J&E Enterprisesi s considering and investment which produces no cash flows for the first year. In the second year, the cash inflow is $47,000. This inflow will increase to $198,000 and then $226,000 for the following two years, respectively, before ceasing permanently. The initial investment will cost $318,000. The firm requires a 15.5 percent rate of return and has a required discounted payback period of three years. Should the project be accepted. Why or why not?
Year Cash flow Discounted cash flo Cumulative cash flo
1 $0 $0.00 $0.00
2 $47,000 $35,321.72 $35,231.72
3 $198,000 $128,504.77 $163,736.49
4 $226,000 $126,993.21 $290,729.70
Answers
Answer:
No
The amount of cumulative discounted cash flows is less than the the amount invested in the project. This means that the project is unprofitable.
Explanation:
The discounted cash flow method calculates how long it takes to recover the amount invested in a project from its cumulative discounted cash flow.
A project should be accepted if the amount invested in the project is recovered from the cumulative discounted cash flow within the period specified by the firm.
The cumulative discounted cash flow, $290,729.70 is less than the amount invested $318,000. So the project shouldn't be accepted.
I hope my answer helps you
Related Questions
Using Activity Based Costing, calculate the rate for each cost driver.
13 marks b) Using activity based budgeting, prepare a budgeted yearly operating statement for
Aero3D Ltd. Show the following separately, within the statement.
i. The budgeted output for each product per year;
ii. The contribution to profits for each product and in total before charging activity based costs;
iii. The profit for each product and in total after charging activity based costs but before charging core costs (non-activity based costs);
iv. The total profit after charging core based costs.
Answers
i. Budgeted output for each product per year is XS PRO: 3,400 units and POLYX: 1,800 units
ii. Contribution to profits for each product and in total before charging activity-based costs are XS PRO: £561,000 + POLYX: £379,800 (£940,800)
iii. Profit for each product and in total after charging activity-based costs but before charging core costs are XS PRO: Profit after activity-based costs and POLYX: Profit after activity-based costs
iv. Total profit after charging core costs: Total profit after charging core costs
How did we arrive at these values?To calculate the rate for each cost driver using Activity Based Costing (ABC), divide the total cost of each cost pool by its respective cost driver.
a) Calculation of rates for each cost driver:
1. Condensing machine:
Rate = Total cost of condensing machine / Number of production batches
Rate = £450,000 / 60
Rate = £7,500 per batch
2. Shaping machine:
Rate = Total cost of shaping machine / Shaping machine hours
Rate = £130,000 / (3,400 × 0.50 + 1,800 × 0.70)
Rate = £130,000 / 2,400
Rate = £54.17 per shaping machine hour
3. Manual handling of material:
Rate = Total cost of manual handling of material / Weight of material handled
Rate = £55,000 / (3,400 × 1.2 + 1,800 × 1.4)
Rate = £55,000 / 7,040
Rate = £7.80 per kilogram of material handled
b) Budgeted yearly operating statement for Aero3D Ltd:
i. Budgeted output for each product per year:
- XS PRO: 3,400 units
- POLYX: 1,800 units
ii. Contribution to profits for each product and in total before charging activity-based costs:
Contribution per unit = Selling price - Direct material cost - Direct labor cost
- XS PRO: £175 - £8 - £2 = £165 per unit
- POLYX: £225 - £10 - £4 = £211 per unit
Contribution before activity-based costs:
- XS PRO: £165 × 3,400 = £561,000
- POLYX: £211 × 1,800 = £379,800
Total contribution = £561,000 + £379,800 = £940,800
iii. Profit for each product and in total after charging activity-based costs but before charging core costs:
Cost breakdown per unit:
- XS PRO:
- Condensing machine cost = Rate (Condensing machine) × Number of production batches
- Shaping machine cost = Rate (Shaping machine) × Shaping machine hours
- Manual handling cost = Rate (Manual handling of material) × Weight of material handled
Total cost per unit = Direct material cost + Direct labor cost + Condensing machine cost + Shaping machine cost + Manual handling cost
- POLYX:
- Condensing machine cost = Rate (Condensing machine) × Number of production batches
- Shaping machine cost = Rate (Shaping machine) × Shaping machine hours
- Manual handling cost = Rate (Manual handling of material) × Weight of material handled
Total cost per unit = Direct material cost + Direct labor cost + Condensing machine cost + Shaping machine cost + Manual handling cost
Profit after activity-based costs but before core costs:
- XS PRO: Selling price - Total cost per unit
- POLYX: Selling price - Total cost per unit
iv. Total profit after charging core costs:
Total profit = Total contribution - Core costs
Since the core costs are given as a fixed amount and not linked to any activity or cost driver, they are not allocated using the ABC method.
