ursus, incorporated, is considering a project that would have a five-year life and would require a $775,000 investment in equipment. at the end of five years, the project would terminate and the equipment would have no salvage value. the project would provide net operating income each year as follows (ignore income taxes.): sales $ 1,900,000 variable expenses 1,300,000 contribution margin 600,000 fixed expenses: fixed out-of-pocket cash expenses $ 350,000 depreciation 155,000 505,000 net operating income $ 95,000 click here to view exhibit 12b-1 and exhibit 12b-2, to determine the appropriate discount factor(s) using the tables provided. all of the above items, except for depreciation, represent cash flows. the company's required rate of return is 7%. required: a. compute the project's net present value. (round your intermediate calculations and final answer to the nearest whole dollar amount.) b. compute the project's internal rate of return. (round your final answer to the nearest whole percent.) c. compute the project's payback period. (round your answer to 2 decimal place.) d. compute the project's simple rate of return. (round your final answer to the nearest whole percent.)
Answers
Net Present Value is calculated as follows: $88,794 + $83,037 + 77,418 + $72,760 + $67,927 - $775,000 = -$3854 The project's $3,854 negative net present value indicates that it is not anticipated to bring in enough money to recover the initial expenditure.
The discount rate that reduces the project's net present value to zero is known as the internal rate of return (IRR). We can calculate the project's IRR using Excel or a financial calculator and discover that it is roughly 5.6%. Return on investment = 3.16 years and 3.16 months (rounded to 2 decimal places) The net operating income divided by the initial investment, stated as a percentage, is the simple rate of return: Simple rate of return is equal to (30.97%) ($95,000 x 5) / ($775,000 x 100%) The project is unacceptable because the simple rate of return, which is 31%, is less than the needed rate of return.
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Related Questions
An incomplete cost of goods manufactured schedule is presented below.
Complete the cost of goods manufactured schedule for Riverbed Company. Assume all raw materials are direct materials.
Work in process (1/1)
$222,600
Direct materials
Raw materials inventory (1/1)
$enter a dollar amount
Add: Raw materials purchases
168,000
Total raw materials available for use
enter a total of the two previous amounts
Less: Raw materials inventory (12/31)
24,500
Direct materials used
$190,800
Direct labor
enter a dollar amount
Manufacturing overhead
Indirect labor
19,600
Factory depreciation
37,900
Factory utilities
72,600
Total overhead
130,100
Total manufacturing costs
enter a total amount for the first part
Total cost of work in process
enter a total amount for all two parts
Less: Work in process (12/31)
85,600
Cost of goods manufactured
$572,400
Answers
Completing the Cost of Goods Manufactured Schedule for Riverbed Company is as follows:
Cost of Goods Manufactured ScheduleWork in process (1/1) $222,600
Direct materials:
Raw materials inventory (1/1) $ 47,300
Add: Raw materials purchases 168,000
Total raw materials available for use $215,300
Less: Raw materials inventory (12/31) 24,500
Direct materials used $190,800
Direct labor $114,500
Manufacturing overhead:
Indirect labor 19,600
Factory depreciation 37,900
Factory utilities 72,600
Total overhead 130,100
Total manufacturing cost $658,000
Total cost of work in process $658,000
Less: Work in process (12/31) 85,600
Cost of goods manufactured $572,400
What is the Schedule of Cost of Goods Manufactured?The Schedule of Cost of Goods Manufactured shows the costs of:
Beginning Work in ProcessRaw materials usedDirect laborOverheadLess Ending Work in Process.Thus, the Schedule of Cost of Goods Manufactured for Riverbed Company shows that the cost of goods manufactured for the period is $572,400.
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Donald Jackson invests $58,800 at 10% annual interest, leaving the money invested without withdrawing any of the interest for 10 years. At the end of the 10 years, Donald withdraws the accumulated amount of money.
Required:
a. Compute the amount Donald would withdraw assuming the investment earns simple interest.
b. Compute the amount Donald would withdraw assuming the investment earns interest compounded annually.
c. Compute the amount Donald would withdraw assuming the investment earns interest compounded annually.
Answers
Answer:
a. Compute the amount Donald would withdraw assuming the investment earns simple interest.
future value = $58,800 x [1 + (10% x 10)] = $117,600
b. Compute the amount Donald would withdraw assuming the investment earns interest compounded annually.
future value = $58,000 x (1 + 10%)¹⁰ = $152,512
c. Compute the amount Donald would withdraw assuming the investment earns interest compounded annually.
this is identical to (b) = $152,512
the advantage of compound interest is that previously earned interest, will earn interest by itself.
