Answer:
A. 12.3%
B. 68%
Explanation:
a.Calculation to determine the required return for the project
Required return=(0.62/1.62*5.7%)+(1/1.62*13.2%)+2%
Required return=0.022+0.081+2%
Required return=0.124*100
Required return=12.3%
Therefore the required return for the project will be 12.3%
b. Calculation to determine the maximum cost the company would be willing to pay for this project
Maximum cost =6.3/(12.3%-3%)
Maximum cost =6.3/9.3%
Maximum cost =0.67.7*100
Maximum cost =67.7%
Maximum cost=68% (Approximately)
Therefore the maximum cost the company would be willing to pay for this project will be 68%
Answer:
If you use the money reasonably and wisely, Yes, I think you can live 30 days with 1000 dollars in savings.
Answer:
The amount of Compensation expense to Year 1 is $153,333.
Explanation:
Stock options granted 92000
X Fair value on date of grant 5
Total compensation expense 460000
Years 3
Compensation expense per year 1 53333
Therefore, The amount of Compensation expense to Year 1 is $153,333.
Answer:
$70,000 overapplied
Explanation:
Raymond manufacturing expected job No 59 to cost $600,000 of overhead , $1,000,000 materials and $400,000 labour
The actual production cost is $590,000
$1,140,000 worth of materials were used and $440,000 labour cost
The first step is to calculate the overhead rate
= expected overhead /expected cost of labor
= $600,000/$400,000
= 1.5
The overhead applied can be calculated as follows
= overhead rate× real cost of labor
= 1.5 × $440,000
= $660,000
Therefore the over applied or underapplied can be calculated as follows
= $660,000-$590,000
= $70,000
Hence the overapplied is $70,000
The applicable formula is as follows:
PV = PMT [1-(1+IRR)^-n]/[IRR]
Where;
PV = Present value = -$200,000 (set as negative as it is a negative cash flow).
PMT = Annual depreciation values = $44,503
IRR = Internal rate of return
n = Period in years = 10 years
Using excel formulas (shown in the attached image);
IRR = 18%
