A project with an initial investment of $448100 will generate equal annual cash flows over its 9-year life. The project has a required return of 8.8 percent. What is the minimum annual cash flow required to accept the project
Answer: $74,135.94
Explanation:
Using present value factor = [tex]\dfrac{1}{(1+r)^n}[/tex] , where r= percent of return, n number of years
As per given , r= 808% = 0.088
Present value factor for 9 year life = [tex]\dfrac{1}{1.088^1}+\dfrac{1}{1.088^2}+...\dfrac{1}{1.088^9}[/tex]
[tex]0.919117647059+0.844777249135+0.776449677514+0.713648600656+0.655927022662+0.602874101711+0.554112225837+0.509294325218+0.468101401855\\\\=6.04430225165[/tex]
Minimum cash flow= [tex]\dfrac{\text{Initial investment}}{\text{Present value factor for 9 year life}}[/tex]
[tex]=\dfrac{448100}{6.04430225165}\approx74135.94[/tex]
Hence, the minimum annual cash flow required to accept the project = $74,135.94 .
isk Co. purchases raw materials on account. Budgeted purchase amounts are April, $96,000; May, $126,000; and June, $136,000. Payments are made as follows: 70% in the month of purchase and 30% in the month after purchase. The March 31 balance of accounts payable is $38,000. Prepare a schedule of budgeted cash payments for April, May, and June.
Answer:
Given that Payments are made as follows: 70% in the month of purchase and 30% in the month after purchase, therefore, firstly we need to differentiate the total amount of purchases of each month into 70% and 30%. 70% of the purchases will be paid in current month and balance 30% of the purchases will be ending accounts payable for that month and paid in next month. This is shown as follows:
Particulars April May June
Current month purchases 70% $67,200 $88,200 $95,200
Ending accounts payable 30% $28,800 $37,800 $40,800
Total purchases $96,000 $126,000 $136,000
The schedule of budgeted cash payments for the month of April May and June are shown as follows:-
Schedule of Cash Payments
For April, May, and June
April May June
Cash payments for:
Current month purchases $67,200 $88,200 $95,200
Prior month purchases $38,000 $28,800 $37,800
Budgeted cash payments for materials $105,200 $117,000 $133,000
If a CobbDouglas production function has alpha = 0.34 and beta = 0.42, then a 1% increase in inputs results in a ________ change in output. A. 0.76% B. 0.8% C. 0.76% D. 8%
Answer:
0.76%
Explanation:
Firstly we write out the production function to be
Y = K^0.34L^0.42.
So if we have inputs that are increased by 1%, we will now have a new production function which is
Y = (K + 0.01 of K)^0.34 (L + 0.01 of L)^0.42
We write this in terms of growth rate
The Growth rate of Y = 0.34 x the growth rate of K + 0.42 x the growth rate of L
This gives us the Growth rate of Y = 0.34 x 1% + 0.42 x 1%
= 0.34+0.42
= 0.76%
A & D Window Cleaning performed $450 of services but has not yet billed customers for the month. If A & D fails to record the adjusting entry, what is the impact on the financial statements?
Answer:
d. balance sheet: assets understated, equity understated income statement: revenues understated
Explanation:
The journal entry would be
Account receivable Dr $450
To sales revenue $450
(Being sales revenue is recorded)
Here the account receivable is debited as it increased the assets and credited the sales revenue as it also increased the revenue also the equity would be increased
Therefore if this entry is not recorded so the revenue, net income, assets and equity all are overstated
hence, the correct option is d.
Next year Jenkins Traders will pay a dividend of $3.00. It expects to increase its dividend by $0.25 in each of the following three years. If their required rate of return is 14 percent, what is the present value of their dividends over the next four years
Answer:
Present value = $9.7150 rounded off to $9.72
Explanation:
Using the dividend discount model, we calculate the price of the stock today. It values the stock based on the present value of the expected future dividends from the stock. To calculate the present value of the next four dividends, we will use the following formula,
Present value = D1 / (1+r) + D2 / (1+r)^2 + D3 / (1+r)^3 + D4 / (1+r)^4
Where,
r is the required rate of returnPresent value = 3 / (1+0.14) + (3+0.25) / (1+0.14)^2 +
(3+0.25+0.25) / (1+0.14)^3 + (3+0.25+0.25+0.25) / (1+0.14)^4
Present value = $9.7150 rounded off to $9.72
Their upcoming four-year dividends' current value is $9.7150, rounded to $9.72, is the present value.
The calculation is as follows:
We determine the stock's current price using the dividend discount methodology. Based on the current value of anticipated future dividends from the shares, the stock is valued. We will use the following formula to get the present value of the following four dividends:
Present value is equal to D1 / (1+r), D2 / (1+r), D3, and D4 / (1+r).
Where,
The necessary rate of return is r.
