Value Lodges owns an economy motel chain and is considering building a new 200-unit motel. The cost to build the motel is estimated at $6,800,000; Value Lodges estimates furnishings for the motel will cost an additional $200,000 and will require replacement every 5 years.
Annual operating and maintenance costs for the motel are estimated to be $540,000. The average rental rate for a unit is anticipated to be $25/day. Value Lodges expects the motel to have a life of 15 years and a salvage value of $900,000 at the end of 15 years. This estimated salvage value assumes that the furnishings are not new. Furnishings have no salvage value at the end of each 5-year replacement interval.
Required:
1. Assuming average daily occupancy percentages of 50 percent, 60 percent, 70 percent, and 80 percent for years 1 through 4, respectively, and 90 percent for the fifth through fifteenth years, a MARR of 12 percent/year, 365 operating days/year, and ignoring the cost of land, should the motel be built? Base your decision on an internal rate of return analysis.
Answers
Answer:
The motel should not be built because the IRR is 9.31%, which is lower than the company's MARR (12%).
Explanation:
cost to build the new 200 unit motel $6,800,000 + $200,000 = $7,000,000
the furnishing must be replaced every 5 years
annual operating costs $540,000
average rental rate
useful life 15 years with a salvage value of $900,000
expected cash flows:
year total revenue costs furnishing total
0 -$6,800,000 -$200,000 -$7,000,000
1 $912,500 -$540,000 $372,500
2 $1,095,000 -$540,000 $555,000
3 $1,277,500 -$540,000 $737,500
4 $1,460,000 -$540,000 $920,000
5 $1,642,500 -$540,000 $1,102,500
6 $1,642,500 -$540,000 -$200,000 $902,500
7 $1,642,500 -$540,000 $1,102,500
8 $1,642,500 -$540,000 $1,102,500
9 $1,642,500 -$540,000 $1,102,500
10 $1,642,500 -$540,000 $1,102,500
11 $1,642,500 -$540,000 -$200,000 $902,500
12 $1,642,500 -$540,000 $1,102,500
13 $1,642,500 -$540,000 $1,102,500
14 $1,642,500 -$540,000 $1,102,500
15 $2,542,500 -$540,000 $2,002,500
now using an excel spreadsheet I calculated both the NPV and IRR:
NPV = -$1,113,875IRR = 9.31% < 12% (MARR)The model should not be built because the IRR is 9.31%, which is lower than the company's MARR (12%).
The calculation is as follows:cost to build the new 200 unit motel should be
= $6,800,000 + $200,000
= $7,000,000
expected cash flows:
year total revenue costs furnishing total
0 -$6,800,000 -$200,000 -$7,000,000
1 $912,500 -$540,000 $372,500
2 $1,095,000 -$540,000 $555,000
3 1,277,500 -$540,000 $737,500
4 $1,460,000 -$540,000 $920,000
5 $1,642,500 -$540,000 $1,102,500
6 $1,642,500 -$540,000 -$200,000 $902,500
7 $1,642,500 -$540,000 $1,102,500
8 $1,642,500 -$540,000 $1,102,500
9 $1,642,500 -$540,000 $1,102,500
10 $1,642,500 -$540,000 $1,102,500
11 $1,642,500 -$540,000 -$200,000 $902,500
12 $1,642,500 -$540,000 $1,102,500
13 $1,642,500 -$540,000 $1,102,500
14 $1,642,500 -$540,000 $1,102,500
15 $2,542,500 -$540,000 $2,002,500
here we used the excel for calculating both the NPV and IRR:
NPV = -$1,113,875
IRR = 9.31% < 12% (MARR)
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Related Questions
Select the correct point on the graph. Which point on the graph indicates the lowest quantity supplied of goods? 9.00 8.00 Price per Pound 7.00 6.00 5.00 4.00 3.00 2.00 supply Curve 1,000 2,000 3,000 4,000 5,000 6,000 7.000 Quantity in Pounds
Answers
Answer:
It would be A
Explanation:
the right location on the graph. Which point on the graph represents the lowest number of items supplied It is 9.00 8.00 Price per Pound. As a result, choice (A) is the right one.
