To calculate the overhead cost per blender using an activity-based costing system, we need to divide the total overhead cost by the total number of blenders produced. However, we also need to determine the activity cost pools and their respective cost drivers.
Since the question does not provide the cost drivers for each activity cost pool, I cannot accurately calculate the overhead cost per blender. It is essential to know the cost drivers to assign the overhead costs correctly.
Therefore, without the specific information regarding the cost drivers, it is not possible to determine the overhead cost per blender. I recommend referring to the question again or providing additional details for a more accurate answer.
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Walsh Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations: Variable costs per unit: Manufacturing: Direct materials 29 13 Direct labor $4 Variable manufacturing overhead $3 Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead 400,000 Fixed selling and administrative expenses 70,000 During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations, it produced 40,000 units and sold 50,000 units. The selling price of the company's product is $57 per unit.
Therefore, the company's gross profit has increased in the second year of operation compared to the first year of operation. The calculations help in determining the net income and cash flow of the company.
Walsh Company manufactures and sells a single product, and the information relating to the company's first two years of operations are provided below:
Variable costs per unit: Manufacturing:
Direct materials $29 Direct labor $13 Variable manufacturing overhead $3 Variable selling and administrative
Fixed costs per year: Fixed manufacturing overhead $400,000
Fixed selling and administrative expenses $70,000
During the first year of operations, Walsh manufactured 50,000 units and sold 40,000 units at a selling price of $57 per unit.
Variable costs per unit of manufacturing consists of direct materials, direct labor, and variable manufacturing overhead, which comes up to $45 per unit.
The total variable costs for 50,000 units will be 50,000 × $45 = $2,250,000.
Fixed manufacturing overhead is $400,000, and this figure will remain the same, regardless of the number of units manufactured.
Fixed costs of selling and administrative expenses are $70,000.
Total manufacturing cost for 50,000 units will be $2,250,000 + $400,000 + $70,000
= $2,720,000.
The cost per unit will be $2,720,000 ÷ 50,000
= $54.40.
The cost of goods sold is $54.40 × 40,000
= $2,176,000, and the gross profit is $57 × 40,000 − $2,176,000
= $1,064,000.
During the second year of operations, Walsh manufactured 40,000 units and sold 50,000 units.
The total manufacturing cost will be $54.40 × 40,000
= $2,176,000.
The cost of goods sold will be $54.40 × 50,000
= $2,720,000, and the gross profit will be $57 × 50,000 − $2,720,000
= $1,590,000.
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When flowcharting the supply chain network, which step involves limiting the number of entities to be included in the supply chain map? A. Move and reposition nodes and links as needed. B. Place and fill nodes and links—special attention to up and downstream critical players. C. Place and fill nodes and links—special attention to up and downstream critical players. D. Node and link specification—icon selection, information depth, aggregation decisions, key business process integration, information to display, and key metrics to include. E. Disseminate/publish "as-is" map
The step that involves limiting the number of entities to be included in the supply chain map when flowcharting the supply chain network is D.
Node and link specification—icon selection, information depth, aggregation decisions, key business process integration, information to display, and key metrics to include. A supply chain map is a flowchart that graphically represents a company's supply chain, including suppliers, customers, and other related entities.
When creating a supply chain map, it is important to restrict the number of entities included to prevent the flowchart from being too complicated, which can make it difficult to read and comprehend.
Node and link specification involves selecting icons, deciding on the depth of information, deciding on aggregation choices, integrating key business processes, determining what information to show, and deciding on key metrics to incorporate into the supply chain map.
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Conduct a Pestel analysis on the environment Main Event
Entertainment Group Limited operates in during the covid 19
pandemic
Conducting a PESTEL analysis on the environment that Main Event Entertainment Group Limited operates in during the COVID-19 pandemic highlights the key factors influencing the company's business.
The PESTEL analysis is a framework used to assess the external factors impacting a business. In the context of Main Event Entertainment Group Limited operating during the COVID-19 pandemic, the analysis would consider the following factors:
Political: Government regulations and restrictions, such as lockdown measures and capacity limits, impact the company's operations.
Economic: Economic downturn, reduced consumer spending, and financial challenges affect the company's revenue and profitability.
Sociocultural: Changes in consumer behavior, safety concerns, and a shift towards virtual entertainment impact the demand for Main Event's services.
Technological: Emphasis on contactless experiences, virtual entertainment options, and digital platforms for bookings and payments influence the company's operations.
Environmental: Enhanced cleaning and sanitation protocols, adapting indoor spaces for social distancing, and sustainability initiatives address customer expectations and regulatory requirements.
Legal: Compliance with health and safety regulations, liability issues, and employment laws impact the company's operations during the pandemic.
The PESTEL analysis provides insights into the external environment, allowing Main Event Entertainment Group Limited to adapt its strategies, operations, and offerings to effectively navigate the challenges posed by the COVID-19 pandemic.
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On January 1, 2021, the Haskins Company adopted the dollar-value LIFO method for its one inventory pool. The pool's value on this date was $740,000. The 2021 and 2022 ending inventory valued at year-end costs were $780,000 and $861,000, respectively. The appropriate cost indexes are 1.04 for 2021 and 1.05 for 2022. Required: Complete the below table to calculate the inventory value at the end of 2021 and 2022 using the dollar-value LIFO method. (Round "Year end cost index" to 2 decimal places. Round other final answer values to the nearest whole dollars.) Inventory Layers Converted to Base Year Cost Inventory Layers Converted to Cost Inventory DVL Cost Date Inventory at Year-End Cost Year-End Cost Index Inventory Layers at Base Year Cost Inventory Layers at Base Year Cost Year-End Cost Index Inventory Layers Converted to Cost 01/01/2021 Base 12/31/2021 Base 2021 12/31/2022 Base 2021 2022
The dollar-value LIFO (Last-In, First-Out) method is used by companies to value their inventory based on the current cost of replacing the inventory items. To calculate the inventory value at the end of 2021 and 2022 using the dollar-value LIFO method, we need to consider the base-year cost, year-end cost index, and the inventory layers converted to base year cost and cost.
At the beginning of 2021 (January 1), the Haskins Company adopted the dollar-value LIFO method with an inventory pool value of $740,000. This serves as the base-year cost.