Value in the present is equal to 3 / (1+0.14) + (3+0.25) / (1+0.14)2 +
(3+0.25+0.25) / (1+0.14)^3 + (3+0.25+0.25+0.25) / (1+0.14)^4
Rounding up to $9.72, the present value is $9.7150.
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Does the temporal difference learning of optimal utility values (U) require knowledge of the transition probability tables
Answer:
No
Explanation:
Temporal difference or some times written as TD learning process may be defined as an approach to learning that describes how to predict a given quantity which depends on the future values for a given signal.
TD or temporal difference learning does not require the knowledge of transition probability tables. It only requires the knowledge of state and action plan. It also does not require the knowledge of reward function.
The agents does not need to acquire the transition model while using Temporal Difference Training. The transfer happens between regions, and the agent only changes the nations that are actually affected.
Only continuous action space information is required for Temporal Difference Learning.
Temporal-Difference does not require a model. Methods that use Temporal Differences learn directly through experience and contact with the environment.
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The company wants to end each month with ending finished goods inventory equal to 25% of the next month's sales. Finished goods inventory on June 30 is 1,050 units. The budgeted production units for July are:
Answer: 4,375 units
Explanation:
The budgeted production for July will be;
= July sales + Ending inventory - Beginning inventory
Ending inventory = 25% * August sales =25% * 4,900 = 1,225
Budgeted production = 4,200 + 1,225 - 1050 = 4,375 units
Suppose that a house is worth $350,000 today. If house prices are expected to decline by 15% for each of the next two years. How much will the house be worth at the end of 2 years?
Answer: $252,875
Explanation:
This concerns a value in future (2 years) so the future value formula can be used;
= 350,000 * ( 1 - 15%) ²
= $252,875
House will be worth $252,875 at the end of 2 years if it declines in value at 15% per year.
Suppose the current, zero-coupon, yield curve for risk-free bonds is as follows: Maturity (years) 1 2 3 4 5 Yield to Maturity 4.70% 5.20% 5.45% 5.65% 5.80% (a) What is the price per $100 face value of a 3-year, zero-coupon risk-free bo
Answer:
$85.28
Explanation:
Maturity (years) 1 2 3 4 5
Yield to Maturity 4.70% 5.20% 5.45% 5.65% 5.80%
the formula that we can use to calculate the market value of a zero coupon bond is:
market price = maturity value / (1 + yield to maturity)ⁿ
maturity value = $100yield to maturity = 5.45%n = 3 yearsmarket price = $100 / (1 + 5.45%)³ = $100 / 1.172573 = $85.28
$459 into an investment at 5% for six years. What will the balance be at the end of six years?
Answer:
A=615.10
Explanation:
The balance after six years is the future value of 459 at a 5% interest rate.
The applicable formula is
A= P( 1+ r )^n
A = amount after six years
P= 459
r=5%
N=6 year
A= 459(1+5/100)^6
A = 459(1.05)^6
A=459 x 1.34
A=615.06
A=615.10
At the profit-maximizing level of output, what is relationship between the total revenue (TR) and total cost (TC) curves
Answer: A) They must have the same slope.
Explanation:
The slope of the Total revenue curve is the marginal revenue and likewise the slope of the Total cost curve is the marginal cost. The profit maximising level of output is the output level where Marginal revenue is equal to Marginal cost.
As the Marginal cost and the Marginal revenue are equal at this point, the slopes of the total revenue and the total cost must be the same as well.
Using the information provided, analyze the affects of Lawry Lawn Service's transactions on the accounting equation.
May 1 Received $3,400 and issued common stock
May 3 Purchased a mower on account, $1,600
May 5 Performed lawn services for client on account $1,000
May 17 Paid $100 cash for gas used in mower.
May 28 Paid cash dividends of $700
Analyze the events chronologically, one transaction at a time. Beginning with the transaction on May 3rd, calculate the balance in each account after analyzing the effect of the transaction on the accounting equation.
Answer:
Lawry Lawn Service
Analysis of the effects of transactions on the accounting equation:
May 1:
Asset (Cash + $3,400) = Liabilities + Equity (Common Stock + $3,400)
May 3:
Asset (Cash $3,400 + Equipment $1,600) = Liabilities (Accounts Payable + $1,600) + Equity $3,400
May 5:
Asset (Cash $3,400 + Equipment $1,600 + Accounts Receivable + $1,000) = Liabilities (Accounts Payable + $1,600) + Equity $3,400 + Retained Earnings + $1,000
May 17:
Asset (Cash $3,400 - 100 + Equipment $1,600 + Accounts Receivable + $1,000) = Liabilities (Accounts Payable + $1,600) + Equity $3,400 + Retained Earnings + $1,000 -100
May 28:
Asset (Cash $3,300 - 700 + Equipment $1,600 + Accounts Receivable + $1,000) = Liabilities (Accounts Payable + $1,600) + Equity $3,400 + Retained Earnings + $900 - 700
Asset (Cash $2,600 + Equipment $1,600 + Accounts Receivable + $1,000) = Liabilities (Accounts Payable + $1,600) + Equity $3,400 + Retained Earnings + $200
Explanation:
The accounting equation reveals that each transaction that Lawry Lawn Service embarks on ensures that the two sides of the equation remain in balance. This happens immediately the two entry principle is correctly applied and the transactions posted properly. This is because every transaction affects two or more accounts, with one or two on one side and the others on the opposite side. Every transaction giving rise to an asset must be funded either from debt or equity.
