The question is asking to states when is it not necessary to build a new market supply schedule and base on my research and further understanding, I would say that the answer would be when there's no demand or when there's a huge surplus. I hope you are satisfied with my answer and feel free to ask for more
Answer:
Ans. A) NPV= -$9306
Explanation:
Hi, the first thing we need to do is to find the after-tax cost of the firm's capital, and since all capital sources are expressed in terms of after-tax percentage, we just multiply each proportion of capital by its costs, I mean
Long term Debt (7%) * 25% +Preffered Stock(11%)*15% + Common Stock(15%)*60%
The answer to this is 12.40%.
Now, we can find the net present value of this project by using the following formula.
![NPV=-InitialOutlay+\frac{CashFlow((1+Cost of Capital)^{n} -1)}{Cost of Capital(1+Cost of Capital)^{n}}](https://tex.z-dn.net/?f=NPV%3D-InitialOutlay%2B%5Cfrac%7BCashFlow%28%281%2BCost%20of%20Capital%29%5E%7Bn%7D%20-1%29%7D%7BCost%20of%20Capital%281%2BCost%20of%20Capital%29%5E%7Bn%7D%7D)
![NPV=-350,000+\frac{95,450((1+0.124)^{5} -1)}{0.124(1+0.124)^{5}} =-9,306.5](https://tex.z-dn.net/?f=NPV%3D-350%2C000%2B%5Cfrac%7B95%2C450%28%281%2B0.124%29%5E%7B5%7D%20-1%29%7D%7B0.124%281%2B0.124%29%5E%7B5%7D%7D%20%3D-9%2C306.5)
Since the expected cash flow takes place 5 times form year 1 to 5, and is equal to $95,450, "n" is equals to 5 and "CashFlow" is equal to $95,450.
Therefore, the NPV of this project is -$9,306, which is answer A)
Best of luck.
Answer:
I think the answer is C need .... opportunity
Answer:
A) $48,000
Explanation:
![$$$Gross Margin$$$- S&A expenses$$$Equals to Operative Income](https://tex.z-dn.net/?f=%24%24%24Gross%20Margin%24%24%24-%20S%26A%20expenses%24%24%24Equals%20to%20Operative%20Income)
Then:
![$$$Operative Income $$$- Interest Expense$$$Net Income](https://tex.z-dn.net/?f=%24%24%24Operative%20Income%20%24%24%24-%20Interest%20Expense%24%24%24Net%20Income)
Assuming there is no tax rate
![90,000 - 30,000 - 12,000 = 48,000](https://tex.z-dn.net/?f=90%2C000%20-%2030%2C000%20-%2012%2C000%20%3D%2048%2C000)
48,000 would be the net income