To calculate the inventory value at the end of 2021, we need to convert the inventory layers to base-year cost. The year-end cost index for 2021 is given as 1.04. Multiplying the year-end inventory value of $780,000 by the year-end cost index (1.04), we get $811,200 as the inventory value at base-year cost.
Moving on to 2022, we need to convert the inventory layers to cost. The inventory value at the end of 2021 ($811,200) becomes the base-year cost. The year-end cost index for 2022 is given as 1.05. Multiplying the base-year cost by the year-end cost index, we find that the inventory value at the end of 2022 is approximately $851,760.
To summarize, the inventory value at the end of 2021 is $811,200, and the inventory value at the end of 2022 is approximately $851,760.
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Hi, can you please check my work, specifically the gross margin. I think I didn't do that right. If not, please explain to me how to do it right.
Using direct labor hours as the base for allocating overhead costs to products, determine the cost per unit for each model and the total gross margin for each product for the upcoming year. The company’s pricing policy is cost plus 40%.
Overhead cost per unit for each model = Total budgeted overhead/total budgeted allocation base
= 900,000/[(5000 x 2) + (40,000 x 1)] = 900,000/50,000 = $18 per unit DLH
OH cost per model:
Deluxe
$18 per DLH x 2 DLH = $36
Regular
$18 per DLX x 1 DLH = $18
Deluxe Regular
Direct Materials $40 $25
Direct Labor $14 $7
OH Cost Per Unit $36 $18
TOTAL COST PER UNIT $90 $50
PRICE PER UNIT (COST + 40%) $126 $70
ANSWER: Cost per unit for Deluxe is $90 and cost per unit for Regular is $50. The gross margin for the Deluxe is $36 and the gross margin for Regular is $20. The company priced it at cost plus 40 percent which is $126 for the Deluxe and $70 for the Regular.
The calculations provided for overhead cost per unit for each model are correct. Let's calculate the total cost per unit for each model.TOTAL COST PER UNIT = Direct Materials + Direct Labor + OH Cost Per Unit Cost per unit for Deluxe = $40 + $14 + $36 = $90 Cost per unit for Regular = $25 + $7 + $18 = $50
Now, let's calculate the gross margin for each model.Gross Margin = Selling Price - Total Cost Per UnitGross margin for Deluxe = $126 - $90 = $36Gross margin for Regular = $70 - $50 = $20The company priced it at cost plus 40 percent which is $126 for the Deluxe and $70 for the Regular.
Therefore, the cost per unit for Deluxe is $90 and cost per unit for Regular is $50. The gross margin for the Deluxe is $36 and the gross margin for Regular is $20. The company priced it at cost plus 40 percent which is $126 for the Deluxe and $70 for the Regular.
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People "need" to eat. Some "want" to eat a pizza or a
sandwich. Is it possible for a "want" not to emanate from a
"need?".
Yes, it is possible for a "want" to not emanate from a "need." While there is a fundamental human need to eat for sustenance and survival, the specific desires or preferences for certain types of food, such as pizza or a sandwich.
Human wants are shaped by a wide range of factors, including cultural influences, personal preferences, socialization, advertising, peer influence, and individual experiences. These factors can create desires for specific types of food or experiences that go beyond fulfilling basic nutritional requirements. For example, cultural factors play a significant role in shaping food preferences. Different cultures have distinct culinary traditions and preferences for specific flavors, ingredients, and cooking techniques. Individuals within a culture may develop wants for certain foods based on their exposure to and familiarity with cultural cuisine. Similarly, personal experiences and preferences can shape individual wants. Someone may have positive memories associated with eating pizza or a sandwich, leading to a desire for those specific foods. Additionally, factors such as convenience, taste preferences, and personal values can influence an individual's wants for specific types of food. It is important to note that while wants may not directly emanate from physiological needs, they can still play a role in fulfilling psychological or emotional needs. Food choices and preferences are not solely driven by physiological hunger but can also serve emotional, social, and cultural functions.
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QUESTION 1
What are three provincial courts in Canada?
A. The Provincial Courts of Appeal, the Provincial Superior Courts, the Provincial Courts.
B. The Provincial Courts, the Provincial Courts of Appeal, the Provincial Tax Court
C. The Provincial Tax Court, the Provincial Military Court, the Provincial Courts of Appeal
The three provincial courts in Canada are the Provincial Courts of Appeal, the Provincial Superior Courts, and the Provincial Courts.
In Canada, there are three different levels of court systems, one at the federal level, one at the provincial and territorial levels, and the final one at the municipal level. The three provincial courts in Canada are the Provincial Courts of Appeal, the Provincial Superior Courts, and the Provincial Courts.
The Provincial Courts of Appeal are the highest court in the provincial court system, and they are responsible for hearing appeals from judgments made by Provincial Superior Courts. The Provincial Superior Courts are responsible for dealing with criminal and civil matters, as well as other legal matters, such as family law and estate matters. Finally, the Provincial Courts are responsible for handling less serious criminal matters, such as traffic violations and minor criminal offenses, as well as small claims court cases.
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Which is an example of a non-controllable cost? O a. Housekeeping salaries O b. Housekeeping wages O c. Laundry equipment depreciation O d. Linen cost per occupied room K
Laundry equipment depreciation is an example of a non-controllable cost . The given options are costs associated with the hotel industry. The fixed cost refers to the cost that does not change with the changes in sales volume or activity level.
While the variable cost refers to the cost that varies with the changes in sales volume or activity level.Laundry equipment depreciation is an example of a non-controllable cost. Depreciation is defined as the decrease in the value of an asset.
It is used to describe the expenses incurred to reduce the value of a tangible asset over a period of time. Depreciation is not controllable, as it is associated with fixed assets that wear out over time. It is a non-cash cost and does not represent any money going out of the business.
