Photo Co. operates four film developing plants in upstate New York. The four plants are identical. They employ the same production technology, process the same mix, and buy raw materials from the same companies at the same prices. Wage rates are also the same at four plants. In reviewing the operating results for December, the newly hired assistant controller, Mike, became quite confused over the numbers.
Plant A Plant B Plant C Plant D
Number of Rolls processed 50,000 55,000 60,000 65,000
Revenue ($000s) $500 $550 $600 $650
Less:
Variable costs (195) (242) (300) (298) (352)
Fixed costs (300) (300) (300) (300)
Profit (loss) $5 $8 $2 $2
Mike remembered from his Accounting class that as volume increases, the average fixed cost per unit falls, and so Mike expected Plant D to be more profitable that Plants A and B. But numbers show just the opposite.
Required:
1. Write a concise memo to Mike to help him understand what is going on and to eliminate his confusion.
Justify your points with appropriate calculations.
Answers
Related Questions
A Market share is usually stated as a
Answers
Answer:
stock
Explanation:
a stock is a a share of a company
A manufacturing company has total liabilities of $52,000 and total stockholders' equity of $75,000. What is the debt-to-equity ratio?
Answers
Answer:
0.693
Explanation:
Debt to equity ratio= Total liability/ Shareholder equity
=$52,000/$75,000= 0.693
Describe strategies that companies can employ to help ensure that employees approach transfers and promotions, particularly when relocation is involved, as development opportunities.
Answers
Answer:
The description according to another circumstance is summarized throughout the subsection below.
Explanation:
Younger employee transactions including advancement throughout particular on the change to investment opportunities whenever employers have a comprehensive relocation as well as transition strategy in anything other than a manner however to employee retention.
Almost all of the given opportunities to handle relocations or transitions:
Modification of incentives as well as payouts. Additional help in the sale or purchase of the property. Starting to move your spending.Share information sufficiently about everything from the intent of displacement so it appears to either the individual whereby he or she is of importance to either the mission.
XYZ Co is considering a major expansion program that has been proposed by the company’s information technology group. To decide whether the company will undertake this major expansion project, the company paid McLindsay Co., a large consulting company, a fee of $2 million to calculate the costs and benefits of the program, but they will refund half of that cost back to XYZ if the company does not move forward with the project. McLindsay reported that the expansion project will have an upfront cost of $20 million for assets, which are depreciated straight line to zero over the four-year horizon of the project. The company does not need to invest in net working capital (i.e., NWC = 0). McLindsay also expects that the program will generate an operating cash flow equal to $10 million the first year and will expand by 20% per year until the project is liquidated at the end of year four. The liquidation value from selling the equipment will be $4 million. You are an assistant to the CFO of the company and your first task is to advise XYZ whether the company should undertake the investment. The CFO has provided you with the following data, which he believes may be relevant to your task (all the market data are current). The firm’s tax rate is 20%. The market data on XYZ Co’s securities are:
Debt
oBond A: 42,750 bonds with a 5.4% coupon rate, with 20 years to maturity selling at par. oBond B: 55,000 bonds with a 4% coupon rate, with 15 years to maturity selling at par.
Assume that both bonds have a par value of $1,000 and they make semiannual payments.
Common stock
o 1,000,000 shares outstanding, selling for $95 per share; XYZ Co just paid a dividend of $4 per share and is expected to increase its future dividends at a constant rate of 5%. The firm’s beta is 1.8. Assume the risk-free rate is 2% and the market return is 8%.
Answer the following questions and show all the formulas and calculations (if using a financial calculator show all the entries).
a. What is XYZ Co’s cost of debt?
b. What is XYZ Co’s cost of equity using the CAPM?
c. What is XYZ Co’s cost of equity using the dividend growth model?
d. What is XYZ Co’s cost of capital? (for your cost of equity calculations, use the average of cost of equity you calculated in the last two parts).
e. Find the cash flows from assets (CFFA) of the project and then compute the NPV of the project. Accounting for all relevant expenses, should the firm undertake the expansion project?
f. Suppose instead that (1) Bond A and Bond B are priced below par and (2) the common stock is selling for $142.50 per share and the last dividend paid was $6. Would the firm’s WACC be higher, lower, or the same as what you found in part (d)? Explain.
