Today is the last day of the month and you have yet to meet your sales goal. While your goal is still
within reach, you have not been able to close any sales today and are beginning to fear that you won't
be able to meet your goal. What would you mostly do and least likely do?
Answer:
All I can do at that particular moment is just to try and identify the reason why I wasn't able to achieve that goal and create a more better plan so that such won't repeat itself again
Explanation:
what I am trying to say is that I will try and meet my manager and my colleagues for advice and also think of what to do then I am going to join everything together and create a better plan so such won't repeat itself
What is the demand curve and who does it represent?
A demand curve is a graphical representation that displays the demand of a product, the quantity demanded is the individual demand at a certain period while the demand curve shows the trend of the demand during the periods.
What is a demand Curve?A demand curve shows the demanded quantity of the product at different periods and or month, if a demand curve slopes downward as shown in the graph it is representing the increase in demand for the product, the price is reduced so the product demand has increased which suggests that the customers are willing to purchase more if the price falls.
The demand curve can be made for different prices and different quantities demanded.
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Please help me asap
Can you fill out the table based on the information below and explain how to?
To set up a table based on information provided in a spreadsheet, follow the instructions below:
The StepsInitiate by launching the spreadsheet and then selecting the desired data to be included within the table.
Make it portable by copying the particular piece of data through CTRL+C or Command +C for MAC users.
Subsequently, open any fresh sheet or document to begin working with.
Generate a table via clicking "Insert" option followed by choosing an alternative named “Table,” or accomplish this process using shortcut keys.
Once done, paste the previously copied insertion into newly created tables suing command+V or Ctrl+v.
Organize the columns width while implementing formatting techniques wherever necessary.
It's recommended that one double-checks the table initially formed to guarantee precise transfer of all details from the spreadsheet.
Rinse and repeat these steps as required to create additional tables based on supplied information from spreadsheets.
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We can see here that based on the given information, the table can be filled out as follows:
price indicator subject price indicator* Weight Total
company subject company assigned amount
amount amount to each
indicated
item
mivic to sales true 810 640 2.42
mivic to
discretionary
earnings true 264 0.79
mivic to sales false 1112 0.28
What is a price indicator?A price indicator is a metric used to reveal details regarding the cost or worth of a specific good or service.
mivic to discretionary earnings
false
0
mivic to sales
true
900
0.74
mivic to discretionary earnings
true
224
2.99
mivic to sales
true
251
0.40
mivic to discretionary earnings
true
22
3.68
mivic to sales
true
371
0.32
mivic to discretionary earnings
true
3
49
We can see here that the "price indicator" column actually indicates the calculation is based on "mivic to sales" or "mivic to discretionary earnings".
Then the "subject company amount" column is seen as the relevant amount from the subject company for the calculation.
The "price indicator*subject company amount" column is seen as the product of the price indicator and subject company amount.
The "Weight assigned to each indicated item" column is actually seen as the thing that indicates the weight assigned to each item in the calculation.
The "total amount" column is the result of multiplying the price indicator*subject company amount with the weight assigned to each indicated item.
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Investments generally grow to an ex potential rate because they grow on them selves. What is another term for this concept?
A. Unbounding.
B. Compounding.
C. Rebounding.
Investments generally grow to an expotential rate because they grow on themselves. Another term for this concept is Compounding. The correct option is b.
Compounding is the process in which an asset’s earnings, from either capital gains or interest, are reinvested to generate additional earnings over time. This growth, calculated using exponential functions, occurs because the investment will generate earnings from both its initial principal and the accumulated earnings from preceding periods.
Exponential growth is a process that increases quantity over time. It occurs when the instantaneous rate of change of a quantity with respect to time is proportional to the quantity itself.
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6. Choose a well-known company that you are familiar with, and explain how that company could use each of the five P's of the marketing mix to achieve its brand image and sales goals. (1-8 sentences. 5.0 points)HELP
The general example of how a company could use the five P's of the marketing mix to achieve its brand image and sales goals.