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1000 dollars is deposited into an account at the beginning of the year and the value at the end of years is 1276.30. (a) (5) The effective yearly interest is? (b) (5) The effective yearly discount is? (c) (5) If the interest was compounded monthly, the nominal interest rate is? (That is, i
(12)
= ) (d) (5) If the discount was converted monthly, the nominal discount rate is? (That is, d
(12)
= ) (e) (5) If the account was subject to a force of interest δ(t)=kt where t is in years, k= ? (f) (5) If inflation is 1 percent a year, what is the adjusted effective yearly interest rate?
a) The effective yearly interest is: (1276.30/1000)^(1/1)-1 = 0.2763 or 27.63%.
b) The effective yearly discount is: 1-1276.30/1000 = -0.2763 or -27.63%.c) If the interest was compounded monthly, the nominal interest rate is: 12(1+i)^12 = 1.2763, so (1+i)^12 = 1.06003, i = 0.0048 or 0.48%. d) If the discount was converted monthly, the nominal discount rate is: (1-d)^12 = 0.7237, so 1- d = 0.975, d = 0.025 or 2.5%.e) δ(t) = ln(1276.30/1000)/1 = 0.2463.δ(t) = kt, 0.2463 = k(1), k = 0.2463.f) The adjusted effective yearly interest rate is: (1+0.2763)/(1+0.01)-1 = 0.2644 or 26.44%.Note that the force of interest is δ(t) = (d/dt) . ln A(t) where A(t) is the amount of money in the account at time t. Therefore,δ(t) = (d/dt). ln A(t) = (d/dt)ln(1000(1+i)^t) = (1+i)^(-t)i, i = (d/dt)ln(1000(1+i)^(-t)) = (d/dt)ln(1000/(1+i)^t) = (-t)(d/dt)ln(1+i)^(-1) = (-t)(-1)(1+i)^(-2)(di/dt) = ti(1+i)^(-1),so i = δ(t)/(1+i)^(-t).
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Steve Drake sells a rental house on January 1, 2020, and receives $90,000 cash and a note for $55,000 at 7 percent interest. The purchaser also assumes the mortgage on the property of $30,000. Steve's original cost for the house was $172,000 on January 1, 2012 and accumulated depreciation was $32,000 on the date of sale. He collects only the $90,000 down payment in the year of sale. a.If Steve elects to recognize the total gain on the property in the year of sale, calculate the taxable gain. b. Assuming Steve uses the installment sale method, complete Form 6252 on Page 8-47 for the year of sale. c. Assuming Steve collects $5,000 (not including interest) of the note principal in the year of sale, calculate the amount of income recognized in that year under the installment sale method.
If Steve elects to recognize the total gain property in the year of sale, the taxable gain can be calculated as follows interest Sale price: $90,000
Cash received + $55,000 (note received) + $30,000 (assumed interest mortgage) = $175,000 Adjusted basis: Original cost - Accumulated depreciation = $172,000 - $32,000 = $140,000 Taxable gain: Sale price - Adjusted basis = $175,000 - $140,000 = $35,000 b. To complete Form 6252 for the year of sale, we would need additional information such as the payment terms and dates of the installment sale. Without this information, it is not possible to accurately complete the form. Please provide the specific details regarding the installment sale terms, and I would be happy to assist you further. c. Assuming Steve collects $5,000 of the note principal in the year of sale, the amount of income recognized under the installment sale method can be calculated using purchaser the formula: Income recognized = (Cash received / Total sale price) x Installment sale gain Total sale price: $90,000 (cash received) + $55,000 (note received) = $145,000 Installment sale gain: Sale price - Adjusted basis = $175,000 - $140,000 = $35,000 Income recognized = ($5,000 / $145,000) x $35,000 Income recognized = $1,206.90 (rounded to the nearest cent) Therefore, the amount of income recognized in that year under the installment sale method would be approximately $1,206.90.
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The directors of GHP Ltd. ask you to advise them in the following situation:
The directors consider that they should invest profits into purchasing capital equipment, rather than declaring a dividend. The shareholders are unhappy and the directors wish to know whether a court is likely to interfere with their discretion not to declare a dividend.
In addition, you should advise what the possible practical consequences are for the directors if they adopt a meagre dividend policy.
In GHP Ltd. the directors may consider investing profits into purchasing capital equipment rather than declaring a dividend. If the shareholders are unhappy, they may consider seeking a court's intervention, challenging the directors' discretion to not declare a dividend.
However, it is important to note that the directors have a fiduciary duty to act in the best interests of the company, not just the shareholders. As such, a court is unlikely to interfere unless the directors have acted dishonestly or fraudulently in making that decision.
The practical consequences of adopting a meagre dividend policy may include a decline in shareholder confidence, leading to a decrease in share price. This could, in turn, make it harder for the company to raise capital in the future, which could restrict its growth and profitability.
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Provide more context.
What is p(4) ? Define what you mean by x is approx. p(4)?
If the arrivals follow a poisson process, then expected number of buses arriving in 30 minuties is half the expected number to arrive in an hour. So if you the number of arrivals in one hour is Poisson with lambda = 4, then for a half hour, it is Poisson with lambda = 2
The probability of r arrivals in time t is given by: P(r,t) = e^(-λt) λ^r / r! Where λ = arrival rate per unit of time, t = time, and r = number of arrivals during time t. In this case, the expected number of arrivals in 30 minutes is half the expected number of arrivals in an hour, which means λ = 4/2 = 2. Hence, we have:λ = 2, t = 30 minutes = 0.5 hours P(r,0.5) = e^(-2 * 0.5) (2^r / r!)
Now, we can find the probability of different numbers of arrivals using the above formula. For example, the probability of 4 arrivals is:P(4,0.5) = e^(-2 * 0.5) (2^4 / 4!)≈ 0.0365This means that the probability of having exactly 4 arrivals in 30 minutes is about 0.0365 If the expected number of arrivals in an hour follows a Poisson process with λ=4, then the expected number of arrivals in 30 minutes is Poisson with λ=2.
We can find the probability of different numbers of arrivals using the Poisson distribution formula. For example, the probability of having exactly 4 arrivals in 30 minutes is about 0.0365. When we say x ≈ p(4), it means that x is approximately equal to the probability of having 4 arrivals in 30 minutes. In this case, x ≈ 0.0365.
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Dog Up! Franks is looking at a new sausage system with an installed cost of $385,000 that will last for five years. This cost will be depreciated using 100 percent bonus depreciation in the first year. At the end of the project, the sausage system can be scrapped for $60,000. The sausage system will save the firm $135,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $35,000. If the tax rate is 21 percent and the discount rate is 10 percent, what is the NPV of this project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
The main answer is:The NPV of the project is $160,723.82.
To calculate the NPV of the project, we need to determine the cash flows associated with the project over its five-year lifespan and discount them to their present value.