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Juan bought 14 chicken wings for $22.40. If Juan spent $12.80, how many chicken wings did he buy?
Answers
Answer: 8
Explanation:
How does manufacturing create the multiplier effect?
Answers
Answer:
For every $1.00 spent in manufacturing, another $2.79 is added to the economy
Explanation:
hope this helps
What is a list of a business employees and how they are to be compensation
Answers
Answer:
1. Base pay package
A base pay package is a standard amount of money an employee receives in exchange for working a set number of hours (typically 40 hours per week). Employees who receive a base pay package are paid an hourly wage or a salary. Although most employees work for base pay, whether they are salaried or hourly employees depends on their role. "An employee working on a project or with defined tasks will usually prefer a base salary package," Jeremy Jarry, CEO of stock-option consultancy B3GIN, told business.com. "Hourly-type packages are often for entry-level positions or low-paying jobs."
2. Commission package
A commission package is compensation given based on employee performance. Some commission packages include a low base-pay salary and high commissions, whereas others offer only commissions. A commission package incentivizes employees to perform well, since their paycheck is tied to their performance. "Often, these compensation packages are given to individuals working in sales," Jarry said. "They will receive a percentage on the turnover they generate or a flat dollar amount if they hit a sales target."
3. Equity package
Equity packages are typically offered to employees in leadership positions or for hard-to-recruit profiles. However, Jarry said giving every employee access to stock options can create a culture of sharing and inclusion, as well as align the interests of investors, founders, and employees. "Equity will vary by organization and may be used as a larger component if cash is tight (e.g., at a startup) and as a method to incentivize employee retention," Roy said.
4. Benefits package
includes additional perks that workers receive on top of their base wages. There are a few employee benefits you are legally required to offer, including family and medical leave, health insurance (for companies with 50 or more full-time employees), FICA (Social Security, Medicare, and federal insurance contributions), unemployment insurance, and workers compensation
5. Bonuses
Bonuses are often tied to the performance of the employee, their team or the company. Although you can offer bonuses to employees of any level, many employers give bonuses to employees in leadership roles.
I really hope this helps :)
Secondary data is often gathered primary data
Answers
Answer:
Is often gathered BEFORE primary data
Explanation:
:)
Match the jobs with the education requirements,
1- childcare director
2- clinical psychologist
3- concierge
4- cosmetologist
A- vocational school and state licensure
B- on-the-job training
C- a Ph.D. with licensure or certification, depending on the state hs which you
live
D- a bachelor's degree in early childhood development
Answers
Early childhood development bachelor's degree, clinical psychology Ph.D. Depending on the state, concierge-on-the-job training, cosmetologist-vocational school, and state licensure.
What is the definition of a cosmetologist?
The study and practice of cosmetic treatments are known as cosmetology. Hairstyling, skincare, cosmetics, manicures/pedicures, non-permanent hair removals methods such as waxing and sugaring, and permanent hair removals methods such as electrology and strong pulsed light are examples of specialties (IPL).
As of 2018, all states required an occupational license to be a cosmetologist, with the average cost of a certificate from a for-profit school being $17,000 and 1,500 necessary hours (ten times the hours required for an EMT), with cosmetologists earning a median pay of $25,000.
