A firm is considering two projects. Project Peso requires an initial investment of $100,000. The Internal Rate of Return for Project Peso is 10.6%. Project Quasi requires an initial investment of $90,000. The Internal Rate of Return for Project Quasi is 12.6%. The WACC is 9%. The two projects are independent. What decision should the firm make

Answers

Answer 1

Answer:

to accept both the projects i.e. Project Peso and Project Quasi

Explanation:

As we can see in the given case, that the weighted average cost of capital on the projects is 9% while on the other hand, Perso and Quasi both have the internal rate of return 10.6% and 12.6% i.e. above 9% so based on this, the decision that should firm make is to accept both the projects i.e. Project Peso and Project Quasi

The same would be relevant


Related Questions

A company is considering replacing an old piece of machinery, which cost $597,600 and has $351,400 of accumulated depreciation to date, with a new machine that has a purchase price of $483,600. The old machine could be sold for $64,900. The annual variable production costs associated with the old machine are estimated to be $157,400 per year for eight years. The annual variable production costs for the new machine are estimated to be $99,300 per year for eight years.

Required:
a. Prepare a differential analysis dated April 29 to determine whether to continue with (Alternative 1) or replace (Alternative 2) the old machine.
b. What is the sunk cost in this situation?

Answers

Solution :

                      Differential Analysis : April 29

                               Continue old machine       Replace old           Differential

                                                                             machine         effect on income

Revenue :                  (Alternative 1)                  (Alternative 2)       (Alternative 2)

Proceeds from

sale of old machine     0                                   64,900               64,900

Cost :

Purchase price             0                                  -483,600             -483,600

Variable

manufacturing cost    -1,259,200                   - 794,400               464800

Total cost                    -1,259,200                   -1278000               -18800

Income (loss)              -1,259,200                   -12131000              46100  

So the company should replace the sold machine.    

The sunk cost is = 597,000 - 351,400

                           = $245,600

                                                                                                         

How do you do this journal entry for accounting?
- Now record the estimated cost of the returns. Estimated sales returns of $1,040, with cost of $333.

Answers

Answer:

Journal Entries:

1. Debit Sales Returns & Allowance $1,040

Credit Accounts Receivable $1,040

To record the estimated cost of returns.

2. Debit Inventory $333

Credit Cost of goods sold $333

To record the estimated cost of the goods returned.

Explanation:

a) Data and Analysis:

1. Sales returns and Allowances $1,040 Accounts receivable $1,040

2. Inventory $333 Cost of goods sold $333

The first journal entry records the estimated returns to be made by the customers by debiting the Sales returns account (a contra account to the sales revenue account).  The corresponding credit entry in the Accounts receivable shows that a part of the accounts has been cancelled as a result of the estimated sales returns.

The second journal entry records the estimated cost of the goods to be returned by debiting the Inventory account and crediting the Cost of goods sold account.  This cancels earlier records.

Exercise 10-3 Lump-sum purchase of plant assets LO C1 Rodriguez Company pays $410,670 for real estate with land, land improvements, and a building. Land is appraised at $234,000; land improvements are appraised at $52,000; and a building is appraised at $234,000. Required: 1. Allocate the total cost among the three assets. 2. Prepare the journal entry to record the purchase.

Answers

Answer:

1.  Allocation of    Appraised     % of total           Total cost       Apportioned

   Total Cost           Value     appraised value   of acquisition        Cost

       Land            $234,000           45%                   $410,670      $184,801.50  

       Land            $52,000             10%                    $410,670      $41,067

  Improvements

     Building         $234,000           45%                   $410,670      $184,801.50

     Total             $520,000           100%                                       $410,670

2. Date  Accounts title and explanation       Debit          Credit

              Land                                              $184,801.50

              Land Improvements                     $41,067

              Building                                         $184,801.50

                      Cash                                                             $410,670

              (Lump-sum purchases recorded)

A synchronous decrease in energy prices and an increase in government spending will result in:
A) increases in output and a decrease in the price level in the long run.
B) Increase in short run aggregate supply and in aggregate demand
C) Increase in long run aggregate supply and a rightward shift in aggregate demand
D) A leftward shift in short run aggregated supply
E) Decrease aggregate demand and increase short run aggregate supply​

Answers

Answer:

B) Increase in short run aggregate supply and in aggregate demand

Explanation:

In the case when there is a rise in  the government spending  so it would be increases aggregate demand. As AD curve shifts to the rightward, that rise the level of the price and increase in GDP.

On the other hand, if there is a decreasing in energy prices so it decreased the production cost, which rise aggregate supply. As AS curve shifts rightward, due to this it decrease the price level and increase the GDP.

So, The net impact is a definite increase in GDP, but the impact on price level is non-certain. As price level of the short run is non-certain, so we are not able to predict long run impacts.

A synchronous decrease in energy prices and an increase in government spending will result in "increases in output and a decrease in the price level in the long run". The correct option is A.

A synchronous decrease in energy prices reduces production costs for businesses which is leading to an increase in short-run aggregate supply.

At the same time, an increase in government spending stimulates economic activity and boosts aggregate demand. As a result, both short-run aggregate supply and aggregate demand increase.