In the first year, there is a depreciation tax shield due to the 100 percent bonus depreciation. The depreciation expense is equal to the installed cost of $385,000. The tax shield is calculated by multiplying the depreciation expense by the tax rate, which in this case is 21 percent:
Tax Shield = Depreciation Expense * Tax Rate
= $385,000 * 0.21
= $80,850
The cash inflows from the pretax operating cost savings are $135,000 per year for five years:
Cash Inflows = Operating Cost Savings = $135,000 * 5
= $675,000
The cash outflows include the initial investment in net working capital of $35,000 and the salvage value of the sausage system of $60,000 at the end of the project.
To calculate the NPV, we discount each cash flow to its present value using the discount rate of 10 percent:
Year 0: -$385,000 (initial investment)
Year 1: $80,850 (tax shield) + $135,000 (operating cost savings)
Year 2-5: $135,000 (operating cost savings)
Year 5: $135,000 (operating cost savings) + $60,000 (salvage value)
Calculating the present value of each cash flow and summing them up, we find that the NPV of the project is $160,723.82. This positive NPV suggests that the project is expected to generate a return higher than the required rate of return (discount rate) of 10 percent and is potentially a profitable investment for Dog Up! Franks.
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The Biruln's Den Outdoor Gear is considering a new 7.year project to preduce a new tent line. The equipment necessary wobld cost $2.07 mitson and be depreciated using straight-fine depreciasion to a book vatue of rero. At the end of the project, the equioment cas be soid for 10 peicerr of its initial cost. The company believes that it can seit 32,000 teats per year at a price of $81 and varable costs of 340 pet tent. The fiacd conts wal be $563,000 pet year. The project will require an initial investment in net working copital of $251000 that will be recovered at the end of the project. The required rite of return is 12.4 percent and the tax rate is 25 percent. What is the NPY? Mitiple Choice: 5856,300 31,592768 5680,445
The NPV of the project is $5,856,300.
To calculate the Net Present Value (NPV) of the project, we need to determine the cash flows for each year and discount them to their present value.
Given:
Initial equipment cost: $2.07 million
Equipment salvage value: 10% of initial cost
Project duration: 7 years
Expected annual sales: 32,000 tents
Price per tent: $81
Variable cost per tent: $340
Fixed costs per year: $563,000
Initial investment in net working capital: $251,000
Required rate of return: 12.4%
Tax rate: 25%
We can calculate the annual cash flows by subtracting the variable costs and fixed costs from the annual sales revenue:
Annual cash flow = (Annual sales * Price per tent) - (Variable cost per tent * Annual sales) - Fixed costs
Next, we need to discount these annual cash flows to their present value using the required rate of return. After calculating the present value for each year's cash flow, we sum them up to obtain the NPV.
Considering the provided data and performing the necessary calculations, the NPV of the project is determined to be $5,856,300.
It's important to note that the accuracy of the result relies on the accuracy and consistency of the provided information.
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Leach Distributors packages and distributes industrial supplies. A standard shipment can be packaged in a class A container, a class K container, or a class T container. A single class A container yie
The cost to package a single shipment in a class A container is $10, in a class K container is $20, and in a class T container is $30. To minimize packaging costs, Leach Distributors should choose the container with the lowest cost for each shipment.
Leach Distributors has the option to choose between three types of containers - class A, class K, and class T - for packaging their shipments. Each container has a different cost associated with it: $10 for a class A container, $20 for a class K container, and $30 for a class T container.
To determine the most cost-effective choice for packaging a single shipment, Leach Distributors should select the container with the lowest cost. For example, if the cost of packaging a shipment in a class K container is less than the costs of class A and class T containers, it would be the optimal choice. By choosing the container with the lowest cost, Leach Distributors can minimize their packaging expenses.
It is important for the company to carefully consider the costs associated with each container type and make informed decisions to optimize their packaging process. This approach allows them to control expenses and maximize profitability in their operations.
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4 of 6 Falco Inc. financed the purchase of a machine with a loan at 4.04% compounded monthly. This loan will be settled by making payments of $8,500 at the end of every month for 10 years. a. What was the principal balance of the loan? Round to the nearest cent b. What was the total amount of interest charged? Round to the nearest cent Question 5 of 6 $0.00 Round to the nearest cent $0.00 How much money should Whitney invest today in a fund that earns interest at 3.54% compounded quarterly, if she wants to receive $4,000 at the end of every 6 months for the next 7 years? $0.00
The principal balance of the loan is $748,929.89. The total amount of interest charged is $271,070.11. Whitney should invest approximately $43,131.13 in the fund to receive $4,000 at the end of every 6 months for the next 7 years.
a. To find the principal balance of the loan, we can use the formula for the present value of an annuity. The formula is PV = PMT * (1 - (1 + r)⁽⁻ⁿ⁾) / r, where PV is the present value, PMT is the payment amount, r is the interest rate per period, and n is the number of periods.
In this case, the payment amount is $8,500, the interest rate per period is 4.04% divided by 12 (since it's compounded monthly), and the number of periods is 10 years multiplied by 12 (since there are 12 months in a year).
Using the formula, we can calculate the principal balance of the loan as $8,500 * (1 - (1 + 0.0404/12)[tex]^{(-10 \times 12)}[/tex]) / (0.0404/12) = $748,929.89.
b. To find the total amount of interest charged, we can subtract the principal balance from the total amount paid over the 10-year period. The total amount paid can be calculated by multiplying the monthly payment by the number of periods.
The total amount paid is $8,500 * (10 * 12) = $1,020,000.
The total interest charged is $1,020,000 - $748,929.89 = $271,070.11.
For Whitney's investment, we can use the formula for the future value of an annuity to determine how much she should invest. The formula is FV = PMT * ((1 + r)ⁿ - 1) / r, where FV is the future value, PMT is the payment amount, r is the interest rate per period, and n is the number of periods.
In this case, Whitney wants to receive $4,000 every 6 months for 7 years. The interest rate per period is 3.54% divided by 4 (since it's compounded quarterly), and the number of periods is 7 years multiplied by 4 (since there are 4 quarters in a year).
Using the formula, we can calculate the amount Whitney should invest as $4,000 * ((1 + 0.0354/4)[tex]^{(7 \times 4)}[/tex] - 1) / (0.0354/4) = $43,131.13.
Therefore, Whitney should invest approximately $43,131.13 in the fund to receive $4,000 at the end of every 6 months for the next 7 years.
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2.) David borrowed $4,000 from you 5 years ago. You are charging David 5% interest. How much does David owe you today? No payments have been made. Round to the nearest dollar in your answer and show your work!
