"be sure to identify any additional bases underlying your forecast and any assumptions."

If the discount rate is 10 percent, what is the present value of these cash flows? (Do not round intermediate calculations and r

Alex787 [66]

Answer:

there are no cash flows given, so I will use another question as an example:

NCF year 0 = -$1,150,000

NCF year 1 = $275,000

NCF year 2 = $275,000

NCF year 3 = $275,000

NCF year 4 = $275,000

NCF year 5 = $275,000

NCF year 6 = $275,000

NCF year 7 = $275,000

a) when cash flows are the same for all the years, you can use an ordinary annuity factor:

PV = $275,000 x 4.86842 (PV annuity factor, 10%, 7 periods) = $1,338,815.50

NPV = -$1,150,000 + $1,338,815.50 = $188,815.50

b) PV = $275,000 x 3.81153 (PV annuity factor, 18%, 7 periods) = $1,048,170.75

NPV = -$1,150,000 + $1,048,170.75 = -$101,829.25

c) PV = $275,000 x 3.24232 (PV annuity factor, 18%, 7 periods) = $891,638

NPV = -$1,150,000 + $891,638 = -$258,362

If the cash flows are different, then you must discount each cash flow individually.

E.g. NCF year 0 = -$150,000

NCF year 1 = $75,000

NCF year 2 = $85,000

NCF year 3 = $95,000

NPV = -$150,000 + $75,000/1.1 + $85,000/1.1² + $95,000/1.1³ = $59,804.66

5 0

3 years ago

Mango Company applies overhead based on direct labor costs. For the current year, Mango Company estimated total overhead costs t

Inessa05 [86]

Answer:

Overapplied overhead= $16,000

Explanation:

First, we need to calculate the predetermined overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 340,000 / 170,000

Predetermined manufacturing overhead rate= $2 per direct labor dollar

Now, we can allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 2*192,000

Allocated MOH= $384,000

Finally, the over/under allocation:

Under/over applied overhead= real overhead - allocated overhead

Under/over applied overhead= 368,000 - 384,000

Overapplied overhead= $16,000

7 0

3 years ago

During work flow analysis, an organization's planners need to analyze ______. (Check all that apply)

arsen [322]

Before work is done there should be preparations, during workflow analysis, an organization's planners need to analyze what work needs to be done.

<h3>What is workflow?</h3>

Workflows describe how a particular task or job is done. It includes some sequence of tasks from start to finish, how and what exactly should be done at each step.

Therefore, during workflow analysis, an organization's planners need to analyze what work needs to be done.

Learn more on workflow from

brainly.com/question/24922293

5 0

2 years ago

Pam recently was sickened by eating spoiled peanut butter. she successfully sued the manufacturer for her medical bills ($3,700)

adell [148]

Answer: $44,000

The tax laws state that any payments (except PUNITIVE DAMAGES) on the account of a physical injury or physical sickness are non-taxable. Damages that taxpayers can receive relating to emotional distress are also non-taxable. Punitive damages however are fully taxable, because they are intended to penalize the harm-doer rather than to compensate the taxpayer for injuries.

7 0

3 years ago

Personal consumption expenditures (C) $10,417.1 Gross private domestic investment (I) $1,818 Government consumption expenditures

ANEK [815]

Answer:

GDP = $14,755.1 and expenditure approach

Explanation:

The formula to compute the GDP is shown below:

GDP = Personal consumption expenditures + Gross private domestic investment + Government consumption expenditures and gross investment + Net exports

where,

Net exports = Exports - imports

= $1,935.3 - $2,435.5

= -$500.2

So, the GDP is

= $10,417.1 + $1,818 + $3,020.2 - $500.2

= $14,755.1

And, the summing of all this items which are shown above while calculating the GDP is known as expenditure approach

4 0

4 years ago

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