Answer:
Project 1, 2 and 3 should be rejected.
Explanation:
This problem required us to tell which project we should not accept. To solve this we have to apply this rule that is accept the project with positive NPV.
The detail calculation are given below.
The discount factors to be used for CFO, CF1, CF2 and CF3 is 1, 0.74, 0.55 and 0.41 respectively. It is calculated by using following formula.
DF= (1 + i)^-n (n is period and i is 35%)
So now calculating NPV of each project by multiplying cashflow with discount factor.
Project 1 = -100+ (50*0.74 ) + (50*0.55) + (50*0.41) = -15 M dollars
Project 2 = -80 + (40*0.74) + (45*0.55) + (50*0.41) = -5.15 M dollars
Project 3 = -70 + (30 *0.74) + (40*0.55) + (50*0.41) = -5.3 M dollars
Project 4 = -60 + (30 *0.74) + (40*0.55) + (60*0.41) = 8.8 M dollars
Project 5 = -50 + (25 *0.74) + (30*0.55) + (70*0.41) = 13.7 M dollars
Answer:
Option B,$62,400 is correct
Explanation:
Firstly,we need to determine the sales of each joint product if sold after the split off point as follows:
Sales value of P=20,000*$2.20=$44,000
sales value of Q=60,000*$2.60=$156,000
total sales value =$200,000
joint cost is $80,000
joint cost allocated to Q=total joint cost*Q sales value/total sales value
=$80,000*156,000/200,000=$62,400
Out of the $80,000 joint cost incurred by both joint products,Q would be allocated $62,400
Answer:
The bond is worth $2,968 today
Explanation:
In order to know "how much is the bond worth today", we need to calculate the present value (PV) of the bond.
Google bond will pay $4,500 ten years from now, it means the future value (FV) is $4,500
Tenor is 10 years
Discounting rate is 4.25% pa
PV = FV/((1+ rate)^ tenor)= $4,500/(1+4.25%)^10 = $2,968
Answer:
The correct answer is A.
Explanation:
Giving the following information:
Activity Cost Pool Activity Measure Total Cost Total Activity
Machining Machine-hours $330,000 15,000 MHs
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
<u>Machinning:</u>
Predetermined manufacturing overhead rate= 330,000 / 15,000
Predetermined manufacturing overhead rate= $22 per machine-hour
<u>Machine setups:</u>
Number of setups $50,000 100 setups
Predetermined manufacturing overhead rate= 50,000/100
Predetermined manufacturing overhead rate= $500 per set-up
Answer:
itll be 10
Explanation:
because on how itll show for the energy on demand