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A military organization is very structured. Ranks are very clear, defining who can give and who must take orders. This is an example of
Answers
Answer:
vertical management
Explanation:
The flow of information that takes flows from the top management to the subordinates is said to be vertical management. The information is passed from the managers to the employees at the lower levels. Primarily the feedback are communicated in this form of management. The control of the higher authority is high and strong.
The given excerpt is an example of vertical management that flows in the military organization.
16660 kronas how much is this in us dollars
Answers
Answer: 1,900.05 United States Dollar
Explanation:
A food handler has been diagnosed with hep A virus but is not showing signs of illness. THE pIC must
Answers
A food handler has been diagnosed with hep A virus but is not showing signs of illness. THE pIC must notify the local regulatory authority.
What is hep A virus?Hepatitis A is basically an infection with the hepatitis A virus that outcomes in liver inflammation (HAV). The virus is mainly spread when an uninfected (and unvaccinated) person consumes food or water that has been tainted with an infected person's faeces. Contaminated food or water, inadequate sanitation, poor personal hygiene, and these factors are all strongly linked to the disease.
Hepatitis A, unlike hepatitis B and C, does not result in chronic liver disease, but it can still have crippling symptoms and, very rarely, fulminant hepatitis (acute liver failure), which is frequently fatal. According to WHO estimates, 7134 people worldwide died from hepatitis A in 2016 (which accounts for 0.5% of the mortality from viral hepatitis).
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In the prepare phase of your analysis, you described the data sources you used. According to the Case Study Roadmap, this description should include where the data is located and how it is organized. It should also consider issues with bias or credibility, problems with the data, and how you verified its integrity. Finally, your description should explain how the data helped you answer your questions. Take a moment to review your description now. What steps could you take to make it even more descriptive? 1 point
Answers
To make the description of the data sources in the prepare phase more descriptive, you can consider the following steps:
Specify the location of the dataDetail the organization of the dataAddress bias and credibilitySome steps to make the data sources more descriptiveSpecify the location of the data: Provide specific information about the sources of the data, such as the name of the database, website, or organization where the data was obtained. If applicable, mention any specific datasets or files used.
Detail the organization of the data: Describe how the data is structured or organized, whether it is in a tabular format, spreadsheets, databases, or any other specific format. Mention the variables or fields present in the data and how they are arranged.
Address bias and credibility issues: Discuss any potential biases or credibility concerns associated with the data sources. Consider the source's reputation, the methodology used to collect the data, and any known limitations or biases in the data collection process.
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Type the correct answer in the box. Spell all words correctly.
Kwa Lee works as the production manager in a manufacturing company that makes microwave ovens. He wants the products to meet the
generally applicable standards related to environment radiation.
Which law must Kwa Lee follow related to the products his company manufactures?
Kwa Lee and his company must adhere to the standards in the
Blank
Answers
Answer:
Resource conservation and Recovery Act
Explanation:
This is the answrer correct me if wrong
The law that Kwa Lee follow that is related to the products his company manufactures is: Resource conservation and Recovery Act.
What is Resource Conservation and Recovery Act?The Resource Conservation and Recovery Act is an act that was establish to help prevent disposal waste that can be harmful to the our wellbeing .
Based on the given scenario Kwa lee and his has to comply to the standard in the Resource Conservation and Recovery Act.
Therefore the law that Kwa Lee follow that is related to the products his company manufactures is: Resource conservation and Recovery Act.
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Reintegrative Shaming Theory
What is the difference between reintegrative and stigmatizing
shaming? How does each impact crime?
Answers
According to Reintegrative Shaming Theory, shaming can be either reintegrative or stigmatizing. Reintegrative shaming involves disapproving of a person's behavior but not rejecting the person themselves. This type of shaming seeks to reintegrate the person back into society and encourages them to take responsibility for their actions and make amends.
On the other hand, stigmatizing shaming involves labeling and stigmatizing the person themselves, rather than just their behavior. This type of shaming can lead to the person feeling isolated and rejected from society, potentially increasing their likelihood of committing future crimes.