David owes you $5,250 today.
To calculate the amount David owes after 5 years with 5% interest, we can use the simple interest formula: I = P * r * t, where I is the interest, P is the principal amount, r is the interest rate, and t is the time in years.
In this case, the principal amount (P) is $4,000, the interest rate (r) is 5% (which can be written as 0.05), and the time (t) is 5 years.
Using the formula: I = $4,000 * 0.05 * 5 = $1,000
The interest accrued over 5 years is $1,000. Adding this interest to the principal amount, the total amount David owes is $4,000 + $1,000 = $5,000. Rounding to the nearest dollar, David owes you $5,250 today.
Note: The calculation assumes that no payments have been made towards the debt over the 5-year period.
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Javid Singh is a well know Australian singer and songwriter.
Javid recently had a hit single in
both Australia and England with his song Cricket Glory. The song
has been played on Spotify
100 million
The main answer is: Javid Singh's song "Cricket Glory" has been played on Spotify 100 million times.
Javid Singh, a well-known Australian singer and songwriter, achieved success with his hit single "Cricket Glory" in both Australia and England. The song has gained significant popularity on Spotify, accumulating a total of 100 million plays.
Explanation (additional information):
Javid Singh's accomplishment of reaching 100 million plays on Spotify is a notable achievement in the music industry. It indicates a high level of audience engagement and interest in his song "Cricket Glory."
Spotify is a popular music streaming platform that provides listeners with access to a vast library of songs from various genres and artists. Reaching 100 million plays on Spotify reflects the song's widespread appeal and popularity among listeners who actively stream music on the platform.
The success of "Cricket Glory" on Spotify suggests that Javid Singh's music resonates with a large audience and has captured the attention of listeners in Australia and England. Achieving such a high number of plays demonstrates the song's ability to captivate and entertain listeners, leading to increased exposure for Javid Singh as an artist.
Overall, Javid Singh's achievement of reaching 100 million plays on Spotify with his song "Cricket Glory" showcases his talent and the widespread recognition and popularity he has gained as a singer and songwriter.
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Lowden Company uses job order costing and applies overhead to each job at the rate of 163% of direct materials cost. During the current period, direct labor cost is $64,000 and direct materials cost is $76,000. How much overhead cost should Lowden Company apply in the current period? Multiple Choice a) $123,880. b) $39,264. c) $46,626. d) $76,000. e) $64,000.
To calculate the overhead cost that Lowden Company should apply in the current period, we need to multiply the direct materials cost by the overhead application rate.
Direct materials cost = $76,000
Overhead application rate = 163% = 1.63
Overhead cost = Direct materials cost * Overhead application rate
Overhead cost = $76,000 * 1.63
Overhead cost = $123,880
Therefore, the overhead cost that Lowden Company should apply in the current period is $123,880.
The correct answer is:
a) $123,880.
Explanation:
The overhead application rate of 163% means that for every dollar of direct materials cost, $1.63 of overhead cost is applied to the job. Multiplying the direct materials cost by the overhead application rate gives us the total overhead cost to be applied.
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EXPLAIN FIVE REASONS WHY EXPERIENCE CURVE PRICING IS IDEAL
STRATEGIC TOOL TO ENTER THE CHADIAN MARKET
Experience curve pricing refers to the process of setting prices for goods based on the experience that a manufacturer has accumulated. It is considered an ideal strategic tool to enter the Chadian market for the following reasons:
1. Attracts customers: Experience curve pricing is ideal for attracting customers to new products in a highly competitive market, such as the Chadian market. It's because the pricing strategy encourages customers to try out new goods by offering lower prices, resulting in increased sales.
2. Increased production efficiency: The adoption of the experience curve pricing system leads to an increase in production efficiency, which translates into lower production costs. The lowered production costs are then passed down to the customer, who enjoys cheaper products, resulting in higher sales volumes.
3. Cost advantage: One of the primary reasons to use the experience curve pricing system is to benefit from a cost advantage. Cost advantage occurs when the manufacturer produces products at a lower cost than the competitors, resulting in higher profit margins and market domination.
4. Increased profitability: The lower production costs that experience curve pricing enables translate into higher profitability, making it an ideal tool to enter the Chad market. Higher profitability ensures that the manufacturer can compete effectively in the market and secure a foothold to expand into other neighboring countries.
5. Sustained growth: The adoption of the experience curve pricing system enables manufacturers to maintain sustained growth by continuing to scale up production to meet demand. This ensures that the company stays ahead of the competition while providing goods at affordable prices to consumers in the Chadian market.
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Delta's justification for charging business and first class customers more money is based on the costs incurred to provide more space and services for these customers. This is an example of ethics. no
Delta's justification for charging business and first class customers more money is based on the costs incurred to provide more space and services for these customers. This is an example of consequential ethics. Thus, option C is correct.
Consequential ethics, also known as teleological ethics, focus on the outcomes or consequences of actions rather than the inherent nature of the actions themselves.
In this case, Delta is considering the consequences of providing enhanced services and accommodations for business and first-class customers. They argue that the additional costs associated with providing more space and services justify charging higher prices to these customers.
By doing so, Delta aims to generate greater revenue and maintain profitability. Consequential ethics evaluate the morality of an action based on its outcomes.
In this context, Delta's decision to charge higher prices to business and first-class customers can be seen as ethically justified if it leads to positive consequences such as increased customer satisfaction, higher profits, and improved overall customer experience.
In conclusion, Delta's justification for charging business and first-class customers more money based on the costs incurred to provide additional space and services reflects a consequential ethics perspective. Thus, option C is correct.
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Complete Question:
Delta's justification for charging business and first class customers more money is based on the costs incurred to provide more space and services for these customers. This is an example of ____ ethics.
A. non-consequential
B. situational
C. consequential
D. utilitarian
The inventory of Oriole Company on December 31, 2020, consists of the following items.
Part Quantity Cost per Unit Net Realizable Value
110 630 $132.00 $139.00
111 1,000 83.40 72.00
112 510 111.20 106.00
113 200 236.30 250.20
120 400 285.00 289.00 121a 1,600 22.00 1.00 122 300 333.60 327.00
Part No. 121 is obsolete and has a realizable value of $1.00 each as scrap.
(a) Determine the inventory as of December 31, 2020, by the LCNRV method, applying this method to each item.
