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3 years ago

Shenandoah Springs Company is considering two investment opportunities whose cash flows are provided below:

Business

2 answers:

Sunny_sXe [5.5K]3 years ago

8 0

Answer:

PV Index = 1.158

Explanation:

Present value index is the ratio of discounted cash flows of the project divided by initial outlay required for the project thus first we calculate the Present Values for Investment B

Present value factors @ 12% for year 0, 1, 2, 3, 4 respectively.

0.893

0.797

0.712

0.636

Net Present Value = -9000 + (5000 * 0.893) + (4000 * 0.797) + (3000 * 0.712) + (1000 * 0.636)

NPV = $1425

Present value Index = NPV / Initial investment = 1425/9000 = 0.158

This can be interpreted as 1 + 0.158 = 1.158,

1 being the initial investment. You can also choose not to subtract the initial outlay when calculating NPV.

Hope that helps.

krok68 [10]3 years ago

5 0

Answer:

Consider the following calculations

Explanation:

We need to work out the net after tax cash flows for each of the five years of the project, which are calculated as follows:

Net annual cash flows = annual cash inflows – annual cash outflows

INVESTMENT A = 15000- (5000+5000+5000+4000) = -4000

INVESTMENT B = 9000- (5000+4000+3000+1000) =-4000

HURDLE RATE = 12 %

The present value factor for 4 years annuity is 3.0373

INVESTMENT A

Present value of future net cash flows = 3.0373* $4000 = $12149.39

INVESTMENT B

Present value of future net cash flows = 3.0373* $4000 = $12149.39

HENCE PRESENT VALUE IS GREATER THAN INITIAL FLOW.. HENCE IT SHOULD BE ACCEPTED

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The stockholders' equity of Verrecchia Company at December 31, 2013, follows:

liq [111]

Answer:

Verrecchia Company

Financial Statement effects:

1. Jan. 5 Issued 10,000 shares of common stock for $12 cash per share:

Assets (Cash) would increase by $120,000

Equity (Common Stock) would increase by $120,000

2. Jan. 18 Repurchased 4,000 shares of common stock at $15 cash per share.

Assets (Cash) would decrease by $60,000

Equity (Common Stock) would decrease by $60,000

3. Mar. 12 Sold one-fourth of the treasury shares acquired January 18 for $18 cash per share.

Assets (Cash) would increase by $18,000

Equity (Common Stock) would increase by $18,000

4. July 17 Sold 500 shares of the remaining treasury stock for $13 cash per share.

Assets (Cash) would increase by $6,500

Equity (Common Stock) would increase by $6,500

5. Oct. 1 Issued 5,000 shares of 8%, $25 par value preferred stock for $35 cash per share.

Assets (Cash) would increase by $175,000

Equity (Preferred Stock) would increase by $125,000

Equity (Additional Paid-in Capital - Preferred) would increase by $50,000

Explanation:

The Financial Statement effects of each transaction is a reflection of how each transaction affects at least two opposite elements of the financial statement. Every transaction affects the elements of the financial statement in one way or another, which enables the accounting equation to remain in balance.

For example, a transaction may increase the assets and also increase either the liabilities or equity side of the balance sheet.

In our example, the transactions affected only the balance sheet. This means that each transaction increases or decreases the assets, liabilities, or equity sections.

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3 years ago

Session Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-ho

Fofino [41]

Answer:

$6,765

Explanation:

The total cost for job K913 is given by the sum of the costs with manufacturing overhead (fixed and variable), direct materials (M) and direct labor (L).

Since the company uses a predetermined overhead rate based on direct labor-hours, the overhead cost for job K913 is:

$O = F+V\\O=\frac{150*\$511,000}{70,000} +150*\$2.10\\O=\$1,410$

The total cost for the job is:

$C=O+M+L\\C=\$1,410+\$705+\$4,650\\C=\$6,765$

The total job cost for Job K913 is closest to $6,765.

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3 years ago

What is the amount of physical goods and services that can be bought with a given amount of money?

STALIN [3.7K]

Answer:

please Elaborate like how much money do you have or something

3 0

3 years ago

Max, an employee at HiFi LLC, is responsible for performing the job analysis process in her organization. She is currently plann

kramer

Answer:

The correct answer is the option C: Conducting the job analysis.

Explanation:

To begin with, the term of <em>"Job Analysis"</em> refers to a method used in the organizations with the purpose of generating job descriptions and specifications in order to establish a better communication inside the organization and also to know better who the best candidates will be for future jobs. Therefore that this analysis focus on the correct comprehension from the analyst regarding the job that is being under analysis. When the analysis has began the person in charge of it will have to planned carafully the way that she will get the information for later transform it into the job description and that is why that once that the planning has been done the person needs to conduct the job analysis in order to obtain the results expect that are the proper description of the job and all of its specifications for future employees.

7 0

3 years ago

Repair calls are handled by one repairman at a photocopy shop. Repair time, including travel time, is exponentially distributed,

wolverine [178]

Answer:

the average number of customers awaiting repairs = 0.30

the system utilization = 42

the amount of time that the repairman is not out on a call is = 4.64 hours

the probability of two or more customers in the system = 0.1764

Explanation:

Given that :

Repair time, including travel time = mean of 1.6 hours per call.