In the short run, this combination of factors can lead to an expansion in output and potentially a decrease in the price level due to the downward pressure on production costs.

Therefore, the correct option is A.

To know more about  government spending here,

https://brainly.com/question/34317373

#SPJ6

Bonita Company has a factory machine with a book value of $87,800 and a remaining useful life of 5 years. It can be sold for $32,000. A new machine is available at a cost of $455,100. This machine will have a 5-year useful life with no salvage value. The new machine will lower annual variable manufacturing costs from $624,400 to $524,400. Prepare an analysis showing whether the old machine should be retained or replaced.

Answers

Answer: Old machine should be replaced.

Explanation:

The variable manufacturing cost will reduce by:

= 624,000 - 524,000

= $100,000

Over a period of 5 years this will be:

= 100,000 * 5

= $500,000

Selling the old machine would bring in $32,000:

= 500,000 + 32,000

= $532,000

The cost of the new machine would reduce this gross benefit by:

= 532,000 - 455,100

= $76,900

Net income will increase by a total of $76,900 over the 5 year period if the new machine is bought so it should be bought.

Kylie bought a 7-year, 5,000 par value bond with an annual coupon rate of 7.6% paid semi-annually. She bought the bond with no premium or discount. Calculate the Macaulay duration of this bond with respect to the yield rate on the bond.

Answers

Incomplete question. The options read:

a. 5.16

b. 5.35

c. 5.56

d. 5.77

e.  5.99

Answer:

b. 5.35

Explanation:

Remember, we use the Macaulay duration to determine the weighted average time before any bondholder would start to receive their expected bond's cash flows.

Hence, using the formula attached below, we could find the Macaulay duration for this scenario.  In the above formula, where:

C= the periodic coupon payment

y= the periodic yield

M= the bond’s maturity value

n= duration of bond in periods.

However, another way to get a solution is to employ an advanced calculator.

How to account for this $45,000? I think, this could be as Salary or dividend.
When Scott and Allison are in the store, they are the only ones who operate the register. Scott admits that, because he is in too much of a hurry, he sometimes puts the cash in his pocket rather than take the time to ring up the sale. Having cash in hand allows him to pay his babysitter and other personal expenses. Though it was difficult for him to be certain, Scott estimated that transactions worth about $45,000 each year have been handled in this way. Scott confirmed that he has not filed a personal tax return since he started GPP because he has not taken a salary.

Answers

Answer:

Scott should file Personal tax return since he is running his expenses through the money he takes in hand.

Explanation:

Scott will have to file the tax return because he is taking $45,000 as a salary. It does not matter that the salary is run through bank account or through cash but personal tax return filing is necessary. He uses the money to fund his routine expenses and this is to be reported in personal tax filing.

Newberry, Inc., whose reporting currency is the U.S. dollar ($), has a subsidiary in Argentina, whose functional currency also is the $. The subsidiary acquires inventory on credit on November 1, 2017, for 230,000 pesos that is sold on January 17, 2018, for 267,000 pesos. The subsidiary pays for the inventory on January 31, 2018. Currency exchange rates are as follows:

November 1, 2017 $0.20
December 31, 2017 0.65
January 17, 2018 0.66
January 31, 2018 0.67

1. What amount does Newberry’s consolidated balance sheet report for this inventory at December 31, 2017?
a. $120,600.
b. $115,200.
c. $117,000.
d. $118,800.

2. What amount does Newberry’s consolidated income statement report for cost of goods sold for the year ending December 31, 2018?
a. $115,200.
b. $118,800.
c. $120,600.
d. $117,000.

Answers

Answer:

1. $46,000

2.$46,000

Explanation:

According to the scenario, computation of the given data are as follows,

Inventory price = 230,000 pesos

1. Consolidated balance sheet amount = Inventory price × Rate on November 1, 2017

= 230,000 × $0.20

= $46,000

2. Consolidated statement cost of goods sold for the year ending December 31, 2018  = Inventory price × Rate on November 1, 2017

= 230,000 × $0.20

= $46,000

Tamarisk Corporation had the following activities in 2020. 1. Payment of accounts payable $711,000 4. Collection of note receivable $93,000 2. Issuance of common stock $247,000 5. Issuance of bonds payable $522,000 3. Payment of dividends $335,000 6. Purchase of treasury stock $49,000 Compute the amount Tamarisk should report as net cash provided (used) by financing activities in its 2020 statement of cash flows. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Net cash select an option by financing activities $enter a dollar amount

Answers

Answer:

the Net Cash flow provided by financing activities is $385,000

Explanation:

The computation of the amount that should be reported as net cash provided or used by financing activities is shown below:

Cash flow from financing activities

Issuance of common stock $247,000

Issuance of bonds payable $522,000

Less:  Payment of dividends -$335,000

Less: Purchase of treasury stock -$49,000

Net Cash flow provided by financing activities $385,000

Hence, the Net Cash flow provided by financing activities is $385,000

Following is information on two alternative investments being considered by Jolee Company. The company requires a 6% return from its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1). (Use appropriate factor(s) from the tables provided.)
Project A Project B
Initial investment $ (174,325 ) $ (152,960 )
Expected net cash flows in year:
1 41,000 44,000
2 60,000 53,000
3 72,295 68,000
4 87,400 81,000
5 59,000 30,000
For each alternative project compute the net present value.
Project A
Initial Investment $174,325
Chart values are based on:
i =
Year Cash inflow x Table factor = Present Value
1 =
2 =
3 =
4 =
5 =
Project B
Initial Investment $152,960
Year Cash inflow x Table factor = Present Value
1 =
2 =
3 =
4 =
5 =
For each alternative project compute the profitability index.
Choose Numerator: / Choose Denominator: = Profitability index
/ = Profitability index
Project A
Project B
2. Assume If the company can only select one project, which should it choose?
Project A or Project B

Answers

Answer:

Project A

NPV = $91,771.53

PI = 1.53

Project B

NPV = $79,390.69

PI = 1.52

Project A should be chosen because it has the higher NPV

Explanation:

Net present value is the present value of after-tax cash flows from an investment less the amount invested.  

NPV can be calculated using a financial calculator  

Only projects with a positive NPV should be accepted. A project with a negative NPV should not be chosen because it isn't profitable.  

When choosing between positive NPV projects, choose the project with the highest NPV first because it is the most profitable.

Project A

Cash flow in year 0 = $ (174,325)  

Cash flow in year 1 = 41,000

Cash flow in year 2 =  60,000

Cash flow in year 3 = 72,295

Cash flow in year 4 = 87,400

Cash flow in year 5 = 59,000

I =  6%

NPV = $91,771.53

Project B

Cash flow in year 0 = (152,960 )

Cash flow in year 1 = 44,000

Cash flow in year 2 =  53,000

Cash flow in year 3 = 68,000

Cash flow in year 4 = 81,000

Cash flow in year 5 = 30,000

I =  6%

NPV = $ $79,390.69

profitability index = 1 + (NPV / Initial investment)

Project A = 1 +( $91,771.53  /$174,325) = 1.53

Project B = 1 + ( $79,390.69 / 152,960 = 1.52

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

The Smith family wants to relocate to a neighborhood with better schools before their three-year-old goes to kindergarten. They talked with Byron about properties he has for sale in neighborhoods they would like to live in. They also mentioned to Byron that they both work and may need someone to help with in-home care for their child. Byron gave them Taylor’s name to call about childcare. The Smiths also said they were having a hard time getting loan approval, so Byron suggested that they call Travis. Which best describes the jobs performed by Byron, Taylor, and Travis?

a) Byron is a Customer Service Representative, Taylor is a Child Care Worker, and Travis is a Loan Counselor.

b) Byron is a Real Estate Manager, Taylor is a Nanny, and Travis is a Loan Counselor.

c) Byron is a Real Estate Manager, Taylor is a Preschool Teacher, and Travis is a Customer Service Representative.

d) Byron is a Home Counselor, Taylor is a Nanny, and Travis is a Property Manager.

Answers

Answer:

the correct answer is B)

Explanation:

Given that they spoke to Byron about properties that he wants to sell, that means he is a Real Estate Manager. Taylor came up because they needed in-home care. That makes Taylor a Nanny because Nannies are professionals who take care of babies in their own homes.

Loan counselors have no other major business besides advising people on issues relating to taking up a loan. Therefore that makes Travis a loan Counselor.

Cheers

The demand function is given by
D = 20 - p-p2 where D =
demand and p = price. Find the
elasticity of demand w.r.t. price
when price is 2​

Answers

Answer:

Q=120−4P

Explanation:

putting P = 20 we get

q= 40

we know that elasticity is quantity demanded / price  

20

40

​  

=2

hence the correct option: D

Explain why the following scenario fails to meet the definition of a staff position.
Situation: Carmen helps manufacture auto parts for a company that supplies a manufacturer. She is talking to her operations manager.
Carmen: "I created several designs and have chosen the best one. Here is a prototype. I can make as many as needed."

Answers

Answer:

They are the person who ships out already made designs and not ones who are supposed to make new design, that is usually done by a higher up staff manager.

Explanation:

i cant say for certain its correct but i would assume since she is only staff she wouldnt be able to make her own ones.

Other things equal, an appreciation of the U.S. dollar would Multiple Choice increase productivity and increase aggregate supply. decrease net exports and decrease aggregate demand. increase the prices of imported resources and decrease aggregate supply. decrease the supply of money and decrease aggregate demand.

Answers

Answer:

Other things equal, an appreciation of the U.S. dollar would:

decrease net exports and decrease aggregate demand.

Explanation:

The immediate effect of an appreciation of U.S. dollars is the decrease of net exports to other countries because the importers will find that importing goods from the U.S. is more expensive than importing from some other countries.  This drop caused by decreased exports also decreases aggregate demand of U.S. goods.  Therefore, excess inventory of U.S. goods in producers' warehouses will result, thus, reducing national productivity and GDP.

Other things equal, an appreciation of the U.S. dollar would decrease net exports and decrease aggregate demand. Thus, Option (B) is correct.

When the U.S. dollar appreciates, it becomes stronger compared to other currencies. This means that goods and services produced in the United States become relatively more expensive for foreign buyers.