The marketing mix refers to a set of tools and strategies that a company uses to promote its products or services to its target market.
The company could use each of the five P's of the marketing mix:
1. Product: The company could offer a wide range of products to the target market's preferences and needs.
2. Price: The company could use a pricing strategy that emphasizes the high-quality of its products.
3. Place: The company could distribute its products through various channels, such as online retail platforms, etc.
4. Promotion: The company could use various promotion strategies to build brand awareness and attract customers.
5. People: The company could employ knowledgeable, and helpful staff who can provide expert advice and the benefits of using their products.
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In a market economy, decisions about which goods are produced are based
on:
OA. what businesses believe will generate the most profits.
B. what the local community has made for generations.
C. what the government decides is important for society.
O
D. what health care organizations suggest will be best for citizens.
← PREVIOUS
A dividend is a fee paid to an employee for their sale or services.
A) True
OR
B) False
HELP PLS
benefits of division of labour to an organisation
There are many benefits of the division of labour to an organisation:
1) Productivity
2) Cheap Company Products.
3) New Ideas and Innovation.
Including these Positive points, there are some disadvantages of the division of labour for an organisation.
A former client his filed a lawsuit against Bengal, suing for damages of $2,500,000 related to an incident in which the former client was injured while trying to sit down in a chair Bengal had previously worked on. Bengal's attorney believes the case is frivolous and will be thrown out by the judge.
Answer:
It is difficult to predict the outcome of a lawsuit, as it will depend on a variety of factors, including the specific details of the incident, the evidence presented, and the arguments made by both sides. However, if Bengal's attorney believes that the case is frivolous, it is possible that they will be able to convince the judge to dismiss the case early on in the proceedings, either through a motion to dismiss or through a summary judgment motion. If the case does go to trial, Bengal's attorney will need to present evidence and arguments to counter the plaintiff's claims and demonstrate that Bengal was not at fault for the injuries sustained by the former client. Ultimately, the outcome of the case will depend on the strength of the evidence and arguments presented by both sides, as well as the judge's interpretation of the law.
Explanation:
Differentiate a regular savings account from a CD, a money market fund, and a money market deposit account.
Savings accounts, money market accounts, and CDs all have different interest rates, limits, benefits, fees, and risk levels. Furthermore, a savings or money market account may be appropriate for short-term savings, whilst a CD is better suited for long-term savings.
Savings accounts, money market accounts, and CDs are all viable options for putting money aside and seeing it grow. These three types of accounts are similar in appearance, yet they function differently and may serve different purposes.
CDs are deposit accounts similar to savings and money market accounts that are offered from banks and credit unions. Both money market funds and CDs provide higher interest rates than ordinary savings accounts.
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When coverage is provided under the Additional Coverages of Section II of a Homeowners policy, payments are
Under section 2 of additional coverages of Homeowners policy, the payments provided are
Claim expensesFirst aid expensesDamage coverageLoss assessment chargesLiability for damage to third personDamage to property of others ( $1000)Section II (liability coverage) of a homeowners insurance policy provides protection under three coverages.
Coverage E (Personal Liability) coverage in the event that a claim is launched against the insured for physical injury or property damage caused by the insured's acts or inactions.
It deals with numerous fees and coverages that people must pay.
Therefore, w hen coverage is provided under the Additional Coverages of Section II of a Homeowners policy, payments that are made is explained.
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Blue Llama Mining Company is analyzing a project that requires an initial investment of $3,225,000. The project’s expected cash flows are: Year Cash Flow Year 1 $300,000 Year 2 –100,000 Year 3 425,000 Year 4 450,000 Blue Llama Mining Company’s WACC is 10%, and the project has the same risk as the firm’s average project. Calculate this project’s modified internal rate of return (MIRR):
Modified Internal Rate of Return (MIRR) = (Future value of positive cash flows / present value of negative cash flows) (1/n) – 1
= ($11,75,000 /-$3,304,400) (1/5) - 1
= -0.35558x -0.8
= 0.28446
MIRR = 28.46.