What is meant by supply Curve?In economics, supply refers to the quantity of a resource that businesses, producers, workers, suppliers of financial assets, or other economic agents are willing and able to offer to the market or to a specific person. Supply can refer to manufactured items, labor hours, raw resources, or any other limited-supply or high-value item.
Supply is frequently represented graphically as a supply curve, with the price per unit on the vertical axis and the amount delivered as a function of price on the horizontal axis. This undesirable yet common practice involves flipping the independent and dependent variables from their regular positions.
The supply curve might represent a single seller or the market as a whole, totaling the quantity given by every vendor.
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An IRB may suspend or terminate an ongoing clinical study if:
Answers
An IRB may suspend or terminate some or all research activities on a protocol if events are identified that represent serious or continuing noncompliance or unanticipated problems involving risk to subjects or others.
IRB Chair or his/her/their designee has the authority to suspend some or all research activities if exceptional participant safety issues are identified. This authority is only exercised if an action is required prior to a convened meeting and it is not feasible to assemble an emergency meeting.
IRB Chair or his/her/their designee has the authority to suspend some or all research activities if exceptional participant safety issues are identified. This authority is only exercised if an action is required prior to a convened meeting and it is not feasible to assemble an emergency meeting.
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why do private and public sector cannot br looked up as two separate entities
Answers
Answer:
The private sector and the public sector cannot be viewed as separate entities because the two of them are closely intertwined.
Explanation:
The public sector defines the rules and conditions under which the private sector develops, and the private sector contributes to the finances of the private sector.
For example, a regulatory agency in an economic sector sets the rules of the mining economic sector in a country, and private mining companies abide by these rules in order to develop their business activity. Part of the revenue earned from these business activities are taken as taxes by the public sector, in order to finance the regulatory agency.
Sometimes, the public sector can also consists in public companies that can work together with private firms in common projects.
The order of presentation of activities on the statement of cash flows is______________
1 point
a) Operating, Investing, and Financing.
b) Operating, Financing, and Investing.
c) Financing, Operating, and Investing.
d) Financing, Investing, and Operating.
Answers
The order of presentation of activities on the statement of cash flows is Operating, Financing, and Investing.
The option (B) is correct.
Cash flows are classified and introduced into working exercises (either utilizing the 'immediate' or 'circuitous' technique), contributing exercises, or funding exercises, with the last two classes commonly introduced on a gross premise. as it shows whether the business has sufficient fluid money to put in now is the ideal time and invest in assets.
When creating your income statement, list incomes first. Then, at that point, drill down any costs your organization had during the period and take away the costs from your income. The lower part of your pay proclamation will let you know whether you have a net gain or shortfall for the period.
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Price Adjustments This activity is important because as marketing managers set final prices, they start with the list (quoted) price and then make price adjustments to this price as they determine the final price. Wholesalers adjust the list price charged to retailers in the same way that retailers adjust the list price charged to consumers. The goal of this exercise is to identify examples of the three main types of special price adjustments: discounts, allowances, and geographical adjustments.Classify each price adjustment strategy as a discount, allowance, or geographical adjustment.1. To encourage Walmart to stock and carry pool chemicals as early as February, hth Pool Supplies offers Walmart a reduced pallet price on all of its chlorine and shock products for orders delivered before February 15.2. In many global trade transactions, the manufacturer prices the product at the point the producti loaded for shipping. The buyer has the ability to choose the method of shipping and must cover all shipping and handling costs. 3. Raquel has been married almost 20 years and desires a bigger engagement diamond ring. Since her initial diamond was purchased at Jareds, she is able to trade in her old ring and receive credit for its initial retail price toward the purchase of her new ring.4. Nike charges consumers $18 for a three-pack of Men's Dri-FIT crew socks and $24 for a six- pack of Men's Dri-Fit crew socks. When Joshua compared prices on the two packages of socks, he decided to purchase the six-pack since he was saving $2 per pair.5. To get Safeways to feature Capri Sun Juice Drink in a front-of-store feature. Capri Sun offered Safeway a free case of product for every 15 cases it ordered for the display.6. Amaz on offers its Prime members free two-day shipping with their Prime membership on ardless of where the customer lives.
