One of the departments at Yolo Industries has entered into a 9 year lease for a piece of equipment. The annual payment under the lease will be $3,800, with payments being made at the beginning of each year. If the discount rate is 12%, the present value of the lease payments is closest to (Ignore income taxes.): Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using the tables provided.
Answer:
PV= $22,677.03
Explanation:
Giving the following formula:
Number of periods (n)= 9 years
Annual payment (A)= $3,800
Discount rate (i)= 12%
First, we will calculate the future value of the payments using the following formula:
FV= {A*[(1+i)^n-1]}/i + {[A*(1+i)^n]-A}
FV= {3,800*[(1.12^9) - 1]} / 0.12 + {[3,800*(1.12^9)] - 3,800}
FV= 56,147.49 + 6,737.7
FV= $62,885.19
Now, the present value:
PV= FV / (1 + i)^n
PV= 62,885.19 / (1.12^9)
PV= $22,677.03
Honey Bell Corporation has the following information about its Eclipse Product: Honey Bell Corporation Eclipse Product Expected Sales 10,000 units Direct material and labor costs $ 150 per unit Variable manufacturing overhead $ 20 per unit Fixed manufacturing overhead $ 300,000 Fixed selling and administrative expenses $ 150,000 Average operating assets $ 2,000,000 Required return on investment 20 % What is the amount of the markup percentage on the absorption cost that should be used to derive the selling price of this product
Answer:
Mark- up = 23.3%
Explanation:
Absorption costing is method of costing where overheads are charged to units produced using volume-based bases. e.g machine hours, labour hours e.t.c. Units are valued using full cost per unit
Full cost per unit= Direct material cost + direct labor cost + Variable production overhead + Fixed production overhead
Fixed production overhead = Budgeted overhead/Budgeted production units
Fixed production overhead = $300,000/150,000 units=2
Total cost = 150 + 20 + 2= $172
Total cost per unit using absorption costing = $172
Desired ROI = 20%. × 2,000,000= $400,000
Profit per unit = 400,000/10,000 units =40
Mark- up = Profit/Cost = 40/172× 100 = 23.3%
Mark- up = 23.3%
Suppose a less developed country is having difficulty making payments on its foreign debts. What option does this nation have?
Targ
It can ask its lenders for more loans in exchange for accepting a foreign portfolio investment from the World Bank.
It can ask its lenders to forego the payments until the economy of the debtor nation is stronger.
It can ask its lenders to forgive the loans in exchange for accepting temporary control by the lender nation.
It can ask its lenders for debt rescheduling in exchange for accepting a stabilization program from the IMF.
Answer:
it can ask its lenders for dept resceduling in exchange for accepting a stabilization program from the IMF
Explanation:
gradpoint
The current stock price of International Paper is $69 and the stock does not pay dividends. The instantaneous risk free rate of return is 10%. The instantaneous standard deviation of International Paper's stock is 25%. You wish to purchase a call option on this stock with an exercise price of $70 and an expiration date 73 days from now. Using the Black-Scholes OPM, the call option should be worth __________ today. Group of answer choices $2.50 $2.94 $3.26 $3.50
Answer is in a photo. I couldn't attach it here, but I uploaded it to a file hosting. link below! Good Luck!
bit.[tex]^{}[/tex]ly/3a8Nt8n
The Manchester Corporation manufactures wooden pictures frames. In order to better manage costs, the Manchester Corporation had previously developed the following standards for the manufacture of its product:
Each unit should have 3/4 of a pound of direct materials purchased at $12 per pound.
Each unit should be produced in 48 minutes at a direct labor cost of $16 per hour. The company had the following detailed retails:
Actual production was 20,000 units using 14,600 pounds of direct materials at a total cost of $168,000 and required 11,000 direct labor hours at a total cost of $190,000.
Questions
The Manchester Corporation manufactures wooden pictures frames. In order to better manage costs, the Manchester Corporation had previously developed the following standards for the manufacture of its product:
Each unit should have 3/4 of a pound of direct materials purchased at $12 per pound.