The modified internal rate of return (MIRR) presupposes that initial investments are funded at the firm's financing cost and that positive cash flows are reinvested at the firm's cost of capital.
The MIRR is calculated as:
Future Value of positive cash flows:
1 $300,000
3 $425,000
4 $450,000
Total $1,175,000
Present value of negative cash flows:
0 -$3,225,000
2 -$79400 )$100,000 x 0.794)
Total -$3,304,400
The Modified Internal Rate of Return for Blue Llama Mining Company is greater than its Weighted Average Cost of Capital. Therefore, the project should be accepted.
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In a
statistical relationships between data are calculated and compared
to industry averages.
OA. horizontal analysis
OB. cash flow analysis
C. ratio analysis
D. vertical analysis
The statistical relationships between data are calculated and compared to industry averages refers to ratio analysis (option C).
Ratio analysis involves the calculation and comparison of various financial ratios to evaluate the financial health and performance of a company. These ratios can be used to compare a company's performance to industry averages and identify areas where the company is performing well or needs improvement.
Horizontal analysis (option A) involves comparing financial statements over time to identify changes and trends.
Cash flow analysis (option B) involves analyzing a company's cash inflows and outflows to determine its ability to generate cash and meet its financial obligations.
Vertical analysis (option D) involves analyzing a company's financial statements to determine the proportion of each line item in relation to a base item, such as revenue.
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Black Ltd makes these products and is reviewing the profitability of its product line. You are given the following budgeted data about the firm for the coming year.
Product Sales (i.e units)
A
100,000
B
120,000
C
80,000
(Sh.)
(Sh.)
(Sh.)
Revenue
1,500,000
1,440,000
880,000
Costs:
Material
500,000
480,000
240,000
Labour
400,000
320,000
160,000
Overhead
650,000
600,000
360,000
1,550,000
1,400,000
760,000
Profit
(50,000)
40,000
120,000
The company is concerned about the loss on product A. It is considering ceasing occasion product of it and switching the spare capacity of 100 000 units to Product C.
You are told:
All products are sold.
25% of the labour cost for each product is fixed in nature.
Fixed administration overheads of Sh.900,600 in total have apportioned to each product on the basis of units sold and included in the overhead costs above. All other overhead costs are variable in nature
Ceasing production of product, A would eliminate the fixed labour charge associated with it and one-sixth of the fixed administration overhead apportioned in product A.
Increasing the production of product C by 100,000 units would mean that the fixed labour costs associated with product C would double the variable labour cost would rise by 20% and its selling price would have to be decreased by Sh.1.50 in order achieve the increased sales.
Required.
Prepare a marginal cost statement for a unit of each product on the basis of:
The original budget.
If product A is deleted.
Prepare a statement showing the total contra…… and profit for each product group on the basis of:
The original budget.
If product A is deleted.
Using your results from (a) and (b) advise whether product A should be deleted from the product range giving reasons for your decision.
