiss Franc at a cost of $.60 per SF. The customer wishes to place a collar on the position using PHLX SF FLEX options. To create the collar, the customer would:"
Answer:
To create the collar, the customer would: buy 1 PHLX 59 SF Call and sell 1 PHLX 61 SF Call.
Explanation:
The meaning of a "collar" is that a put is bought at a strike price that is less than the price of the underlying instrument (this implies that a floor has been put on the price of the instrument); and that a call is disposed at a strike price which is higher than the price of the underlying instrument (this indicates that a ceiling above which the instrument will be called away has been created).
When a collar is put on the price, it indicates that the customer is majorly giving a guarantee for the underlying instrument's minimum and maximum price.
This should make the net cost of the collar to be close to zero due to the fact that the two contracts are "out the money" and also because the premium paid to buy the put is offset by the premium received when the call was sold.
Therefore, since customer in the question wishes to place a collar on the position using PHLX SF FLEX options, he would buy 1 PHLX 59 SF Call and sell 1 PHLX 61 SF Call to create the collar.
You determined the following information for Big Rapid's Supplies: It has a receivables turnover rate of 23.5 a payables turnover rate of 12.5 and an inventory turnover rate of 19.15. What is the length of the firm's operating cycle
Answer:
35 days
Explanation:
Receivables turnover rate = 23.5
Payables turnover rate = 12.5
Inventory turnover rate = 19.15
Length of firm's operating cycle :
(Days sales in inventory + average collection period)
Days' sales in inventory = (365 days / inventory turnover ratio)
Days' sales in inventory = (365 / 19.15)
Days's sales in inventory = 18.717 days
Average collection period : (365 / accounts receivable turnover ratio)
Average collection period = (365 / 23.5)
Average collection period = 15.531
(18.717 + 15.531)
= 34.248
= 35 days
Given the following:A firms projected free cash flows of2021 $20 million2022 $30 million2023 $50 millionAfter 2023, the growth rate will be steady at 4%Cost of capital (WACC) = 8%Value of marketable securities = $20 millionValue of long term debt = $12 million10 million shares outstanding calculate: a. the horizon value b. the Value of operations c. the stock price SHOW WORK FOR CREDIT:
Answer:
a) $1,300 million
b) $1,115.91 million
c) $112.39
Explanation:
To find horizon value, value of operations, and the stock price we need to go through calculations using appropriate formulas.
DATA
Free CashFlow, 2021 = $20 million
Free CashFlow,, 2022 = $30 million
Free CashFlow,, 2023 = $50 million
Growth Rate = 4%
Cost of Capital = 8%
Value of Long-term Debt = 12 million
Value of marketable securities = $20 million
outstanding shares = 10 million
Working
Free CashFlow,, 2024 = Free CashFlow,, 2023 * (1 + Growth Rate)
Free CashFlow,, 2024 = $50 million * 1.04
Free CashFlow,, 2024 = $52 million
Horizon Value
Horizon Value = Free CashFlow, 2024 / (Cost of Capital - Growth Rate)
Horizon Value = $52 million / (0.08 - 0.04)
Horizon Value = $52 million / 0.04
Horizon Value = $1,300 million
Value of operation
Value of Operations = $20 million / 1.08 + $30 million / 1.08^2 + $50 million / 1.08^3 + $1,300 million / 1.08^3
Value of Operations = $1,115.91 million
Stock price
To find the price per share we need to find the value of equity first
Value of Equity = Value of Operations - Value of Long-term Debt + Value of Marketable Securities
Value of Equity = $1,115.91 million - $12.00 million + $20.00 million
Value of Equity = $1,123.91 million
Price per share = Value of Equity / Number of Shares
Price per share = $1,123.91 million / 10 million
Price per share = $112.39
The phone bill for a corporation consists of both fixed and variable costs. Refer to the fourmonth data below and apply the highlow method to answer the question.
Min. Total Bill
January 460 $4,000
February 240 $2,675
March 180 $2,655
April 310 $5,730
If the company uses 390 minutes in May, how much will the total bill be? (Round any intermediate calculations to the nearest cent and your final answer to the nearest dollar.)