Answers
Answer:
1. Discount
2. Geographical adjustments
3. Allowance
4. Discount
5. Allowance
6. Discount
Explanation:
1. Discount for early purchase and delivery order of chlorine and shock products
2. Geographical adjustment of price, due to shipping and handling costs
3. Allowance given to Raquel for the old ring; to help/encourage her purchase a new one (from the store)
4. Discount on the price or cost of purchase, for customers (like Joshua) who would buy more socks at a go
5. Allowance Capri Sun gives to Safeways Store, for every 15 cases of Capri Sun ordered and displayed in front of the store
6. Discount incentive/bonus Amazon is offering its Prime members. Take note of the nomenclature "Prime members". These are customers who make frequent orders or order a lot of products. Amazon is herefore offering a discount.
NOTE:
- A discount is offered to reduce the cost of purchase - which could be direct or indirect - while an allowance is given to encourage a business deal; as in numbers 3 and 5.
Answer:
a
Explanation:
Baldwin Corp. ended the year carrying $19,196,000 worth of inventory. Had they sold their entire inventory at their current prices, how much more revenue would it have brought to Baldwin Corp.?
Answers
Answer: $19,196,000
Explanation:
As this is the end of the year it means that all costs associated with selling inventory have already been incurred and accounted for.
The total revenue that Baldwin would have received had they sold off all their inventory would be the inventory worth of $19,196,000 because there are no more costs to be deducted from it as they have all been deducted already.
Kelly Slater owns a parcel of land in Palm Springs and is considering two possible development options which both use his signature Kelly Slater Wave Pool technology.
Option A: Create a private surf club, in which case he would have to invest $10 million today (EOY 0). The club would then generate an annual free cash flow of $2 million in perpetuity starting EOY 1.
Option B: Create a surf resort and hotel open to the public, in which case he would have to invest $50 million today (EOY 0). The resort would then generate an annual free cash flow of $6.5 million in perpetuity starting EOY 1.
Assume Kelly's discount rate is 10% and that he can only invest in one of the two options. Kelly should: ________
a. Accept both options because they both have positive NPV
b. Choose Option A because it has a higher IRR
c. Reject both options because both have an IRR less than 10%
d. Choose Option B because it has a higher NPV
Answers
Answer:
d. Choose Option B because it has a higher NPV
Explanation:
The computation is shown below:
For Option A:
Investment = $10 million
Present Value of cash flows = Cash flow ÷ Discounting rate
= $2 ÷ 10%
= $20 million
Now
NPV = $20 - $10
= $10 million
We know that
IRR is the rate at which the NPV will be zero
So, 2 ÷ r - 10 = 0
r = 20%
For Option B:
Investment = $50 million
Present Value of cash flows = $6.5 ÷ 10% = $65 million
NPV = $65 - $50 = $15 million
we know that
IRR is the rate at which the NPV will be zero
So, 6.5÷ r -50 = 0
r = 13%
Based on NPV, Option B should be selected as it contains higher NPV as compared to option A.
However, Based on IRR, Option A should be chosen as it contains higher IRR and a higher IRR represent a higher profit percentage
Given the following probability distribution:
X
1
2
3
4
P(X=x)
0.14
2m
0.32
m
What is the Expected Value of X ?
Answers
The expected value of x in the probability distribution is given as 0.82
How to find the expected value of XWe are to find the M value for ∑P(x) = 1
such that we would have
0.14 + 2m + 0.32 + m = 1
We have to sum up the equation that we have above
0.14 + 0.32 + 2m + m = 1
0.46 + 3m = 1
3m = 1 - 0.46
3m = 0.54
divide through by 3
m = 0.54 / 3
= 0.18
0.14 + 0.18 * 2 + 0.32 = 0.82
Hence the probability distribution has the expected value of X as 0.82
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10 principles of economics
Answers
The 10 principles of economics were given by Gregory Mankiw.
