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Fofino [41]
2 years ago
4

The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows:

Business
1 answer:
aliina [53]2 years ago
8 0

Answer:

4.5 years

No

Explanation:

The table showing the cash flows was a little bit unclear. I found a more clear table here : https://www.chegg.com/homework-help/questions-and-answers/management-unter-corporation-architectural-design-firm-considering-investment-following-ca-q11983509

The table is attached.

The payback period measures how long it takes for the amount invested in a project to be recouped from the cummulative cash flow.

The total amount invested is $68,000. This amount would be recouped from the cumulative cash flow.

The total investment of $68,000 is recouped between the fourth and fifth year. It is between the fourth and fifth year the cumulative cash flow becomes postive.

The payback period is 4.5 years.

If the cash inflow of the last year is increased, it would have no impact on the payback period because the investment has already been gotten back.

I hope my answer helps you.

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Inventory records for Herb's Chemicals revealed the following:
antiseptic1488 [7]

Answer:

Inventory= $5,040

Explanation:

Giving the following information:

March 1, 2021, inventory: 1,000 gallons @ $7.20 per gallon = $7,200

Purchases:

Mar. 10 600 gals @ $ 7.25

Mar. 16 800 gals @ $ 7.30

Mar. 23 600 gals @ $ 7.35

Sales:

Mar. 5 400 gals

Mar. 14 700 gals

Mar. 20 500 gals

Mar. 26 700 gals

Total units= 3,000

Total sales= 2,300

Ending inventory= 700 units

LIFO (last-in, first-out)

Inventory= 700*7.20= $5,040

8 0
2 years ago
uppose the current term structure of interest rates, assuming annual compounding, is as follows: s_1s 1 ​ s_2s 2 ​ s_3s 3 ​ s_4s
Ahat [919]

Answer:

7.53%

Explanation:

Calculation for the discount rate of d(0,4)d(0,4)

The discount factor is : d=1/1+i

And given that the interest rates are compounded annually the discount factor will gives the present value of the bond when provided with the interest rate and maturity value.

Therefore the present value of a bond with a maturity value of 1 will be;

Present value=1 /(1+i1) (1+i) (1+i3) (1+i4)

Present value=1 / (1.07) (1.073) (1.077) (1.081)

Present value=0.748

The present value of a bond with a maturity value of 1 will therefore be 0.748.

Now, let calculate the discounting factor for the whole 4 years:

1 (1+d (0,4))‐⁴ =0.748

(1+d(0,4))=0.748‐¹/⁴

1+d (0,4) =1.0753

d (0,4)=0.0753

Therefore the discount rate will be 7.53%

5 0
2 years ago
Consider a company that provides two services using the same basic process. Service A is relatively complex, and has 15 opportun
patriot [66]

Answer:

The answer is: Total DPMO of the overall process is = 4,733.33

Explanation:

To calculate the defects per million opportunities (DPMO) we use the following formula:

       DPMO = (D/(U*O))*1,000,000

  • Defects = D
  • Unit = U
  • Opportunity to have a defect = O

We are given the following data:

<u>Service A:</u>                                           <u>Service B:</u>

D = 10                                                  D = 17

U = 500                                              U = 1,000

O = 15                                                  O = 5

DPMO Service A = [10 / (500 x 15)] x 1,000,000 = 1,333.33

DPMO Service B = [17 / (1,000 x 5)] x 1,000,000 = 3,400

Total DPMO = 4,733.33

4 0
2 years ago
For june, gold corp. estimated sales revenue at $600,000. it pays sales commissions that are 4% of sales. the sales manager’s sa
hjlf
In July, Goldcorp had sales of $540,000. Of this, the 4% sales commission= $21,600, the shipping expenses was 1% at $5400, and the manager's monthly salary was $23,750, plus miscellaneous expenses was $15,000. So I would say that the budgeted expenses would be $21,600+$5400+$23750= $50,750, assuming that miscellaneous expenses were not budgeted. Total expenses would be $65,750 if the $15,000 was included. 
6 0
2 years ago
Collins Group The Collins Group, a leading producer of custom automobile accessories, has hired you to estimate the firm's weigh
hammer [34]

Answer: B.) 18.67%

Explanation:

WACC = Debt/(Depth +Equity)

Equity Details ;

Stock price = $15.25 per share

Total stock = 10,000,000

DEBT details :

Total bond = 40,000

Interest on bond = $875

WACC =(40,000×875) ÷ [(40,000 × 875)+(10, 000,000×15.25)]

WACC =[ 35,000,000 ÷ (35,000,000 +152500000) ]

WACC =35,000,000 ÷ 187500000

WACC = 0.18666666666666

WACC = 18.67%

6 0
2 years ago
Read 2 more answers
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