Answer:
(a) Marginal Cost Statement:
Product A:
Revenue: Sh.15.00
Material: Sh.5.00
Labour: (25% of Sh.4.00) Sh.1.00
Variable Overhead: (50% of Sh.6.50) Sh.3.25
Total Variable Cost: Sh.9.25
Contribution Margin: Sh.5.75
Product B:
Revenue: Sh.12.00
Material: Sh.4.00
Labour: (25% of Sh.3.20) Sh.0.80
Variable Overhead: (50% of Sh.6.00) Sh.3.00
Total Variable Cost: Sh.7.80
Contribution Margin: Sh.4.20
Product C:
Revenue: Sh.11.00
Material: Sh.3.00
Labour: (25% of Sh.2.00) Sh.0.50
Variable Overhead: (50% of Sh.3.60) Sh.1.80
Total Variable Cost: Sh.5.30
Contribution Margin: Sh.5.70
(b) Total Contribution and Profit Statement:
Original Budget:
Product A:
Contribution: (Sh.5.75 x 100,000 units) = Sh.575,000
Fixed Overhead: (1/6 x Sh.150,100) = Sh.25,017
Profit: (Sh.575,000 - Sh.500,000 - Sh.400,000 - Sh.625,000 - Sh.25,017) = (Sh.950,017)
Product B:
Contribution: (Sh.4.20 x 120,000 units) = Sh.504,000
Fixed Overhead: (1/3 x Sh.900,600) = Sh.300,200
Profit: (Sh.504,000 - Sh.480,000 - Sh.384,000 - Sh.600,000 - Sh.300,200) = (Sh.260,200)
Product C:
Contribution: (Sh.5.70 x 80,000 units) = Sh.456,000
Fixed Overhead: (1/4 x Sh.900,600) = Sh.225,150
Profit: (Sh.456,000 - Sh.240,000 - Sh.200,000 - Sh.360,000 - Sh.225,150) = (Sh.569,150)
If Product A is deleted:
Product B:
Contribution: (Sh.4.20 x 120,000 units) = Sh.504,000
Fixed Overhead: (1/2 x Sh.900,600) = Sh.450,300
Profit: (Sh.504,000 - Sh.480,000 - Sh.384,000 - Sh.600,000 - Sh.450,300) = (Sh.510,300)
Product C:
Contribution: (Sh.5.70 x 180,000 units) = Sh.1,026,000
Fixed Overhead: (1/3 x Sh.900,600) = Sh.300,200
Profit: (Sh.1,026,000 - Sh.360,000 - Sh.320,000 - Sh.720,000 - Sh.300,200) = (Sh.325,800)
Based on the above calculations, it is advisable to delete Product A from the product range. This is because the company is making a loss of Sh.950,017 on Product A, which is greater than the total profit made on the other two products (i.e., Sh.829,350). Moreover, increasing
Explanation:
Has there always been a wide gulf between the richest people and the poorest?
BALACE OF PAYMENT QUESTIONS AND ANSWERS
Alice will be paid the amount of $868.7 interest in the loan at the end of one year.
What is the balance about?The formula to calculate interest is:
Interest = P x R x T
P = Principal
R = Rate
t = Time
Therefore, from the question:
Principal = $24,820
Rate = 3.5% per year
Time = 1 year
Then put the value into the equation and it will be:
Interest = $24,820 x 0.035 x 1
Interest = $868.70
Hence Alice will be paid the amount of $868.7 interest in the loan at the end of one year.
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An example of balanace of payment question is given below
Alice has a loan of $24,820. This loan has a simple interest rate if 3.5% per year. No payments will be kade on the loan until the end if the year. how much interest will alice pay in this loan at the end of one year?
Jesse has a good job and pays off his one credit card every month. He was surprised that when he applied for a loan to buy a car, he was rejected. Explain the steps the he should take to check his credit report for errors. How can he resolve any errors that he discovers?
It should be remembered that a credit report is just a record of a borrower's payments. When Jesse discovers the problem in his credit report, he needs to notify the credit reporting agency in writing.
A credit report is a document that contains details on your credit history, credit use, and other aspects of your credit behavior and circumstances. You should be able to check your credit score by going into your account online or looking over your monthly statement if your bank or credit card provider gives free credit ratings.
You may view your credit score or report for free using other services as well. Creditors such as lenders, credit card issuers, and other financial institutions send financial information about you to credit reporting firms, commonly referred to as credit bureaus or consumer reporting agencies, who then collect and store it.