You have an annual salary of $58,000 from which they deduct 3% for medical insurance and 18% for taxes. Your rent is $1200 a month. Your water, electricity and internet bill are around $238 a month. Every week you put 130 miles on your car that gives you 20 miles per gallon and gas cost $3.17 per gallon. You pay a premium of $1,019 every six months for car insurance. You spend $120 a week on food. You also have a student loan that you are paying $150 on every month and you spend $100 every 2 weeks just to treat yourself.
Requried:
Create a monthly budget and find your monthly cash flow.
Answers
Answer:
bhruy5y4t4yt4hdjzvcxvcfg
Explanation:
Kevin paid $2,550 in qualifying expenses for his daughter, Jasmine, who attended a community college. What is Kevin's lifetime learning credit without regard to AGI limitations or other credits?
Answers
Without regard to AGI limitations or other credits, Kevin's lifetime learning credit can be found to be $510
How to find the lifetime learning credit?To find the lifetime learning credit when there is no regard to AGI limitations or other credits, Tax laws are such that one gets the 20% of the first $10, 000 expense that qualify to be spent on community college.
The means that Kevin's lifetime learning credit for paying expenses for Jasmine are:
= Qualified expenses x Percentage of the first qualifying expenses
= 2, 550 x 20%
= $510
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Define nomal goods examples
Answers
Answer:
Examples of normal goods include food staples, clothing, and household appliances.
1. Some businesspeople believe that elimination agents and wholesalers reduce their operating expenses. Discuss the opportunity costs associated with eliminating intermediaries.
Answers
1. While eliminating intermediaries may result in reduced operating expenses, businesses need to weigh these savings against the associated opportunity costs. These costs may include the loss of expertise and value-added services, additional responsibilities and expenses, and reduced customer access to products.
Eliminating intermediaries such as elimination agents and wholesalers reduce operating expenses, but it also has associated opportunity costs that businesses need to consider. One of the primary costs is the loss of the expertise and value-added services that intermediaries offer to businesses and customers. Eliminating intermediaries may result in businesses taking on additional responsibilities and expenses such as marketing, distribution, and logistics.
This may result in the need for additional staff and resources to ensure that products reach customers on time. Furthermore, eliminating intermediaries may also result in reduced customer access to products, as intermediaries are often responsible for finding new markets and customer segments. In this case, businesses may need to invest additional resources to market and promote their products to reach new customers.
In conclusion, while eliminating intermediaries may result in reduced operating expenses, businesses need to weigh these savings against the associated opportunity costs. These costs may include the loss of expertise and value-added services, additional responsibilities and expenses, and reduced customer access to products.
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Anna is the head trainer at her company. Every January, Anna is tasked with recommending an annual training program to senior management. Anna does not seek input from any of her colleagues in other departments, nor does she incorporate the strategic vision of her company. Instead, Anna always models the current year's training on the previous year. How should Anna improve her process for recommending training?
Answers
The best advice for Anna is that she sould set an objective addressing what her training program hopes to achieve (option C).
How should Anna improve the training process?According to the fragment, it can be inferred that the training method that Anna is implementing in the company is wrong because she is not taking into account other opinions about the effectiveness of the model that she has implemented for several years.
Additionally, she has not taken into account that the context and training needs of a company are constantly changing depending on the context and new challenges. Therefore, Anna should reform her training proposal for all departments.
Due to the above, Anna should take into account the opinion of each department and establish goals for each of them so that at the end of the year they have a way to measure the effectiveness of the training and can identify the aspects to improve in this process.
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5.6 Last month Quick Industries produced 900 units. This month they produced 1,264 units. What is the rate of change in production? a. 29.8% b. 32.8% c. 40.4% d. 60%
Answers
Answer: C. 40.4%
Explanation:
To find the rate of change in production, we can use the following formula:
Rate of change = (New value - Old value) / Old value * 100
Where,
Old value = Production of last month = 900
New value = Production of this month = 1264
Substituting the values in the formula,
Rate of change = (1264 - 900) / 900 * 100= 364 / 900 * 100= 0.404 * 100= 40.4%
Therefore, the rate of change in production is 40.4%, which is an option (c). I hope that this answer has helped you!
Answer:
The correct answer is C.
Explanation:
The rate of change in production is: (1264 - 900) / 900 = 0.404 or 40.4%. So, the correct answer is c. 40.4%
The following can be considered as international barriers:
A•Economic and technological
B• Political and legal
C •Social and cultural
D• all of the above
E•none of the above
Answers
Answer:
the answer is the last one e
5) Devid Recardo proposed the theory of comparative cost in
A) 1814/
B) 1815 /
C) 1816 /
D) 1817
Answers
David Ricardo development the theory of comparative cost in 1817 to explain why countries engaged in international trade.
when corruption is evident in governments the result is that
Answers
Answer: Industries have more difficulty opening since they will have to resort to bribes from government people.
