Answer:
The amount of the initial cash flow for this expansion project is $15,000.
Explanation:
It is important to remember that Sunk costs are not relevant for decision making.
Sunk Cost are costs already incurred as a results of past decisions.
The Cost of Land of $300,000 and the Cost of Equipment Valued at $30,000 are both Sunk costs and are not relevant for this expansion project.
The Relevant Costs (Initial Cash Flow) is $15,000 for modifications.
Answer:
Target cost= $42.67
Explanation:
Giving the following information:
Top-selling price= $48
Desired profit margin= 12.5% profit margin on sales.
Its current full cost for the product is $44 per unit.
The company can't sell the product over $48 per unit. To obtain the profit margin required it must decrease the full cost per unit.
Target cost= 48/1.125= $42.67
Answer:
$100,000
Explanation:
Allowance as at December 31, Year 2 $100,000
This will be recorded as it is expense for the year 2
Bad Debt Expense Dr.$100,000
Account Receivable Cr.$100,000
The entity who should be thought of as a firm's banker and source of information should be the <u>Banker</u>.
<h3>Roles of a banker in a company</h3>
They advise the company on financial and capital needs to ensure that the company gets the funding it needs to be successful.
They also serve as a source of information for various aspects of the financial world and can assist in preparing financial statements. They are therefore partners to the business.
Find out more on the role of bankers at brainly.com/question/14274562.
Answer:
$5.76
Explanation:
Calculation to determine the price of a put option with the same exercise price
We would be Using put-call parity and solving for the put price
$67 + P = $70e^–(.026)(3/12)+ $3.21
$67 + P = $70e^–(.026)(.25)+ $3.21
$67 + P =190.2797^–(0.0065)+ $3.21
$67 + P =$69.5465+ $3.21
$67 + P =$72.7565
P=$72.7565-$67
P=$5.7565
P=$5.76 (Approximately)
Therefore the price of a put option with the same exercise price will be $5.76