Answers
a. To calculate the cost of debt, we need to find the yield to maturity (YTM) of each bond. We can calculate the YTM of Bond A as 5.4% and the YTM of Bond B as 4%. Therefore, the cost of debt for XYZ Co is the weighted average of the YTM of each bond, where the weights are the proportion of the total market value of debt that each bond represents. Assuming that all bonds are selling at par, the total market value of debt is $97,750,000. Thus, the weight of Bond A is 42,750/97,750 = 0.4376 and the weight of Bond B is 55,000/97,750 = 0.5624. Therefore, the cost of debt is:
Cost of Debt = 0.4376 × 5.4% + 0.5624 × 4% = 4.48%
b. Using the CAPM, we can calculate the cost of equity as:
Cost of Equity = Risk-Free Rate + Beta × (Market Return - Risk-Free Rate)
= 2% + 1.8 × (8% - 2%)
= 13.6%
c. Using the dividend growth model, we can calculate the cost of equity as:
Cost of Equity = (Dividend / Price) + Growth Rate
= ($4 / $95) + 5%
= 9.3%
d. To calculate the cost of capital, we need to find the weighted average of the cost of debt and the cost of equity, where the weights are the proportion of the total market value of debt and equity that each component represents. Assuming that the total market value of equity is $95,000,000, the weight of debt is 97,750,000/(95,000,000 + 97,750,000) = 0.5073 and the weight of equity is 1 - 0.5073 = 0.4927. Therefore, the cost of capital is:
Cost of Capital = 0.5073 × 4.48% + 0.4927 × 13.6% = 9.54%
e. To calculate the cash flows from assets (CFFA) of the project, we need to find the operating cash flows (OCF) and the net capital spending (NCS) for each year of the project. Using the given data, we can calculate the OCF for each year as:
Year 1: OCF = $10,000,000
Year 2: OCF = $12,000,000 (20% increase from year 1)
Year 3: OCF = $14,400,000 (20% increase from year 2)
Year 4: OCF = $17,280,000 (20% increase from year 3)
The net capital spending (NCS) for year 0 is the upfront cost of the project, which is $20,000,000. The NCS for year 4 is the liquidation value of the equipment, which is $4,000,000. The NCS for years 1 to 3 is zero since there is no net working capital requirement.
Calculating the CFFA for each year:
Year 0: CFFA = - $20,000,000
Year 1: CFFA = $10,000,000 - $0 - $20,000,000 = -$10,000,000
Year 2: CFFA = $12,000,000 - $0 = $12
for more such questions on bond
https://brainly.com/question/29324611
#SPJ11
00 For Market failures means that the market has not achieved its optimum production outcome. This means that it has not produced the correct quantity of goods and services. QUESTION 1 Conduct a research to any small business that is manufacturing goods in your community. Make an appointment to interview the owner for the purpose of collecting the information using the questionnaire below. 1.1 General information: ● Name of the firm / business Specify the type of goods or service ● ● Position of the person interviewed ● Date of the interview 1,2 Explain briefly the negative impact the following factors have in your business. (10) Lack of information: ● Price discrimination Immobility of factors of production with special reference to: Physical capital Structural changes ● ● (1) ● (1) (1) (1) [14] QUESTION 2: Interview 3-4 community members that reside near the business you have visited. 2.1 Ask them to name any TWO negative externalities and TWO positive externalities caused by the local business, (2 x 2) (4) 2.2 Request them to list any TWO characteristics of public goods. (2 x 1) (2) 2.3 Use the negative externality and positive externality graphs to explain the impact this business have to the society (10) [16]
Answers
The first step in researching a small business in your neighborhood is to find a suitable nearby manufacturing company.
Once you do, contact the manager or owner to arrange an interview. Gather general information during the interview, such as the name of the company or business, what types of products or services they provide, the interviewer's position, and the time and date of the interview.
Then, focus on the detrimental effects different situations can have on the company. Briefly describe the impact on business of informational gaps, price discrimination, immobility of production variables (with a focus on physical capital), and structural changes.
Interview three to four locals who live close to the establishment you just visited. Ask them to list two unfavorable and two beneficial externalities brought about by the neighborhood business. Ask them to add two properties of public goods to the list as well.
Finally, use the data from the interviews to create graphs showing the positive and negative externalities of business on society. These infographics will graphically describe the costs and benefits that the company's neighborhood has.
Learn more about business, here:
https://brainly.com/question/15826604
#SPJ1
Questions for Critical Thinking
1. Do you think Quirky’s basic business model is sound and fair? If you could suggest any changes, what would they be?
2. To what degree does Quirky’s business reflect the attributes of a sound business idea as described in Chapter 2?
3. In what other product areas would Quirky’s business model work the best?
4. Think of the challenges in your own life that might represent a product idea for Quirky. If you don’t think of something right away, don’t give up. All of us encounter problems and challenges in our everyday lives that might represent the basis of a promising idea. Be prepared to describe to others one of the challenges or problems you encounter and how a solution to the problem could be fashioned into a product idea to submit to Quirky.
Answers
Critical thinking questions1. Do you think Quirky’s basic business model is sound and fair? If you could suggest any changes, what would they be? Quirky’s basic business model is sound and fair because they involve the public in developing products by taking ideas from people and turning them into products, splitting the profits from the product sales with the inventor, and also collaborating with the inventor from the start of the idea to its final product.