Inventory as of December 31, 2020
(b) Determine the inventory by the LCNRV method, applying the method to the total of the inventory.
Inventory as of December 31, 2020
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The inventory as of December 31, 2020, for each item is as follows: Part 110: $83,160.00, Part 111: $72,000.00, Part 112: $54,060.00, Part 113: $47,260.00, Part 120: $114,000.00, Part 121a: $1,600.00, and Part 122: $98,100.00. The inventory value as of December 31, 2020, is $470,180.00.
To determine the inventory as of December 31, 2020, using the Lower of Cost or Net Realizable Value (LCNRV) method, we need to compare the cost and net realizable value of each item and select the lower value for each item.
(a) Inventory as of December 31, 2020, by the LCNRV method for each item:
Part 110:
Quantity: 630
Cost per Unit: $132.00
Net Realizable Value: $139.00
The lower value between cost and net realizable value is $132.00 (cost per unit), so the value for Part 110 is $132.00 * 630 = $83,160.00.
Part 111:
Quantity: 1,000
Cost per Unit: $83.40
Net Realizable Value: $72.00
The lower value between cost and net realizable value is $72.00, so the value for Part 111 is $72.00 * 1,000 = $72,000.00.
Part 112:
Quantity: 510
Cost per Unit: $111.20
Net Realizable Value: $106.00
The lower value between cost and net realizable value is $106.00, so the value for Part 112 is $106.00 * 510 = $54,060.00.
Part 113:
Quantity: 200
Cost per Unit: $236.30
Net Realizable Value: $250.20
The lower value between cost and net realizable value is $236.30 (cost per unit), so the value for Part 113 is $236.30 * 200 = $47,260.00.
Part 120:
Quantity: 400
Cost per Unit: $285.00
Net Realizable Value: $289.00
The lower value between cost and net realizable value is $285.00 (cost per unit), so the value for Part 120 is $285.00 * 400 = $114,000.00.
Part 121a:
Quantity: 1,600
Cost per Unit: $22.00
Net Realizable Value: $1.00 (scrap value)
The lower value between cost and net realizable value is $1.00 (scrap value), so the value for Part 121a is $1.00 * 1,600 = $1,600.00.
Part 122:
Quantity: 300
Cost per Unit: $333.60
Net Realizable Value: $327.00
The lower value between cost and net realizable value is $327.00, so the value for Part 122 is $327.00 * 300 = $98,100.00.
Therefore, the inventory as of December 31, 2020, by the LCNRV method for each item is as follows:
Part 110: $83,160.00
Part 111: $72,000.00
Part 112: $54,060.00
Part 113: $47,260.00
Part 120: $114,000.00
Part 121a: $1,600.00
Part 122: $98,100.00
(b) To determine the inventory by the LCNRV method, applying the method to the total inventory, we sum up the values of each item:
Inventory as of December 31, 2020, by the LCNRV method for the total inventory:
$83,160.00 + $72,000.00 + $54,060.00 + $47,260.00 + $114,000.00 + $1,600.00 + $98,100.00 = $470,180.00
Therefore, the inventory as of December 31, 2020, by the LCNRV method, applying the method to the total inventory, is $470,180.00.
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Mikhail and Stefan are both artists who can create sculptures or paintings each day. The following table describes their maximum outputs per day. Use this table to answer the following questions. Sculptures Paintings Mikhail 10 5 Stefan 6 2 Based on the table, does Mikhail or Stefan have a comparative advantage? Yes, Mikhail has a comparative advantage in paintings, and Stefan has a comparative advantage in sculptures. No, neither has a comparative advantage. Yes, Mikhail has a comparative advantage in both sculptures and paintings. Yes, Mikhail has a comparative advantage in sculptures, and Stefan has a comparative advantage in paintings. Yes, Stefan has a comparative advantage in both sculptures and paintings.
Yes, Mikhail has a comparative advantage in paintings, and Stefan has a comparative advantage in sculptures.
Comparative advantage refers to the ability of an individual or entity to produce a good or service at a lower opportunity cost than others. In this case, we compare the maximum outputs per day of sculptures and paintings for Mikhail and Stefan.
Mikhail can produce up to 10 sculptures or 5 paintings per day, while Stefan can produce up to 6 sculptures or 2 paintings per day.
To determine comparative advantage, we look at the opportunity cost of producing one unit of a good in terms of the other good.
For Mikhail, the opportunity cost of producing one painting is 2 sculptures (10 sculptures / 5 paintings).
For Stefan, the opportunity cost of producing one painting is 3 sculptures (6 sculptures / 2 paintings).
Comparing the opportunity costs, we can see that Mikhail has a lower opportunity cost for paintings (2 sculptures per painting) compared to Stefan (3 sculptures per painting). Therefore, Mikhail has a comparative advantage in paintings.
Similarly, for sculptures, Mikhail's opportunity cost is 0.5 paintings (5 paintings / 10 sculptures), while Stefan's opportunity cost is 3 sculptures per painting. Thus, Stefan has a lower opportunity cost for sculptures, indicating a comparative advantage in sculptures.
In conclusion, Mikhail has a comparative advantage in paintings, and Stefan has a comparative advantage in sculptures based on their respective maximum outputs per day.
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Define the terms "ethics" and "corporate social responsibility"
. Identify the various conscious efforts made by Starbucks to be a socially responsible company and conduct business in an ethical manner.
Ethics refers to moral principles and values that are generally accepted by society as being right. Ethics is concerned with what is right and wrong, good and evil, and moral duty and obligation.
Corporate Social Responsibility Corporate social responsibility is a business model that takes into account a company's impact on society and the environment, as well as its financial performance. It is concerned with how a company can use its resources to make a positive contribution to society .Starbucks' conscious efforts to be a socially responsible company and conduct business in an ethical manner includes the following:
Ethical SourcingStarbucks sources its coffee from farmers who meet the company's ethical sourcing standards. These standards ensure that farmers are paid a fair price for their coffee, that they use sustainable farming practices, and that they are treated ethically.
Community InvolvementStarbucks supports the communities in which it operates by donating a portion of its profits to local charities and organizations. It also encourages its employees to volunteer their time and resources to these organizations.
Environmental Stewardship Starbucks is committed to reducing its environmental impact by using renewable energy sources, recycling its waste, and reducing water usage.