Trade can make everybody better off because it a. increases cooperation among nations. b. allows people to specialize according to comparative advantage. c. requires some workers in an economy to be retrained. d. reduces competition among domestic companies.
Answer:
b. allows people to specialize according to comparative advantage.
Explanation:
A trade can be defined as the process that typically involves the buying and selling of goods and services between a buyer (consumer) and a seller (producer).
Trade can make everybody better off because it allows people to specialize according to comparative advantage.
This ultimately implies that, trade creates an enabling environment that suits a specific service provider or producer of a particular product.
what behaviors r most common in a successful entrepreneur
some behaviors from an successful entrepreneur are being open to try new things without question and openly sharing their own opinions
On January 1, a 6-year, $5,000, non-interest-bearing note payable was issued when the market rate of interest was 8%. The present value of the note is
Answer:
PV= $3,150.85
Explanation:
Giving the following information:
Number of periods (n)= 6 yeras
Future value (FV)= $5,000
Interest rate (i)= 8%
To calculate the present value, we need to use the following formula:
FV= PV*(1+i)^n
Isolating PV:
PV= FV/(1+i)^n
PV= 5,000/(1.08^6)
PV= $3,150.85
The principle of exceptions allows managers to focus on correcting variances between apetitor's costs and actual costs bpetitor's costs and standard costs c.standard costs and actual costs d.variable costs and actual costs
Complete Question:
The principle of exceptions allows managers to focus on correcting variances between
Group of answer choices
a. standard costs and actual costs
b. competitor's costs and standard costs
c. variable costs and actual costs
d. competitor's costs and actual costs
Answer:
a. standard costs and actual costs
Explanation:
A principle of exception can be defined as a theory that states that, only relevant and significant deviation about an asset is brought to the knowledge of a manager for the decision-making process or consideration.
The principle of exceptions allows managers to focus on correcting variances between standard costs and actual costs.
Kate owns a refreshment-stand business at the community ball park. She goes to a warehouse like Sam's and purchases snacks and canned soda that she will sell at her stand. Kate is considered a
Answer:
retailer
Explanation:
From the question, we are informed about Kate who owns a refreshment-stand business at the community ball park. She goes to a warehouse like Sam's and purchases snacks and canned soda that she will sell at her stand. In this case Kate is considered a retailer. A retailer is someone or business that buy goods from the wholesaler or manufacturers and sell to the consumer in small quantities. Their role is important because they are found in promoting sustainability of consumption and production.
What are the OSHA guidelines for reporting injuries, illnesses, and fatalities?
Answer:
(Answers may vary.)
I know that as per OSHA guidelines, I must report workplace related accidents. I would ensure I implement the following OSHA guidelines:
I will report any worker fatality within 8 hours.
I will report any amputation, loss of an eye, or hospitalization of a worker within 24 hours.
Since I have more than 10 employees, I will keep a record of any serious work-related injuries and illnesses for five years.
Explanation:
You were hired as a consultant to Kingsley Company, whose target capital structure is 40% debt, 10% preferred, and 50% common equity. The interest rate on new debt is 7.00%, the yield on the preferred is 6.00%, the cost of retained earnings is 10.50%, and the tax rate is 40%. The firm will not be issuing any new stock. What is Quigley's WACC
Answer:
Quigley's WACC = 7.53%
Explanation:
The after-tax cost of debt = 0.07 * (1-tax rate)
The after-tax cost of debt = 0.07 * (1 -0.4)
The after-tax cost of debt = 0.07 * 0.6
The after-tax cost of debt = 0.042
The after-tax cost of debt = 4.2%
WACC = Respective costs*Respective weight
40% debt, 10% preferred, and 50% common equity
WACC = (4.2*0.4) + (0.1*6) + (0.5*10.5)
WACC = 1.68 + 0.6 + 5.25
WACC = 7.53%
CFG Company has the following employees:
Wages Paid
Eddie $12,000
Melanie 6,000
Shelly 22,000
CFG receives the maximum credit for state unemployment taxes. Required: What is the FUTA tax that CFG Company would owe for the year?