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To generate new leads for business, Gustin Investment Services offers free financial planning seminars at major hotels in Southwest Florida. Gustin conducts seminars for groups of 25 individuals. Each seminar costs Gustin $3500, and the average first-year commission for each new account opened is $5000. Gustin estimates that for each individual attending the seminar, there is a 0.01 probability that he/she will open a new account. a. Determine the equation for computing Gustin's profit per seminar, given values of the relevant parameters. b. What type of random variable is the number of new accounts opened
Answer:
a. The equation for computing Gustin's profit per seminar can be expressed as follows:
Profit = (Commission per new account * Number of new accounts) - Cost per seminar
Profit = ($5000 * 0.01 * 25) - $3500
Profit = $125 - $3500
Profit = -$3375
Therefore, Gustin is expected to lose $3375 per seminar.
b. The number of new accounts opened is a binomial random variable, as it has a fixed number of trials (25 individuals attending the seminar), and each trial (individual) has a binary outcome (either opening a new account or not).
Explanation:
Jamie's Job Shop buys two parts (Tegdiws and Widgets) for use in its production system from two different suppliers. The parts are needed throughout the entire 52-week year. Tegdiws are used at a relatively constant rate and are ordered whenever the remaining quantity drops to the reorder level. Widgets are ordered from a supplier who stops by every three weeks. Data for both products are as follows:a. What is the inventory control system for Tegdiws? That is, what is the reorder quantity and what is the reorder point?
a. What is the inventory control system for Tegdiws? That is, what is the reorder quantity and what is the reorder point?
Reorder quantity = 1,225
Reorder point = 824.4
b. Find the total inventory costs if using inventory policy.
This is a case considering safety stock (make sure to use the right formulas
Inventory control system for Tegdiws is as follows:
1.225 units are the number of reorders
11,346.29 units are the reorder point.
What is the Widgets inventory control system?
There are 576.9 units in the widget inventory control system.
The products and materials that a company keeps on hand with the intention of reselling, producing, or using them are referred to as inventory or stock.
The main focus of the discipline of inventory management is determining the location and shape of stocked products.
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ACCOUNTING
Make-or-Buy Decision
Pizana Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $60 per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of 45% of direct labor cost. The unit costs to produce comparable carrying cases are expected to be as follows:
Line Item Description Amount
Direct materials $29.00
Direct labor 22.00
Factory overhead (45% of direct labor) 9.90
Total cost per unit $60.90
If Pizana Computer Company manufactures the carrying cases, fixed factory overhead costs will not increase and variable factory overhead costs associated with the cases are expected to be 16% of the direct labor costs.
It is advisable that Pizana Computer Company should purchase its carrying cases for its portable computers at a purchase price of $60 per unit rather than making them. The decision is buy.
Making the decision to manufacture a product internally versus buying it from a third-party provider is known as a make-or-buy decision. Make-or-buy decisions, like outsourcing choices, involve weighing the benefits and costs of producing something internally vs purchasing it from a third party.
The cost for manufacturing the cases are:
Direct materials $29.00
Direct labor 22.00
Factory overhead (45% of direct labor) 9.90
Variable overhead (16% of direct labor) 3.52
Total cost $64.52
Therefore, it is seen that the cost of manufacturing is $64.52 which is much higher than buying coast of $60. The buy decision is appropriate.
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1. Identify the type of leadership style.
Focusses on people's needs and building relationships.
2. Identify the type of leadership style.
Focuses on building participation and support for a shared purpose.
3. Identify the type of leadership style.
Focuses on minimum effort to get work done.
4. Identify the type of leadership style.
Focuses on the efficiency of tasks and operations.
Answer:
Relationship-oriented leadership style
Transformational leadership style
Laissez-faire leadership style
Task-oriented or transactional leadership style
Axei plc, a leading producer of quality cements in Ghana has recently identified a positive not present value project.As a financial advisor of the company, you think the company needs to sell bonds in order to raise the needed money to excute the project.Concisely and unambiguously, Discuss the steps and process the company has to go through in order to sell bonds in Ghana
To sell bonds in Ghana, Axei plc must follow certain steps and processes. First, the company needs to appoint an issuing house, which is a licensed broker-dealer, to manage the bond issuance.
