Answer:
NPV is positive,the project should be accepted
Explanation:
In determining whether or not the project should be accepted ,we need to ascertain the Net Present value of the project which is present value of cash inflows of $13,000 for 35 years minus the initial investment of $125,374.60 committed today.
The annuity factor for 8% for 35 year horizon is 11.6546 using annuity table.
Present of cash inflow=cash inflow*annuity factor=$13,000*11.6546=$151,509.80
Net present value=$ 151,509.80-$125,374.60=$ 26,135.20
The investment has a positive NPV,hence should be accepted
Answer:
B. Manufacturing overhead was overapplied by $20,000; Cost of goods sold after closing the manufacturing overhead account is $431,000.
Explanation:
Manufacturing overhead refers to the factors or conditions that keeps a facotry running. These include electricity, deprecaition on factory, etc.
In the case of the queetion above, the manufacturing overhead has been over applied by $20,000 (i.e: $73,000 - $53,000). This over application of the manufacturing overhead has also affected the cost of goods sold after closing out the manufacturing overhead account
Since the overapplied amount is $20,000, we deduct the overapplied amount from the cost of sales ($471,000) to get the actual costs of goods sold after closing out the manufacturing overhead account.
We then have ($451,000 - $20,000) = $431,000.
Therefore, the cost of goods sold after closing the manufacturing overhead account is $431,000.
Cheers.
Answer:
the net present value of this expansion project is - $9,190.14.
Explanation:
Net Present Value is calculated by taking the Present Day (discounted) Value of all future net cash flows based on the cost of capital and subtracting the initial cost of investment.
Summary for Bruno's Lunch Counter cash flows for the Project are :
Year 0 = - $110,300
Year 1 = $31,700 - $7,800 = $23,900
Year 2 = $23,900
Year 3 = $23,900
Year 4 = $23,900
Year 5 = $23,900
Year 6 = $23,900
Use the financial calculator to input the values as follows
CF0 = - $110,300
CF1 = $23,900
CF2 = $23,900
CF3 = $23,900
CF4 = $23,900
CF5 = $23,900
CF6 = $23,900
P/yr = 1
r = 11 %
Net Present Value will be - $9,190.1453
Answer:
The correct answer is the option C: It is more likely that the entrepreneur will build a more valuable company.
Explanation:
To begin with, the fact that the companies nowadays trade equity for financial support indicates that there is an extremely important need in the management of the company to obtain more backup in financial terms and that without it, the other companies tend to growth better than the one who has not support from third parties. Therefore that the managers look forward to obtain financial support with the purpose of investing all the money that enters and getting better at what the company does. That is why than when the owners manages to get the support it will prove to other that the company can growth and be more valuable and get more success eventually.
Answer:
$11.2
Explanation:
Calculation to determine what the unit price of Y in 2012 is closest to
Using this formula
GDP deflator = nominal GDP / real GDP
First step is to calculate the Nominal GDP 2013 using 2013 price
Nominal GDP 2013= (13.8 *352) + (11.1 *182.5)
Nominal GDP 2013= 4857.6 + 2025.75
Nominal GDP 2013 = 6883.35
Second step is to calculate Real GDP 2013 using 2012 price
Real GDP 2013= (13.3* 352) + (Pa 182.5)
Real GDP 2013= 4681.6 + 182.5(Pa)
Now let what the unit price of Y in 2012 is closest to:
102.4% = 6883.35 / (4681.6 + 182.5Pa)
Pa =$ 11.18
Pa=$11.2 (Approximately)
Therefore the unit price of Y in 2012 is closest to:$11.2