Explanation: When corruption is very marked in a country, many people know that the way to obtain benefits is through certain bribes. In the case of industries, in order for them to open they have to resort to bribes made by government personnel to have the opportunity for their construction to take place.
Pros and Cons of Adjustable-Rate Mortgages
An adjustable-rate mortgage (ARM) is another common type of mortgage. Determine whether each factor is a pro or
a con of an ARM, and place it in the correct category.
Pros of Adjustable-Rate Mortgages
Cons of Adjustable-Rate Mortgages
lower interest rates possible
riskier than fixed-rate mortgages
low beginning interest rate
interest rates can be raised
higher payments possible
Correct!
Answers
The pros and cons of the Adjustable-Rate Mortgages are consistent payments and lower interest rates possible.
What is Mortgage?Mortgage refers to the agreement between the lender and the buyer which involves the exchange of the money.
When person and a lender enter into a mortgage, the lender is granted the power to seize your property if person are unable to pay back the loan amount plus interest. Mortgage loans are used to either purchase a home or borrow against an existing home's worth.
Adjustable-Rate Mortgages is the loan which is granted for the homes which depends on the market as it does not has the fixed rate of interest.
The ARS mortgage type offers comfortable consistent payments, and over time, reduced interest rates may be feasible. However, there is a chance that interest will grow, which could be a drawback.
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Define liquidity risk and explain how it relates to bonds and bond yields.
Answers
Answer:
Liquidity risk is the inability to quickly sell a bond for its full value. This risk exists primarily in thinly traded issues. Default risk is the likelihood the issuer will default on its bond obligations and is the basis for bond ratings.
Liquidity is a prime determiner of yield spreads, explaining up to half of the cross-sectional variation in spread levels and up to two times the cross-sectional variation in spread changes that is explained by the effects of credit rating alone.
Liquidity risk Liquidity refers to the investor's ability to sell a bond quickly and at an efficient price, as reflected in the bid-ask spread. High-yield bonds can sometimes be less liquid than investment-grade bonds, depending on the issuer and the market conditions at any given time.
(If some parts overlap/relate to the exactly to other parts, I'm sorry. But there ya go !)
Brockman Corporation's earnings per share were $3.50 last year, and its growth rate during the prior 5 years was 11.6% per year. If that growth rate were maintained, how many years would it take for Brockman's EPS to triple?
Select the correct answer.
a. 12.41
b. 10.01
c. 2.81
d. 7.61
e. 5.21
Answers
It would take 10.01 years for Brockman's EPS to triple.
What is future value?
The future value of the current earnings per share of $3.50 is its future worth in future years if it continues to increase at its growth rate of 11.6%, hence, based on the future value formula for a single cash flow below, we can determine the number of years it takes the EPS to triple:
FV=PV*(1+r)^N
FV=tripled EPS=$3.50*3=$10.50
PV=present EPS=$3.50
r=annual growth rate=11.6%
N=number of years it takes EPS to triple=unknown
$10.50=$3.50*(1+11.6%)^N
$10.50/$3.50=(1+11.6%)^N
3=1.116^N
take log of both sides
ln(3)=N ln(1.116)
N=ln(3)/ln(1.116)
N=10.01
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Why is it relevant that finance tends to attract large amounts of money? a. Money can be used for good or evil b. Finance attracts people from around the globe c. Financial markets are a critical components of economic success d. All of the above
Answers
Answer: c. Financial markets are a critical components of economic success
Explanation:
Economic success runs on companies and individuals being able to produce goods and services for the economy. To be able to do so they need capital to invest and most times they don't have that capital.
This is where Finance comes in. It connects people who do not have the capital but want to produce to those that have the capital but do not necessarily want to produce.
The huge amounts of money that finance attracts is channelled to those who need it. They then produce and the economy becomes successful.
You make entries to the mileage expense account. A saleswoman drives to a town 150 miles north and 110 miles east. She goes there on a straight highway that leads directly there, heading diagonally northeast. You reimburse mileage at $0.50 per mile. How much should you reimburse her?
Answers
It is to be note that the saleswoman should be reimbursed for a total of $92.68.
What is the calculation explaining the above answer?