As a result, U.S. exports become less competitive in the international market, leading to a decrease in the quantity of goods and services exported. A decline in exports reduces the net exports component of aggregate demand, as net exports are the difference between exports and imports.

A decrease in net exports directly contributes to a decrease in aggregate demand, as aggregate demand is the sum of consumption, investment, government spending, and net exports.

Thus, Option (B) accurately describes what happens when there is an appreciation of the U.S. dollar.

Learn more about the appreciation here:

https://brainly.com/question/31218023

#SPJ6

Suppose the world price is​ $20. a. Is this country an exporter or an​ importer? A. exporter B. importer b. How many units of the good are​ exported/imported? nothing units c. Fill in the chart below. If your answer is​ negative, put a minus sign in front of the number. Area Before Trade Value After Trade Value Change Value Consumer Surplus ​$ nothing ​$ nothing ​$ nothing Producer Surplus ​$ nothing ​$ nothing ​$ nothing Total Welfare ​$ nothing ​$ nothing ​$ nothing d. Who gains when the country allows free international​ trade? A. consumers and the government B. consumers C. no one gains D. consumers and producers E. ​consumers, producers, and the government F. producers G. producers and the government H. the government Who loses from free trade in this​ case? A. the government B. no one gains C. consumers and the government D. producers E. consumers F. ​consumers, producers, and the government G. producers and the government H. consumers and producers ​Overall, is there a net gain or a net loss when the country moves from No Trade to Free​ Trade? A. net gain B. net loss What is the overall value of the gain or​ loss? ​$ nothing ​(if your answer is​ negative, put a minus sign before your​ answer).

Answers

Question Completion:

Answer:

1. This country is an

B. importer.

2. The units of the good that are exported/imported are 200.

3. Chart filling

Area                            Before Trade    After Trade     Change Value

                                           Value            Value  

Consumer Surplus ​          $4,000            $9,000                ​$5,000

Producer Surplus    ​         $4,000             ​$1,000              ​$−3,000

Total Welfare                   ​$8,000           ​$10,000                 ​$2,000

4. The group that gains when the country allows free international trade.

B. consumers

5. The group that loses from free trade in this case is:

D. producers

6. A. net gain

7. The overall value of the gain is $2,000

Explanation:

a) Data and Calculations:

Area                            Before Trade    After Trade     Change

                                       Value                  Value          Value  

Consumer Surplus ​          $?                          ​$?               ​$?

Producer Surplus    ​         $?                ​          ​$?               ​$?

Total Welfare                   ​$ ?                        ​ ​ $?                 ​$?

Consumer surplus = Total quantity demanded at consumer's price minus equilibrium quantity * equilibrium price

Producer surplus = Total quantity supplied at supplier's price minus equilibrium quantity * equilibrium price

Change value at consumer surplus = $5,000 ($9,000 - $4,000)

Change value at producer surplus = $-3,000 ($1,000 - $4,000)

Total welfare before trade = $8,000 ($4,000 + $4,000)

Total welfare after trade = $10,000 ($9,000 + $1,000)

The net gain from free international trade is the difference between the total welfare value after trade and before trade = $2,000 ($10,000 - $8,000)

On January 1, Mitzu Co. pays a lump-sum amount of $2,750,000 for land, Building 1, Building 2, and Land Improvements 1. Building 1 has no value and will be demolished. Building 2 will be an office and is appraised at $671,000, with a useful life of 20 years and a $75,000 salvage value. Land Improvements 1 is valued at $579,500 and is expected to last another 19 years with no salvage value. The land is valued at $1,799,500. The company also incurs the following additional costs.
Cost to demolish Building 1 $345,000
Cost of additional land grading 195,000
Cost to construct new building (Building 3), having a useful life of 25 years and a $402,000 salvage value 2,242,000
Cost of new land improvement (Land Improvements 2) near Building 2 having a 20-year useful life and no salvage value 173,000
Allocate the costs incurred by Mitzu to the appropriate columns and total each column.
Allocation of Purchase Price Appraised Value Percent of Total x Total Cost of Acquisition = Apportioned Cost
Land $1,952,000 x $2,750,000 =
Building 2 $732,000 x $2,750,000 =
Land Improvements 1 $366,000 12% x $2,750,000 = 330,000
Totals $1,952,000 12% x = 330,000

Answers

Question Completion:

2. Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1.

Answer:

Mitzu Co.

1. Allocation of   Appraised Value  Percent  x Total Cost      = Apportioned

Purchase Price                             of Total   of Acquisition           Cost

Land                     $1,799,500     59%      x  $2,750,000  =  $1,622,500

Building 2               $671,000     22%       x  $2,750,000  =       605,000

Land Improve-

ments 1                $579,500      19%       x  $2,750,000  =       522,500

Totals                $3,050,000    100%                                 =  $2750,000

2. Journal Entry:

January 1:

Debit Land (demolishing Building 1) $345,000

Debit Land (additional land grading) $195,000

Debit Building 3 $2,242,000

Debit Land Improvements 2 $173,000

Credit Cash $2,955,000

To record the payment of additional costs incurred.