However, there are a few changes I would suggest. First, the public could have more control over which product idea is to be developed into a product. Second, the company could offer more compensation to the inventor, especially if the product becomes a commercial success.2.
To what degree does Quirky’s business reflect the attributes of a sound business idea as described in Chapter 2?Quirky’s business idea reflects the attributes of a sound business as described in Chapter 2 of the text, including the following attributes:
Quirky is innovative in its business model, as it involves the public in developing products.Quirky has a good system of assessing the market’s demand for each product idea.
Quirky has a flexible business model, as it is able to adapt to changes in the market.3. In what other product areas would Quirky’s business model work the best?
Quirky’s business model could work well in a number of other product areas, including Home improvement and do-it-yourself (DIY) products;
Fashion and clothing; Outdoor gear and accessories; Personal care and hygiene; Consumer electronics.4. Think of the challenges in your own life that might represent a product idea for Quirky. If you don’t think of something right away, don’t give up.
All of us encounter problems and challenges in our everyday lives that might represent the basis of a promising idea. Be prepared to describe to others one of the challenges or problems you encounter and how a solution to the problem could be fashioned into a product idea to submit to Quirky.
One of the challenges I have encountered is the issue of losing small items such as keys, earrings, and others. A solution to this challenge could be fashioned into a product idea by developing a small, inexpensive device that could be attached to small items.
The device would emit a signal that would be detected by an app on the user’s phone if the item were lost. This could be developed into a product idea and submitted to Quirky for further development.
For more such questions on final product
https://brainly.com/question/18948748
#SPJ8
Which of the following items is not a part of planning?
Select one:
a. Contingency plan
b. Strategic plan
c. Tactical plan
d. Operational plan
e. Objective plan
Answers
An objective plan is not a part of planning. Thus, option A is correct.
What is planning?Planning is the process of creating a specific plan that outlines how management will exercise control and what the overall objectives will be. In essence, it lays out the process for achieving the goal step by step.
The objective plan is the goal towards which the manager is taking all the steps in the planning process to achieve it. An objective plan is not a part of planning because it is the and result or the goal with is to be achieved.
The manager usually plan according to the goal or the objective that is being predicted. It does not comes under the planning or the planning category. The goal may be set by the manager or the higher level authority.
Therefore, option A is the correct option.
Learn more about Planning, here:
https://brainly.com/question/22057981
#SPJ2
When applying for a loan, what should you do?
A) You should borrow from an institution close to your home.
B) You should wait until you have a long credit history.
C) You should go to a state that has low interest rates.
D) You should shop around for the best overall deal.
Answers
Answer:
When applying for a loan, what should you do?
A) You should borrow from an institution close to your home.
B) You should wait until you have a long credit history.
C) You should go to a state that has low interest rates.
D) You should shop around for the best overall deal.
Answer: D) You should shop around for the best overall deal.
Explanation:
1. $4,076.92
2. Assets = Liabilities + Equity
3. They can be used to make online purchases.
4. by using an emergency fund for this unplanned expense
5. a fund with a minimum investment that tracks the value of cash
6. 1930s
7. Banks because they are highly regulated by the government, so the loan terms will not be predatory.
8. their vacation cabin
9. You should shop around for the best overall deal.
10. If you use a credit card, it is easy to run up huge debts.
11. They are tied directly to your bank account.
12. preventative care
13. $100,000 per person bodily injury, $300,000 per incident for bodily injury, $50,000 for property damage
14. how long the coverage lasts, how much the premium costs, and the cash value
15. 1-year renewable group term life
16. Identity thieves can intercept unencrypted data being sent to Wi-Fi hot spots.
17. Wells Fargo employees were opening unauthorized deposit and credit accounts for its customers.
18. 2 year in state community college degree
19. tuition assistance
20. -a sundae, -movie tickets
Explanation: All of these answers are correct!
Personal Finance Semester Exam
5/12/2023
NOVO FINANCE ECONOMICS AND ACCOUNT
243 Sub-task 3: Economic environment (Total: 30 marks: 180 minutes)
The Book Store is a business which sells a variety of books to suit any lifestyle, from
bestselling novels, educational material to children's books
The owner, Wendy Brocks, has realised that there is a demand for creative stationery
based on her customers' requests. She decided to expand her business by producing a
stationery-line including creative paper, envelopes, notepads, creative stamps, craft pens
and wrapping paper which she will sell in
store.
Wendy is considering using semi-finished products to produce the stationery and wants to
loan in order to gain the capital for the expansion of The Book Store. Wendy knows that
import the creative stamps and craft pens from China. Wendy plans to apply for a business
she has to conduct thorough research before starting this new venture.
