Answer:
New irr = 8.03%(Approx)
Project should be rejected
Explanation:
Given:
Initial value = $148,400
Cash flows;
$42,500
$87,300
$43,200
Internal rate of return = 11%
Computation:
present value = Present value of outflows
148,400 = 42,500/(1+x) + 87,300/(1+x)² + 43,200/(1+x)³
So,
New irr = 8.03%(Approx)
New irr < Internal rate of return
So,
Project should be rejected
Answer:
See below
Explanation:
1. Total materials variance
= (Actual quantity - Actual price) - (Standard quantity × Standard price)
= $4,410 - [(160 × 9) × $1.9]
= $4,140 - $2,736
= $1,404 unfavorable
2. Materials price variance
= (Actual quantity × Actual price) - (Actual quantity × Standard price)
= $4,140 - (2,100 × $1.9)
= $4,140 - $3,990
= $150 unfavorable
3. Materials quantity variance
= (Actual quantity × Standard price) - (Standard quantity × Standard price)
= (2,100 × $1.9) - [(160 × 9) × $1.9]
= $3,990 - $2,736
= $1,254 unfavorable
4. Total labor variance
= (Actual hours × Actual rate) - (Standard hours - Standard rate)
= $6,664 - (160 × 4) × $10
= $6,664 - $6,400
= $264 unfavorable
Correcto creo pero no estoy segura
Answer:
Yield to Maturity(YTM) = 3.47%
Explanation:
<em>The yield to maturity is the required rate of return (discount rate) that would equate the price of the bond and cash outflow expected from the bond. The yield on the bond can be determined as follows using the formula below: </em>
YTM = C + F-P/n) ÷ 1/2 (F+P)
YTM-Yield to maturity-
C- coupon
F- Face Value
P- Current Price
DATA
Coupon = coupon rate × Nominal value = 1,000 × 8%× 1/2=40(note we divide by 2 because interest is paid semi-annually)
n= 4×2 = 8 (note there 2 half months in a year)
Face Value = 1000
YM-?, C-40, Face Value - 1,000, P-103.75/100× 1000 = 1037.5
YM = (40 + (1000-1037)/8) ÷ ( 1/2× (1000 + 1037.5 ) ) =0.0347
YM = 0.0347
× 100 = 3.47%
Yield to Maturity = 3.47%
Answer:
The correct answer is option B.
Explanation:
In the perfect co petition firm is a price taker. Firms do not decide price. Price is determined by demand and supply intersection. Firms face a horizontal demand curve. They can only adjust the quantity they supply.
In a perfect competition, if the price is not able to cover the average variable cost, it means that the firm will be incurring losses. The firm will thus shutdown and stop production.