Research has shown that reintegrative shaming can be effective in reducing crime, as it focuses on changing behavior and promoting accountability. Stigmatizing shaming, on the other hand, may have unintended negative consequences, such as increased resentment and further criminal behavior.
Therefore, it is important for society to focus on promoting reintegrative shaming and avoiding stigmatizing shaming practices.
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A body of the letter is composed of the:
Answers
Answer: Introduction, supporting details, and conclusion.
Answer:
Introduction, supporting details, and conclusion.
Explanation:
Which of the following explains why people became more malnourished after society started relying on agriculture
rather than hunting and gathering?
Commodities were exchanged using money, which was not equally available.
Commodities were often difficult to grow in areas where conditions suited societies
Commodities were controlled by the social elite and the food was not divided evenly
Commodities were found to be too much work for too little money so few people grew crops
Answers
Answer:
the answer would be the second one :)
he Lubricant is an expensive oil newsletter to which many oil giants subscribe, including Ken Brown (see Problem 3-17 for details). In the last issue, the letter described how the demand for oil products would be extremely high. Apparently, the American consumer will continue to use oil products even if the price of these products doubles. Indeed, one of the articles in the Lubricant states that the chance of a favorable market for oil products was 70%, while the chance of an unfavorable market was only 30%. Ken would like to use these probabilities in determining the best decision. What decision model should be used
Answers
Answer: Expected Monetary Value decision model
Explanation:
The Expected Monetary Value (EMV) model is a statistical method used to calculate future payoffs that accounts for the risk and probability of different events happening.
It essentially takes the average of the scenarios that could happen based on their probabilities and their expected payoff and then adds them together to give a value that the investor can base their expectations upon.
For instance, in the above question, assuming that Ken Brown in a favorable market, Ken Brown can sell $500,000 worth of oil products but in an unfavorable one, they can only sell $100,000.
Based on the probabilities of the market conditions, EMV would show a value of;
= (500,000 * 70%) + (100,000 * 30%)
= $380,000
Focused reports help managers ____________ the challenge before recommending solutions. Reports that present data without conducting analysis arei ______________.
Like other business messages, reports can range from informal to formal depending on their purpose, audience, and setting. Which of the following contributes to an informal writing style?
a. Absence of humor
b. Passive voice verbs
c. Familiar words
d. Use of contractions
Answers
Answer: analyze, informational reports;
the use of contractions
Explanation:
Focused reports help managers (analyze) the challenge before recommending solutions. Reports that present data without conducting analysis are (informational reports)
b. The option that contributes to an informal writing style is ( the use of contractions). Other informal writing styles are:
• First-person pronouns
• Active-voice verbs
• Conversational language
Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next ten years, because the firm needs to plow back its earnings to fuel growth. The company will then pay a dividend of $13.50 per share 11 years from today and will increase the dividend by 5.25 percent per year thereafter. The required return on the stock is 13.25 percent.1. What is the price of the stock 10 years from today?2. What is the current share price?
Answers
Answer:
1. The price of the stock 10 years from today is $150 per share.
2. The current share price is $43.22 per share.
Explanation:
1. What is the price of the stock 10 years from today?
To calculate this, the dividend growth model formula is used as follows:
P = D1 / (r - g) ............................ (1)
Where,
P = Stock price 10 years from today = ?
D1 = Dividend 11 years from today = $13.50
r = required return = 13.25%. or 0.1325
g = dividend growth rate = 5.25%, or 0.0525
Substituting the values into equation (1), we have:
P = $13.50 / (0.1325 - 0.0425)
P = $150
Therefore, the price of the stock 10 years from today is $150 per share.
2. What is the current share price?
This can be calculated using the present value formula as follows:
Current share price = P / (1 + r)^Number of years = $150 / (1 + 0.1325)^10 = $43.22
Therefore, the current share price is $43.22 per share.
Definition of meeting
Answers
Interaction with someone is called meeting..
according to me yes
Blossom Company accumulates the following data concerning a mixed cost, using miles as the activity level.