The issuing house will then conduct due diligence on the company to determine its creditworthiness and structure the bond issue.
Next, Axei plc will prepare a prospectus detailing the terms and conditions of the bond issue, including the amount of the bond, the interest rate, and the repayment schedule. The prospectus will be filed with the Securities and Exchange Commission (SEC) for approval.
Once approved,Axei plc the bond issue will be marketed to potential investors through roadshows and other promotional activities. Investors will then subscribe to the bond issue through the issuing house.
Finally, once the bond issue is fully subscribed, Axei plc will receive the proceeds and use them to finance the identified project. The company will then make periodic interest payments to bondholders until the bond matures and the principal is repaid.
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Mr. Vishal does such a business in which almost 10% goods are sold on credit and 90% on cash. On the other hand, Mr. Abhishek is doing such a business in which almost 90% goods are sold on credit and 10% on cash. Identify the both types of business.
Mr. Vishal is doing retail Business whereas Mr. Abhishek is doing Wholesale Business in which almost 90% goods are sold on credit and 10% on cash.
Retail refers to the sale of products or services to final consumers by people or companies. Retailers buy products from wholesalers, producers, or other retailers with the intention of reselling them to customers at a profit. Retail, then, is the act of selling products and services directly to end users.
A business that purchases huge quantities of products directly from producers or distributors and then resells those to other businesses is known as a wholesale operation. Regardless of the quantities supplied, wholesale trading involves buying and selling items, typically to authorities, professional (industrial or commercial) users, or other wholesalers or intermediates.
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Why is interest, expense ignored when computing return on net operating assets (RNOA)?
Answer:
Interest expense is excluded from the Return on Net Operating Assets (RNOA) calculation as it is seen as a financing activity, not an operating activity. RNOA measures a company's operating assets' ability to generate profits without taking into account financing decisions like interest expense. This exclusion ensures a more accurate view of a company's ability to make profits from its core business. Additionally, this allows for better comparisons between companies with different financing structures or interest rates. In summary, RNOA is a valuable measure of a company's profitability from operating activities, and the exclusion of interest expense ensures that the measure reflects the company's core business performance.
Calculate the Net Present Value Weather Co has recently taken over many smaller companies, which it now runs as separate divisions. One division, Thunder, has just developed a new product called Lightning and is now considering whether to put it into production. The following information is available:
(i) Costs incurred in the development of Lightning amount to $480,000.
(ii) Production of Lightning will require the purchase of new machinery at a cost of $2,400,000, payable on the first day of the new financial year. The machinery is specific to the production of Lightning and will be obsolete and valueless when production ceases. The machinery has a production life of four years and a production capacity of 30,000 units per annum.
(iii) Production costs of Lightning (at year 1 prices) are estimated as follows:
Direct material $8
Direct labour $12
Variable overheads $ 12
In addition, incremental fixed production costs (at year 1 prices), including straight-line depreciation on plant and machinery, will amount to $800,000 per annum.
(iv) The selling price of Lightning will be $80 per unit (at year 1 prices). Demand is expected to be 25,000 units per annum for the next four years.
(v) The consumer price index is expected to be at 5% per annum for the next four years and the selling price of Lightning is expected to increase at the same rate. Annual inflation rates for production costs are expected to be as follows:
Direct materials 4%
direct labour 10%
variable overheads 4%
Fixed costs 5%
(vi) The company's cost of capital in money terms is expected to be 15%. Direct materials Direct labour Variable overheads
(vii) Corporation tax is 30% and is payable one year in arrears. Tax-allowable depreciation of 25 per cent on a reducing balance is available on capital expenditure.
(viii) This investment will also require an investment in working capital of $500,000 payable at the start of the project.
This is not expected to change during the life of the investment. Unless otherwise specified, all costs and revenues should be assumed to arise at the end of each year.