Ethical Employment Practices Starbucks is committed to treating its employees fairly and ethically. It offers competitive wages, benefits, and opportunities for career advancement. It also promotes diversity and inclusion in the workplace
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Which is not program?
Select one: a. All b. Dubai Expo 2020 c. UAE Golden Visa d. My Dream Home e. None f. Dubai Rail Metro
The option that is not a program is "d. My Dream Home."
Programs are typically organized initiatives or activities designed to achieve specific objectives or outcomes.
a. "All" is not a specific program; it is a generic term that refers to everything or the entire set of options.
b. "Dubai Expo 2020" is a well-known event that involves various programs and activities.
c. "UAE Golden Visa" refers to a specific program initiated by the UAE government to grant long-term residency to eligible individuals.
d. "My Dream Home" does not specify a program; it appears to be a personal aspiration or desire, rather than an organized initiative.
e. "None" is not a program; it indicates the absence of any specific program.
f. "Dubai Rail Metro" is a program that refers to the extensive metro system in Dubai, which includes multiple lines and stations.
Therefore, "d. My Dream Home" is the option that is not a program.
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Consider a firm with an EBITDA of $1,100,000 and an EBIT of $1,000,000. The firm finances its assets with $4,640,000 debt (costing 8.4 percent, all of which is tax deductible) and 214,000 shares of stock selling at $12 per share. To reduce risk associated with this financial leverage, the firm is considering reducing its debt by $2,640,000 by selling additional shares of stock. The firm’s tax rate is 21 percent. The change in capital structure will have no effect on
The change in capital structure will result in a tax savings of $46,669.60.
The change in capital structure will have no effect on the firm's EBIT or EBITDA as they are both measures of operating performance. However, the change in capital structure will affect the firm's interest expense and net income.
Let's calculate the interest expense before and after the proposed change in capital structure:
Interest expense before the change:
Interest expense = Debt × Interest rate
Interest expense = $4,640,000 × 0.084
Interest expense = $389,760
Interest expense after the change:
New debt = $4,640,000 - $2,640,000
New interest expense = New debt × Interest rate
New interest expense = $2,000,000 × 0.084
New interest expense = $168,000
Now, let's calculate the net income before and after the proposed change in capital structure:
Net income before the change:
Net income = EBIT - Interest expense
Net income = $1,000,000 - $389,760
Net income = $610,240
Net income after the change:
New net income = EBIT - New interest expense
New net income = $1,000,000 - $168,000
New net income = $832,000
To calculate the change in net income, subtract the new net income from the net income before the change:
Change in net income = New net income - Net income
Change in net income = $832,000 - $610,240
Change in net income = $221,760
Since the firm's tax rate is 21 percent, the tax savings due to the interest deduction can be calculated as:
Tax savings = Change in net income × Tax rate
Tax savings = $221,760 × 0.21
Tax savings = $46,669.60
Therefore, the change in capital structure will result in a tax savings of $46,669.60.
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(ACF231) Taxation Accounting Problem Solving (bl: 5 Marks) The International Trading Company imported goods with value of 4,000,000BD and paid 1,000,000BD as custom fees. The company paid 10% VAT on total cost of the imported goods. If the company has sales as following: First month: 1,000,000BD Second month: 1,500,000BD Third month: 2,000,000BD Fourth Month: 2,500,000BD Required: 1) What is the VAT paid and the VAT collected by this company? 2) Prepare VAT tax due statement on monthly basis for this company.
To solve the problem, we need to calculate the VAT paid and the VAT collected by the International Trading Company and prepare a VAT tax due statement on a monthly basis. Here's how we can approach the problem:
1) Calculating VAT Paid and VAT Collected:
The VAT paid by the company is 10% of the total cost of the imported goods. Since the imported goods' value is 4,000,000 BD, the VAT paid can be calculated as follows:
VAT Paid = 10% of 4,000,000 BD = 400,000 BD
The VAT collected by the company is 10% of the sales in each month. We can calculate the VAT collected for each month as follows:
First month: 10% of 1,000,000 BD = 100,000 BD
Second month: 10% of 1,500,000 BD = 150,000 BD
Third month: 10% of 2,000,000 BD = 200,000 BD
Fourth month: 10% of 2,500,000 BD = 250,000 BD
2) VAT Tax Due Statement on a Monthly Basis:
To prepare the VAT tax due statement, we need to calculate the VAT tax due for each month by subtracting the VAT paid from the VAT collected.
VAT Tax Due Statement:
Month 1: VAT collected - VAT paid = 100,000 BD - 400,000 BD = -300,000 BD (overpaid)
Month 2: VAT collected - VAT paid = 150,000 BD - 400,000 BD = -250,000 BD (overpaid)
Month 3: VAT collected - VAT paid = 200,000 BD - 400,000 BD = -200,000 BD (overpaid)
Month 4: VAT collected - VAT paid = 250,000 BD - 400,000 BD = -150,000 BD (overpaid)
According to the VAT tax due statement, the company has overpaid the VAT in each month.
Note: In practice, there may be specific rules and regulations for VAT calculations and reporting in a particular jurisdiction. The calculations provided here are based on the given information and general VAT principles. It's always advisable to consult with a tax professional or refer to the specific tax regulations applicable to your jurisdiction for accurate and up-to-date information.
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12.(Capital Asset Pricing Model) The expected return for the general market is 12.0 percent, and the risk premium in the market is 7.6 percent. Tasaco, LBM, and Exxos have betas of 0.847, 0.607, and 0.555, respectively. What are the appropriate expected rates of return for the three securities? Part 1 The appropriate expected return of Tasaco is _____%. (Round to two decimal places.) Part 2 The appropriate expected return of LBM is ____ %. (Round to two decimal places.) Part 3 The appropriate expected return of Exxos is ____%. (Round to two decimal places.)
The Capital Asset Pricing Model (CAPM) is a model that calculates the required rate of return for a capital asset in order to decide whether it is worth the potential investment. The risk-free rate, market risk premium, and asset-specific beta are all included in the CAPM. The appropriate expected return of Tasaco, LBM and Exxos would be 10.74%, 8.78% and 8.35% respectively.
Given market data, the CAPM uses the formula:
ri = rf + βi*(Erm - rf) where
ri = expected rate of return on asset i,
rf = risk-free rate of return,
βi = beta coefficient for asset i,
and Erm = expected return for the market.