These principles are:
People face tradeoffs: it means that to get one thing, one has to give up on another thing.The cost of Something is What You Give Up to Get It: it refers to the opportunity cost you incur on doing something else. Rational people think at the margin: considering the marginal cost of the product.People Respond to Incentives Trade Can Make Everyone Better Off: trading helps a country in being self-sufficient and enjoying more goods and services. Markets Are Usually a Good Way to Organize Economic Activity. Governments Can Sometimes Improve Economic Outcomes: Government can intervene to allocate resources efficiently.The Standard of Living Depends on a Country's Production: the standard of living increases as the consumption of goods and services, increases.Prices Rise When the Government Prints Too Much Money: when there's a lot of money flowing the market, it will increase the demand for goods which will increase the cost of goods, ultimately leading to inflation.Society Faces a Short-Run Tradeoff Between Inflation and Unemployment.Learn more about "Principles of economics":
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what are the 3 business sectors
Answers
Answer:
hello
Explanation:
i think primary,secondary,tertiary.
hope it helps
have a nice day
Answer:
An alternative analysis of economics, the three sector theory,subdivides them into
Explanation:
The primary sector (producing raw materials)
The secondary sector (carrying out manufacturing)
The tertiary sector (providing sales and services)
A stadium's normal ticket price is $90. If the special promotional price for the ticket is $81, what percentage discount was being offered?
Answers
Answer:
10%
Explanation:
if you do 10% off of 90$ you get 81$
10% off the cost of the tickets is the percentage discount.
What is percentage?A value or ratio that may be stated as a fraction of 100 is referred to as a percentage in mathematics. If we need to compute a percentage of a number, we should divide it by its whole and then multiply it by 100. The proportion, therefore, refers to a component per hundred. Per 100 is what the term percent signifies. The letter "%" stands for it.
Given, A stadium's normal ticket price is $90. If the special promotional price for the ticket is $81,
from the general formula of percentage discount:
Percentage discount = (List Price - Selling price)/ List Price * 100
Percentage discount = (90 - 81)/90 * 100
Percentage discount = 9*100 /90
Percentage discount = 10%
Therefore, The percentage discount on the ticket price is 10 percent.
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With perfect price discrimination, the marginal revenue curve
A) is equal to the demand curve.
B) is below the demand curve. C) is above the demand curve.
D) is horizontal.
Answers
Answer: b
Explanation: Because the monopolist must lower the price on all units in order to sell additional units, marginal revenue is less than price. Because marginal revenue is less than price, the marginal revenue curve will lie below the demand curve.
The change in technology and the globalization have brought new pattern of organizing
today's companies, and thus, the managers need to consider these new concepts in
organization's design process. With this statement, discuss the emerging issues in
organization design and architecture.
Answers
Following are the emerging issues in organization design and architecture:Technology and Globalization, Customer Relations,Technical Knowledge, Flexibility, Employee's Well-being.
Following are the emerging issues in organization design and architecture:
Technology and Globalization: The modern era's rapid technology and globalization have forced the organizations to adopt a new pattern of organizing. Managers are focusing more on technology and globalization and they are ensuring that the company can cope with the emerging challenges.Customer Relations: Customers are the major driving force in every business. To maintain the customer base, the managers need to focus on customer relations as the organization's design process should be centered around their needs. This will help the managers in creating a company that provides excellent customer service to its customers.Technical Knowledge: The success of an organization depends on the technical knowledge of its managers. Managers need to have knowledge about new and emerging technologies so that they can use them to enhance the organization's capabilities. In addition, managers need to know how to apply this technical knowledge to improve the organization's structure and operations.Flexibility: Flexibility is a crucial component in the organization's design process. The managers need to design the organization that is flexible enough to adapt to new changes and technologies. This will help the managers in keeping up with the rapidly changing business environment.Employee's Well-being: The well-being of employees is also a significant issue in the organization's design process. The managers need to design the organization in a way that the employees can work efficiently, and their personal needs are also met. This will help in improving the employee's productivity and motivation level and ensure their loyalty to the organization.For more such questions on Globalization
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_____ will help you maintain good credit.