The total distance traveled by the saleswoman is the hypotenuse of a right triangle, where the legs represent the distance traveled north and east. We can use the Pythagorean theorem to calculate the hypotenuse as follows:
Distance traveled north = 150 miles
Distance traveled east = 110 miles
Total distance = √(150² + 110²)
≈ 185.35 miles
Therefore, the saleswoman should be reimbursed for a total of $92.68 (185.35 miles x $0.50 per mile).
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If a business has a surplus of goods, what is something they can do to raise demand?
Answers
Answer:
They can lower the price.
Explanation:
When goods are more cheaper, more people will want to buy their products. Or they could just sabotage the entire market (just kidding) Brainliest maybe?
East Valve Distributors distributes industrial valves and control devices. The Eastern control device has an annual demand of 9,375 units and sells for $100 per unit. The cost of ordering is $40 per order and the average carrying cost per unit per year is $0.75. Determine the economic order quantity.
Answers
Answer:
1000
Explanation:
Given:
Annual DEMAND, D = 9375
Holding cost, H = 0.75
Cost per order, S = 40
The Economic order quantity :
EOQ = √[(2 * D * S) / H]
EOQ = √[(2 * 9375 * 40) / 0.75]
EOQ = √[(750000) / 0.75]
EOQ = √1000000
EOQ = 1000
2.suppose 40% of the people entering X electronics store this month make a purchase. If 10 people enter the store, find the expected number making a purchase. Suppose that for the next month X electronics store forecasts 1000 customers will enter the store. (i)What is the expected number of customers who will make purchase? (ii) Find also the Standard Deviation.
Answers
i) The expected number of customers who will make a purchase in the current month is 4.
ii) The standard deviation for the number of customers making a purchase in the current month is approximately 1.55.
To find the expected number of customers making a purchase, we can multiply the total number of customers entering the store by the probability of making a purchase.
(i) For the current month:
Number of people entering the store = 10
Probability of making a purchase = 40% = 0.4
Expected number of customers making a purchase = Number of people entering the store * Probability of making a purchase
Expected number of customers making a purchase = 10 * 0.4
Expected number of customers making a purchase = 4
Therefore, the expected number of customers who will make a purchase in the current month is 4.
(ii) To find the standard deviation, we need to consider the binomial distribution since the number of customers making a purchase follows a binomial distribution with parameters n (number of trials) and p (probability of success).
For the current month:
n = Number of people entering the store = 10
p = Probability of making a purchase = 0.4
q = Probability of not making a purchase = 1 - p = 1 - 0.4 = 0.6
Standard deviation (σ) of a binomial distribution is given by the formula:
σ = √(n * p * q)
Substituting the values:
σ = √(10 * 0.4 * 0.6)
σ = √(2.4)
σ ≈ 1.55
Therefore, the standard deviation for the number of customers making a purchase in the current month is approximately 1.55.
For the next month, if the store forecasts 1000 customers to enter the store, we can use the same calculations with updated values of n and p to find the expected number of customers making a purchase and the standard deviation.
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Your Company reported net sales in June of $500,000. At the beginning of June, the company reported beginning inventory of $375,000. Cost of goods purchased during June amounted to $164,500. The company reported ending inventory at the end of June of $210,500. What was the company's gross profit margin for June
Answers
If your Company reported net sales in June of $500,000. Cost of goods purchased during June amounted to $164,500. The company's gross profit margin for June is : $355,500.
Using this formula
Gross profit margin =Net sales- Cost of goods purchased
Where:
Net sales=$500,000
Cost of goods purchased=$164,500
Let plug in the formula
Gross profit margin=$500,000-$164,500
Gross profit margin=$355,500
Inconclusion if your Company reported net sales in June of $500,000. Cost of goods purchased during June amounted to $164,500. The company's gross profit margin for June is : $355,500.
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Example of a market for a good or service that is not rely on a physical store or location 
Answers
An example of a market for a good or service that does not rely on a physical store or location is the online marketplace. With the advent of the internet and e-commerce platforms, businesses and individuals can sell products and services entirely online without the need for a brick-and-mortar store.
Online marketplaces, such as Amazon, eBay, and Alibaba, provide a platform where buyers and sellers can connect and conduct transactions electronically. These platforms enable businesses to showcase their products, provide detailed descriptions, and facilitate secure online payments. Customers can browse through a wide range of products, compare prices, read reviews, and make purchases from the comfort of their own homes.
The online marketplace has revolutionized various industries, including retail, entertainment, travel, and professional services. It allows businesses to reach a global customer base, operate 24/7, and reduce overhead costs associated with physical stores. Additionally, it provides convenience for consumers, who can shop anytime, anywhere, and have products delivered to their doorstep.
Overall, the online marketplace has transformed the way goods and services are bought and sold, offering a virtual alternative to traditional physical stores and locations.
