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Lunna [17]
4 years ago
11

Assume that the total cost of a project is $570,000 and that it is fully depreciable using a straight-line method over 6 years.

There is also a total working capital need of $75,000, and the terminal value is $0. Given only this information, what is depreciation in Year 1?
Business
1 answer:
Lera25 [3.4K]4 years ago
4 0

Answer:

So the depreciation in year 1 is $95,000

Explanation:

Depreciation is the accounting method that is used to allocate cost of an asset over its useful life. It is assumed that an asset losses values over a period and the salvage or terminal value is the value of the good after its useful life has ended.

Straight line method of depreciation assumes equal allocation of depreciation expense over the useful life of an asset.

In the given the asset value is $570,000 and the terminal value is $0

Using the formula

Depreciation= (Value of asset- Salvage value)/Number of useful years

Depreciation= (570,000-0)/6

Depreciation= $95,000 paid equally for 6 years

So the depreciation in year 1 is $95,000

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Walman Corp. manufactures products X, Y, and Z from a joint production process. Joint costs are allocated to products on the bas
Maurinko [17]

Answer:

$340,000

Explanation:

The computation of Product X’s sales value at the split-off point is shown below:

= Total sales value - Product Y sales value at the split-off point - Product Z sales value at the split-off point  

= $600,000 - $150,000 - $110,000

= $340,000

Basically for determining the Product X sales value at the split-off point, we deduct the Product Y sales value and the Product Z sales value at the split-off point from the total sales value

8 0
3 years ago
As president of​ Econivalia, you are constantly strained for funds to pay your troops. Your chief economist suggests the followi
barxatty [35]

Answer: All of the above are problem with the plan.

Explanation:

If a Government rapidly increases the money supplied into an economy, it leads to inflation.

This is because as the citizens of a country get more money at a very short interval, they would tend to demand for more items in the market, the increase in demand would directly lead to an increase in price which is an inflation.

Therefore minting extra money may pay the soldiers but negatively affect the economy as price of commodities would increase.

5 0
3 years ago
Max's Kennels spent $220,000 to refurbish its current facility. The firm borrowed 60 percent of the refurbishment cost at 5.95 p
Jlenok [28]

Answer:

The monthly payment is $2184.52

Explanation:

Given

Total\ Amount\ Spent\ = $220,000

Amount\ Borrowed = 60\%

Rate = 5.95\%

Duration = 6\ years

Required

Monthly\ Payment

Firstly, the loan amount has to be calculated

The Question says; of the total amount spent, only 60% was borrowed;

So;

Loan = 60\%\ of\ 220,000

Loan = 132,000

The monthly payment can then be calculated using the following formula

Amount = P * \frac{r}{12} * \frac{(1 + \frac{r}{12})^n}{(1 + \frac{r}{12})^n - 1}

Where P = Loan Amount = 132,000

r = rate of payment = 5.95% = 0.0595

n = duration (in month)

n = 6 years

n = 6 * 12 months

n = 72 months;

Substitute the above parameters in the formula;

Amount = P * \frac{r}{12} * \frac{(1 + \frac{r}{12})^n}{(1 + \frac{r}{12})^n - 1} becomes

Amount = 132,000 * \frac{0.0595}{12} * \frac{(1 + \frac{0.0595}{12})^{72}}{(1 + \frac{0.0595}{12})^{72} - 1}

Amount = \frac{132,000*0.0595}{12} * \frac{(1 + \frac{0.0595}{12})^{72}}{(1 + \frac{0.0595}{12})^{72} - 1}

Amount = \frac{132,000*0.0595}{12} * \frac{(1 + \frac{0.0595}{12})^{72}}{(1 + \frac{0.0595}{12})^{72} - 1}

Amount = 654.5 * \frac{(1 + \frac{0.0595}{12})^{72}}{(1 + \frac{0.0595}{12})^{72} - 1}

Amount = 654.5 * \frac{(\frac{12.0595}{12})^{72}}{(\frac{12.0595}{12})^{72} - 1}

Amount = 654.5 * \frac{(1.0049583)^{72}}{(1.0049583)^{72} - 1}

Amount = 654.5 * \frac{1.42777239524}{1.42777239524 - 1}

Amount = 654.5 * \frac{1.42777239524}{0.42777239524}

Amount = 2184.51925155

Amount = 2184.52\ (Approximated)

<em>Hence, the monthly payment is $2184.52</em>

3 0
3 years ago
Say one morning you are considering whether to take UBER or riding the train to work. Both mediums would cost you about $4, but
muminat

Answer:

B

Explanation:

The flat fee paid for the train represents sunk cost. sunk cost is cost that is incurred and cannot be recovered. it should not be considered when making future decisions

You value getting to work early, the Uber is faster, so you should take the uber

6 0
3 years ago
Your portfolio consists of $50,000 invested in Stock X and $50,000 invested in Stock Y. Both stocks have an expected return of 1
Nastasia [14]

Answer:

b. Your portfolio has a beta equal to 1.6, and its expected return is 15%

Explanation:

when a portfolio is given, there exist the posibility to agregate the different calculations made, this is possible using the weights of the different assets whose are part of the portfolio, so in this specifinx example the beta portfolios is calculated as  1.6*50%+1.6*50%=1.6 and the expected return is calculated using the same logic 15%*50%+15%*50%. it does not apply for deviation of the portfolio, at this point is important to see that as there is not correlation coeficient, so there will no be calculated the covariance, so at the end the standar deviation aggregated is 0%

5 0
3 years ago
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