Explanation:

a) Data and Calculations:

Lump-sum amount paid $2,750,000

Additional costs incurred:

Land (demolishing Building 1) $345,000

Land (additional land grading) $195,000

Building 3 $2,242,000, having a useful life of 25 years and a $402,000 salvage value

Land Improvements 2 $173,000 near Building 2 having a 20-year useful life and no salvage value

_______regulation applies to specific​ industries, whereas _______economic social regulation applies to businesses throughout the economy. Governments commonly regulate the prices and quality of services provided by​ electric, gas, and other​ utilities, which traditionally have been considered____technological oligopolistic geographic natural monopolies. Governments also single out various nonmonopolistic​ industries, such as the financial and transportation​ industries, for special forms of ______ economic social regulation. Among the common forms of ____ economic social regulation covering all industries are the​ occupational, health, and safety rules that federal and state governments impose on producers.

Answers

Answer:

Economic; social; natural; economic; social.

Explanation:

Generally, economic regulation are only applicable to business firms or organizations in a specific industry while social regulation is generally applicable to all of the business firms established throughout the economy or country.

A monopoly is a market structure which is typically characterized by a single-seller who sells a unique product in the market by dominance. This ultimately implies that, it is a market structure wherein the seller has no competitor because he is solely responsible for the sale of unique products without close substitutes. Any individual that deals with the sales of unique products in a monopolistic market is generally referred to as a monopolist.

For example, a public power company is an example of a monopoly because they serve as the only source of power utility provider to the general public in a society.

Governments commonly regulate the prices and quality of services provided by​ natural monopolies.

The Occupational Safety and Health Administration (OSHA) is a federal agency saddled with the responsibility of assuring and ensuring safe and healthy working conditions for employees by setting and enforcing standards, providing education, trainings and assistance to various organizations.

State income taxes paid$2,000 Mortgage interest on her personal residence9,000 Points paid on purchase of her personal residence1,000 Deductible contributions to her IRA3,000 Uninsured realized casualty loss (in a Federal disaster area)6,000 Tax preparation fees for her prior year income tax return400 What amount may Jordan claim as itemized deductions on her current-year income tax return

Answers

Answer:

The amount Jordan may claim as itemized deductions on her current-year income tax return is $12,900.

Therefore, the correct answer is b.$12,900.

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question as follows:

Jordan Johnson is single and has adjusted gross income of $50,000 in the current year. Additional information is as follows:

State income taxes paid $2,000

Mortgage interest on her personal residence 9,000

Points paid on purchase of her personal residence 1,000

Deductible contributions to her IRA 3,000

Uninsured realized casualty loss (in a Federal disaster area) 6,000

Tax preparation fees for her prior year income tax return 400

What amount may Jordan claim as itemized deductions on her current-year income tax return?

a.$12,000

b.$12,900

c.$13,300

d.$15,900

b. $12,900.

Explanation of the answer is now given as follows:

The allowable deduction for personal casualty loss that occurs in a Federal disaster area has a limit to the amount by which it is higher than $100 floor and 10% of AGI which is calculated as follows:

Uninsured realized casualty loss (in a Federal disaster area) - $100 = $6,000 - $100 = $5,900

Deductible uninsured realized personal casualty loss (in a Federal disaster area) = $5,900 - ($50,000 * 10%) = $900

Therefore, we have:

Itemized deductions for the current year = State income taxes paid + Mortgage interest on her personal residence + Points paid on purchase of her personal residence + Deductible uninsured realized personal casualty loss (in a Federal disaster area) = $2,000 + $9,000 + $1,000 + $900 = $12,900

Therefore, the amount Jordan may claim as itemized deductions on her current-year income tax return is $12,900.

The correct answer is b.$12,900.

Hubert lives in San Diego and runs a business that sells boats. In an average year, he receives $851,000 from selling boats. Of this sales revenue, he must pay the manufacturer a wholesale cost of $476,000; he also pays wages and utility bills totaling $281,000. He owns his showroom; if he chooses to rent it out, he will receive $71,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Hubert does not operate this boat business, he can work as an accountant, receive an annual salary of $34,000 with no additional monetary costs, and rent out his showroom at the $71,000 per year rate. No other costs are incurred in running this boat business.

Identify each of Bob's costs in the following table as either an implicit cost or an explicit cost of selling boats.

a. The salary Bob could earn if he worked as an accountant
b. The wholesale cost for the boats that Bob pays the manufacturer
c. The rental income Bob could receive if he chose to rent out his showroom
d. The wages and utility bills that Bob pays

Answers

Answer:

(a). Implicit cost

(b) Explicit cost

(c)  Implicit cost

(d)  Explicit cost

Explanation:

Implicit cost are the cost which a person can earn in a period.

Explicit cost are the cost which a person pays in same period for other work.

So by this, we can clearly determine explicit and implicit cost for the following statements.

(a). Implicit cost (Because salary is an earning for Bob.)

(b) Explicit cost ( Because Bob pays an amount for different work)

(c)  Implicit cost (Because rental is an earning for Bob.)

(d)  Explicit cost ( Because Bob pays an amount for wages and utility)

MIRR [LO6] Solo Corp. is evaluating a project with the following cash flows: The company uses an interest rate of 10 percent on all of its projects. Calculate the MIRR of the project using all three methods. MIRR [LO6] Suppose the company in the previous problem uses a discount rate of 11 percent and a reinvestment rate of 8 percent on all of its projects. Calculate the MIRR of the project using all three methods using these interest rates.

