Answer:
c. $1,290
Explanation:
FIFO assumes that the units to arrive first are the first to be sold. This means that the cost of sales is based earlier prices.
Step 1 : Units Sold
Units Sold =Units available for sale - Units in Inventory
= 700 - 250
= 450
Step 2 : Cost of Sales
Cost of Sales = $390 + $585 + 100/200 x $630
= $390 + $585 + $315
= $1,290
Using the FIFO inventory method, the amount allocated to cost of goods sold for June is $1,290
Answer: a. 15%
b. Initial Cost divided by Annual Net Cash Inflow
Explanation:
1. Cost of new machine = $800,000
Residual value = $0
Estimated total income from machine = $300,000
Expected useful life = 5 years
Average rate of return on this asset will be calculated thus:
Firstly, we'll calculate the net income per year = Total net income / Number of years = $300000/5 = $60000
Average investment = $80000/2 = $400000
Average rate of return = Net Income per year / Average investment = $60000/$400000 = 0.15 = 15%
2. Cash payback period is computed as the initial cost divided by the annual net cash inflow. It is the amount of time that is required for the cash inflows that is generated by a particular project to be able to offset its initial cash outflow.
Answer:
consumption or comparing the marginal product of capital to the depreciation rate.
Explanation:
The two methods that measures the capital level of the golden rule is the consumption or it should compared the capital marginal product with the depreciation rate. As the golden rule capital level shows the leval in which the consumption made in the steady rate should be maximized
So for this the above option should be considered
Therefore the other options are wrong
Answer:
b. 1,062.81
Explanation:
the key to answer this question is to remember that valuation of a bond depends basically of calculating the present value of a series of cash flows, so let´s think about a bond as if you were a lender so you will get interest by the money you lend (coupon) and at the end of n years you will get back the money you lend at the beginnin (principal), so applying math we have the bond value given by:
where: principal as said before is the value lended, coupon is the rate of interest paid, i is the interest rate and n is the number of periods
so applying to this particular exercise, as it is not said we will assume that 6% and 7% are interest rate convertible seminually, so the price of the bond will be:
price=1,062.81
take into account that here we are asked about semianually payments, so in 8 years there are 16 semesters.
Answer: this method takes longer to perfect than the bowsight method.
In instinctive aiming method. You aim at the target with your both eyes open so looking<span> at the target with the right eye closed or with the left eye closed is not true. </span> It is also not true that this method is less versatile than the bowsight method. <span>It is true that this method takes longer to perfect than the bowsight method.</span>