OA. Lowering your balances
OB. Keeping a high debt-to-credit ratio
OC. Opening many credit accounts
D. Applying for bankruptcy
Answers
Answer:
A
Explanation:
Lowering your balances
Answer:
lowering ur balances
Explanation:
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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2. The demographics of your target market are likely to
over the course of
years
Answers
The demographics of your target market are likely to change
over the course of years.
What is demographics?Marketing demographics are variables like as age, geographic region, education level, employment, income, and so on that are used to categorize and segment a market. Marketing demographics make use of readily available information.
The statistical study of human populations is known as demography. Demographers evaluate population number, mobility, and structure using census data, surveys, and statistical models.
Demographic traits are easily discernible. Age, gender, family situation, education level, income, occupation, and race are just a few examples.
Hence, these traits change over time.
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“Controlling includes defining goals, establishing strategy, and developing plans to coordinate activities”, this statement is:
Answers
“Controlling includes defining goals, establishing strategy, and developing plans to coordinate activities”, this statement is false.
What is Controlling?Control is a managerial activity that aids in error detection and the execution of remedial measures. These are done to reduce departure from norms while guaranteeing that the organization's overall objectives have been achieved in this preferred manner.
The leaders of a company develop their vision and determine the goals and targets of their organization through to the planning stage. Identifying the order in which these objectives should be accomplished can help the organization attain its important part.
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What is one cost of avoiding insurance?
Answers
Answer: One of the costs of not having insurance is the cost of repairing. Another cost is paying insurance premiums. Losses caused by a lack of insurance are the price of not having insurance.
Answer:
falling into debt if faced with a serious problem
Explanation:
*
This model of retailer grants a license to another party to market and sell its
products or services and each location is owned by a different person or
group.
Independent
Corporation
Franchise
Private Company
Answers
Which of the following most accurately states the purpose of the accounting
cycle?
A. To provide an accurate picture of just a business's expenses and
liabilities at the end of each accounting period
B. To provide an accurate picture of a business's revenues, expenses,
assets, liabilities, and equity accounts at any point during the
accounting period
C. To provide an accurate picture of a business's revenues, expenses,
assets, liabilities, and equity accounts at the end of each
accounting period.
D. To provide an accurate picture of just a business's revenues,
assets, and equity at the end of each accounting period
Answers
Answer:C. To provide an accurate picture of a business's revenues, expenses,
assets, liabilities, and equity accounts at the end of each
accounting period.
Explanation:
Suppose rich only paid the interest during his 4 years in school and the 6-month grace period. What will he now pay in interest over the term of his loan?.
Answers
If Rich only paid the interest during his 4 years in school and the 6-month grace period, the interest payment over the loan term will be $1,864.01 based on simple interest.
What is the simple interest system?The simple interest system is a process that does not compute interest on the accumulated interest.
Using the simple interest system, interest is charged on the principal for each period.
The simple interest system is unlike compound interest, which computes interest on both the principal and accumulated interest.
The amount of the unsubsidized student loan = $7,900
The interest rate = 4.29%
Loan period = 10 years
Nonpayment period = 4.5 years
Payment period 5.5 years (10 - 4.5)
The total interest for the payment period is based on simple interest = $1,864.01 ($7,900 x 4.29% x 5.5).
Thus, most student loans are based on the simple interest system and Rich will pay a total interest of $1,864.01 based on this system.
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Complete Question:Rich is attending a 4-year college. As a freshman, he was approved for a 10-year, federal unsubsidized student loan for $7,900 at 4.29%. He knows he has the option of beginning repayment of the loan in 4.5 years. He also knows that during this nonpayment time, interest will accrue at 4.29%. Suppose Rich only paid the interest during his 4 years in school and the 6-month grace period. What will he now pay in interest over the term of his loan?
