Answer:
The answer of the exercise is attached in the microsoft excel document.
Explanation:
There are two images attached. The first one has the answers, and the second one have the operations displayed and necessary to obtain the results demanded.
Answer:
$185,400
Explanation:
Price of next best alternative = $150,000
Expected crash system saving:
= (Probability of crash × cost of a system crash) - (Probability of machine will crash × cost of a system crash)
= [(15% × 500,000) - (5% × 500,000)]
= $75,000 - $25,000
= $50,000
Added operating cost true economic value:
= (Number of hours in 365 days × machine cost per hour) - (Number of hours in 365 days × Next best alternative cost per hour)
= [(2,920 × $20/hr) - (2,920 × $15/hr)]
= $58,400 - $43,800
= $14,600
True economic value (TEV) of the machine:
= Price of next best alternative + Expected crash system saving - Added operating cost true economic value
= $150,000 + $50,000 - $14,600
= $185,400
I think the answer is B, but I am not sure.
Answer:
54,600
Explanation:
According to the scenario, computation of the given data are as follow:-
Particular Quantity of Raw Material (liters)
Required Raw Material 56,000
Add-Raw Material’s ending stock (52,000 × 35%) 18,200
Less-Raw Material’s opening stock(56,000 × 35%) 19,600
Budgeted material need for April 54,600
We simply applied the above format for determining the budgeted material needed for the month of April
Answer:
Explanation: Cost of equity can be defined as the return that the investors demand for bearing the risk of ownership in company's equity shares. It can be computed by using CAPM model which is represented as follows :-
cost of equity = risk free rate + beta *(market risk premium)
= 9.15%
