answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
swat32
2 years ago
15

Montana Mining Co. (MMC) paid $200 million for the right to explore and extract rare metals from land owned by the state of Mont

ana. To obtain the rights, MMC agreed to restore the land to a suitable condition for other uses after its exploration and extraction activities. MMC incurred exploration and development costs of $60 million on the project. MMC has a credit-adjusted discount rate of 7%. It estimates the possible cash flows for restoring the land, three years after its extraction activities begin, as follows: Cash Outflow Probability $ 10 million 60 % $ 30 million 40 % The total amount capitalized by MMC regarding this property, at the beginning of the extraction is.
Business
1 answer:
N76 [4]2 years ago
3 0

Answer:

$14.7million

Explanation:

Amount paid by MMC: $200M

Cost incurred by MMC :$60M

Risk free interest rate : 7%

Let's first find the expected cash out flow.

We have:

($10,000,000*0.6)+($30,000,000*0.4)

= $18,000,000

At a credit-adjusted discount rate of 7% and expected cashflow after 3 years is $18million. At the beginning of the extraction, the total amount capitalized by MMC will be:

18,000,000*(7%, 3years)

18,000,000*0.81630

= $14,693,400

=> $14.7 million

You might be interested in
The board of directors oversees and ratifies strategic decisions and evaluates, rewards, and, if necessary, penalizes top manage
Elina [12.6K]

The given statement, "The board of directors oversees and ratifies strategic decisions and evaluates, rewards, and, if necessary, penalizes top managers" is true

<u>Explanation: </u>

A board of directors is a team of experts elected by stockholders of a company to serve the interest of the stockholders and ensure that the company management behaves on their behalf. The Chairperson or Chairman of the Board is the head of the Board of Directors.

The board of directors supervises and ratifies strategic decisions as intermediaries between the owners and managers and reviews, awards and, if required, punishes top management.

These includes the following,

  1. Composition  
  2. Leadership structure
  3. Interlocks

The Board decides on the employment and recruitment of employees, share price measures, payments, and employee compensation.

8 0
2 years ago
At January 1, 2020, Benny Enterprises reported a balance in the Equipment account of $45,000. During the year the company purcha
fiasKO [112]

Answer:

$4,000

Explanation:

The operating activities is the activities which records day to day activities i.e change in working capital, loss or profit on sale of long term assets, depreciation expense etc

In the given situation, there is a loss of $4,000 on the sale of equipment and the same is recorded under the operating activity in a positive sign

The sale of an equipment and the purchase of an equipment would be shown in the investing activity . Hence, we do not considered here

3 0
2 years ago
The service division of Raney Industries reported the following results for 2020. Sales Variable costs Controllable fixed costs
Blizzard [7]

Answer:

Controllable margin =$125,000

Return on investment = 20%

Explanation:

<em>Controllable margin is the difference between the sales revenue and the controllable cost. Controllable costs include variable and fixed cost directly under the control of the manager and which are influenced by his decisions.</em>

Controllable margin - Sales revenue - variable cost - controllable fixed cost

Controllable margin= $500,000 - $300,000 - 75,000 = $125,000

Controllable margin =$125,000

Return on investment = (controllable margin/ Average investment) × 100

                     = (125,000/625,000) ×  100 = 20%

Return on investment = 20%

3 0
2 years ago
Carla Vista Co. had the following assets on January 1, 2017. Item Cost Purchase Date Useful Life (in years) Salvage Value Machin
Minchanka [31]

Answer:

I have no Idea ask your teacher

7 0
1 year ago
Dotterel Corporation uses the variable cost concept of product pricing. Below is cost information for the production and sale of
skad [1K]

Answer:

$11.2 per unit

Explanation:

The computation of the variable cost per unit is shown below:

= Variable direct materials cost per unit + Variable direct labor cost per unit + Variable factory overhead cost per unit + Variable selling and administrative cost per unit

= $4.34 per unit + $5.18 per unit + $0.98 per unit + $0.70 per unit

= $11.2 per unit

We simply added the entire variable cost per unit so that the accuracy per unit could be reached

3 0
2 years ago
Other questions:
  • Which of the following is NOT an employer responsibility stated in OSHA’s Bloodborne Pathogens Standard?
    10·2 answers
  • It costs a meat-processing company $50,000 to produce 5,000 pounds of steak. the company's cost will be $50,009 if it produces a
    9·1 answer
  • A bakery famous for its cupcakes opens its doors at 9 a.m. and allows each customer to purchase up to 2 cupcakes until the day's
    11·1 answer
  • Decision Point: Your Second Meeting: Furniture Assembling of wooden table with screwdriver Your next client is a retailer of rea
    8·1 answer
  • Birch Manufacturers has provided the following information regarding the two products that it​ sells: Jet Boats Ski Boats Sales
    10·1 answer
  • In which careers could someone be self employed? Check all that apply. Greenhouse Manager Animal Breeder Public Parks Groundskee
    8·2 answers
  • Barry's Tire Service completed 100 tire changes, six brake jobs, and 16 alignments in an eight-hour day with his standard crew o
    6·1 answer
  • Frank Dewey Esquire from the firm of Dewey, Cheatum, and Howe, has been offered an upfront retainer of $30,000 to provide legal
    9·1 answer
  • A company bought new heating system for $64,000 and was given a trade-in of $3,400 on an old heating system, so the company paid
    14·1 answer
  • On October 1, 2018, Jay Pryor established an interior decorating business, Pioneer Designs. During the month, Jay completed the
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!