1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
UkoKoshka [18]
3 years ago
8

Fernando Designs is considering a project that has the following cash flow and WACC data. What is the project's discounted payba

ck?
WACC: 10.00%
Year 0 1 2 3
---------------------------------------------
Cash flows -$900 $500 $500 $500 (Points : 10)
1.88 years
2.09 years
2.29 years
2.52 years
2.78 years
Business
1 answer:
Semmy [17]3 years ago
5 0
We use the formula to solve for the discounted payback period:
DPP = ln ( 1 / (1-P x r /A) ) / ln (1 + r)
From the problem
P = 900
r = 0.1
A = 500

Substituting:
DPP = ln (1 / (1 - 900(0.10)/500) / ln ( 1 + 0.10)
DPP = 2.09 years
You might be interested in
On January 1, Greenview Company adopted the dollar-value LIFO method. The inventory cost on January 1 was $112,000. On December
Mumz [18]

Answer:

125,200

Explanation:

Adjust inventory to base year prices:

= Cost of ending inventory ÷ cost index for the year

= $136400 ÷ 1.1

= $124,000

Current year LIFO layer:

= Adjust inventory to base year prices - Cost of beginning inventory

= $124,000 - $112,000

= $12,000

Inventory to be shown:

= Add the new LIFO layer at end of period prices to prior year LIFO inventory

= (112,000 × 1) + (12,000 × 1.1)

= 112,000 + 13,200

= 125,200

7 0
3 years ago
Stockholders of Dogs R Us Pet Supply expect a 12% rate of return on their stock. Management has consistently been generating an
alexandr402 [8]

Answer:

100%

Explanation:

Stockholders of Dog's R Us Pet Supply expect a 12% rate of return on their stock. Management  has consistently been generating a ROE of 15% over the last 5 years but now believes that ROE  will be 12% for the next five years. Given this the firm's optimal dividend payout ratio is now  100%

8 0
2 years ago
Explain the three main characteristics and uses of money
strojnjashka [21]

Answer:

Explanation:

The characteristics of money are durability, portability, divisibility, uniformity, limited supply, and acceptability.

8 0
2 years ago
During 2004, ABC Company had $750,000 of net credit sales. Accounts Receivable had a December 31, 2004, balance of $250,000.
eimsori [14]

Answer:

c. $24,500

Explanation:

The allowance for doubtful accounts is a contra-asset account that records the amount of receivables expected to be uncollectiblea, makes a reduction of the total amount of accounts receivable appearing on a company’s balance sheet. There are two way to estimate uncollectible accounts: the percentage of sales method and the accounts receivable aging method.

ABC Company uses the percentage of sales method - application a flat percentage to the total amount of net credit sales for the period.

Estimated uncollectible = 3% x $750,000 = $22,500

The company establishes an allowance for doubtful accounts for $22,500 while simultaneously reporting $22,500 in bad debt expense.

Before adjusting on December 31, 2004, the Allowance for Doubtful Accounts had a credit balance of $2,000.

The balance in the allowance for doubtful accounts after adjustment is $22,500 + $2,000 = $24,500

8 0
2 years ago
What is the price of a share of common stock that has an expected dividend of $3.00, a tax rate of 30%, a required return of 15%
Semmy [17]

Answer:

Current price of the share common stock will be $30

So option (c) will be correct answer

Explanation:

We have given expected dividend D_1=$3

Required rate of return = 15 % = 0.15

Tax rate = 30 %

Growth rate = 5 %

Beta = 2

We have to find the price of the share

Price of the share is given by p_0=\frac{D_1}{R_E-g}=\frac{3}{0.15-0.05}=$30

So current price of the share stock will be equal to $30

So option (C) will be correct answer

3 0
3 years ago
Other questions:
  • The city of Angola, Indiana is considering building a snowmobile trail on the land owned by the city. The life of the project is
    10·1 answer
  • What are the benefits of mechanical dissection?
    11·1 answer
  • Volvo of North America delivered automobiles to the Siberian police force when Siberia had no cash to pay for them. It accepted
    7·1 answer
  • Roberto firmly believes that economic and social equality can only be attained through a system of economics where the governmen
    6·1 answer
  • On June 30, 2019, the State Unemployment Tax Payable account in the general ledger of Alan Office Supplies showed a balance of $
    14·1 answer
  • Marginal​ cost-benefit analysis and the goal of the firm   Ken​ Allen, capital budgeting analyst for Bally​Gears, In
    5·1 answer
  • 100 points! PLEASE HELP. DO NOT SKIP THIS!
    11·2 answers
  • The technical help desk completes requests in the order in which they are received. On Monday requests were made by seven employ
    6·1 answer
  • Plan B” is the label used to describe what you would do if your job ended and might include​ a. ​learning new skills. b. ​develo
    14·1 answer
  • disposable income (billions of dollars per year) total consumption (billions of dollars per year) $ 0 $ 50 200 210(table 9.1) wh
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!