A) $1,842
B) $1,829
C) $3,672
D) $6,157
Answer:
$3,601
Explanation:
The calculation for the total bill is as follow;
Change in total cost [ $4,000 - $2,655 ] = $1,345
Change in minutes [ 460 - 180 ] = 280
Therefore,
Variable cost per minute = $1,345 ÷ 280
= $4.80 per minutes
Also,
Variable costs for January
= 460 minutes * 4.80 per minutes
= $2,208
Total fixed costs =Total mixed cost - Total variable cost
= $4,000 - $2,208
= $1,792
For 390 minutes used by the company,
Total costs would be
= [390 minutes * $4.80 per minutes] + $1,792
= $1,872 + $1,729
= $3,601
Sourcing goods and services from different locations around the globe in an attempt to take advantage of national differences in the cost and quality of factors of production. This practice is made possible by the globalization of what? a. Finance. b. Production. c. Markets. d. Process design.
Answer:
b. Production
Explanation:
Global Value Chains have been successful over the years due to most components being produced in the country where it is cheaper to do so and then the final output is integrated in other country.
Thus globalization of production has enabled firms to take advantage of national differences in the cost and quality of factors of production.
Perit Industries has $115,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are: Project A Project B Cost of equipment required $ 115,000 $ 0 Working capital investment required $ 0 $ 115,000 Annual cash inflows $ 21,000 $ 69,000 Salvage value of equipment in six years $ 8,700 $ 0 Life of the project 6 years 6 years The working capital needed for project B will be released at the end of six years for investment elsewhere. Perit Industriesâ discount rate is 15%. Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using tables. Required:Calculate net present value for each project. Project A Project B Net present value
Answer:
NPV for A = $31,764.61
NPV for B= $195,846.98
Explanation:
Net present value is the present value of after tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
For project A
Cash flow in year 0 = cost of equipment + working capital investment = $ -115,000
Cash flow each year from year 1 to 5 = 21,000
Cash flow in year 6 = year 6 cash flow + salvage value + working capital investment = $21,000 + $8,700 = $29,700
I = 15%
NPV = $31,764.61
For project B
Cash flow in year 0 = cost of equipment + working capital investment = $ -115,000
Cash flow each year from year 1 to 5 = 69,000
Cash flow in year 6 = year 6 cash flow + salvage value + working capital investment = 69,000 + 115,000 = $184,000
I = 15%
NPV = $195,846.98
To find the NPV 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
Question 42 of 100. Millie's 2020 tax liability is $41,293. Her AGI is greater than $150,000. Her 2020 withholding is $36,910. Her 2019 tax liability was $29,570. Does she owe an estimated tax payment penalty for 2020
Answer:
Millie doesn't owe any type of penalty, she owes taxes but not a penalty. Her 2020 withholdings were $36,910, which is almost 25% higher than her previous tax liability ($29,570).
The IRS can penalize you for not having enough tax withholdings only if you didn't pay at least 90% of your tax liabilities or if your withholdings were less than the tax liability of the previous year (whichever is less). In this case, the withholdings were more than last year's tax liability.
Companies that successfully implement customer relationship management (CRM) tend to: a. customize the goods and services offered to their customers. b. minimize the use of database technology. c. use an undifferentiated targeting strategy. d. assume that customers have similar needs that can be met with a general marketing mix.
Answer:
a. customize the goods and services offered to their customers.
Explanation:
Customer relationship management refers to the technology, principles, policies, considerations, and principles applied by businesses to ensure the satisfaction of their customers. The ultimate purpose of customer relationship management is to meet the needs of the customers, thus making them happy and satisfied.
When an organization customizes the goods and services offered to their customers, they are offering a personalized buying experience that would make the customers happy. They would also have a sense of belonging and the feeling of being recognized. The result might translate to increased sales.
You write one JNJ February 70 put for a premium of $5. Ignoring transactions costs, what is the break-even price of this position?
Answer:
$65
Explanation:
The calculation of the break even price for this position is given elow:
Break even price is
= Strike price - premium
= $70 - $5
= $65
The stock goes increase i.e. upwards to $65 so the amount that lose is only $5 but it declines than the stock would be $0
Therefore, the break even price of this position is $65
So, by using the above formula we can get the break even price and the same is to be considered
Which of the following is not one of the typical sources of competitive pressures, according to Michael Porters five factor model?