Answers

Answer:

a. MIRR = 15.71%

b. MIRR = 13.54%

c. MIRR = 14.11%

Explanation:

Note: This question is not complete because the cash flows are not included. The complete question with the cash flows is therefore presented before answering the question as follows:

MIRR [LO6] Solo Corp. is evaluating a project with the following cash flows:

Year          Cash Flow

0                (30,000)

1                   12,200

2                   14,900

3                  16,800

4                  13,900

5                 (10,400)

Calculate the MIRR of the project using all three methods. MIRR [LO6] Suppose the company in the previous problem uses a discount rate of 11 percent and a reinvestment rate of 8 percent on all of its projects. Calculate the MIRR of the project using all three methods using these interest rates.

a. Calculate the MIRR of the project using the discounting approach method.

b. Calculate the MIRR of the project using the reinvestment approach method.

c. Calculate the MIRR of the project using the combination approach method. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places,

The explanation of the answers is now given as follows:

Let:

D = discount rate = 11%

R = reinvestment rate = 8%

a. Calculate the MIRR of the project using the discounting approach method.

Note: See part a of the attached excel file for the calculations of the MIRRs using the discounting approach method.

In the part a of the attached file, this is calculated using the following formula and the excel function:

MIRR = MIRR(Cash flows from year 1 to 5,D,D) =MIRR(B3:B8,11%,11%) = 15.71%

b. Calculate the MIRR of the project using the reinvestment approach method.

Note: See part b of the attached excel file for the calculations of the MIRRs using the reinvestment approach method.

In the part b of the attached file, this is calculated using the following formula and the excel function:

MIRR = (Cash flows from year 1 to 5,D,D) =MIRR(B15:B20,8%,8%) = 13.54%

c. Calculate the MIRR of the project using the combination approach method.

Note: See part c of the attached excel file for the calculations of the MIRRs using the combination approach method.

In the part c of the attached file, this is calculated using the following formula and the excel function:

MIRR = (Cash flows from year 1 to 5,D,R) =MIRR(B27:B32,11%,8%) = 14.11%

At the beginning of 2021, Terra Lumber Company purchased a timber tract from Boise Cantor for $3,510,000. After the timber is cleared, the land will have a residual value of $720,000. Roads to enable logging operations were constructed and completed on March 30, 2021. The cost of the roads, which have no residual value and no alternative use after the tract is cleared, was $279,000. During 2021, Terra logged 620,000 of the estimated 6.2 million board feet of timber.Required:Calculate the 2021 depletion of the timber tract and depreciation of the logging roads assuming the units-of-production method is used for both assets. (Do not round intermediate calculations. Enter values in whole dollars.)

Answers

Answer:

A. $279,000

B. $27,900

Explanation:

A. Calculation for 2021 depletion of the timber tract

2021 Depletion=[($3,510,000 - $720,000) / 6.2 million] *$620,000

2021 Depletion=0.45x 620,000

2021 Depletion= $279,000

Therefore 2021 depletion of the timber tract is $279,000

B. Calculation to determine the depreciation of the logging roads

Depreciation=($279,000 / 6.2 million)*$620,000 Depreciation= 0.073*$620,000

Depreciation= $27,900

Therefore the depreciation of the logging roads is $27,900

Free Flight Corporation, located in Denver, Colorado, produces bicycle accessories, including bicycle helmets which requires a rigid, crushable foam. During the quarter ending June 30, the company manufactured 3,800 helmets, using 2,736 kilograms of foam. The foam cost the company $18,058. According to the standard cost card, each helmet should require 0.66 kilograms of foam, at a cost of $7.00 per kilogram.
Required:
1. What is the standard quantity of kilograms of foam (SQ) that is allowed to make 3,800 helmets?
2. What is the standard materials cost allowed (SQ * SP) to make 3,800 helmets?
3. What is the materials spending variance?
4. What is the materials price variance and the materials quantity variance?
(For requirements 3 and 4, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations.)
1. Standard quantity of kilograms allowed
2. Standard cost allowed for actual output
3. Materials spending variance
4. Materials price variance
Materials quantity variance

Answers

Answer:

1. Standard quantity of kilograms allowed 2508kg

2. Standard cost allowed for actual output $17,556

3. Materials spending variance $502 Unfavorable

4. Materials price variance $1094Favorable

Materials quantity variance $1596 unfavorable

Explanation:

1. Calculation to determine the standard quantity of kilograms of foam

Standard quantity of kilograms allowed = 0.66*3800

Standard quantity of kilograms allowed =2508kg

2. Calculation to determine the standard materials cost allowed

Standard cost allowed for actual output = 2508kg *7

Standard cost allowed for actual output=$17,556

3. Calculation to determine the materials spending variance using this formula

Material spending variance = Standard cost - Actual cost

Let plug in the formula

Material spending variance= $17,556- $18,058

Material spending variance= $502 Unfavorable

4. Calculation to determine the materials price variance and the materials quantity variance

Material price variance = (7- $18,058/2,736)*2,736

Material price variance = $1094Favorable

Material quantity variance =(2508kg-2,736)*7

Material quantity variance= $1596 unfavorable

Therefore:

1. Standard quantity of kilograms allowed 2508kg

2. Standard cost allowed for actual output $17,556

3. Materials spending variance $502 Unfavorable

4. Materials price variance $1094Favorable

Materials quantity variance $1596 unfavorable

Lifecycle Motorcycle Company is expected to pay a dividend in year 1 of $2, a dividend in year 2 of $3, and a dividend in year 3 of $4. After year 3, dividends are expected to grow at the rate of 7% per year. An appropriate required return for the stock is 12% (for both stages). Using the multistage DDM, the stock should be worth __________ today. Group of answer choices

Answers

Answer:

$67.95

Explanation:

Calculation to determine how much should the stock should be worth today.

