Answer:
$7,813.52
Explanation:
future value = quarterly contribution x annuity factor
quarterly contribution = $520
total quarterly contributions = 3 x 4 = 12 periods
interest rate = 16% / 4 = 4% compounded quarterly
future value annuity factor, 4%, 12 periods = 15.026
future value = $520 x 15.026 = $7,813.52
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
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
How should an organization design its structure and culture to obtain a core competence in manufacturing and in research and development? What is your reasoning?
Answer and Explanation:
core competency of an organization comprise it's multiple resource, capabilities and skills that gives it a competitive advantage in the market. It was originated in management theory by C. K. Prahalad and Gary Hamel.
For an organization to have core competencies in manufacturing and also research and development putting it's organizational structure and culture to use, it has to:
create a flexible and somewhat independent structure for it's research and development department such that innovation is easy. Control must be decentralized and the team must come first
For the manufacturing department, an organic and participative approach should be encouraged. This would allow inclusive management such that workers are included in decision making processes. Managers should also be given more independence while workers should increasingly be empowered
the organization should also take stringent measures in employing the right people for the research and development as well as the manufacturing department such that these individuals are qualified and possess the needed expertise for their areas. Staff should equally be empowered through constant education and new skill acquisitions and be allowed to impart this knowledge on other staff by encouraging transfers in global expansion.
"A customer makes an investment in a CMO. In a given year, she receives $24,000 of payments, of which $6,000 is principal and $18,000 is interest. Which statement is TRUE about the taxation of the payments received?"
Answer:
Only the interest amount received is taxable.
Explanation:
CMO refers to Collateralised Mortgage Operation in this whenever one receives a payment it is joint of some principal and remaining amount as an interest.
The principal received only decreases the debt, that is created in a CMO. Thus, is not to be considered as an income in any manner.
Interest received is a part of income as do not decrease the liability of debt, rather increases the revenue, and is therefore, taxable.
Equipment was acquired on January 1, 2021, for $33,000 with an estimated four-year life and $2,000 residual value. The company uses straight-line depreciation. Record the gain or loss if the equipment was sold on December 31, 2023, for $10,600.
Answer:
Gain= $850
Explanation:
Giving the following information:
Purchase price= $33,000
Useful life= 4 years
Residual value= $2,000
Sale= $10,600.
First, we need to calculate the annual depreciation:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (33,000 - 2,000)/4= $7,750
Now, we can calculate the accumulated depreciation:
Accumulated depreciation= 7,750*3= $23,250
To calculate the gain or loss, we need to use the following formula:
Gain/loss= selling price - book value
Book value= purchase price - accumulated depreciation
Book value= 33,000 - 23,250= $9,750
Gain/loss= 10,600 - 9,750
Gain= $850
__ measures a company's ability to pay its debt while ___ measures the company's ability to earn a profit
Answer:
Solvency ratio __ measures a company's ability to pay its debt while ___Profitability ratio measures the company's ability to earn a profit
Explanation:
a) For instance, let us assume a hypothetical company called Midex Corporation. The financial measure that shows the company's ability to meet its debt obligations is known as the solvency ratio. For prospective fund lenders, they find it useful in order to decide whether to go ahead with requests for more funding. This implies that the solvency ratio indicates whether Midex's cash flow is sufficient to meet its short-and long-term liabilities. To calculate the solvency ratio, divide the company's after-tax net operating income by its total debt obligations. Midex's net after-tax income is derived by adding the non-cash expenses, such as depreciation and amortization, back to the net income.
b) In the same light, Midex Corporation's profitability ratios measure the corporation's ability to earn a profit in relation to these bases: its sales revenue, operating costs, balance sheet assets, and shareholders' equity. These financial metrics can also show how well Midex has managed its assets to produce profits and value for its shareholders.
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.
It costs Coronado Industries $12 of variable and $5 of fixed costs to produce one bathroom scale which normally sells for $35. A foreign wholesaler offers to purchase 1800 scales at $15 each. Garner would incur special shipping costs of $1 per scale if the order were accepted. Coronado has sufficient unused capacity to produce the 1800 scales. If the special order is accepted, what will be the effect on net income? $5400 decrease $3600 increase $27000 increase $3600 decrease
Answer:
$3600 increase
Explanation:
The computation of the effect on the net income is shown below:
Revenue arises from special order
= ($15 - $1) × 1,800
= 25,200
Cost for the special order
= $12 × 1,800
= $21,600
Now in case when the special order is accepted
So, the effect on the net income is
= Revenues - cost
= $25,200 - $21,600
= $3,600 increase
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.
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
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
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.
Merlin Anson owns Unix Computers, a company with five employees. As a small business owner, he has several options for payroll processing. What factors should he consider when deciding on which payroll processing option is best for Unix Computers
Answer: amount of money he wants to spend on the payroll processing. Also, he has to consider the independent contractors
Explanation:
From the question, we are informed that Merlin Anson owns Unix Computers, a company with five employees and that as a small business owner, he has several options for payroll processing.