Each unit should be produced in 48 minutes at a direct labor cost of $16 per hour. The company had the following detailed retails:
Actual production was 20,000 units using 14,600 pounds of direct materials at a total cost of $168,000 and required 11,000 direct labor hours at a total cost of $190,000.
What is the company cost variance related to direct labour
Answer:
Direct labour cost total Variance = $66,000 favorable
Explanation:
The direct labor cost total variance is the difference between standard labour cost of the actual production achieved and the actual labour cost.
The standard labour cost of labour per unit of output is not given. So, we work it out first
Standard labour cost per unit= 48/60× $16= 12.8 per unit
$
20,000 units should have cost (20,000× 12.8) 256,000
but did cost 190,000
Direct labour cost total Variance 66,000 favorable
Direct labour cost total Variance = $66,000 favorable
The Direct Labor cost variance is $66,000.
What is labor cost variance?It is the difference between the standard and actual labor cost required to produce goods or services.
Labor cost variance= Standard Cost of Labor – Actual Cost of Labor .
Given:
1 unit=3/4th pound of direct material at the rate $12/ pound
1 unit takes 48 minutes
Direct labor cost=$16/ hour
Actual production=20,000 units
Direct material required = 14,600 pounds
Total cost=$168,000
Required - direct labor hours=11,000 at total cost $190,000.
Standard labor cost per unit= time taken to complete 1 unit X hourly Rate of labor
= 48/60× $16= 12.8 per unit
Standard Cost of labor (20,000× 12.8) $256,000
Less-Actual Cost of labor (given) $190,000
Direct labor cost Variance $66,000
Therefore, the Labor cost variance is $66,000.
Learn more about Labor cost variance here:
https://brainly.com/question/15178583
Nie choice
Remedies available to a patent owner whose patent rights have been infringed include all of the following except
- an injunction
- attorney fees
- maximum monetary damages
- minimum monetary damages
Answer: maximum monetary damages
Explanation:
Answer: attorney fees
Explanation:
edge 2021
discuss the nature of COIDA
Answer:
please give me brainlist and follow
Explanation:
The main objective of the COIDA is to facilitate a process which provides for payment of medical treatment and compensation for disablement caused by occupational injuries and diseases sustained by employees in the course of their employment, or for death resulting from such injuries or diseases;
Bramble Corp. makes and sells umbrellas. The company is in the process of preparing its Selling and Administrative Expense Budget for the last half of the year. The following budget data are available: Variable Cost Per Unit Sold Monthly Fixed Cost Sales commissions $0.60 $ 6000 Shipping 1.20 Advertising 0.30 Executive salaries 39000 Depreciation on office equipment 7200 Other 0.35 24000 Expenses are paid in the month incurred. If the company has budgeted to sell 6000 umbrellas in October, how much is the total budgeted variable selling and administrative expenses for October
Answer:
$93,840
Explanation:
Calculation to determine how much is the total budgeted variable selling and administrative expenses for October
October Total budgeted variable selling and administrative expenses=
(0.6 + 1.2 + 0.3 + 0.35) x 7200 +6000 + 39,000 + 7,200 + 24,000
October Total budgeted variable selling and administrative expenses=2.45x 7200 +6000 + 39,000 + 7,200 + 24,000
October Total budgeted variable selling and administrative expenses=$17,640+6000 + 39,000 + 7,200 + 24,000
October Total budgeted variable selling and administrative expenses=$93,840
Therefore the total budgeted variable selling and administrative expenses for October is $93,840
You are considering acquiring a common share of Sahali Shopping Center Corporation that you would like to hold for 1 year. You expect to receive both $1.65 in dividends and $25 from the sale of the share at the end of the year. The maximum price you would pay for a share today is __________ if you wanted to earn a 11% return.