Economics budget line Q
Answers
Aoife's budget line is is -2
Aoife's equilibrium consumption of milk and bread is 20 units of milk and 60 units of bread.
What is Aoife's budget line?Budget line equation: 2M + B = 100, where M represents the quantity of milk and B represents the quantity of bread.
The equation above is a linear equation representing Aoife's budget constraint. The slope of the budget line is -2, which means that the opportunity cost of one unit of milk is two units of bread.
Illustration of her equilibrium consumption of milk and bread:To find the point of equilibrium, we need to find the point where the slope of the indifference curve is equal to the slope of the budget line. This is the point where the marginal rate of substitution (MRS) is equal to the price ratio.
The price ratio is 2:1 (the price of milk is twice the price of bread), so the slope of the budget line is -2. The slope of the indifference curve is -1/2, so we need to find the point where -1/2 = -2, which is (20, 60) (20 units of milk and 60 units of bread).
What is her marginal rate of substitution at the equilibrium allocation in part b?The marginal rate of substitution (MRS) at the equilibrium allocation is the rate at which Aoife is willing to trade off milk for bread while remaining on the same indifference curve. It is equal to the absolute value of the slope of the indifference curve at the equilibrium point.
In this case, the slope of the indifference curve is -1/2, so the MRS is 1/2 (the absolute value of -1/2). This means that Aoife is willing to give up half a unit of milk for one unit of bread while remaining on the same indifference curve at the equilibrium point.
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Fair Oaks Farms’ manure management, specifically the use of cow manure to power their facilities and fuel their milk tankers, is most closely related to which source of competitive advantage?
Answers
Answer:
Natural resources
Explanation:
Im not quite sure what your asking but if im right I think they have the competitive advantage of natural resource which would be the cow poop/manure that theyre using to power there facilities and fuel milk tankers.
sorry if im wrong
Fair Oaks Farms’ manure management, specifically the use of cow manure to power their facilities and fuel their milk tankers, is most closely related to sustainability management.
What is sustainability management?Sustainability management is a management discipline which embraces corporate strategies, operational capabilities, competencies, behaviours and cultures. The focus is on the products, services and the enterprise.
The supply chain is also the focus. The goal is to bring optimal balance to the performance of the organisation. It also aims to improve economic, environmental and social outcomes.
It is basically the production or consumption to minimize the impact on the environment and maximize the conservation of resources and their reuse.
The depletion and degradation of our natural resources is the reason why this is a much-needed and should also be a much-utilized idea.
Therefore, Fair Oaks Farms’ manure management, specifically the use of cow manure to power their facilities and fuel their milk tankers, is most closely related to sustainability management.
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List two reasons why someone looking at a career in the Energy cluster might want to focus on new technology, such as energy-efficient products or sustainable energy. Give two examples of careers that may work with these new energy technologies.
Answers
Answer:
Explanation: two reasons for why someone looking at a career in the Energy cluster might want to focus on new technology, such as energy-efficient products or sustainable energy; Energy efficient technologies are now found in most energy conversion chains.Mar 9, 2020
ondren Machine Tools has total assets of $3,930,000 and current assets of $829,000. It turns over its fixed assets 3.8 times per year. Its return on sales is 6.5 percent. It has $1,280,000 of debt.
What is its return on stockholders’ equity?
Answers
The return on stockholders’ equity is 28.90%.
How to calculate the stockholders’ equity?
Total Assets 3930000
Less: Total debt 1280000
Total Stockholders' equity 2650000
Total assets 3930000
Less: Current assets 829000
Fixed Assets 3101000
Total Assets 3930000
Less: Total debt 1280000
Total Stockholders' equity 2650000
Total assets 3930000
Less: Current assets 829000
Fixed Assets 3101000
Fixed Assets 3101000
X Fixed Assets turnover 3.8
Total revenue 11783800
Total revenue 11783800
X Return on sales 6.50%
Net income 765947
Net income 765947
Divide by Total Stockholders' equity 2650000
Return on stockholders’ equity 28.90%
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Machine Tools has total assets of $3,930,000 and current assets of $829,000. It turns over its fixed assets 3.8 times per year. Its return on sales is 6.5 percent. It has $1,280,000 of debt.