The student is required to assist Wendy by conducting the research and preparing an
investigative report on the following points:
a) The four factors of production (inputs) needed for the manufacturing process of The
Book Store's new stationery-line. The student is required to investigate two inputs for
each factor of production.
b) Include a drawing of the production process of this new venture.
c) Research the infrastructure needed to manufacture the stationery-line.
d) Propose ideas on how to produce the creative stationery in an environmentally friendly
way to prevent deforestation.
e) Assuming the inflation-rate rises, give one implication that this increased inflation rate.
would have on the import cost of creative stamps and craft pens from China.
Find out the current interest rate as Wendy is considering applying for a loan. The date
the interest rate obtained must be given.
9) The investigation should be concluded by providing an opinion as to whether this
business idea is viable or not and provide three reasons to substantiate the answer.
Answers
The four factors of production (inputs) needed for the manufacturing process of The Book Store's new stationery include land, labor, capital and entrepreneur.
How to illustrate the information?Based on the information given, the production process of this new venture will be the input or resources that will be used for the production process.
The infrastructure needed to manufacture the stationery-line will be capital, and portfolio designs as well as printing machines.
The ideas on how to produce the creative stationery in an environmentally friendly.way to prevent deforestation is to use less paper and recycling.
An implication of this increased inflation rate is that it lead to the increase in production cost.
Lastly, the business is viable as there is a demand for creative stationery based on her customers' requests.
Learn more about production on:
https://brainly.com/question/26460726
#SPJ1
Ticketsales, Inc., receives $5,520,000 cash in advance ticket sales for a four-date tour of Bon Jovi. Record the advance ticket sales on October 31. Record the revenue earned for the first concert date of November 5, assuming it represents one-fourth of the advance ticket sales. Ticketsales, Inc. initially records prepaid and unearned items in balance sheet accounts.
Required:
Record the cash receipt in advance of concerts.
Answers
Answer:
On October 31, Debit Cash for $5,520,000; and Credit Unearned ticket revenue for $5,520,000.
On November 5, Debit Unearned ticket revenue for $1,380,000; and Credit Ticket revenue for $1,380,000.
Explanation:
The journal entries will look as follows:
Date Description Debit ($) Credit ($)
Oct 31 Cash 5,520,000
Unearned ticket revenue 5,520,000
(To record ticket revenue received in advance.)
Nov 5 Unearned ticket revenue 1,380,000
Ticket revenue (w.1) 1,380,000
(To record revenue ticket revenue earned.)
Workings:
w.1. Ticket revenue = Unearned ticket revenue * (1 / 4) = $5,520,000 * (1 / 4) = $1,380,000
QUESTION TWO HEEKS Associates Co. Ltd is considering investing in one of two proposed short-term portfolios of four short-term financial investments. The correlation between the returns of the individual investments is believed to be negligible in both options proposed. The market return is estimated to be 15%, and the risk-free rate 5%. Portfolio 1 Investment A B C D Portfolio 2 Investment A B C D Amounts invested (TZS) 10,000,000 40,000,000 30,000,000 20,000,000 Amounts invested (TZS) 20,000,000 40,000,000 20,000,000 20,000,000 Expected Total return risk 20% 8 22% 24% 26% Expected return 18% 20% 22% 16% 10 11 9 Total risk 7 9 12 13 Beta 0.7 1.2 1.3 1.4 Beta 0.8 1.1 1.2 1.4 Required: a) Calculate the risk and return of the two portfolios using the principles of both portfolio theory and the CAPM. b) Which portfolio appears to be more efficient?