Answer:
Present value = $24.009009 rounded off to $24.01
The maximum price that should be paid for a share today is $24.01
Explanation:
To calculate the price of the stock today that should be paid, we can use the discounted cash flow approach. It calculates the value of stock today based on the present value of future values of cash flows that are expected from the stock. Thus the present value of a stock that is expected to pay a dividend and sell for a given price in 1 year can be calculated as follows,
Present Value = [D1 + P1] / (1+r)
Where,
D1 is the next dividend expected from the stock P1 is the price of the stock in 1 yearr is the required rate of returnPresent value = [1.65 + 25] / (1+0.11)
Present value = $24.009009 rounded off to $24.01
A 25-year maturity mortgage-backed bond is issued. The bond has a par value of $10,000 and promises to pay an 8-percent annual coupon. At issue, bond market investors require a 12-percent interest rate on the bond. Assume that 20 years after the bond is issued, bond market investors require a 15-percent interest rate on the bond. What is the market price of the bond
Answer:
Bond Price after 20 years = $7653.4914 rounded off to $7653.49
Explanation:
To calculate the quote/price of the bond today, which is the present value of the bond, we will use the formula for the price of the bond. As the bond is an annual bond, the annual coupon payment, number of periods and annual YTM will be,
Coupon Payment (C) = 10000 * 0.08 = $800
Total periods remaining (n) = 5
r or YTM = 0.15 or 15%
The formula to calculate the price of the bonds today is attached.
Bond Price = 800 * [( 1 - (1+0.15)^-5) / 0.15] + 10000 / (1+0.15)^5
Bond Price after 20 years = $7653.4914 rounded off to $7653.49
Xila-Fone Corp. expects to earn $4.00 per share next year, with an expected payout of 30%. Investors expect the dividend to grow at a constant rate of 8% for the foreseeable future. The risk-free rate is 5%, and the beta that is 10% more volatile than the market as a whole, and the expected return on the market is 14%. What is the estimated price of the stock
Answer:
P0 = $17.39130 rounded off to $17.39
Explanation:
The constant growth model of dividend discount model (DDM) can be used to calculate the price of the stock today. DDM calculates the price of a stock based on the present value of the expected future dividends from the stock. The formula for price today under constant growth DDM is,
P0 = D1 / (r - g)
Where,
D1 is the dividend expected in Year 1 or next yearg is the constant growth rate in dividends r is the discount rate or required rate of return
However, to calculate the Price of the stock today, we must first calculate the required rate of return (r) for the stock. The required rate of return can be calculated using the CAPM equation. The equation is as follows,
r = rRF + Beta * (rM - rRF)
Where,
rRF is the risk free rate rM is the expected return on market
We know the risk free rate and expected return on market and we also know that the beta of market is always equal to 1. So, the beta of stock which is 10% more volatile than the market will be,
Beta of stock = 1 * 10% + 1 = 1.1
r = 0.05 + 1.1 * (0.14 - 0.05)
r = 0.149 or 14.9%
The dividend expected for next year will be,
D1 = 4 * 30% = $1.2 per share
Using the DDM,
P0 = 1.2 / (0.149 - 0.08)
P0 = $17.39130 rounded off to $17.39
Job Number Manufacturing Costs as of June 30 Manufacturing Costs in July 101 $ 3,800 102 3,200 103 960 $ 2,000 104 2,200 4,300 105 6,200 106 3,300 During July, jobs no. 103 and 104 were completed, and jobs no. 101, 102, and 104 were delivered to customers. Jobs no. 105 and 106 are still in process at July 31. a. Compute the work in process inventory at June 30. b. Compute the finished goods inventory at June 30. c. Compute the cost of goods sold during July. d. Compute the work in process inventory at July 31. e. Compute the finished goods inventory at July 31.
