Answer:
c. $155,320
Explanation:
The computation of the project cost is shown below:
= Cash inflow in year 1 × discount factor in year 1 + cash inflow in year 2 × discount factor in year 2
= $80,000 × 0.909 + $100,000 × 0.826
= $72,720 + $82,600
= $155,320
By multiplying the discount factor of each year with the cash inflow of that year, the present value of that year will come.
Importation is the term used to describe the act of buying and securing goods from another country.
Answer:
The WACC for this project is 10.605%
Explanation:
The WACC or the weighted average cost of capital is the weighted average return that the company is expected to pay its capital providers.The WACC is calculated by multiplying the cost of each component by their respective weights in the capital structure. The WACC is calculated using the following formula,
WACC = wD * (1-tax) * rD + wP * rP + wE * rE
Where,
- wD, wP and wE represents the weight of debt, preferred stock and common equity respectively as a proportion of total capital.
- rD, rP and rE is the cost of debt, preferred stock and equity respectively.
- The (1-tax) is used in debt component to calculate the after tax cost of debt
WACC = 750000/1708000 * (1-0.25) * 0.096 + 78000/1708000 * 0.107 + 880000/1708000 * 0.135
WACC = 0.10605 or 10.605%
Answer:
increases the same amount with tariffs and equivalent quotas.
Explanation:
In Economics, a surplus refer to the amount by which the quantity supplied of a good exceeds the quantity demanded of the same good.
A producer surplus is the amount by which a buyer is willing to pay for a particular good minus the cost of producing the same good.
On the other hand, a consumer surplus is the amount by which a buyer is willing to pay for a particular good minus the amount the buyer actually pays for it.
In the case of a small country, a producer surplus increases (raises) the same amount (an amount a buyer is willing to pay for a good minus the cost of producing the good) with tariffs and equivalent quotas.
A tariff can be defined as tax levied by the government of a country on goods and services imported from another country.
Generally, tariffs can reduce both the volume of exports and imports in a country. In order to generate revenues, domestic government make use of tariffs while quotas do not generate any revenue for them.
Answer:
Option C. $480,000
Explanation:
The reason is that the consideration (Services of memberships which has monetary value) of the contract to deliver the subscribers has been delivered by the Pemco Enterprise which was active their member account and let them enjoy the services which they provide so the sales would be the amount that the company is legally entitled to receive after delivering the consideration of the contract and is $480,000 ($260 * 2000 memberships).
