Answer:
B
Explanation:
Opportunity cost is the valje of the next best alternative forgone when a choice is made.
Answer:
d) $530,000
Explanation:
The computation of the total manufacturing cost for the march month is shown below
= Fixed manufacturing cost + (produced tons × variable manufacturing cost per ton)
= $50,000 + (40,000 Tons × $12.00 per ton)
= $50,000 + $480,000
= $530,000
hence, the total manufacturing cost for the march month is $530,000
Therefore the correct option is d.
Until the mid-1700s, the 13 colonies often had diverse histories and economies, which provided <span>little incentive for them to join together to meet shared goals.
Since these colonies were so different, they didn't have any common cause or a reason to band together so as to achieve such common goals.
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Answer:
Yes we should go with this project because it has a positive NPV of $4,350
Explanation:
We need to calculate the net present value of the machine to decide whether to invest in the machine or not.
As per Given Data
Costs $270,000
Cash Inflows
Year 2 $100,000
Year 3 $150,000
Year 4 $75,000
Interest Rate = 6%
Net Present Value
As we know Net Present value is calculated by discounting each years cash flows using using the Weighted Average cost of Capital.
Year Cash Inflows Discount factor 13% Present values
Year 0 $(270,000) (1+6%)^-0 $(270,000)
Year 2 $100,000 (1+6%)^-2 $89,000
Year 3 $150,000 (1+6%)^-3 $125,943
Year 4 $75,000 (1+6%)^-4 <u>$59,407 </u>
Net present value <u>$4,350 </u>
