What type of coverage protects you if someone gets hurt on your trampoline or in your pool?

Bogart Company is considering two alternatives. Alternative A will have revenues of $146,100 and costs of $104,400. Alternative

irinina [24]

Answer:

Choosing alternative B would increase net income by $17,100

Explanation:

The analysis showing the incremental revenues,costs and net income of alternative A and B is shown below:

Alternative A Alternative B Difference between A&B

Revenues $146,100 $185,900 $39800

Costs ($104,400) ($127,100) ($22700 )

Net income $41,700 $58,800 $17,100

Alternative B records a higher net income compared to Alternative A,hence choosing alternative B would increase net income by $17,100

r

4 0

2 years ago

Bancorp changes its interest rates for consumer loans on houses and cars based on changes made by the federal reserve (the fed)

Elenna [48]

<span>economics. This is the correct answer because economics deals with how money and interest rates are tied to political, social, and corporate decisions. In this situation interest rates (money) of cars are houses are influenced by the fed (the government) which explains why this is an economics question.</span>

6 0

2 years ago

Orchard Farms has a pretax cost of debt of 7.29 percent and a cost of equity of 16.3 percent. The firm uses the subjective appro

svp [43]

Answer: Net present value = $446,556

Explanation:

First we'll compute the Weighted Average Cost of Capital :

Weighted Average Cost of Capital = $K_{e} \times W_{e} + K_{d} \times W_{d}$

= 0.163× $\frac{1}{1.48}$ + 0.0729× (1 - 0.35 )× $\frac{0.48}{1.48}$

= 0.1255

where;

$K_{e}$ = Cost of equity

$W_{e}$ = Proportion of equity

$K_{d}$ = Cost of debt

$W_{d}$ = Proportion of debt

Now, we'll compute the cost of capital using the following formula:

Cost of capital = Weighted Average Cost of Capital + adjustment factor

= 0.1255 + 0.0125

= 0.138 or 13.8%

∴ Net present value = Cash outflows - Total PV of cash flows

= $3,900,000 - $1,260,000 (Annuity value of 13.8% for 5 years)

$= 3,900,000 - 1260000 \times \frac{[1-(1+13.8)^{-5}]}{13.8}$

= $3,900,000 - $3,453,444

= $446,556

Therefore, the correct answer is option(b).

5 0

3 years ago

A key objective of the _____ was to restore public faith and trust in the securities markets battered by the stock market crash

weeeeeb [17]

It would be the Banking act of 1933; made so that banks would be unable to invest their money so that people would have more faith in them.

3 0

2 years ago

The diagram shows the three-step process by which economic policy is created.

kifflom [539]

In building a sustainable economy, there are three-step process that should be followed :

First , Shift towards a new business model that generate a shared value

Second, Create Assets' ownership structures

Third, involves indicators that indicate progress, such as social and health indicators

8 0

2 years ago