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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
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Taussig Snow Removal's cost formula for its vehicle operating cost is $1,880 per month plus $394 per snow-day. For the month of
arsen [322]

Answer:

$394 U

Explanation:

Calculation for the activity variance for vehicle operating cost in February would be

First step is to calculate the Flexible budget

Flexible budget= $1,880 + ($394 × 14)

Flexible budget=$7,396

Second step is to calculate the Planning budget

Planning budget= $1,880 + ($394 × 13)

Planning budget=$7,002

Last step is to calculate the activity variance for vehicle operating cost in Februar

Activity variance=Flexible budget $7,396-Planning budget $7,002

Activity variance=$394 U

Therefore The activity variance for vehicle operating cost in February would be closest to $394 U.

3 0
3 years ago
As an accountant for hartley enterprises, you are responsible for preparing the statement of cash flows. you have transactions f
Ganezh [65]

"Cash flow from financial activities" is the heading." This section of the cash flow statement displays all of your company's financing activity, including equity, loan, and dividend transactions.

<h3>What is cash flow statement?</h3>

A cash flow statement is a financial statement that outlines all cash inflows a company receives from ongoing operations and outside investment sources.

It also includes all cash outflows for business and investment operations over a set period of time.

Thus, "Cash flow from financial activities" is the heading.

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5 0
2 years ago
Rajesh Indian Market (RIM) is open 12 months out of the year. At RIM, the demand for rice is very consistent 200 pounds per mont
Paladinen [302]

Answer:

A. 566 pounds

Explanation:

Given: Demand for rice is very consistent= 200 pounds per month.

           Cost of rice per order= $50 per order.

           Rice cost= $5 per pound.

           Carrying charge= 15%

EOQ: Economic order quantity (EOQ) is the number of units that company should include in their inventory with each order to reduce cost of inventory.

Now, calculating EOQ.

Formula; EOQ= \sqrt{\frac{2DP}{C} }

D= Demand in units for specified period.

P= relevant ordering costs per order.

C= Relevant carrying cost of one unit in stock for the time period used for D.

EOQ= \sqrt{\frac{2\times (50)(200\times 12)}{5\times 15\%} }

⇒ EOQ= \sqrt{\frac{2(50)(2400)}{5\times (0.15)} }

Opening parenthesis

⇒ EOQ=  \sqrt{\frac{240000}{0.75} }

⇒ EOQ= \sqrt{320000}

∴ EOQ= 565.68\ pound \approx 566\ pounds

Hence, Economic order quantity is 566 pounds.

           

5 0
3 years ago
Which term describes the individual use of products that can lead to externalities?
gulaghasi [49]

The term which describes the individual use of products that can lead to externalities is "consumption externalities."

<h3>What is consumption externalities?</h3>

There may be possible costs and advantages experienced by other parties who were not engaged in a transaction that when an individual investor or party engages in some transaction, such as using a good or service. They are referred to as externalities.

There are two types of externalities, which are-

  1. The positive externality is really an unintended advantage gained by a third party as a result of the creation or use of a commodity by another party. Positive externalities show that the societal advantages of creating or consuming products outweigh the individual advantages to third parties.
  2. The negative externality would be an indirect expense incurred by a third party as a result of the creation or use of a product by another party. Negative externalities show that the societal costs are greater than the private costs to third parties.

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4 0
1 year ago
Choose the correct answer.
Serga [27]

Answer:

Walking to the convenience

store to buy a snack.

3 0
2 years ago
Read 2 more answers
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