Answer:
The net income is $150,500 and the return on assets is 20.06 %
Explanation:
The formula for computing net income and return on assets is shown below and the computation is also made.
Net income = Sales revenue × Profit margin
= $2,150,000 × 7%
= $150,500
Return on assets = Net income ÷ total assets
= $150,500 ÷ $750,000
= 0.2006
= 20.06 %
Thus, the net income is $150,500 and the return on assets is 20.06 %
Answer:
1. $275 million
Yes
2. 30%
Explanation:
Calculation for the NPV of the investment opportunity
NPV = –100 + 30/0.08
NPV= $275 million
Therefore the NPV will be $275 million
Yes, Based on the above Calculation they should make the investment
2. Calculation for IRR
IRR: 0 = –100 + 30/IRR
Hence,
IRR = 30/100
IRR = 30%
Therefore the IRR will be 30%
The IRR is great only in a situation where the cost of capital does not go beyond 30%.
It should be b I hope that help
Answer:
28%
Explanation:
Most mortgage lenders, including Fannie Mae, use the 28/36 rule. That rule states that a family should spend no more than 28% of the gross monthly income (GMI) on housing expenses, and pay no more than 36% of GMI to cover debts (mortgage payments are included in this 36%).
Statistics show that households that do not comply with the 28/36 rule, tend to have difficulty paying back loans.
Answer:
Under FIFO, the ending inventory is based on the latest units purchased.
Explanation:
First in, first out inventory (FIFO) method values cost of goods sold using the purchase price of the "oldest" units in inventory. This means that the cost of the first units sold will be used to determine COGS.
On the other hand, last in, first out (LIFO) method uses the price of the most recently purchased units to determine the cost of goods sold.
