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Len [333]
3 years ago
7

Molly is considering a project with cash inflows of $811, $924, $638, and $510 over the next four years, respectively. The relev

ant discount rate is 11.2 percent. What is the net present value of this project if it the start-up cost is $2,700?
a. -$425.91
b. -$131.83
c. -$383.01
d. $10.45
e. $229.50
Business
1 answer:
kati45 [8]3 years ago
5 0

Answer:

A. -$425.91

Explanation:

Given that

Start up cost = 2700

Cash inflow 1 = 811

Cash inflow 2 = 924

Cash inflow 3 = 638

Cash inflow 4 = 510

Rate = 11.2% or 0.112

Recall that

NPV = E(CF/1 + i]^n) - initial investment or start up cost

Where

E = summation

CF = Cash flow

i = discount rate

n = years

Thus

NPV = -$2,700 + $811 / 1 + 0.112 + $924 / 1 + 0.112^2 + $638 / 1 + 0.112^3 + $510 / 1 + 0.112^4

NPV = -$425.91

Therefore, NPV = -$425.91

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Cox Engineering performs cement core tests in its laboratory. The following standards have been set for each core test performed
Harrizon [31]

Answer: See explanation

Explanation:

(a) The materials price variance for March is:

Actual cost of materials purchased = $7310

Less: Standard cost of actual quantity = 0.75 × $8600 = ($6450)

Direct material price variance = $860 Unfavorable

(b) The materials quantity variance for March is:

Standard cost of actual quantity = 0.75 × $7200 = $5400

Less: Standard cost of standard quantity = 3 × 2000 × $0.75 = $4500

Direct material quantity variance = $900 Unfavorable

(c) The labor rate variance for March is:

Actual cost of direct labor = $8610

Less: Standard cost of actual hours = 840 × $12 = $10080

Direct labor rate variance = $1470 favorable

(d) The labor efficiency variance for March is:

Standard cost of actual hours = 840 × $12 = $10080

Less: Standard cost of standard hours = 2000 × 0.4 × $0.12 = $9600

Direct labor efficiency variance = $480 Unfavorable

8 0
3 years ago
What law governs the release of student information?
Bumek [7]

Answer:

C. FERPA

Explanation:

It was question number 11 on the Course Hero worksheets and answer keys.

https://www.coursehero.com/file/p6lkqhq/What-law-governs-the-release-of-student-information-A-CIPA-B-COPPA-C-FERPA-D/

Hope this helps : )

7 0
3 years ago
Read 2 more answers
vA $1,000 three-year par-value bond yields an effective annual interest rate of 6%. Coupons are paid on an annual basis at a rat
AveGali [126]

Answer:

10.00

Explanation:

We haven = 3

Pv = 1000

Rate if interest = 6%

Coupon = 5% x 1000

= 50

∆y = assumed to be 1%

The formula for convexity =

(V- + V+)-2Vo/Vo+(∆y)²

We first solve for Vo

Using the financial calculator

Vo = 973.26

Then we solve for V-

Pv = 1000

Pmt = 50

I = 5%

n = 3

V- = 1000

We solve for V+

I = 7%

Pmt = 50

N = 3

V+ = 947.51

Then the convexity is gotten by putting these values into the formula

= (1000+947.51)-2x973.26/973.26x(1%)²this is approximately

10

Please check attachment for more details

4 0
3 years ago
Suppose you've just inherited $10,000 from a relative. You're trying to decide whether to put the $10,000 in a non-interest-bear
ch4aika [34]

Answer:

a. $800

b. $1,000

Explanation:

In this case, the opportunity cost of holding the money instead of buying a U.S. Treasury bond is determined as the yearly interest payed by the bond.

a. interest rate = 8%

The opportunity cost of keeping the $10,000 is:

C = \$10,000*0.08 = \$800

b. interest rate = 10%

The opportunity cost of keeping the $10,000 is:

C = \$10,000*0.10 = \$1,000

8 0
3 years ago
Cost of Quality Report
yarga [219]

Answer:

Cost of Quality Report

Quality Cost     Quality Cost Percent of Total       Percent of

Classification                                    Quality Cost              Total Sales

Prevention         $23,400               10.0%                   1.3%

Appraisal         $46,800               20.0%                  2.6%

Internal failure $70,200               30.0%                  3.9%

External failure $93,600               40.0%                  5.2%

Total                        $234,000            100.0%                  13.0%

percent of total sale = quality cost/$1,800,000

3 0
3 years ago
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