The quality of a soil is most directly related to _______

Project Q has an initial cost of $211,415 and projected cash flows of $121,300 in Year 1 and $176,300 in Year 2. Project R has a

vlada-n [284]

Answer:

Project Q should be accepted.

Explanation:

In this question, we have to use the profitability index formula which is shown below:

Profitability index = Present value of all years cash flows ÷ Initial investment

where,

Present value of cash inflows is calculated by applying the discount rate which is presented below:

For this, we have to first compute the present value factor which is computed by a formula

= 1 ÷ (1 +rate) ∧ number of year

number of year = 0

number of year = 1

Number of year = 2

So,

For year 1 = 0.9216 (1 ÷ 1.085) ∧ 1

For year 2 = 0.8495 (1 ÷ 1.085) ∧ 2

Now, multiply this present value factor with yearly cash inflows

So

For Project Q,

The present value of year 1 = $121,300 × 0.9216 = $111,797.235

The present value of year 2 = $176,300 × 0.8495 = $149,758.967

and the sum of all year cash inflow is 261,556.202

So, the Profitability index would be equal to

= $261,556.202 ÷ $211,415

= 1.23

For Project R,

The present value of year 1 = $187,500 × 0.9216 = $172,811.059

The present value of year 2 = $236,600 × 0.8495 = $200,981.121

and the sum of all year cash inflow is $373,792.180

So, the Profitability index would be equal to

= $373,792.180 ÷ $415,000

= 0.90

Since, the Project Q has high profitability index than Project R, so Project Q should be accepted.

4 0

2 years ago

Cranium, Inc., purchases term papers from an overseas supplier under a continuous review system. The average demand for a popula

kykrilka [37]

Answer:

B) greater than $30 but less than $40

the actual result is $39

Explanation:

the options are missing:

A) less than or equal to $30

B) greater than $30 but less than $40

C) greater than $40 but less than $50

D) greater than $50

we must first calculate safety stock = (Z-score x √lead time x standard deviation of demand) + (Z-score x standard deviation of lead time x average demand)

Z-score for 98% confidence level = 2.326
standard deviation of demand = 30
√lead time = √5 = 2.23607
we are not given any standard deviation of lead time, so we can assume that it is 0

safety stock = (2.326 x √2.23607 x 30) + (2.326 x 0 x 300) = 156.03 ≈ 156 units

the annual holding cost of 156 units = 156 x $0.25 = $39

4 0

3 years ago

The coding system that is used primarily for reporting diagnoses for hospital inpatients is known as:

Inga [223]

The answer is: ICD-10-CM

7 0

3 years ago

The equivalent units in beginning work in process inventory plus the equivalent units in ending work in process inventory equals

vivado [14]

Answer:

False

Explanation:

The formula for equivalent units units as follows:

Opening Work in Process + Equivalent units on which the work is done - Closing Work in process = Units Transferred

Therefore, ideally,

Opening work in process - Closing work in process = Units transferred - Equivalent units on which work is done.

As adding all the cost incurred during the period to opening inventory of work in process, we get the total cost for the period, thereafter, deducting the cost allocated to closing work in process we get the value of goods produced and transferred.

<u>Therefore, above statement is false.</u>

8 0

3 years ago

A registered representative solicits a new customer to purchase a "penny stock." Prior to effecting the transaction, which proce

marta [7]

Answer: StatusB B. Have the customer sign a statement that he understands the risks involved prior to executing the order

Explanation:

The options to the question are:

StatusA A. Send a prospectus to the customer

StatusB B. Have the customer sign a statement that he understands the risks involved prior to executing the order

StatusC C. Have the branch manager approve the order and then fill the customer's order in the same manner as with any other security

StatusD D. Send the customer a Subscription Agreement to be signed before filling the order.

The correct answer is StatusB B. Have the customer sign a statement that he understands the risks involved prior to executing the order.

Under the penny stock rule of the Securities exchange commission, when a new customer is being solicited by a registered representative to purchase an over-the-counter stock non-NASDAQ, a detailed statement must be completed by the registered representative on behalf of the customer.

7 0

3 years ago

The quality of a soil is most directly related to ________.