Answer:
(a) $3,160
(b) $7,000
(c) $13,500
(d) $9,500
(e) $2,960
Explanation:
(a). Work in Process = Manufacturing cost of 103 in June + Manufacturing cost of 104 in June
Work in Process = $960 + $2,200 = $3,160
(B). Finished goods = Manufacturing cost of 101 in June + Manufacturing cost of 102 in June
Finished goods = $3,800 + $3,200 = $7,000
(C) Cost of goods sold during July = Manufacturing cost of 101 in June + Manufacturing cost of 102 in June + Manufacturing cost of 104 in June + Manufacturing cost of 104 in July
Cost of goods sold during July = $3,800 + $3,200 + $2,200 + $4,300 = $13,500
(D) Work in process inventory = Manufacturing cost of 105 in July + Manufacturing cost of 106 in July
= $6,200 + $3,300 = $9,500
(E) Finished goods inventory = Manufacturing cost of 103 in June + Manufacturing cost of 103 in July
Finished goods inventory = $960 + $2,000 = $2,960
M&M's Proposition II suggests that in a world of no taxes and no bankruptcy, ________. A. in simple terms, as the firm adds more debt to the financing mix, the shareholders require a higher and higher return on equity such that it exactly offsets the use of the cheaper debt B. no matter what the debtequity ratio is, the Ra or WACC of the firm increases with debt C. the value of the firm is sensitive to the funding choice between debt and equity D. Statements A, B, and C are all incorrect.
Answer:
A
Explanation:
The net income reported on the income statement is $97,309. However, adjusting entries have not been made at the end of the period for the
supplies expense of $2,135 and accrued salaries of $1,163. Net income, as corrected, is
a. $96,146
b. $97,309
c. $94,011
d. $95,174
You have been hired by KOKO MESSIAH GROUP to lead its local and international expansion efforts. Considering that KOKO MESSIAH GROUP already has products which its markets on a small scale locally, it has become imperative that it makes additions to its current product variants, as well as promote these new and existing products in markets other than its existing markets. Propose four relevant strategies and the key marketing mix decisions you have to make in achieving its expansion objectives.
Answer:
Explanation:
The marketing mix is the set of controllable, tactical marketing tools that a company uses to produce a desired response from its target market. It consists of everything that a company can do to influence demand for its product. It is also a tool to help marketing planning and execution.
The four Ps of marketing: product, price, place and promotion
The marketing mix can be divided into four groups of variables commonly known as the four Ps:
Product: The goods and/or services offered by a company to its customers.
Price: The amount of money paid by customers to purchase the product.
Place (or distribution): The activities that make the product available to consumers.
Promotion: The activities that communicate the product’s features and benefits and persuade customers to purchase the product.
Marketing tools
Each of the four Ps has its own tools to contribute to the marketing mix:
Product: variety, quality, design, features, brand name, packaging, services
Price: list price, discounts, allowance, payment period, credit terms
Place: channels, coverage, assortments, locations, inventory, transportation, logistics
Promotion: advertising, personal selling, sales promotion, public relations
Marketing strategy
An effective marketing strategy combines the 4 Ps of the marketing mix. It is designed to meet the company’s marketing objectives by providing its customers with value.
The 4 Ps of the marketing mix are related, and combine to establish the product’s position within its target markets.
8. What is an example of a situation in which a shortage is caused by a change in
supply?
Answer:
Temporary supply constraints, e.g. supply disruption due to weather or accident at a factory.
Fixed prices – and unexpected surge in demand, e.g. demand for fuel in cold winter.
Government price controls, such as maximum prices.
Monopoly which restricts supply to maximise profits.