A. The threat of new entrants into the market
B. The attempts of companies in other industries to win customers over to their own substitute products
C. The power and influence of industry's key success factors
D. The market maneuvering and jockeying for buyer patronage that goes on among rival firms
E. The bargaining power of suppliers and seller-supplier collaboration
Answer:
C. The power and influence of industry's key success factors
Explanation:
According to Michael Porters five factor model, the five competitive forces are competition rivalry ,customers, suppliers, substitutes and potential entrance. The power and influence of industry's key success factors is not included in this analysis.
Refer to Exhibit 9.3, which shows the cost and revenue curves for a non-discriminating monopolist. The total cost incurred by the monopolist for producing the profit-maximizing output is _____ Group of answer choices $16,500. $24,200. $16,200. $19,800. $30,800.
Answer: $19,800
Explanation;
The Monopolist will maximize output at the point where Marginal Revenue equals Marginal Cost because at this point all resources are being fully utilized.
Total Cost = Average Total Cost * Quantity produced
At the point where MR=MC, the quantity produced is 1,100 units.
The Average Total Cost tallying with this is $18 per unit.
Total Cost = 18 * 1,100
= $19,800
You just deposited $4,000 in cash into a saving account at the local bank. Assume that banks lend out all excess reserves and there are no leaks in the banking system. That is, all money lent by banks gets deposited in the banking system. Round your answers to the nearest dollar. If the reserve requirement is 16%, how much will your deposit increase the total value of checkable bank deposits? If the reserve requirement is 6%, how much will your deposit increase the total value of checkable deposits? Increasing the reserve requirement ________the money supply.
Answer:
The money multiplier given the reserve requirement can be calculated by;
= 1/ reserve requirement.
1. If the reserve requirement is 16%
Money Multiplier = 1/0.16
= 6.25
The increase in money supply ( checkable bank deposits) is the result of the money multiplier times the new cash.
= 6.25 * 4,000
= $25,000
2. If the reserve requirement is 6%
Money Multiplier = 1/0.06
= 16.67
Increase in money supply;
= 16.67 * 4,000
= $66,680
3. Increasing the reserve requirement increases the money supply.
The supply chain is the process a company uses to build and sell its products, it is also sometimes called:
Answer:
A value chain
Explanation:
The supply chain is the process a company uses to build and sell its products, it is also sometimes called a value chain.
A value chain is defined as all the activities and processes within a company that help add value to the final product.
Products is a manufacturer of large flower pots for urban settings. The company has these standards: LOADING...(Click the icon to view the standards.) Requirements 1. Compute the standard cost of each of the following inputs per pot: direct materials, direct labor, variable manufacturing overhead, and fixed manufacturing overhead. 2. Determine the standard cost of one flower pot. Requirement 1. Compute the standard cost of each of the following inputs per pot: direct materials, direct labor, variable manufacturing overhead, and fixed manufacturing overhead. (Round your answers to the nearest cent.) ▼ x = Standard cost of input
Answer and Explanation:
The computation is shown below:
1. The standard cost for each one is as follows
For Direct materials, it is
= 9.6 pounds × $4.55 Per pound
= $43.68
For Direct labour, it is
= 1 hour × $15.80 per hour
= $15.8
For Variable manufacturing overhead, it is
= 1 hour × $3.40 per hour
= $3.40
For Fixed Manufacturing overhead, it is
= 1 hour × $6 per hour
= $6
2. The standard cost of one flower pot is shown below:
= $43.68 + $15.80 + $3.40 + $6
= $68.88
Friday Night, Inc. manufactures high-quality 5-liter boxes of wine which it sells for $14 per box. Below is some information related to Friday Night's capacity and budgeted fixed manufacturing costs for 2019:
Budgeted Fixed Days of Hours of
Denominator-Level Manufacturing Production Production Boxes
Capacity Concept Overhead per Period per Period per Day per Hour
Theoretical capacity $4,000,000 362 22 300
Practical capacity $4,000,000 310 16 250
Normal capacity $4,000,000 310 16 175
Master budget capacity $4,000,000 310 16 200
Production during 2019 was 990,000 boxes of wine, with 15,000 remaining in ending inventory at 12/31/19. Actual variable manufacturing costs were $1,762,200 (there are no variable cost variances). Actual fixed manufacturing overhead costs were $4,000,000, the same as budgeted. What is the total cost per unit (box of wine) when practical capacity is used?
