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Ede4ka [16]
2 years ago
8

(20%) problem 7: your uncle is trying to convince you join his research team at cern by offering you a summer job that pays a wa

ge of w = 11 € (euro) per hour. the lab is d = 7.4 km from your uncle's house, where you would be staying. you know that you can bike 1 mile in t = 6 minutes. alternatively, you can borrow your uncle's car as long as you pay for gasoline. the car's gas tank has a capacity of c = 13 us gallons, and the price of gasoline is p = 1.41 €/liter.
Business
1 answer:
Nimfa-mama [501]2 years ago
3 0

Solution:

A)

Expected hourly income in $US  = rate * hourly income in Euro

= 1.2903 * 13 = $16.7739

B)

Time taken from uncle's house to lab = Distance /Speed

Distance is  8.5 km  

Speed is 1mile in 5 minutes  

 Hence converting mile in Kilometer = 1.609344 km in 5 minutes  

 distance traveled in an hour = 1.609344 *12 =19.312128

 Time = 8.5/19.312128  = 0.44013792783 hours = 26.408 minutes

 

C)

Capacity =13 US gallons  

1US gallon = 3.78541 litre

Hence 13 gallons = 13 * 3.78541

=49.21033 litres

 

D)

Gasoline = 1.41 Euro /litre

= 1.2903 * 1.41 = 1.819323 $ /litre

Hence 1 litre = 1.819323 dollar

1 gallon = 3.78541 litre  = 6.88688347743 dollar

Hence price = 6.88688347743 dollar /gallon

E)

we can travel 20 miles in 1 gallon  

= 1.609344*20 km  

capacity of tank =13 gallons  

total distance that can be traveled in 13 gallons = 1.609344*20*13 km = 418.42944 km  

days that can be traveled  = 418.42944/8.5 = 49.2269929412 days = 49 days

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Gomez runs a small pottery firm. He hires one helper at $13,000 per year, pays annual rent of $5,500 for his shop, and spends $2
alisha [4.7K]

Answer:

(a) $35,000

(b) $8,000

Explanation:

(a) Accounting profit:

= Total revenue - Explicit cost

= $75,000 - (wages + Annual rent + Material cost)

= $75,000 - ($13,000 + $5,500 + $21,500)

= $75,000 - $40,000

= $35,000

(b) Economic Profit:

= Total revenue - Explicit costs - Implicit costs

= $75,000 - (wages + Annual rent + Material cost) - (Income from investment + Earnings as a potter + Worth of entrepreneurial talents)

= $75,000 - ($13,000 + $5,500 + $21,500) - ($5,500 + $19,000 + $2,500)

= $75,000 - $40,000 - $27,000

= $8,000

8 0
2 years ago
Porter Plumbing's stock had a required return of 11.75% last year, when the risk-free rate was 5.50% and the market risk premium
Crank

Answer:

New required rate of return = 11.88%

Explanation:

<em>The capital asset pricing model is a risk-based model. Here, the return on equity is dependent on the level of reaction of the the equity to changes in the return on a market portfolio. These changes are captured as systematic risk. The magnitude by which a stock is affected by systematic risk is measured by beta.  </em>

<em>Under CAPM, Ke= Rf + β(Rm-Rf)  </em>

<em>Ke- required rate of return, Rf-risk-free rate (treasury bill rate), β= Beta, Rm= Return on market. </em>

Using the model, we work out  Beta which is not given and then re-calculate the required rate of return of the new stock

<em>Ke- 11.75 % Rf- 5.5, Rm-Rf = 4.75%,  β= ?</em>

11.75% = 5.50% + β(4.75%)

11.75% -5.50% =  β(4.75%)

(11.75-5.50)/4.75= β

1.315789474 = β

1.315 = β

New required rate of return

5.50% + 1.315(1.02×4.75)

11.875

New required rate of return = 11.88%

5 0
2 years ago
In the past, companies have designed intricate products that markets did not perceive any need for. they have aired promotional
iragen [17]

The things that are needed to consider by marketing experts in which are considered to be important in marketing are the following;

<span>·         </span>Process of gathering information or data in regards of the products and customers in means of creating a decision about a product

<span>·         </span>Price, place and promotion are considered to be important factors

<span>·         </span>Marketing research is also important as a form of basis

6 0
2 years ago
Siemens AG invests €80,000,000 to build a manufacturing plant to build wind turbines. The company predicts net cash flows of €16
Nat2105 [25]

Answer:

a) the payback period of this investment = 5.00 years

b) Net Present Value is €11,945,600    

Explanation:

From the given information:

a)

The payback period of this investment is determined by using the formula:

Payback Period = Cost of investment/ annual net cashflow

Payback Period = €80,000,000/€16,000,000

Payback Period = 5.00 years

Thus; the payback period of this investment = 5.00 years

b)  What is the net present value of this investment?

The net present value of the investment is computed in the table below        

                    interest rate of return i = 8%

                    no of year n = 8 years

The PV factor is for 8 years and 8% is:

Year         8% factor rate

1               0.9259

2               0.8573

3               0.7938

4               0.7350

5               0.6806

6               0.6302

7               0.5835

<u>8               0.5403</u>

<u>                  5.7466</u>

Cash Flow    Select Chart       Amount    ×   PV Factor =   PresentValue

Annual          Table B1            16,000,000 ×   5.7466    = 91,945,600

CashFlow      (Using Excel)                          

Net Cash

Inflow                                                                                  91,945,600

Less:

<u>Investment                                                                          80,000,000       </u>

Net Present                                                                           11,945,600            

Value

<u>                                                                                                                        </u>

6 0
2 years ago
Planter Corporation used debentures with a par value of $566,000 to acquire 100 percent of Sorden Company's net assets on Januar
loris [4]

Answer:

$78,000

Explanation:

The journal entry is shown below:

Cash & Receivables A/c Dr $53,000

Inventory A/c Dr $203,000

Land A/c Dr $109,000

Plant & Equipment A/c Dr $310,000

Discount on Bonds payable A/c Dr $16,000 ($566,000 - $550,000)

      To Account payable $47,000

      To Bond payable $566,000

      To gain on purchase $78,000

(Being the exchange is recorded and the balancing figure is credited to gain on purchase account)

The computation of gain on purchase account would be

= Fair value of assets - fair value of account payable -  fair value of the bonds issued by Planter

= $675,000 - $47,000 - $550,000

= $78,000

Note: The land historical cost and fair value is $62,000 and $109,000 respectively

This information is not given in the question  

4 0
2 years ago
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