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2 years ago

Brodigan Corporation has provided the following information concerning a capital budgeting project:

Business

1 answer:

strojnjashka [21]2 years ago

4 0

Answer:

$27964.4

Explanation:

Solution

Given that

From the given question, we are required to determine the net present value of the project.

Now

We input our values in a tabular form shown below:

Year 0 1 2 3

The Initial investment -450000

Operating cash flow 220000 220000 220000

The Depreciation 150000 150000 150000

Taxable Income

(Operating Cash Flow-Dep) 70000 70000 70000

Tax at 30% 21000 21000 21000

Net Income=

Taxable Income-Tax 49000 49000 49000

Net Cash Flow=

Net Income+Dep -450000 199000 199000 199000

P.V at 12%=

Net Cash Flow/(1.12^n) -450000 177678.5714158641. 6141644.3

Net Present Value

(N.P.V) 27964.4224

Therefore, the net present value is $27964.4

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Bess wrote four checks last month, and these were the only transactions for her checking account. According to her check registe

Wittaler [7]

Answer: $184.34

Bess issued four checks with amounts $175.17, $175.53, $175.35,and $184.34. With the total amount she issued, she expected her balance based on her cash register to be $869.96, but as per bank statement, her balance is $1054.13.

To get the amount of check which is not cleared yet, we have to deduct the balance in the cash check register from that of the bank statement:

$1054.13-$869.96 =184.17

$184.34 is the best answer because it is the last he wrote and the discrepancy of 0.17 may be due to some bank charges Bess had not recorded.

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2 years ago

Read 2 more answers

Perine, Inc., has balance sheet equity of $6 million. At the same time, the income statement shows net income of $906,000. The c

Oksanka [162]

Answer:

The target stock price in year 1 is $51.12

Explanation:

Given SE = $6 MIL, NI= $906 000, Div= $408180, Shares= 200000, PE ratio= 24 , SP =?

W e will use the price earning ratio as we are are given the benchmark PE ratio and this ratio measures the stock price relative to it profits

PE = Stock price / Earnings per share

Need to calculate Earnings per share

EPS = net Income - dividends/ oustanding Shares

=906000-480180/200000

=$2.1291/$2.13

Sustitute in the formula for PE ratio

24 = Stock Price/2.13

Stock Price = $51.12

Therefore the target stock price in year 1 is $51.12

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2 years ago

This year is expected to be a great one for selling walk shoes in Georgia. At very low prices, only the most efficient shoemaker

TiliK225 [7]

All that information gives you three points to make the graph.

Point 1:

At the price of $10, the offer is 2*1,000 shoes => (10, 2,000)

At the price of $25, the offer is 10*1,200 shoes => (25, 12,000)

At the price of $40, the offer is 10*1400 + 4*500 => (40, 16,000)

Then you have three points. You can check that their are not aligned because when you increase the price $15 from 10 to 25 the offer increases in 10,000 shoes; but when you increase the price $15 from 25 to 40, the offer increases 4,000.

To draw the grpah:

- use a perpendicular coordinate system with the price in the horizontal axis and the offer in the vertical axis,

- lable the horizontal axis with the prices from 10 to 50 and the vertical axis with the offers from 1,000 to 18,000.

- draw the three calculated points (10; 2,000) , (25; 12,000) and (40; 16,000)

- draw a curved line that passes through the three points.

Ther you have the graph.

4 0

2 years ago

On January 1, 2021, Dreamworld Co. began construction of a new warehouse. The building was finished and ready for use on Septemb

ELEN [110]

Answer:

The correct answer is $60,000.

Explanation:

According to the scenario, the given data are as follows:

Expenditure for Jan.1 = $334,000

Time period ( Jan.1 - Dec.31 ) = 12 months

So, average expenditure = $334,000

Similarly, Expenditure for Sep.1 = $498,000

Time period ( Sep.1 - Dec.31 ) = 4 months

So, average expenditure = $498,000 × 4÷12 = $166,000

Now, Expenditure for Dec.31 = $498,000

Time period ( Dec.31 - Dec.31 ) = 0 months

So, average expenditure = $498,000 × 0÷ 12 = 0

So, capitalized interest = ( average expenditure Jan.1 + average expenditure Sep.1 + average expenditure Dec.31) × 12%

= ($334,000 + $166,000 + $0) × 12%

= $500,000 × 12%

= $60,000

3 0

2 years ago

The accounting manager of Gateway Inns has noted that every time the inn's average occupancy rate increases by 3.3 percent, the

creativ13 [48]

Answer:

1.39

Explanation:

Data provided

Operating cash flow = 4.6%

Average occupancy rate = 3.3%

The computation of degree of operating leverage is shown below:-

Degree of operating leverage = Operating cash flow ÷ Average occupancy rate

= 4.6% ÷ 3.3%

= 0.046 ÷ 0.033

= 1.39

Therefore the correct answer is 1.39. so the option is not available and for computing the degree of operating leverage we simply applied the above formula.

8 0

2 years ago