a. $3.45
b. $5.01
c. $5.81
d. $6.39
Answer:
b. $5.01
Explanation:
practical capacity = 310 x 16 x 250 = 1,240,000 boxes of wine per year
fixed overhead costs = $4,000,000 / 1,240,000 = $3.23 per box of wine
variable manufacturing costs = $1,762,200 / 990,000 = $1.78 per box of wine
total production costs per unit when practical capacity is used = $3.23 + $1.78 = $5.01 per box of wine
George has been selling 8,000 T-shirts per month for $8.00. When he increased the price to $9.00, he sold only 7,000 T-shirts.
Which of the following best approximates the price elasticity of demand?
A. -1.2467
B. -1.02
C. -0.5667
D. -1.1333
Answer:
The correct answer is B
Explanation:
The price elasticity of demand or PED is measures the responsiveness of the quantity demanded of a product to the changes in price for that product. The PED is calculated as follows,
PED = % change in quantity demanded / % change in price
or
PED = [(Q1 - Q0) / Q0] / [(P1 - P0) / P0]
Where,
Q1 is the new quantity demanded and Q0 is the old quantity demandedP1 is the new price and P0 is the old pricePED = [(7000 - 8000) / 8000] / [(9 - 8) / 8]
PED = -1
As -1.02 is the closest to -1 So B is the correct answer.
what type of thinking makes one resourceful
Answer:
logical
Explanation:
logical thinking is not based off of emotions or preference it is simple and to the point
1. The oversupply of hospitals and in-patient beds in the U.S. produced by the Hill-Burton legislation is the result of: A. The advent of managed care B. Change in the focus of medical education C. Technological advances D. Clinical guidelines E. A and C
Answer:
E. A and C.
Explanation:
Hill Burton passed a bill in the U.S legislation regarding the construction of new hospitals, providing nursing homes and other health care facilities. These facilities were financed by the loans and grants. There was oversupply of beds and hospitals in the U.S which was mainly due to excess focus on advent of managed care.
You and a rival are engaged in a game in which there are three possible outcomes: you win, your rival wins (you lose), or the two of you tie. You get a payoff of 50 if you win, a payoff of 20 if you tie, and a payoff of 0 if you lose. What is your expected payoff in each of the following situations where nature decides if you win or not:
A) There is a 50% chance the game ends in a tie, 10% chance you win (and therefore a 40%
chance you lose).
B) There is a 50-50 chance of winning and there are no ties.
C) There is an 80% chance you lose and a 10% chance you win or tie.
Answer:
A) There is a 50% chance the game ends in a tie, 10% chance you win (and therefore a 40% chance you lose).
expected value = (50% x 20) + (10% x 50) + (40% x 0) = 10 + 5 + 0 = 15
B) There is a 50-50 chance of winning and there are no ties.
expected value = (50% x 50) + (50% x 0) + = 25 + 0 = 25
C) There is an 80% chance you lose and a 10% chance you win or tie.
expected value = (10% x 20) + (10% x 50) + (80% x 0) = 2 + 5 + 0 = 7
The expected value of an event is determined by adding up all the possible outcomes multiplied by their respective value.
hose economists who believe that monetary policy is more potent than fiscal policy argue that the: Group of answer choices
Answer: responsiveness of investment to the interest rate is small.
Explanation:
Here is the complete question:
Those economists who believe that fiscal policy is more potent than monetary policy argue that the:
a. responsiveness of investment to the interest rate is small.
b. responsiveness of investment to the interest rate is large.
c. IS curve is nearly horizontal.
d. LM curve is nearly vertical
Monetary policy are the activities of the central bank of a country that are used to control the supply an availability of money in an economy. Fiscal policy is the use of taxation and spending to control the economy.
Those economists who believe that monetary policy is more potent than fiscal policy argue that the responsiveness of investment to the interest rate is small.
select the department of defense's (dod's) decision-support system that this statement describes: "This system uses milestones to oversee and manage acquisition programs."