The financial manager has recommended that a discounted cash flow method of project appraisal be used, but some members of the board are reluctant to do this.
Answer: Net Present Value (NPV) = -$2,400,000 + [25,000 x $80 x (1 - 0.30)]/1.15 - [$480,000 + ($800,000 x 4)]/1.15^4 + ($500,000/1.15^4)
NPV = -$2,400,000 + $1,946,739.13 - $2,719,565.22 + $385,217.39
NPV = -$1,077,608.70
Explanation:
Based on this analysis, the Lightning project has NPV of -$2,279,126.25 which is negative. Hence, the project is not economically viable and should not be pursued.
How to calculate the Net Present ValueTo calculate the net present value (NPV) of the Lightning project
Firstly, estimate the cash flows associated with the project and discount them to their present values using the company's cost of capital.
To calculate the annual cash inflows and outflows associated with the project.
The annual revenue from selling 25,000 units of Lightning at a price of $80 per unit is:
25,000 x $80 = $2,000,000
The annual production costs can be calculated as follows:
Direct material: 25,000 x $8 = $200,000
Direct labour: 25,000 x $12 = $300,000
Variable overheads: 25,000 x $12 = $300,000
Incremental fixed costs: $800,000
Total annual production costs: $1,600,000
To calculate the annual cash flow, subtract the annual production costs from the annual revenue:
Annual cash inflow: $2,000,000 - $1,600,000 = $400,000
In addition to the annual cash inflow, consider the initial investment in the project.
This includes the development costs of $480,000, the purchase of new machinery for $2,400,000, and the investment in working capital of $500,000. The total initial investment is:
$480,000 + $2,400,000 + $500,000 = $3,380,000
To calculate the tax-allowable depreciation on the capital expenditure, The value of the machinery after each year can be calculated as follows:
Year 1: $2,400,000 x (1 - 0.25) = $1,800,000
Year 2: $1,800,000 x (1 - 0.25) = $1,350,000
Year 3: $1,350,000 x (1 - 0.25) = $1,012,500
Year 4: $1,012,500 x (1 - 0.25) = $759,375
The tax-allowable depreciation for the first year is:
$2,400,000 - $1,800,000 = $600,000
The tax-allowable depreciation for the remaining years is calculated in the same way.
Using the information above, calculate the annual cash flows and the NPV of the project as follows:
Year 0:
Initial investment: -$3,380,000
Year 1:
Cash inflow: $400,000
Tax-allowable depreciation: $600,000 x 30% = $180,000
Tax savings: $180,000 x 30% = $54,000
Net cash flow: $400,000 - $54,000 = $346,000
Discounted cash flow: $346,000 / (1 + 15%[tex])^1[/tex] = $300,870.13
Year 2:
Cash inflow: $400,000
Tax-allowable depreciation: $1,800,000 x 25% x 30% = $135,000
Tax savings: $135,000 x 30% = $40,500
Net cash flow: $400,000 - $40,500 = $359,500
Discounted cash flow: $359,500 / (1 + 15%[tex])^2[/tex] = $281,880.18
Year 3:
Cash inflow: $400,000
Tax-allowable depreciation: $1,350,000 x 25% x 30% = $101,250
Tax savings: $101,250 x 30% = $30,375
Net cash flow: $400,000 - $30,375 = $369,625
Discounted cash flow: $369,625 / (1 + 15%[tex])^3[/tex] = $260,775.85
Year 4:
Cash inflow: $400,000
Tax-allowable depreciation: $1,012,500 x 25% x 30% = $75,938
Tax savings: $75,938 x 30% = $22,781.40
Net cash flow: $400,000 - $22,781.40 = $377,218.60
Discounted cash flow: $377,218.60 / (1 + 15%[tex])^4[/tex] = $257,347.59
Total discounted cash flow: $300,870.13 + $281,880.18 + $260,775.85 + $257,347.59 = $1,100,873.75
To calculate the NPV, subtract the initial investment from the total discounted cash flow:
NPV = $1,100,873.75 - $3,380,000 = -$2,279,126.25
Based on this analysis, the Lightning project has a negative NPV of -$2,279,126.25. Therefore, the project is not economically viable and should not be pursued.