Answers
Portfolio 1: Expected Return 1: 19.6% , Total Risk (σ1): 5.5%
CAPM Expected Return 1: 51%, CAPM Total Risk (σ1): 49.5
Portfolio 2: Expected Return 2: 19.2%, Total Risk (σ2): 4.7%
CAPM Expected Return (E(R2)): 50%, CAPM Total Risk (σ2): 48.1
a) Portfolio Risk and Return Calculation:
Using Portfolio Theory:
For Portfolio 1: Expected Return 1 = (Weight A * Return A) + (Weight B * Return B) + (Weight C * Return C) + (Weight D * Return D) Expected Return (E(R1)) = (0.1 * 18%) + (0.4 * 20%) + (0.3 * 22%) + (0.2 * 16%)
= 1.8% + 8% + 6.6% + 3.2%
Expected Return 1 = 19.6%
Total Risk (σ1) = √[(Weight A^2 * Risk A^2) + (Weight B^2 * Risk B^2) + (Weight C^2 * Risk C^2) + (Weight D^2 * Risk D^2)] Total Risk (σ1) = √[(0.1^2 * 7^2) + (0.4^2 * 9^2) + (0.3^2 * 12^2) + (0.2^2 * 13^2)]
= √[0.49 + 12.96 + 10.08 + 6.76] Total Risk (σ1) = √30.29
Total Risk (σ1) = 5.5%
For Portfolio 2: Expected Return 2 = (0.2 * 18%) + (0.4 * 20%) + (0.2 * 22%) + (0.2 * 16%)
= 3.6% + 8% + 4.4% + 3.2%
Expected Return 2 = 19.2%
Total Risk (σ2) = √[(0.2^2 * 7^2) + (0.4^2 * 9^2) + (0.2^2 * 12^2) + (0.2^2 * 13^2)]
= √[0.98 + 12.96 + 2.88 + 5.32] = √22.14
Total Risk (σ2) = 4.7%
Using CAPM:
For Portfolio 1: Expected Return 1 = Risk-Free Rate + (Beta A * Market Risk Premium) + (Beta B * Market Risk Premium) + (Beta C * Market Risk Premium) + (Beta D * Market Risk Premium) Expected Return (E(R1))
= 5% + (0.7 * (15% - 5%)) + (1.2 * (15% - 5%)) + (1.3 * (15% - 5%)) + (1.4 * (15% - 5%))
= 5% + (0.7 * 10%) + (1.2 * 10%) + (1.3 * 10%) + (1.4 * 10%)
= 5% + 7% + 12% + 13% + 14%
Expected Return 1 = 51%
Total Risk (σ1) = Beta-Weighted Standard Deviation = (Beta A * Risk A) + (Beta B * Risk B) + (Beta C * Risk C) + (Beta D * Risk D)
= (0.7 * 7) + (1.2 * 9) + (1.3 * 12) + (1.4 * 13)
= 4.9 + 10.8 + 15.6 + 18.2
Total Risk (σ1) = 49.5
For Portfolio 2: Expected Return 2 = 5% + (0.8 * (15% - 5%)) + (1.1 * (15% - 5%)) + (1.2 * (15% - 5%)) + (1.4 * (15% - 5%))
= 5% + (0.8 * 10%) + (1.1 * 10%) + (1.2 * 10%) + (1.4 * 10%)
= 5% + 8% + 11% + 12% + 14%
Expected Return 2 = 50%
Total Risk (σ2) = (0.8 * 7) + (1.1 * 9) + (1.2 * 12) + (1.4 * 13)
= 5.6 + 9.9 + 14.4 + 18.2
Total Risk (σ2) = 48.1
Based on these metrics, Portfolio 2 appears to be more efficient since it has a slightly lower total risk while still offering a high expected return.
Learn more about Portfolio efficiency here:
https://brainly.com/question/22817506
#SPJ1
- True or False: Professional shoplifters steal primarily for the excitement.
Answers
The CPI is based on the prices of a carefully selected market
basket of goods, all of which consumers can purchase at a
supermarket.
O True
O False
Answers
The CPI is based on the prices of a carefully selected market basket of goods, all of which consumers can purchase at a supermarket is false.
The CPI is a measure of inflation that tracks the average change over time in the prices paid by urban consumers for a fixed basket of goods and services.
The basket of goods and services included in the CPI represents the typical spending patterns of urban households, but it is not limited to items found in a supermarket. The basket includes a wide range of goods and services, such as housing, transportation, healthcare, education, and recreation, in addition to food and beverages.
The Bureau of Labor Statistics (BLS) in the United States, which calculates the CPI, regularly updates the basket of goods and adjusts their weights based on consumer spending patterns. The BLS collects data from thousands of retail stores, service establishments, and other providers to ensure a representative sample of prices across different regions and types of businesses.
To learn more about CPI
https://brainly.com/question/8416975
#SPJ8
Even though the goal of a firm is to create wealth for its shareholders, there are times when ethical or strategic considerations outweigh the profit incentive, causing managers to reject investments with positive net present values. T/F
Answers
True. Even if a business's main goal is to maximize profits for its shareholders, there are occasions when ethical or strategic considerations trump the financial one, forcing management to forgo deals with good net present values.
Is a company's main goal to maximize profits or the wealth of its shareholders?The company's top priority is consistently increasing shareholder wealth, which produces earnings to increase the dividends paid on each ordinary share. A sign of greater shareholder wealth is the higher price of shares traded on the stock market.
Is it always morally right for a business to attempt to maximize profits for its shareholders?A corporation's desire to increase profits for the benefit of its stockholders is not always morally good. For some businesses, a commitment to morality is insufficient to boost earnings. For tiny enterprises or organizations that are dealing with particular issues, ethics is insufficient.
