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2 years ago

In analyst will need to use the eaa approach to evaluate projects with unequal lives when the projects are:_____.

Business

1 answer:

Alex Ar [27]2 years ago

7 0

An analyst will need to use the team approach to evaluate projects with unequal lives when the projects are:

Equivalent annual annuities

Another method to deal with the unequal life problem of projects is the equivalent annual annuity (EAA) method. In this method, the annual cash flows under the alternative investments are converted into a constant cash flow stream whose NPV is equivalent to the NPV of the comparative project’s initial stream.

Consider the case of Cute Camel Lumber Company:

Cute Camel Lumber Company is considering a three-year project that has a weighted average cost of capital of 12% and a net present value (NPV) of $49,876. Cute Camel Lumber Company can replicate this project indefinitely.

The equivalent pension approach is one of two methods used in capital budgeting to compare mutually exclusive projects to those with unequal lifetimes. The EAA approach calculates the constant annual cash flow that a project will generate over its lifetime if the project is an annuity.

Learn more about EAA here

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Comfort chair company manufacturers a standard recliner. During February, the firm's Assembly Department started production of 7

bonufazy [111]

Answer:

1) total equivalent units:

materials = 73,000

conversion = 81,500

2) costs assigned to ending WIP:

materials = $23,013.70

conversion = $27,288.32

Explanation:

beginning WIP 78,000 + 10,000 - 73,000 = 15,000

materials = 100% (0 added during the period)

conversion = 30% (70% added during the period, 10,500 EU)

units started 73,000

units finished 78,000

units started and finished = 63,000

ending WIP 10,000

materials = 100%

conversion = 80%, 8,000 EU

Beginning WIP

Materials $24,000

Conversion $35,000

Costs added during the period:

Materials $168,000

Conversion $278,000

total equivalent units:

materials = 73,000

conversion = 10,500 + 63,000 + 8,000 = 81,500

cost per EU:

Materials = $168,000 / 73,000 = $2.30137

Conversion = $278,000 / 81,500 = $3.41104

costs assigned to ending WIP:

materials = 10,000 x $2.30137 = $23,013.70

conversion = 8,000 x $3.41104 = $27,288.32

5 0

3 years ago

Having realistic expectations and thinking about the kind of manager you want to be, not forgetting to manage upward and sideway

wolverine [178]

Answer:

e) transitioning upward in an organization.

Explanation:

Based on the information provided within the question it can be said that this is good advice for those who are transitioning upward in an organization . This is because it allows them to understand how to always perform their best regardless of the position they are in within the organization, and by doing so giving them better chances to ascend.

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3 years ago

Nori files a suit against Mica to enforce an oral contract that would otherwise be unenforceable under the Statute of Frauds.The

vlada-n [284]

Answer: A. Nori foreseeably and justifiably relied on Mica's promise to her detriment.

Explanation:

From the question, we are informed that Nori files a suit against Mica to enforce an oral contract that would otherwise be unenforceable under the Statute of Frauds.

The court could enforce such a contract if Nori foreseeably and justifiably relied on Mica's promise to her detriment.

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3 years ago

The journal entry to close the Fees Earned, $131, and Rent Revenue, $24, accounts during the year-end closing process would invo

Andrews [41]

Answer:

Option B is correct, revenue has the debit side. But, if the rent is an expense and not a revenue, the rent expence will be on the credit side and the fees earned will be on the debit side,so, for this case, option A will be the correct answer

Explanation:

To close the Journal entry here, with fees earned=$131 and rent revenue=$124, accounts during the year end will be closed with the fees earned account(revenue account) and the expenses are closed by transferring the amount of fees accrued or earned account and expense account to the retained earnings in order to bring the revenue accounts and the expenses accounts balance to zero.

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3 years ago

Which of the following statements about the operation of a C corporation is correct?

Aneli [31]

Can you show the answer choices?? I might be able to help.

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3 years ago