Miles Driven Total Cost Miles Driven Total Cost
January 6,400 $11,320 March 6,800 $12,000
February 6,000 10,800 April 6,560 11,592
Required:
Compute the variable cost per mile using the high-low method.
Answers
Answer:
just add and subtract the last three numbers and theres your answer love <3
Explanation:
an increase in the equilibrium nominal interest rate could be caused by which of the following changes?
Answers
The money demand curve moves to the right when prices rise, which raises the nominal interest rate. Ostensible financing costs and bond costs move in inverse headings.
How can the nominal interest rate at equilibrium rise?By making more money available for borrowing, an increase in the money supply—the amount of money in circulation—can raise the equilibrium nominal interest rate. The nominal interest rate rises as a result of the increased demand for loans caused by this additional cash.
The equilibrium nominal interest rate can also rise as a result of an increase in real income, which is measured in terms of purchasing power. The nominal interest rate rises as a result of people borrowing more money as they become wealthier.
Last but not least, a rise in the equilibrium nominal interest rate may result from a decrease in the amount of cash that the general public wants to hold (the demand for money). This is because people are less willing to lend money when there is less demand for it, which raises the nominal interest rate.
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You decide to decrease the price of your product to increase total sales revenue, because you believe your product's demand is
A) perfectly inelastic
B) unit elastic
C) price elastic
D) price inelastic
Answers
Answer:
C) price elastic.
Explanation:
Pamela is also a saver. She sets aside $100 per month during her 40 year career. She invests in the US stock market* through an index fund that averages a 7% annual return over this 40 year period.
Answers
Answer:
$32,183.77
Explanation:
A- monthly payment, r- monthly interest rate, n- number of months
A- 200, r- 7%/12 =0.583%, n = 40 × 12 = 480
FV = 200× (1- (1.00583)^(-480))/0.00583
=32,183.767
= $32,183.77
She invests in the US stock market in an index fund that averages a 7%. The annual return over this 40 year period is $32,183.77.
What is index fund?
A mutual fund or exchange-traded fund that tracks a certain basket of underlying investments is known as an index fund. Index funds must adhere to a set of predetermined regulations.
An index fund is a combination of stocks or bonds created to closely resemble the make-up and performance of an index of the financial markets. In comparison to actively managed funds, index funds incur fewer costs and fees. Investing is done passively with index funds.
I- 200
r- 7%/12 =0.583%
n = 40 × 12 = 480
FV = 200× (1- (1.00583)^(-480))/0.00583
=32,183.767
Hence, The annual return over this 40 year period is $32,183.77.
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In an informative essay, describe the effects of globalization on air pollution in China's largest cities.
Answers
Answer:
sorry I can't do it in informal essay but here's a tip
Choking – and dying – on globalization
China's export-oriented industrial spasm, powered largely by burning coal, has bequeathed it notoriously lethal air pollution, so much so that, according to one study, it contributes to the deaths of 1.6 million people per year (4,400 per day), or 17% of all deaths in the country.
I'm selling this painting on poshmark sometime in November or December 2020 you can put how much your willing to pay in the comments minimum price starting at 30 US dollars.
Answers
The income statement for Thomas Manufacturing Company for a period is as follows:
Sales (10,000 units)
Variable expenses
Contribution margin
Fixed expenses
£
120.000
72,000
48.000
36.000
Operating income
12,000
If sales increase by £60,000, what will happen to profit?
Answers
Answer:
mankie
Explanation:
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Why Does Marketing Matter?
Answers
Answer:
Marketing matters because it educates, builds awareness and establishes initial connections.
Explanation:
Sloan Inc. recently invested in a project with a 3-year life span. The net present value was $9,000 and annual cash inflows were $21,000 for year 1; $24,000 for year 2; and $27,000 for year 3.
The initial investment for the project, assuming a 15% required rate of return, was _____.