Learn more about ethical or strategic considerations: https://brainly.com/question/14504579
#SPJ4
The following are partial income statement account balances taken from the December 31, 2021, year-end trial balance of White and Sons, Inc.: restructuring costs, $300,000; interest revenue, $40,000; before-tax loss on discontinued operations, $400,000; and loss on sale of investments, $50,000. Income tax expense has not yet been recorded. The income tax rate is 25%. Prepare the lower portion of the 2021 income statement beginning with $800,000 income from continuing operations before income taxes. Include appropriate EPS disclosures. The company had 100,000 shares of common stock outstanding throughout the year.
Answers
Answer:
White and Sons, Inc.
The Lower Portion of the 2021 Income Statement of White and Sons, Inc.
Income from continuing operations $800,000
Interest revenue 40,000
Loss on discontinued operations, (400,000)
Loss on sale of investments (50,000)
Restructuring costs, (300,000)
Income before tax $90,000
Income tax (25%) (22,500)
Net income $67,500
Explanation:
a) Data and Calculations:
Restructuring costs, $300,000
Interest revenue, $40,000
Before-tax loss on discontinued operations, $400,000
Loss on sale of investments, $50,000
Income tax rate = 25%
Income from continuing operations = $800,000
b) The restructuring costs of $300,000 are non-recurring costs incurred during the reorganization of White and Sons. They are reported as non-operating expenses. Similarly, realized gain or loss on the sale of an investment is reported in the income statement as a separate line item after continuing operations.
A lottery winner wins the One Million Dollar Prize. After winning, she finds out that the payments are actually made annually over the next 15 years in installments of $50,000 each for each of the first 10 years, and $100,000 each for each of the next 5 years. What is the value of the prize today, if ROI is 9%
Answers
Answer:
Total PV= $790,228.23
Explanation:
Giving the following information:
Annual payment= $50,000
Number of periods= 10 years
Annual payment= $100,000
Number of periods= 5 years
Discount rate= 9% = 0.09
First, we need to calculate the future value of each annual payment:
FV= {A*[(1+i)^n-1]}/i
A= annual paymeny
First 10 years:
FV= {50,000*[(1.09^10) - 1]} / 0.09
FV= $759,646.49
Next 5 years:
FV= {100,000*[(1.09^5) - 1]} / 0.09
FV= $1,709,582.17
Now, the present value of the prize:
PV= FV/(1+i)^n
First 10 years:
PV= 759,646.49/(1.09^10)
PV= $320,882.89
Next 5 years:
PV= 1,709,582.17/(1.09^15)
PV= 469,345.34
Total PV= $790,228.23
Which of these is NOT a role of financial institutions?
reducing transaction costs
diversifying assets to reduce risk
reducing information costs
increasing product demand
Answers
Reducing Information costs is not the role of Financial Institutions.
Financial institutions are crucial because they offer a market for money and assets, enabling effective capital allocation to the most beneficial uses. As an illustration, a bank accepts customer deposits and lends the money to borrowers. Without the bank acting as a middleman, it would be difficult for one person to discover a suitable borrower or understand how to manage the loan. As a result, the depositor can obtain interest through the bank. Investment banks similarly locate investors to whom they advertise a company's shares or bonds. Commercial banks, investment banks, insurance companies, and brokerage firms are the most typical categories of financial institutions.
These organizations provide both individual and business clients with a wide range of goods and services, including deposits.
Learn more about financial Institutions here: https://brainly.com/question/27747219
#SPJ9
Analyzing How ROUND Functions Work
In the function =ROUND (B5*140%,-4), what part of the function determines the number of decimal places?
B5
-4
140%
*
Answers
In the function =ROUND(B5*140%,-4), the number of decimal places is determined by the second argument, which is -4. This argument is known as the num_digits argument and it determines the number of decimal places to which the number is rounded.
When the num_digits argument is a positive number, the function rounds the number to that many decimal places to the right of the decimal point. For example, =ROUND(3.14159,2) would round the number to 2 decimal places and return 3.14. However, when the num_digits argument is a negative number, the function rounds the number to the left of the decimal point. For example, =ROUND(12345,-3) would round the number to the nearest thousand and return 12000.
In the given function, the num_digits argument is -4, which means that the number is rounded to the nearest ten thousand. Therefore, the function would take the value in cell B5, multiply it by 140%, and then round it to the nearest ten thousand. In summary, the num_digits argument determines the number of decimal places in the ROUND function, with positive values rounding to the right of the decimal point and negative values rounding to the left of the decimal point.
For more such questions on argument
https://brainly.com/question/30417307
#SPJ11
Treating the amounts of each material available as constraints, formulate a goal programming model to determine the optimal product mix. Assume that both P1 priority level goals are equally important to management. (Let x1 be the number of tons of fuel additive produced, x2 be the number of tons of solvent base produced, dpi be the deviation variable which exceeds the value of goal i, and dni be the deviation variable which is less than the value of goal i, for i = 1, 2.)