The factors that he should consider when deciding on which payroll processing option is best for Unix Computers are amount he wants to spend on the payroll processing. Also, he has to consider the independent contractors. These two are essential to know which option is good for the company.
Net income was $448600 in the current year and $365500 in the prior year. The year to year percentage change in net income is closest to:__________.
Answer:
The answer is 22.74 perfect
Explanation:
The percentage change is:
[Future value(Current year net income) / Present Value(Prior year net income)] - 1
($448,600/$365,500) - 1
1.2274- 1
0.2274
Expressed as a percentage
22.74 percent.
Alternatively:
(Future value - present value) / present value
($448,600 - $365,500) / $365,500
$83,100/$365,500
0.2274
Expressed as a percentage
= 22.74 percent.
You are told that for a certain linear program, that the Reduced Cost for x3 is -$0.78 and that the Shadow Price for Constraint 3 is $2.15. The total revenue is currently $256.58. If the producer decided to purchase three more units of b3 (input 3), what would happen to the firm's total revenue?
Answer:
The firm's Total revenue will increase
Explanation:
Based on the information given we were told that the total revenue is currently an amount of $256.58 which means that If the producer decided to purchase three more units of b3, what would happen to the firm's total revenue is that the firm's TOTAL REVENUE will tend to increase reason been that the firm is selling more and in a situation where the numbers of units sold increase this means that the TOTAL REVENUE will as well increase.
Hence the increases in the price of the product for every single unit sold will lead to increases in TOTAL REVENUE.
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
Holiday corp has two divisions quail and marlin. quail produces a widget that marlin could use in its production. quails variable cost are $4 per widget while the fulls cost is $7. widgets sell on the open market for $12 each.
A. if quail has excess capacity, what would be the cost savings for Holiday if the transfer was made and marlin currently is purchasing 100,000 units on the open market.
b. what would be the maximum transfer price?
c. if quail is operating at capacity, what would be the minimum transfer price?
Answer:
a. $800,000
b. $12
c. $12
Explanation:
Cost Savings :
Market Price ($12 × 100,000 units) $1,200,000
Less Minimum Transfer Price ( $4 × 100,000 units) ($400,000)
Savings $800,000
Maximum Transfer Price is $12
If quail is operating at capacity, units to meet internal demand would need to be recovered from the external market and that creates an opportunity cost :
Minimum transfer price = Variable Cost per unit - Internal Savings + Opportunity Cost per unit
= $4 + ($12 - $4)
= $4 + $8
= $12
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.
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."
A company uses the FIFO method for inventory costing. During a period, a production department had 56,000 units in beginning goods in process inventory which were 32% complete; the department completed and transferred 167,000 units. At the end of the period, 14,000 units were in the ending goods in process inventory and are 67% complete.
Compute the number of equivalent units produced by the department.
a. 181,000
b. 158,460
c. 167,000
d. 176,380
e. 111,000
Answer:
158460 ( B )
Explanation:
Given data :
production department ; 56000 units
process inventory = 32% = 0.32
completed and transferred units = 167000
ending goods units = 14000, 67% complete = 0.67
attached below is the table representation of the solution
The number of equivalent units produced by the department
= ∑ all the variables listed on the table
= 38080 + 11100 + 9380 = 158460
"A 7%, 15-year corporate bond is priced to yield 7.50%. For an investor in the 28% tax bracket, the equivalent tax free yield is:"
Answer:
The equivalent tax-free yield is:
10.42%
Explanation:
Tax-free yield = 7.5%/(1 - 28%)
= 10.42%
This equivalent tax-free yield is the yield of the 7%, 15-year corporate bond that will make it comparable to a municipal bond that is tax-free. To calculate the tax-free yield, we divide the yield rate by the inverse of the tax bracket. In this case, this yields 10.42%. This implies that for this corporate bond to be valued equally with a municipal tax-free bond, the yield must be at least 10.42%.
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.
An investor receives a 15% total return by purchasing a stock for $40 and selling it after one year with a 10% capital gain. How much was received in dividend income during the year
Answer:
$2
Explanation:
The computation of the dividend income received during the year is shown below:
Before computing the dividend income first we have to determine the dividend percentage which is
= Total return received - capital gain after one year
= 15% - 10%
= 5%
Now the dividend income is
= Dividend percentage × stock price
= 5% × $40
= $2
A company is using a mobile device deployment model in which employees use their personal devices for work at their own discretion. Some of the problems the company is encountering include the following:______. A. There is no standardization. Employees ask for reimbursement for their devices. B. Employees do not replace their devices often enough to keep them running efficiently. C. The company does not have enough control over the devices. Which of the following is a deployment model that would help the company overcome these problems?A. BYODB. VDIC. COPED. CYOD
Answer:
no entiendo un carajoooooool
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.
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.
"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:
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