Net Present Value
Answers
Answer:
Explanation:
To calculate the initial investment, we can use the formula for net present value (NPV) as follows:
NPV = present value of cash inflows - present value of initial investment
Given that NPV = $9,000 and the annual cash inflows for each of the three years, we can calculate the present value of cash inflows as follows:
PV of year 1 cash inflow = $21,000 / (1 + 0.15)^1 = $18,260.87
PV of year 2 cash inflow = $24,000 / (1 + 0.15)^2 = $18,137.32
PV of year 3 cash inflow = $27,000 / (1 + 0.15)^3 = $18,008.69
Therefore, the total present value of cash inflows is:
PV of cash inflows = $18,260.87 + $18,137.32 + $18,008.69 = $54,406.88
Now, we can rearrange the NPV formula to solve for the initial investment:
NPV + PV of initial investment = PV of cash inflows
Substituting the given values, we get:
$9,000 + PV of initial investment = $54,406.88
PV of initial investment = $54,406.88 - $9,000
PV of initial investment = $45,406.88
Finally, we can calculate the initial investment by finding the present value of $45,406.88 for 3 years at a 15% required rate of return:
Initial investment = $45,406.88 / (1 + 0.15)^3
Initial investment ≈ $29,508.88
Therefore, the initial investment for the project was approximately $29,508.88.
Calculating Returns and Variability (LO1) You’ve observed the following returns on Regina Computer’s stock over the past five years: 7%, −12%, 11%, 38%, and 14%. a. What was the arithmetic average return on Regina’s stock over this five-year period? b. What was the variance of Regina’s returns over this period? The standard deviation?
Answers
The arithmetic average return that Regina Computer stock saw on its returns over the five years was 11. 6 %
The variance of the returns over the period was 320.3, and the standard deviation was 17.9 %
How to find the arithmetic mean?The arithmetic mean on returns can be found by summing up all the returns and then dividing this by the number of returns.
The arithmetic mean to Regina stock in the five year period was therefore:
= (7 % + - 12% + 11 % + 38 % + 14 % ) / 5
= 58 % / 5
= 11. 6 %
Using this mean, the variance can be found on a spreadsheet to be 320.3.
The standard deviation is the square root of variance so the standard deviation of Regina Computer stock in the past 5 years is:
= √ Variance
= √ 320.3
= 17.89
= 17.9 %
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Select the correct answer. When organizing paragraphs within the body of your essay: A. Present the paragraphs in order from most important to least. B. Choose a pattern of organization that will guide the reader through the argument. C. Find the most convincing argument in your outline and present this paragraph first.
Answers
The correct option is B. Choose a pattern of organization that will guide the reader through the argument.
When organizing paragraphs within the body of an essay, it is important to choose a pattern of organization that effectively presents and supports the main argument or thesis statement. This pattern should guide the reader through the logical flow of ideas and evidence.
Option A, presenting paragraphs in order from most important to least, may not always be the most appropriate approach. The significance of each paragraph can vary depending on the specific essay and argument. It is often more effective to arrange paragraphs in a way that builds upon previous points and leads the reader towards a convincing conclusion.
Option C, presenting the most convincing argument first, may also not be the best choice. The order of paragraphs should be determined by the logical progression of ideas rather than the individual strength of each argument. By following a clear pattern of organization, the essay can present a cohesive and coherent argument that is easy for the reader to follow and understand. Hence the correct answer is B. Choose a pattern of organization that will guide the reader through the argument.
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Select all of the expressions that are equal to 6 × 45.
6 × (40 + 5)
Answers
Answer: A. 6 × (40 + 5)
C. (6 × 40) + (6 × 5)
E. 6 × (20 + 25)
Explanation:
The options include:
A. 6 × (40 + 5)
B. 4 + 2 × 45
C. (6 × 40) + (6 × 5)
D. (6 + 40) × (6 + 5)
E. 6 × (20 + 25)
6 × 45 = 270
A. 6 × (40 + 5)
= 6 × 45
= 270
B. 4 + 2 × 45
= 4 + 90
= 94
C. (6 × 40) + (6 × 5)
= 240 + 30
= 270
D. (6 + 40) × (6 + 5)
= 46 × 11
= 506
E. 6 × (20 + 25)
= 6 × 45
= 270
Therefore, the correct options are A, C and E.