What is its return on stockholders equity
= 2,650,000 dived total stockholders equity
= 28.90% return on stockholders equtiy
Dale is a guitar teacher and Terrence is a tile layer. If Dale teaches Terrence's daughter to play the guitar in
exchange for Terrence tiling Dale's kitchen floor,
a. only Dale is made better off by trade.
O b. both Dale and Terrence are made better off by trade.
c. neither Dale nor Terrence are made better off by trade.
O d. only Terrence is made better off by trade.
Answers
If Dale teaches Terrence's daughter to play the guitar in exchange for Terrence tiling Dale's kitchen floor Option B. both Dale and Terrence are made better off by trade.
In this scenario, Dale is a guitar teacher and Terrence is a tile layer. Dale teaches Terrence's daughter how to play the guitar in return for Terrence tiling Dale's kitchen floor. It is a classic example of trade and bartering. Dale, the guitar teacher, would have had to pay for tile installation if he hadn't bartered with Terrence, the tile layer. Terrence, on the other hand, would have had to pay for guitar lessons if he hadn't traded with Dale.
Both Dale and Terrence, therefore, benefit from the trade, and they are both better off as a result. Because Dale receives tile installation in exchange for teaching guitar lessons, and Terrence receives guitar lessons in exchange for tile installation, both benefit.
In conclusion, the answer is (b) both Dale and Terrence are made better off by trade. When both parties are better off after a trade, it is known as a mutually beneficial trade. Trade, in general, promotes mutual gains by allowing people to concentrate on what they do best and exchange their output with others for goods and services that they desire. Therefore, the correct option is B.
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abc corporation uses an activity-based costing system with three activity cost pools. the company has provided the following data concerning its costs and its activity-based costing system: costs: wages and salaries $ 320,000 depreciation 160,000 utilities 240,000 total $ 720,000 distribution of resource consumption: activity cost pools assembly setting up other total wages and salaries 50% 40% 10% 100% depreciation 10% 55% 35% 100% utilities 15% 50% 35% 100% how much cost, in total, would be allocated in the first-stage allocation to the assembly activity cost pool? group of answer choices $212,000 $176,000 $196,000 $160,000
Answers
The first-stage allocation to the assembly activity cost pool$336,000.
How to calculate?
estimating the first-stage allocation of costs to the Setting Up activity cost pool
Adding an amount
salaries and wages $128,000 [$320,000*40%]
Depreciation $88,000 (or $160,000 multiplied by 55%)
Services related to utilities $120,000 [$240,000*50%
Total $336,000
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Marriott builds a hotel for $34 million and sells it to a banking
firm for $52 million. Marriott charges the banking firm 2-4 % of gross revenues to operate the hotel. This business transaction is
known as
franchising
REIT
investment partnership
management contract
Answers
Answer:
management contract
Explanation:
A competitive action can be one of two types, either __________ or __________.
Answers
Answer:
strategic, tactical
Explanation:
value of the marginal product is the: a ratio of total revenue to the quantity of a variable input employed. b price of the output multiplied by the total units of output produced.
Answers
The value of the marginal product is the price of the output multiplied by the total units of output produced.
What exactly is the marginal product?The marginal product or marginal physical productivity of an input (factor of production) in economics, and particularly neoclassical economics, is the change in output resulting from employing one more unit of a particular input (for example, the change in output when a firm's labor is increased from five to six units), assuming that the quantities of other inputs remain constant.
The marginal product value is calculated by multiplying the marginal physical product by the average revenue or price of the product. The marginal product value (VMP) of a corporation is the amount of revenue provided by one unit of productive output. Hence the correct option is b.
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