Answer:
$120
Explanation:
FUTA taxes = 6% - 5.4% (maximum credit for state unemployment taxes) = 0.6%
FUTA taxes are collected on the first $7,000 of annual salary paid to the employees
total FUTA tax liability:
Eddie $7,000 x 0.6% = $42Melanie $6,000 x 0.6% = $36Shelly $7,000 x 0.6% = $42total = $120What was the value proposition of Maggi in India which made it a success but not in Pakistan? What is the better value proposition in Pakistan?
The correct answer to this open question is the following.
The value proposition of Maggi in India which made it a success but not in Pakistan was that Maggie offered the modern Indian woman, the possibility to have quality noodles ready to cook in minutes. And this was very favorable for modern Indian women that had to work and other family responsibilities.
When Indian women realized how fast it was to cook the noodles, that they were tasty for kids and healthy, they immediately loved the product.
Unfortunately, that was not the case for Pakistan women. The "quickness" was not the best perceived as a good value proposition because in Pakistan, a more traditional approach to cook food -in a more crafty, elaborated way- is so much appreciated by the people of Pakistan. Different customs and traditions.
A better value proposition in Pakistan could have been a similar flavor that would appeal to the classic flavors of Pakistani cuisine.
Maggi was bought by multinational Swiss company Nestle in 1947, and it penetrated the Indian market in 1983. And the result was an instant success.
What is the current yield of a bond with a 6% coupon, 4 years until maturity, and a price quote of 84
Answer:
7.14%
Explanation:
Calculation for the current yield of a bond
Current yield = (6%×$1,000) / (0.84 × $1,000)
Current yield = $60 / (0.84 × $1,000)
Current yield = $60 / $840
Current yield = 0.0714*100
Current yield =7.14%
Therefore the Current yield will be 7.14%
__________ are highly externally oriented; their members forge dense networks across the organization, enable rapid execution of ideas, and may sometimes find they have to cross competitive, organizational borders to achieve a shared goal.
Answer:
X-teams
Explanation:
X-teams was formed in 2006. They provides a high-performing and an on-demand teams of efficient developers to the leading brands of the world. They are the world leaders in the movement of remote working and they believe and work for a better world.
Exploration, exploitation, exportation is the typical cycle of the X teams in this order of processes.
Why are craftsman likely to produce fewer goods than modern manufacturers produce?
They do less intensive labor than manufacturing.
They are not organized into uniorhs
They are considered unskilled laborers.
They do more intensive labor than manufacturing
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Answer:
They do more intensive labor than manufacturing.
Explanation:
Answer:
I see you copy and pasting from ignitia
Explanation:
As a student how will you prepare yourself to face the challenges of finding a job?
Answer: You are never 100% prepared to face the challenges of finding a job.
Explanation: Finding work, especially the first one, is something that comes with many challenges. Being a student, I must keep in mind that my experience is not much and that closes my opportunities in some places where they require people with experience. In my time as a student, I would try to gain experience in order to have greater opportunities.
Another way to prepare would be to do other studies that go beyond what I currently do. Taking courses such as English or computers can give me an advantage since they are highly demanded skills today.
The last thing would be to have a good attitude and not give up on the first failures. It may take a long time before you find a job, but that doesn't mean you won't. Patience and preparation are the keys to finding a good job.
For most people, experiencing stress is
a normal
b. extraordinary
c. exciting
d. boring
Answer:
A. normal
Explanation:
indicate your potential market
globalization in the modern world
Answer:
We need to stop them they will ruin our world and the dystopian fears we have will become a reality.
Explanation:
What do you think about my meme?
Gear Corporation had the following common stock record during the current calendar year: Outstanding-January 1 104,000 Additional shares issued 3/31 5,040,000 Distributed a 10% stock dividend on 6/30 Shares reacquired 9/30 104,000 What is the number of shares to be used in computing basic EPS
Answer:
Gear Corporation
The number of shares to be used in computing basic EPS is:
6,654,400 shares
Explanation:
a) Data and Calculations:
January 1 Outstanding shares = 1,104,000
March 31 Issued shares 5,040,000
Total outstanding before June 6,144,000
June 30 10% Stock Dividend 614,400
Total before reacquisition in Sept. 6,758,400
Sept. 30 Treasury Stock 104,000
Total outstanding for EPS computing 6,654,400
b) The outstanding number of shares on December 31 equals 6,654,400 shares. This will be used to calculate Gear's EPS.
The Midlands Company is eager to develop a project schedule. They have already completed the scope statement, work breakdown structure and schedule management plan. What is the next thing they should do in order to start creating a project schedule
Answer:
Define activities
Explanation:
When setting up a project there are various steps that are taken to ease project execution.
First the door statement is made to define what the project will cover, schedule management is made, activities are defined, activities are sequenced, and activities durations are estimated.
This process will ensure that no time is wasted in activities that are not productive and aimed at project completion.