Answer:
Answer for the question :
The city of Angola, Indiana is considering building a snowmobile trail on the land owned by the city. The life of the project is assumed to be 20 years. Building the trail would require an investment of $140,000 from the public funds. The annual maintenance would require an additional $25,000 per year. The annual benefits to the public of using the trail are estimated to be equivalent to $40,000 per year. After 20 years, the city will sell the right to operate the trail to the Angola Snowmobile Club, Inc. for $10,000. Compute a MODIFIED B-C ratio, using the present worth method, for the project, determine whether it should be accepted, and explain why. Make sure you use the formula appropriate for the modified B-C ratio. Assume 4% cost of capital."
is explained in attachment.
Explanation:
Answer:
$44.87
Explanation:
Use Dividend Discount Model to solve this question;
First, find the dividend per year;
First year's dividend ; D1 = D0(1+g)
D1 = 1.32 (1.30) = 1.716
Second year's dividend ; D2 = 1.716 (1.10) = 1.8876
Third year's dividend ; D3 = 1.8876 (1.05) = 1.9820
Next, find the present value of each dividend at 9% required return;
PV (D1) = 1.716 / (1.09) = <em>1.5743</em>
PV (D2) = 1.8876 /(1.09²) = <em>1.5888</em>
PV (D3 onwards) = 
= PV (D3 onwards) = <em>41.7052</em>
Sum up the PVs to find the current market value of the stock;
= 1.5743 + 1.5888 + 41.7052
= 44.8683
Therefore the value is $44.87
Answer:
$1.3 per share
Explanation:
Data provided in the question:
Number of shares outstanding of TJ = 2,500
Market price = $16.70
Number of shares outstanding of Corner Grocery = 3,000
Price per share of Corner Grocery = $22.50
Cost of acquiring TJ's share = $45,000
Now,
Merger Premium per share = [ Cost of acquiring TJ's share - Market price of TJ's shares ] ÷ Number shares TJ's outstanding
= [ $45,000 - ( $16.70 × 2,500)] ÷ 2,500
= [ $45,000 - $41,750 ] ÷ 2,500
= $3,250 ÷ 2,500
= $1.3 per share
Answer: Option C
Explanation: In simple words, product focused process refers to the processes that focuses on producing the batch of similar products. These processes are usually used to manufacture products like paper rolls and light bulbs.
Under this process large units are produced of a similar product. Such processes require high fixed cost and low variable cost.
From the above we can conclude that the correct option is C.
Answer:
The journal entries are shown below:
Explanation:
The journal entries are as follows
Raw materials inventory $90,000
To Cash $90,000
(Being the raw material is purchase for cash is recorded)
Factory overhead $17,000
Raw materials inventory $17,000
(Being the factory supplies is recorded)
Work in process inventory $66,100
Raw materials inventory $66,100
(Being the work in process is recorded)
Only these three entries are to be recorded)