First step is to calculate the dividend per year;

D4= D3(1+g) = 4(1.07) = $4.28

Second step is to calculate the PV of each dividend

PV (D1) =2 / (1.12)

PV (D1) = 1.7857

PV (D2) = 3/ (1.12²)

PV (D2) = 2.3916

PV (D3) = 4/ (1.12³)

PV (D3) = 2.8471

Fourth Step is to calculate the Value of Perp. at t=3

=[(4(1.07))/(.12-.07)]/1.12^3

=85.6/1.4049

=60.9296

Now let calculate how much should the stock should be worth today

Worth today = 1.7857+ 2.3916 + 2.8471 + 60.9296

Worth today=$67.95

Therefore Using the multistage DDM, the stock should be worth $67.95 today

WellWheats, Inc. produces breakfast cereal and sells each box, or unit, for $7. The company is projecting sales of 1,000 units for the month of March. There are 30 units in the beginning inventory. Each unit requires 20 ounces of raw materials and 0.20 direct labor hours to make. The company's policy is to keep ending finished goods inventory of 10% of the current month's sales. Selling and administrative expenses for the month have been budgeted at $2,000. If the direct labor cost per hour is $0.75, calculate the budgeted direct labor cost for the month of March.
A. $214.00
B. $160.50
C. $802.50
D. $236.00

Answers

Answer:

b. . $160.50

Explanation:

Projected Sales 1,000 units

Desired ending inventory = 10%*1,000 = 100 units

Beginning Inventory = 30 units

Required production = Projected Sales + Desired ending inventory - Beginning Inventory

Required production = 1,000 units + (10%*1,000 units) - 30 units

Required production = 1,000 units + 100 units - 30 units

Required production = 1,070 units

Labor hours per unit = 0.20

Cost per labor hour = $0.75

Budgeted labor cost for March = Required production*Labor hours per unit*Cost per labor hour

Budgeted labor cost for March = 1,070 units*$0.20*$0.75

Budgeted labor cost for March = $160.50

Hence, the budgeted labor cost for March is $160.50.

Multiple Choice Question 47 Tidwell Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100000 for the year. Activity Cost Pool Cost Driver Est. Overhead Cost Driver Activity Ordering and Receiving Orders $ 105000 500 orders Machine Setup Setups 283500 450 setups Machining Machine hours 1462500 125000 MH Assembly Parts 1170000 1000000 parts Inspection Inspections 285000 500 inspections If overhead is applied using traditional costing based on direct labor hours, the overhead application rate is

Answers

Answer:

Predetermined overhead rate= $22.53 per direct labor hour

Explanation:

Giving the following information:

Direct labor hours are estimated at 100,000 for the year.

Total estimated overhead for the period= (105,000 + 283,500 + 1,462,500 + 117,000 + 285,000) = $2,253,000

To calculate the predetermined overhead rate, we need to use the following formula:

Predetermined overhead rate= total estimated overhead / total amount of allocation rate

Predetermined overhead rate= 2,253,000 / 100,000

Predetermined overhead rate= $22.53 per direct labor hour

advantages and disadvantages of proxemics​

Answers

Answer:

Advantage::

it allows people to understand how different communities organise there Town and homes

Bismith Company reported: Actual fixed overhead Fixed manufacturing overhead spending variance Fixed manufacturing production-volume variance $700,000 $40,000 unfavorable $30,000 unfavorable
To record the write-off of these variances at the end of the accounting period, Bismith would
A. credit Fixed Manufacturing Production-Volume Variance for $30,000
B. debit Fixed Manufacturing Control for $700,000
C. credit Fixed Manufacturing Overhead Allocated for $700,000
D. debit Fixed Manufacturing Overhead Spending Variance for $40,000

Answers

Answer:

D. Debit fixed manufacturing overhead spending variance for $40,000

Explanation:

Since fixed manufacturing overhead shows the difference between the actual fixed overhead costs and budgeted fixed overhead cost during a period, Bismith would debit fixed manufacturing overhead spending variance of $40,000 inorder to write off the recording of the variances at the end of the accounting period because the value for fixed manufacturing overhead spending variance has already being gotten hence would be applied at the end of the period.

In the balance sheet at the end of its first year of operations, Dinty Inc. reported an allowance for uncollectible accounts of $82,000. During the year, Dinty wrote off $32,000 of accounts receivable it had attempted to collect and failed. Credit sales for the year were $2,200,000, and cash collections from credit customers totaled $1,950,000. What accounts receivable balance would Dinty report in its first year-end balance sheet?