Answers
The goal programming model seeks to maximize the sum of the deviations from the two priority level goals.
What is goal programming model seeks?Goal programming is a type of mathematical optimization technique that is used to optimize a set of goals or objectives. It is especially useful in situations where multiple objectives are present, as it allows a decision maker to optimize the objectives while taking into account the interactions between them.
Goal Programming Model:
Maximize z = 0.5(dP1 + dP2)
Subject to:
x1 + x2 ≤ 100 (amount of material available)
x1 ≥ 10 (amount of fuel additive required)
x2 ≥ 10 (amount of solvent base required)
dP1 ≥ (x1 + 2x2) - 160 (priority level 1 goal; profit)
dP2 ≥ (x1-x2) - 20 (priority level 2 goal; quality)
dN1 ≤ 160 - (x1 + 2x2)
dN2 ≤ 20 - (x1-x2)
x1, x2, dP1, dP2, dN1, dN2 ≥ 0
The goal programming model seeks to maximize the sum of the deviations from the two priority level goals, while satisfying the constraints of the amount of material available.
To learn more about mathematical optimization
https://brainly.com/question/14160739
#SPJ1
Which position most likely requires a master’s degree for success?
Computer Programmer
Website Designer
IT Project Manager
Computer Scientist
Answers
Answer:
The answer is computer scientist
Some CPAs and non-CPAs form a partnership to practice public accounting. Which, if any, of the following would be permitted or required by the AICPA for such a partnership?
A. A non-CPA banker who will be an owner will not be actively engaged in the practice. He is providing the financing to get the partnership formed and operating.
B.Non-CPA owners, other than the banker, who are actively engaged as members of the firm would have to complete the same number of work-related CPE requirements as the CPA members.
C.Non-CPA owners could have the title 'partner'.
D.All of the above would be permitted or required by the AICPA.
E.None of the above would be permitted or required by the AICPA.
Answers
The AICPA sets standards for the professional conduct and independence of all certified public accountants (CPAs) who are engaged in the practice of public accounting.
This includes the requirement that all CPAs who engage in public accounting be members of the AICPA and abide by the AICPA's Code of Professional Conduct. In the case of a partnership between CPAs and non-CPAs to practice public accounting, the AICPA requires that all partnerships engaged in public accounting include at least one CPA who is a member of the AICPA. This is because the AICPA is committed to ensuring that the public receives high-quality accounting services from competent professionals who adhere to the highest ethical standards. However, the AICPA does not have specific rules for the formation or structure of partnerships in public accounting, and it does not have the authority to regulate non-CPA owners in such partnerships. This means that A) a non-CPA banker who is providing financing for the partnership may not be required to be actively engaged in the practice, B) non-CPA owners who are actively engaged as members of the firm may not be required to complete the same number of work-related CPE requirements as the CPA members, and C) non-CPA owners may be allowed to have the title "partner". It is important to note that while the AICPA may not have specific regulations for partnerships between CPAs and non-CPAs, state boards of accountancy may have more stringent requirements. Additionally, these partnerships may still be subject to other laws and regulations, such as those related to business formation and taxation.
To know more about public accounting:
https://brainly.com/question/28364190
#SPJ4
27) Which of the following is NOT a potential benefit of owning a small business?
Answers
Answer:
D I'm not sure if correct ..
What does O + A + C = K stand for and mean in the legal "Formula" for contracts?
please helpppp
Answers
Answer:
O Stands for offer , A stands for acceptance , C stands for consideration , K stands for contract . An offer requirement, a contract and acceptance have it’s own thing.
Explanation:
6. Consider a project to supply your church with 55,000 gallons of hand sanitizer annually for church services. You estimate that you will need an initial Gh¢4,200,000 in terms of investment to get the project started. The project will last for 5 years. The project will bring in annual cash flows of Gh¢1,375,000. It also estimates a salvage value of Gh¢300,000 after dismantling costs. Your cost of capital is 13 percent. Assume no taxes or depreciation. Required: a) What is the NPV of the sanitizer project? Should you pursue this project? b) Suppose you believe that there is a best-case scenario where initial investment could be 15% lower with salvage value and revenue being 10% higher, what would be the NPV under this scenario? c) In the worst-case scenario, you expect annual cash inflows to be 10% lower, salvage value to be 12% lower and initial investment to be 10% higher. Calculate the NPV under this worst-case scenario. Would you still pursue the project? d) You just received additional information that suggests that your base case (answer to a), best case (b), and worst case (c) scenarios have probabilities of 0.35, 0.35, and 0.30 respectively. What will be the expected NPV of the sanitizer project? What about the standard deviation of the sanitizer project? Do you think the project is still viable?