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Discuss the effect of diversification in the portfolio to the risk return of the investment.
Diversification reduces the risk of an investment portfolio by spreading investments across different assets and can stabilize returns, leading to a more balanced risk-return profile.
Diversification is an investment strategy aimed at reducing risk by spreading investments across different assets. The theory behind diversification is that by investing in a range of assets, the investor can reduce the risk associated with any single asset.
Diversification can help to mitigate risk and stabilize returns by reducing the impact of market volatility on the portfolio. By investing in assets that are not highly correlated, the portfolio is less likely to be affected by sharp declines in any one asset class. This helps to reduce the risk of the portfolio and create a more stable investment return over the long term.
However, diversification is not a guarantee against loss, and some investments may still suffer losses. It is important to balance the level of diversification in the portfolio with the investment objectives, risk tolerance, and other factors.
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Employee gross wages due for the month of December were $16,000. Bengal withheld cash for payroll liabilities consisting of FICA taxes of $1,250, and employee income taxes of $1,100. The remaining net cash due to the employees was paid to the employees on December 30th. Record two journal entries, #1 for December's wage expense, and #2 for December's payroll tax match.
Journal Entry #1:
Debit: Wage Expense for $16,000
Credit: Cash for $13,650
Credit: Employee Income Tax Payable for $1,100
Credit: FICA Taxes Payable for $1,250
Explanation: The company records the wage expense for December and the payment of net cash due to employees after withholding taxes.
Journal Entry #2:
Debit: FICA Taxes Payable for $1,250
Credit: FICA Taxes Expense for $1,250
Explanation: The company records the payroll tax match for FICA taxes for December.
Which of the following is a measurable goal for a company seeking to retain customers? Select an answer:
a) amount of revenue retained at the start and end of a defined period
b) number of customers lost from the beginning to the end of a time period
c) qualitative answers to customer feedback
d) customer survey results
The sentence that serves as the measurable goal for a company seeking to retain customers is a) amount of revenue retained at the start and end of a defined period.
What is the justification?The amount of revenue retained at the start and end of a defined period can be used as the measure in knowing the company's ability to keep customers as well as the way toretain their revenue over a given period.
This is because this helps to account the number of customers retained through the amount of revenue generated from those customers in a particular period of time.
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The measurable goal for a company seeking to retain customers is the amount of revenue retained at the start and end of a defined period.
Explanation:An example of a measurable goal for a company seeking to retain customers is (a) the amount of revenue retained at the start and end of a defined period. This measure of revenue can show if the company has been able to retain customers and generate enough sales to maintain or increase its revenue. By monitoring the amount of revenue retained over time, the company can assess the success of its customer retention efforts.
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Nurturing your loyal customers is a good idea because they are more likely to:
A) leave negative reviews
B) refer their friends and family
C) ask about your marketing strategy
D) increase your cost per lead
Which of the following best explains the preparation of a statement of
owner's equity for a service business and the statement of owner's equity for
a merchandising business?
OA. Only a service business includes net income and beginning
capital.
B. Only a merchandising business includes ending capital.
C. Both types of business prepare the statement the same way.
D. Neither type of business includes owner withdrawals.
The option that best explains the preparation of a statement of owner's equity for a service business and the statement of owner's equity for a merchandising business is option A. Only a service business includes net income and beginning capital.
What is a Statement of Owner's Equity?This is a statement of owner's equity is a one-page report showing the difference between total assets and total liabilities, resulting in the overall value of owner's equity over a period of time.
With this in mind, it can be seen that the correct answer to the given question is option A as explained above.
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