Answers

Answer:

$218,000

Explanation:

Account receivable balance = Credit sales - Cash collection - Wrote-offs

Account receivable balance = $2,200,000 - $1,950,000 - $32,000

Account receivable balance = $218,000

So, the accounts receivable balance would Dinty report in its first year-end balance sheet is $218,000

The petty cash fund of Ricco's Automotive contained the following items at the end of September 2021:

Currency and coins $58
Receipts for the following expenditures:
Delivery charges $16
Printer paper 11
Paper clips and rubber bands 8 35
Lent money to an employee 25
Postage 32
Total $150

The petty cash fund was established at the beginning of September with a transfer of $150 from cash to the petty cash account.

Required:
Prepare the journal entry to replenish the fund at the end of September.

Answers

Answer:

Date       Account titles and Explanation   Debit    Credit

Sep 30   Delivery expenses                           $16

              Offices supplies                               $19

              Postage expenses                           $32

              Receivables from employees         $25

                      Cash                                                        $92

              (To record replenishment of petty cash fund)

Robb Industries Inc. (RII) developed standard costs for direct material and direct labor. In 20X4, RII estimated the following standard costs for one of their major products, the 10-gallon plastic container.
Budgeted quantity Budgeted price
Direct materials 0.10 pounds $30 per pound
Direct labor 0.05 hours $15 per hour
During June RII produced and sold 5,000 containers using 490 pounds of direct materials at an average cost per pound of $32 and 250 direct manufacturing labor-hours at an average wage of $15.25 per hour.
a. What is June’s direct material price variance?
standard price 30 acutal quantity 490
actual price 32 direct material 980 unfavorable
b. What is June’s direct material efficiency variance?
standard price 30 actual quantity 490
standard quality 500 direct material 300 favorable
c. What is June’s direct labor rate variance?
standard rate 15 actual hours 450
actual rate 15.25 manufactoring labor variance 62.50 unfavorable
d. What is June’s direct labor efficiency variance?
standard hours 250 standard rate 15
actual hours 250 maunfaturing varience 0

Answers

Answer:

A. 980 unfavorable

B. 300 favorable

C. 62.50 unfavorable

D. 0

Explanation:

A. Calculation to determine June’s direct material price variance

Using this formula

Direct material price variance=Actual quantity(Standard price -Actual price)

Let plug in the formula

Direct material price variance=490 ($32 - $30) Direct material price variance=980 U

B. Calculation to determine June’s direct material efficiency variance

Using this formula

Direct material efficiency variance=Standard price (Actual quantity-Standard quality)

Let plug in the formula

Direct material efficiency variance=$30 (490 – 500)

Direct material efficiency variance= 300 F

C. Calculation to determine June’s direct labor rate variance

Using this formula

Direct labor rate variance=standard hours(actual rate -standard rate )

Let plug in the formula

Direct labor rate variance =250 dlh ($15.25 - $15.00)

Direct labor rate variance = $62.50 U

D. Calculation to determine June’s direct manufacturing labor efficiency variance

Direct manufacturing labor efficiency variance=[250 dlh - (5,000 x 0.05)] x $15

Direct manufacturing labor efficiency variance = 0

Other Questions
The perimeter of a photograph is 34 inches. It is 10 inches long. How wide is it?inches A fiber reinforced composite contains e-glass fibers in an epoxy matrix. E for the glass is 72 GPa, E for the epoxy is 2.4 GPa. Find the elastic modulus of a composite that contains 5% fibers in the longitudinal direction, Ecl Help pleaseeeeeeeeeeee Qu es el tiempo en el teatro? Q: In your opinion, which was the main cause of the Civil War and WHY? (You must provide at least 2 facts to support your opinion. Must be 2-5 sentences at the least.) Which expression says," 11 less than twice n?"(1) 11 - 2n (2) 11 + 2n(3) 2n - 11(4) 2n + 11 Rectangle A has area 50 cm 2 and length 10 cm. The area of rectangle B is one-half thearea of rectangle A. The rectangles have the same length.What is the width of rectangle B? Which refers to the amount of energy in a sound wave per unit of time and is also related to the loudness of a sound? Hey can you help me fast!!! Which punctuation mark best matches the image? 1. Comma2. Period3. Question mark4. Exclamation point AG CLASSComplete the following sentence.A science professional who studies diseases of plants is called a plant _________.No options to choose from:( el artculo 76 de la Constitucin y responde: A qu poder del Estado corresponde esta funcin? When you sit up straight for a long time, the __________ holds a lot of your body weight.A. upper backB. lower backC. mid-backD. neck Find the perimeter of thepolygon if ZB = ZD.5 cmB6 cmD7 cmP = [?] cmEnter x + 2y = 5y = 6x + 3 Samuel earns $50.75 each week by working at a part-time job. He works the same amount of time each day for 5 weeks. What is the total amount of money Samuel earns during the 5-week period? Simplify the expression. Write your answer as a power. Where would you go to get information for your business plan? 6. Find the 20 ^ (th) term of the arithmetic sequence. 42,28,14,0,-14,... Why does more land = more power in ancient times?