Answers
a) The project's net present value is GHC 799,020.97. Because the NPV is positive, the project can be approved or accepted.
b) The project's NPV in the base scenario is GHC 1,928,923.06. Because the NPV is positive, the project can be approved or accepted.
c) The project's NPV in the worst-case scenario is -GHC 124,137.69. Because the NPV is negative, the project should be rejected.
See the excel computations attached.
What is NPV?The net present value (NPV) of an investment opportunity is a financial statistic that attempts to represent the overall worth of the opportunity.
The concept of NPV is to project all of the future cash inflows and outflows connected with an investment, discount all of those future cash flows to the present day, and then add them all together.
The NPV of an investment is calculated by combining all positive and negative cash flows together.
A positive NPV indicates that if you persist with the investment, you will gain money after accounting for the time value of money.
Why is it important to compare NPV from various scenarios?The approach is generally used in financial modeling to predict changes in the value of a firm or cash flow, particularly when there are potentially positive and negative events that might effect the organization.
During the decision-making process, most company managers employ scenario analysis to determine the best-case scenario as well as the worst-case scenario when forecasting earnings or prospective losses.
Individuals might utilize this technique when they are about to make a large investment, such as purchasing a home or starting a business.
Learn more about NPV:
https://brainly.com/question/17185385
#SPJ1
Occupational hygiene focuses specifically on three types of exposures. Explain any Two of these
Answers
Occupational hygiene focuses specifically on three types of exposures are:
chemical physical biologicalWhat is Occupational hygiene?Occupational hygiene can be described as the process that is been used in the work placer so that it can focus on the monitoring as well as preservation of the people of the workplace from any hazards.
chemical exposure can be described as one that focus on any hazards that can come from the use of toxic substance in the workplace. physical exposure can be described as the one tat focus on any hazards as a result of any physical injury in the workplace.
Read more about hygiene at:
https://brainly.com/question/1860144
#SPJ1
Firms oftentimes claim a purpose for their operation, but only a few live into it.
Many firms have developed an impressive-sounding purpose that is featured on
their website and later on ignored the purpose. A relevant social purpose is truly
embedded in the company's competitive position and differentiation when it
becomes the central value. Consider the following example:
a. Land O’ Lake “Feeding human progress around the world” and Daone
“bringing health through food to as many people as possible.”
b. In what position do you think the CEO truly engages in creating a social
purpose? Why? what example fits in Corporate Social Responsibility (CSR)
and what example fits in Creating Shared Values (CSV)?
Answers
Answer: I don't know
Explanation: I just need some answers for my qouzs so i can past this school im in
Materials Handling Costs are $12,000, setup costs are $21,000. There were 240 material moves, and 15 setups. Product A required 180 material moves, and Product B used the rest of the material moves. Product A required 9 setups, Product B used the rest of the setups. Using either method, how much total cost would be allocated to Product A? $21,600 $12,600 O $1,400 $9,000 $8,700
Answers
Using either method, how much total cost would be allocated to Product $21,600. The distribution of a single cost among various companies, business units, or cost centers is known as cost allocation.
One instance is when many branches or departments receive health insurance premium payments made by the main corporate office. To satisfy client demand, product allocation entails distributing, monitoring, and controlling e-commerce inventory throughout a distribution network and sales business. To allocate means to reserve a specific sum of money for a cost. You frequently hear about how the government distributes money for the military or for education, but you might personally choose to use some of your allowance to buy comic books.
To learn more about Product, click here.
https://brainly.com/question/22852400
#SPJ4
what is computer ethics?
Answers
Answer:
Computer ethics is a part of practical philosophy concerned with how computing professionals should make decisions regarding professional and social conduct.
Hope you like the answer.
Answer:
Computer ethics is defined as the analysis of the nature and social impact of computer technology and the corresponding formulation and justification of policies for the ethical use of such technology. The typical problem with computer ethics is the policy vacuum that arises from the new capabilities of the technology.
Explanation:
Computer ethics essentially protect individuals online from predation: they prevent breach of privacy, identify theft, interference with work and unlawful use of proprietary software, among other events. Computer ethics govern the behavior of users online, and date back to 1992.
please mark me brainliest
A company has fixed costs of $90,000. Its contribution margin ratio is 30% and the product sells for $75 per unit. What is the company's break-even point in dollar sales
Answers
Answer:
the break-even point in dollar sales is $300,000
Explanation:
The computation of the break-even point in dollar sales is shown below:
= Fixed cost ÷ contribution margin ratio
= $90,000 ÷ 0.30
= $300,000
by dividing the fixed cost from the contribution margin ratio we can get the break even point in dollars
hence, the break-even point in dollar sales is $300,000
Local planning teams are often called planning .
Answers
Answer:Commissions
Explanation:an instruction, command, or duty given to a person or group of people.