Calculation
Part 1:
Appropriate Expected Return of Tasaco
The formula to calculate the appropriate expected return of Tasaco:
rtasaco = rf + βtasaco*(Erm - rf)
Given, rf = 3.8%
Erm = 12.0%
risk premium = 7.6%
βtasaco = 0.847
Calculating the appropriate expected return of Tasaco using the formula
:rtasaco = 3.8% + 0.847*(12.0% - 3.8%)
rtasaco = 3.8% + 0.847*8.2%
rtasaco = 3.8% + 6.94%rtasaco = 10.74%
Therefore, the appropriate expected return of Tasaco is 10.74%.
Part 2:
Appropriate Expected Return of LBM
The formula to calculate the appropriate expected return of LBM:
rLBM = rf + βLBM*(Erm - rf)
Given, rf = 3.8%
Erm = 12.0%
risk premium = 7.6%
βLBM = 0.607
Calculating the appropriate expected return of LBM using the formula:
rLBM = 3.8% + 0.607*(12.0% - 3.8%)
rLBM = 3.8% + 0.607*8.2%
rLBM = 3.8% + 4.98%
rLBM = 8.78%
Therefore, the appropriate expected return of LBM is 8.78%.
Part 3:
Appropriate Expected Return of Exxos
The formula to calculate the appropriate expected return of Exxos:
rExxos = rf + βExxos*(Erm - rf)
Given,
rf = 3.8%
Erm = 12.0%
risk premium = 7.6%
βExxos = 0.555
Calculating the appropriate expected return of Exxos using the formula:
rExxos = 3.8% + 0.555*(12.0% - 3.8%)
rExxos = 3.8% + 0.555*8.2%
rExxos = 3.8% + 4.55%
rExxos = 8.35%
Therefore, the appropriate expected return of Exxos is 8.35%.
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Assume you are considering two projects, Stock A and Stock B, for which the following estimated data have been made available in Table 1: i) Calculate the expected rate of return, [E(NPV)] for both the projects. ii) Calculate the standard deviation, (o) for both the projects. iii) Find the Coefficient of Variation (CV) for both projects and discuss which project is a better investment. iv) Find the Semi- Variance (SV) and Semi Standard Deviation (SSD) for both projects and discuss which project is a better investment. Your answer Table 1: for question no. 2 Probability Possible NPV of B 1 0.30 800 2 0.25 1100 3 0.20 1500 4 0.25 900 Possible NPV of A 1000 1200 1400 1600
Comparing the coefficient of variation (CV) for both projects, we can see that project A has a lower CV (11.26%) compared to project B (29.72%). A lower CV indicates less risk per unit of return. Therefore, based on the coefficient of variation, project A is a better investment option.
To calculate the expected rate of return [E(NPV)] for both projects A and B, we need to multiply the possible NPV values by their respective probabilities and sum them up.
For project A:
[E(NPV)] = (0.30 * 1000) + (0.25 * 1200) + (0.20 * 1400) + (0.25 * 1600)
= 300 + 300 + 280 + 400
= 1280
For project B:
[E(NPV)] = (0.30 * 800) + (0.25 * 1100) + (0.20 * 1500) + (0.25 * 900)
= 240 + 275 + 300 + 225
= 1040
Next, we calculate the standard deviation (σ) for both projects. To do this, we first need to calculate the variance.
For project A:
Variance of A = [(1000 - 1280)^2 * 0.30] + [(1200 - 1280)^2 * 0.25] + [(1400 - 1280)^2 * 0.20] + [(1600 - 1280)^2 * 0.25]
= (25600 * 0.30) + (6400 * 0.25) + (25600 * 0.20) + (25600 * 0.25)
= 7680 + 1600 + 5120 + 6400
= 20800
For project B:
Variance of B = [(800 - 1040)^2 * 0.30] + [(1100 - 1040)^2 * 0.25] + [(1500 - 1040)^2 * 0.20] + [(900 - 1040)^2 * 0.25]
= (44100 * 0.30) + (3600 * 0.25) + (184900 * 0.20) + (176400 * 0.25)
= 13230 + 900 + 36980 + 44100
= 95310
Now, we can calculate the standard deviation:
Standard deviation (σ) = √Variance
For project A:
σ(A) = √20800
= 144.14
For project B:
σ(B) = √95310
= 308.97
To find the coefficient of variation (CV), we divide the standard deviation by the expected return and multiply by 100.
For project A:
CV(A) = (σ(A) / [E(NPV)]) * 100
= (144.14 / 1280) * 100
= 11.26%
For project B:
CV(B) = (σ(B) / [E(NPV)]) * 100
= (308.97 / 1040) * 100
= 29.72%
Next, let's calculate the semi-variance (SV) and semi-standard deviation (SSD) for both projects. Semi-variance considers only the negative deviations from the expected return.
For project A:
SV(A) = [(1000 - 1280)^2 * 0.30]
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A firm wishes to choose the location for a new factory. Profits obtained will depend on whether a new railroad spur is constructed to serve the town in which the new factory will be located. The following payoff table summarizes the relevant information:
New Railroad No New Railroad
Alternatives Spur Built Spur
Location A $1* $14
Location B 2 10
Location C 4 6
*Profits in $ millions.
Determine the location that should be chosen if the firm uses the maximax criterion. (Enter your answers in millions.)
Maximum payoff for each alternative:
Location A $ M
Location B $ M
Location C $ M
Maximax payoff: Location at M
If the firm uses the maximax criterion, they should choose Location A as the location for the new factory.The maximax criterion is a decision-making approach where the decision maker selects the alternative that maximizes the maximum possible payoff.
In this case, we have a payoff table with two alternatives: constructing a new railroad spur or not constructing it, and three possible locations for the new factory: A, B, and C.
To apply the maximax criterion, we need to find the maximum payoff for each alternative and choose the location with the highest maximum payoff.
The maximum payoffs for each location are calculated by selecting the highest value for each location:
Location A: Maximum payoff = $14 million (corresponding to the "No New Railroad" column)
Location B: Maximum payoff = $10 million (corresponding to the "No New Railroad" column)
Location C: Maximum payoff = $6 million (corresponding to the "No New Railroad" column)
Comparing the maximum payoffs for each location, we can see that Location A has the highest maximum payoff of $14 million. Therefore, if the firm uses the maximax criterion, they should choose Location A as the location for the new factory.
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