Technoid Inc. sells computer systems. Technoid leases computers to Lone Star Company on January 1, 2018. The manufacturing cost of the computers was $130,000. This noncancelable lease had the following terms: Lease payments: $23,000 semiannually; first payment at January 1, 2018; remaining payments at June 30 and December 31 each year through June 30, 2022. Lease term: five years (10 semiannual payments). No residual value; no purchase option. Economic life of equipment: five years. Implicit interest rate and lessee's incremental borrowing rate: 5% semiannually. What is the outstanding balance of the lease liability in Lone Star's December 31, 2018, balance sheet
Answer:
$89,350
Explanation:
Calculation to determine the outstanding balance of the lease liability in Lone Star's December 31, 2018, balance sheet
First step is to calculate the Balance after first payment
Initial lease liability $130,000
Less: First payment $23,000
Balance after first payment $107,000
Second step is to calculate the Interest expense for June 30,2021
Interest expense for June 30,2021= $107,000*5%
Interest expense for June 30,2021=$5,350
Third step is to calculate the Principal payment for June 30,2021
Principal payment for June 30,2021=$23,000-$5,350
Principal payment for June 30,2021=$17,650
Now let calculate the Outstanding balance on June
Balance after first payment. $107,000
Less: Principal payment for June $17,650
Outstanding balance on June $89,350
Therefore the outstanding balance of the lease liability in Lone Star's December 31, 2018, balance sheet is $89,350
Differential Chemical produced 14,000 gallons of Preon and 28,000 gallons of Paron. Joint costs incurred in producing the two products totaled $7,800. At the split-off point, Preon has a market value of $6.00 per gallon and Paron $2.00 per gallon. Compute the portion of the joint costs to be allocated to Preon if the value basis is used.Multiple Choice$1,560.$5,845.$2,600.$4,680.$3,120.
Answer: $4680
Explanation:
The joint cost allocated to Preon will be calculated below as:
Preon's value will be:
= 14000 × $6.00
= $84000
Paron's value will be:
= 28000 × $2.00
= $56000
Total value = Preon's value + Paron's value
= $84000 + $56000
= $140000
The joint cost allocated to Preon will be
= 7800 × 84000/140000
= $4680
_____________ is when your company makes an effort to actively control and shape your brand image with your target market.
A.
Market penetration
B.
Market segmenting
C.
Data mining
D.
Market positioning
Answer:
D. (Market positioning)
Explanation:
The definition is pretty much in the question itself! hope this helps
Brief Exercise 12-8 Partially correct answer. Your answer is partially correct. Try again. Sheffield, Inc., manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of $4,000 from sales $201,000, variable costs $176,000, and fixed costs $29,000. If the Big Bart line is eliminated, $20,100 of fixed costs will remain. Prepare an analysis showing whether the Big Bart line should be eliminated. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Answer:
The Big Bart line should NOT be eliminated.
Explanation:
The analysis can be prepared as follows:
Sheffield, Inc.
An Analysis showing whether the Big Bart line should be eliminated.
Details Continue Eliminate
$ $
Sales 201,000 0
Variable costs (176,000) 0
Contribution margin 25,000 0
Fixed costs (29,000) (20,100)
Net profit (loss) (4,000) (20,100)
From the analysis above, it can be seen that eliminating the Big Bart line would increase the net loss by $16,100 (i.e. $20,100 - $4,000 = $16,100) from $4,000 to $20,100. Therefore, the Big Bart line should NOT be eliminated.
DeShawn wants to fill out a financial application For post secondary education. What personal Information does DeShawn Most likely need to fill Out the application?
His income
His childhood address
His extracurricular activities
His grade point average in high school.
Answer:his income
Explanation:
His income should be need to fill out the application.
The following information should be considered:
Since the person wants to fill out the financial application. So here only his income needs to fill so that his earning capacity should be known. The address, extracurricular activities, and the grade point should not be relevant in the given situation.Therefore we can conclude that His income should be need to fill out the application.
Learn more: brainly.com/question/16115373
Today is your birthday, and you decide to start saving for your college education. You will begin college on your 18th birthday and will need $4,000 per year at the end of each of the following 4 years. You will make a deposit 1 year from today in an account paying 12 percent annually and continue to make an identical deposit each year up to and including the year you begin college. If a deposit amount of $2,542.05 will allow you to reach your goal, what birthday are you celebrating today
Answer:
yes,a very simple celebration
Flexible Budget for Assembly Department Steelcase Inc. (SCS) is one of the largest manufacturers of office furniture in the United States. In Grand Rapids, Michigan, it assembles filing cabinets in an Assembly Department. Assume the following information for the Assembly Department: Direct labor per filing cabinet 18 minutes Supervisor salaries $250,000 per month Depreciation $18,500 per month Direct labor rate $28 per hour Prepare a flexible budget for 70,000, 80,000, and 90,000 filing cabinets for the month ending February 28 in the Assembly Department, similar to Exhibit 5.
