Answer:
$313,288.16
Explanation:
Present value is the sum of discounted cash flows
present value can be calculated using a financial calculator
Cash flow in year 1 and 2 = 0
Cash flow in year 3 to 7 = $10,000
I = 10%
Present value = $313,288.16
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Answer:
11.06%
Explanation:
Cost of equity = (D1/Current price) + Growth rate
Cost of equity = [(1.00*1.07)/26.35] + 0.07
Cost of equity = 0.04061 + 0.07
Cost of equity = 0.11061
Cost of equity = 11.06%
So, Ubees's cost of internal common equity is 11.06%.
Answer:
Process capability evaluation allows us to:
a. check customer requirements against what a process is able to achieve.
Explanation:
Process capability evaluation involves the set of tools used to analyze the performance of a given process against desired specifications. This means that it measures how well a process performs against targets. There are different measures of process capability. For example, Sigma Six is used as a process capability evaluation. Process capability index is also used to evaluate a process' capability, where the upper and lower limits are measured.
Answer:
The lower- of- market- or cost for the item is $21
Explanation:
In the lower of cost or market, the market begins at the replacement cost which is $20, which is then limited or restricted to a ceiling and a floor.
The ceiling is computed as:
Ceiling = Selling price - Completion cost
where
selling price is $30
Completion cost is $2
Putting the values above:
Ceiling = $30 - $2
Ceiling = $28
Computing the floor as:
Floor = Ceiling - Normal profit margin
Floor = $28 - $7
Floor = $21
As the market cannot be lower than the floor which is $21. Therefore, the lower of cost which is $26 and the market which is $21. But have to take lower. So, it is $21.
Answer:
A company that establishes a profit-sharing plan must make annual contributions to the plan, even if the company fails to earn a profit during the year.
Explanation:
A profit sharing plan is defined as the type of contribution plan where the plan helps in saving for the retirement of the employees while providing them the flexibility of the plan features. It is a way for the owners of the business to share the profits with the investors and also a great way to attract investment in his business.
In a profit sharing plan, the organization does not have to make or contribute any amount to the plan annually. Such a plan is best suited for the companies which experiences a fluctuating cash flow.