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Which of the following statements is TRUE?
A. Stock exchanges are always physical places for trading.
B. A stock exchange is a place where investors can buy and
sell different investments.
C. All investment trading is done exclusively on the New
York Stock Exchange.
D. All of the above
Answers
Answer:
B. A stock exchange is a place where investors can buy and
Explanation:
A stock exchange market is a place where shares and other market securities are traded. The market is divided into the primary and secondary markets. The primary market facilitates the issuance of new shares in the market, while the secondary market refers to the trading of already issued shares.
The stock exchange market allows investors to buys and sell shares, bonds, treasury bills, and other securities. Trading is done through brokers. A majority of the transactions, if not all, are done through an electronic platform.
6. Why do employees often feel that appraisals “highlight all the bad things they did all year?”
Answers
Explanation: This is accepted by many employees that their senior discriminate them on aspects of gender, race, colour, etc in spite of work performance only. They claim to take personal revenge too sometimes. So this is a danger for work ethics
Answer:
Explanation:
Performance appraisal is the method by which the performance of an employee is determined by the employer. It's main purpose is to eliminate the performance deficiencies of the employees. It is a part of career management.
The appraisals stress on the need to have more efficient employee and the deficiencies of the employee pointed out by the appraisal are overcome by the employee by taking the required training. Thus the employees feel that appraisals highlight all the bad things they did al year.
Measure the angle in degrees.
Answers
Answer:
45°
Explanation:
If you look at it since the is backward due to the angle 180 would represent 0 and the 140 would be 40 so it is between the 140 and 130 marks so it is 45°.
What does a credit score measure?
Answers
Industry standards suggest that 7% of new vehicles require warranty service within the first year. Jones Nissan in Sumter, South Carolina, sold 9 Nissans yesterday. (Round your mean answer to 2 decimal places and the other answers to 4 decimal places.)
a. What is the probability that none of these vehicles requires warranty service?
b. What is the probability exactly one of these vehicles requires warranty service?
c. Determine the probability that exactly two of these vehicles require warranty service.
d. Compute the mean and standard deviation of this probability distribution.
Answers
The standard deviation is 0.749 and the probability distribution's mean is 0.63.
What is Standard Deviation?A set of data values' variation or dispersion from their mean (average) is measured by their standard deviation. It tells how far apart the individual data points are from the data set's mean value. To put it another way, it is a measure of how different the data are from the mean. A standard deviation that is smaller indicates that the data points are closer to the mean, while a standard deviation that is larger indicates that the data points are further from the mean. It is calculated by taking the square root of the variance, and it is frequently used in statistical analysis.
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A diesel-powered tractor with a cost of $250,020 and an estimated residual value of $6,200 is expected to have a useful operating life of 73,000 hours. During April, the tractor was operated 200 hours. Determine the depreciation for the month. If required, carry out any division to two decimal places. $fill in the blank 1
Answers
Answer: 365
Explanation:
Why is a bank more likely to offer you credit if you have a cosigner?
Answers
Answer:
Because a cosigner is another person who is also responsible for ensuring the loan is paid.
Explanation: A cosigner is a person who is signing on to the loan and by doing so, they are jointly taking on responsibility for repayment of the loan. So basically loan repayment is being guaranteed by the person taking out the loan and the cosigner.
Do you agree with the Container Store’s decision to allow employees access to all kinds of company information except individual compensation? Explain your answer.
Answers
Answer:
Yes
Explanation:
Yes. It will be good to allow employees to access the data as employees will see the business as transparent.
Therefore according to the given scenario, Container Store's decision to give workers access to company details of all kinds except for individual reimbursement.
From the above explanation, the correct answer is Yes.
Answer:
Explanation:
In my opinion, the decision of the Container Store to give workers access to all kinds of company information, except individual compensation, is a good way of preserving employee loyalty and giving the employees full trust in the company.
What is a common writing problem that should typically addressed when completing ones work.
Answers
Question's missing part;
The common writing problems are as follows:
A) The writer creates shorter sentences that are too clear.
B) The writer uses active voice.
C) The writer proofreads work too much.
D) The writer has trouble focusing.
While doing any writing, the common problem faced at the time of completion of work is the trouble in focusing on the topic of writing.
Option D is the correct answer.
What is a writing?A writing is an activity done by the writers which can be essays, stories, articles, etc.
Whenever a person writes on any topic related to any kind of writing, then the most common problem is the attention towards that topic. The writers gets easily distracted by the surroundings, felt tiredness, negligent mistakes, no planning about writing, etc.
Therefore, the problem of focus is to be addressed commonly while doing any writing task.
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