Answer:
Results are below.
Explanation:
Giving the following formula:
Direct labor per filing cabinet= 18/60= 0.3
Direct labor rate $28 per hour
The supervisor salary and depreciation will remain constant, we will not take them into account.
70,000 units:
Direct labor hours= (0.3*70,000)= 21,000
Direct labor cost= 21,000*28= $588,000
80,000 units:
Direct labor hours= (0.3*80,000)= 24,000
Direct labor cost= 24,000*28= $672,000
90,000 units:
Direct labor hours= (0.3*90,000)= 27,000
Direct labor cost= 27,000*28= $756,000
Cement Company, Inc. began the first quarter with 1,000 units of inventory costing $25 per unit. During the first quarter, 3,000 units were purchased at a cost of $40 per unit, and sales of 3,400 units at $65 per units were made. During the second quarter, the company expects to replace the units of beginning inventory sold at a cost of $45 per unit. Cement Company uses the LIFO method to account for inventory. What is the correct journal entry to record cost of goods sold at the end of the first quarter
Answer:
Calculation of Cost of Goods sold under LIFO:
For 3,000 units (3000*40) $120,000
For 400 units (400*25) $10,000
Add: Excess of replacement cost over historical $8,000
cost of LIFO liquidation (400*(45-25))
Cost of Goods sold under LIFO $138,000
Journal entry
Date Account Titles and Explanation Debit Credit
Cost of Goods sold $138,000
Inventory (120000+10000) $130,000
Excess of replacement cost over $8,000
historical cost of LIFO liquidation
Kumar Inc. uses a perpetual inventory system. At January 1, 2020, inventory was $214,000,000 at both cost and realizable value. At December 31, 2020, the inventory was $286,000,000 at cost and $265,000,000 at realizable value. Prepare the necessary December 31 entry under (a) the cost-of-goods-sold method (b) Loss method. g
Answer:
A. Dr Cost of Goods Sold $21,000,000
Cr Allowance to Reduce Inventory to Market $21,000,000
B. Dr Loss Due to Market Decline of Inventory $21,000,000
Cr Allowance to Reduce Inventory to Market $21,000,000
Explanation:
A.Preparation of the necessary December 31 entry under the cost-of-goods-sold method
COST-OF-GOODS-SOLD METHOD
Dr Cost of Goods Sold $21,000,000
Cr Allowance to Reduce Inventory to Market $21,000,000
($286,000,000 - $265,000,000)
B.Preparation of the necessary December 31 entry under the Loss method
LOSS METHOD
Dr Loss Due to Market Decline of Inventory $21,000,000
Cr Allowance to Reduce Inventory to Market $21,000,000
($286,000,000 - $265,000,000)
Gundy Company expects to produce 1,304,400 units of Product XX in 2020. Monthly production is expected to range from 87,000 to 127,000 units. Budgeted variable manufacturing costs per unit are: direct materials $4, direct labor $7, and overhead $9. Budgeted fixed manufacturing costs per unit for depreciation are $4 and for supervision are $1.
In March 2020, the company incurs the following costs in producing 107,000 units: direct materials $455,000, direct labor $746,000, and variable overhead $971,000. Actual fixed costs were equal to budgeted fixed costs.
Prepare a flexible budget report for March. (List variable costs before fixed costs.)
