What property describes the number sentence 6+0=6

Atlas Corp. is considering two mutually exclusive projects. Both require an initial investment of $10,000 at t = 0. Project S ha

snow_lady [41]

Answer:

A) $56.5

Explanation:

Data:

Project S

Initial cost $10,000

Y1 CF = $6,000

y2 CF = $8,000

Project L

Initial Investment = $10,000

Y1-Y4 CF = $4,373

Solution:

For Project S

We shall prolong the project to four years so it can be easily compared to project L

Following shall be the cashflow stream:

Y0=-$10,000 Y1=$6,000 Y2=-$2,000($8,000 CF - $10,000 outlay for prolonging the project second time) Y3=$6,000 Y4=$8,000

Now to discount the cashflow

$NPV=-10000/(1+0.0925)^0+6000/(1+0.0925)^1-2000/(1+0.0925)^2+6000/(1+0.0925)^3+8000/(1+0.0925)^4$

$NPV=4033.40$

For Project L

In order to calculate present value of the annuity, following formula will be used:

$PV=PMT(1+(1/(1+r)^n)/r$

NPV = Initial outlay - PV

$4373(1+(1/(1+0.0925)^4)/0.0925=14089.9$

$NPV=-10000+14089.9$

$NPV=4089.9$

Now, we can easily calculate how much value will the firm gain or lose if Project L is selected over Project S

$Value=NPV(L)-NPV(S)$

$Value=4033.40-4089.90$

$Value=56.50$

*all figures are rounded off to two decimal points*

7 0

3 years ago

Alison's dress shop buys dresses from McGuire Manufacturing. Alison purchased dresses from McGuire on July 17 and received an in

galina1969 [7]

Answer:

c. $6,076

Explanation:

Calculation for what Alison should record the purchase

Purchase=$6,200 ×(100%-2%)

Purchase=$6,200 ×98%

Purchase=$6,076

Therefore if Alison uses the net method to record purchases she should record the purchase at:$6,076

7 0

3 years ago

At the beginning of Year 1, Trey Inc., purchased a machine with a total acquisition cost of $33,000. The machine has an estimate

soldier1979 [14.2K]

Answer:

$8,000

Explanation:

Data provided in the question:

cost of machine = $33,000

Estimated residual value = $3,000

Estimated useful life = 3 years

Estimated useful life in terms of production = 60,000 units

Total units produced in year 1 = 16,000

Now,

Rate of annual depreciation with respect to units produced

= [ Cost - Salvage value ] ÷ Estimated useful life in terms of production

= [ $33,000 - $3,000 ] ÷ 60,000

= $0.5 per unit

Therefore,

Depreciation expense for the year 1

= Rate of annual depreciation × Total units produced in year 1

= $0.5 per unit × 16,000 units.

= $8,000

7 0

3 years ago

Consider this scenario: After many years, an employee is promoted to a position that has an elevated level of trust with his man

Stels [109]

Answer:

The correct answer is the option B: This employee should be granted access based on his current and past roles only after being formally reviewed for his effectiveness in the company.

Explanation:

To begin with, if the employee has past through several positions before then he must understand quite a bit how the company works in its whole and moreover that employee must be trusted due to the fact of the times that he was promoted and therefore that he must have granted access based on his current and past roles but only after being formally reviewed because of the fact of ensuring the effectiveness of the employee.

4 0

3 years ago

A product sells for $200 per unit and it’s variable costs are 65% of cells to fix cost of 420,000 what is the break even point i

11Alexandr11 [23.1K]

Fixed Costs: 420,000
Variable Costs: 65%

Your BREAK-EVEN Point is: $1,200,000 USD or 600 Units @ $200 Each

5 0

3 years ago