Answer:
C. $4.92 billion
Explanation:
Acquisition cost refers to the cost a company pays for assets such as shares or fixed assets like machinery. In this case, the company paid $60 * 82 million, being $4.92 Billion.
Answer:
Differential cost
Explanation:
Differential cost is defined as variance in cost that will be incurred between two courses of action. This is used to evaluate the best option of two investments under consideration.
The option that has more revenue will have less cost. So differential cost calculation is used to determine line of action that will bring least cost.
For example if one alternative action will entail use of a warehouse of $30,000, and the alternative is to use just in time inventory practice thereby requiring $10,000 in storage cost.
The best option is the just in time option
Answer:
$1,247.12
Explanation:
For computing the asked price we need to apply the present value formula i.e to be shown in the attachment below
Given that,
Future value = $1,000
Rate of interest = 4.151% ÷ 2 = 2.076%
NPER = 17 years × 2 = 34 years
The 20 years come from May 2019 to May 2036
PMT = $1,000 × 6.193% ÷ 2 = $30.965
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after applying the above formula, the present value or the ask price is $1,247.12
Answer:
$1,035,459.51
Explanation:
First we must determine the issuing value:
- cash flow 1 = $60,000
- cash flow 1 = $60,000
- cash flow 1 = $60,000
- cash flow 1 = $60,000
- cash flow 1 = $1,060,000
using an excel spreadsheet to calculate the bond's price with a discount value of 5%:
the bonds were sold at $1,043,294.77
the effective interest expense = bond's price x market interest = $1,043,294.77 x 5% = $52,164.74
bond's value = bond's price - (coupon payment - effective interest) = $1,043,294.77 - ($60,000 - $52,164.74) = $1,035,459.51
Answer:
Consider the possible advantages and drawbacks of a decision.
Explanation:
In Financial accounting, costing is the measurement of the cost of production of goods and services by assessing the fixed costs and variable costs associated with each step of production.
Cost-benefit analysis is also known as the break even analysis, it is an important tool in predicting the volume of activity, the costs to be incurred, the sales to be made, and the profit to be earned is. It is used to determine how changes in differing levels of activities such as costs and volume affect a company's operating income and net income.
Generally, to use the cost-benefit analysis, financial experts usually make some assumptions and these are;
1. Sales price per unit product is kept constant.
2. Variable costs per unit product are kept constant and the total fixed costs of production are kept constant i.e costs can be divided into fixed and variable components.
3. All the units produced are sold i.e there is no change in inventory quantities during the period.
5. The costs accrued are as a result of change in business activities.
6. A company selling more than a product should simply sell in the same mix i.e the sales mix is constant.
Hence, a business performs a cost benefit analysis when it consider the possible advantages and drawbacks of a decision i.e whether or not it would bring value to the company or create a significant level of impact on the business.