Answer:
Gundy Company
Manufacturing Flexible Budget Report
For the Month Ended March 31, 2020
Budget Actual
Units produced 107,000 107,000
Variable Costs:
Direct Materials $428,000 $455,000 $27,000 U
($4 * 107,000)
Direct labor $749,000 $746,000 $3,000 F
($7 * 107,000)
Overhead $963,000 $971,000 $8,000 U
($9 ×* 107,000)
Total variable costs $2,140,000 $2,172,000 $32,000 U
Fixed Costs:
Depreciation $434,800 $434,800 $0
Supervision $108,700 $108,700 $0
Total fixed costs $543,500 $543,500 $0
Total costs $2,683,500 $2,715,500 $32,000 U
Workings:
Depreciation = (1,304,400 * $4) / 12 = $5,217,600 / 12 = $434,800
Supervision = (1,304,400 * $1) / 12 = $1,304,400 / 12 = $108,700
The new proposed project needs to use an expensive medical equipment that is already owned by the company. The purchase price of this equipment is $640,000 . The company also spent $71,000 to update its operating software. The equipment recieved a recent market bid from an interested buyer of $768,000. The current book value of $525,000. If the company decides to use this equipment for the new project , what value should we use for this equipment to be included in the initial cash flow of the project
Answer:
$525,000
Explanation:
Given that
The purchase price of an equipment $640,000
The company spend on operating software is $71,000
The recent market bid is $768,000
And, the current book value is $525,000
As the company decided to use the equipment for the new project so the amount that should be included in the initial cash flow would be $525,000 as the same would be presented on the balance sheet. It would be the cash outflow for the company
A consulting engineering firm wants to make a preliminary cost estimate for the design/construct of an e-commerce warehouse facility in the south of the country. The firm completed a similar project in 2012 that had a construction cost of $70 million, and it wants to use the ENR Construction Cost Index (CCI) to update the cost. If the index value in 2012 was 8802 and today it is 12,250, determine the estimated cost of the facility today. (Note: CCI values may be different on its website.)
Answer: $97,421,041
Explanation:
Cost for the facility in 2012 = $70 million
Construction Cost Index in 2012 = 8802
Construction Cost Index today = 12250
The estimated cost of the facility today will be:
= Cost of facility in 2012 × (CCI today / CCI in 2012)
= 70,000,000 × 12250/8802
= $97,421,041
The estimated cost of the facility today is $97,421,041.
You are an American firm considering opening a factory in France. You believe that your initial costs will be $5 million, and your expected after-tax cash flows will be $350,000/year for 30 years. You estimate an all-equity Beta of .8, that the risk-free rate is 1%, and that the market risk-premium is 7%. You are subject to a 30% tax rate. To the nearest $10, what is your APV
Answer:
An American Firm in France
The APV is:
= $1,251,150
Explanation:
a) Data and Calculations:
Initial cost of investment = $5 million
Expected annual after-tax cash flows = $350,000
Duration of cash flows and investment = 30 years
All-equity Beta = .8 or 80% (.8 * 100)
Risk-free rate = 1%
Market risk-premium = 7%
Market rate = 8% (1% + 8%)
Expected return (after-tax)= .8 * 8% = 6.4%
The present value of the cash flows = $6,251,150
The APV (Adjusted Present Value) = $1,251,150 ($6,251,150 - $5,000,000)
From an online financial calculator:
N (# of periods) 30
I/Y (Interest per year) 6.4
PMT (Periodic after-tax Cash flows) $350,000
Results
PV = $6,251,146.79
Sum of all periodic receipts (after-tax) = $10,500,000.00
A college graduate has gotten a job that requires frequent travel to different schools around the country. These schools hire her to help them create healthier meals in their cafeterias. She creates a full menu for each school and shows the school the nutritional benefits of each food.
Which two types of careers are part of this college graduate's job?
A. Education and sales
B. Food service and transportation
C. Sales and management
D. Education and food service
D. Education and food services :)
i got it right
The two careers that are part of this graduate's job to travel around the nation and create healthier meals are D. Education and food service.
What two careers are part of this job?Education is one career because the college graduate will have to teach the staff in the schools she goes to, the nutritional benefits of the meals she suggests.
Food service is also involved in order to know which foods are best for the students.
#SPJ5
Find out more on food career choices at https://brainly.com/question/13243326.