You are checking your wheels and rims for a pre-trip inspection. which of these statements is true?

The Yurdone Corporation wants to set up a private cemetery business. According to the CFO, Barry M. Deep, business is "looking u

icang [17]

Answer:

A) NPV= - $428,888.89 B) Company would break Even if g = 5.68%

Explanation:

Hi, we have to bring to present value all the inflows and outflows of cash, this is the formula to use and the math of it.

$NPV=-Invesment+\frac{CashFlowYr1}{(return-growth)}$

$NPV=-1440000+\frac{91000}{(0.12-0.03)} = -428888.89$

The question says that "at what constant growth rate would the company just break even..." and well, a NPV=0 is not precisely break even, actually, it means that the company is obtaining exactly what is asking for any investment, but let´s assume that the question was, what should the growth rate be for the company to accept this project?. So we have to solve the first equation for "g", that is:

$g=\frac{(Invesment*return-CashFlowYr1)}{Invesment} =\frac{(1440000*0.12-91000)}{1440000} =0.0568$

So the constant growth rate has to be at least 5.68% for the company to accept this project (NPV=0)

Best of luck

6 0

4 years ago

Refer to the HR Reports in the Inquirer. Through past investments in recruiting and training Chester has obtained a productivity

Reil [10]

Note:

I wasn't able to access the Chester Income Statement but I successfully accessed a similar question Digby.

The Complete Question is as under:

Refer to the HR Reports in the Inquirer. Through past investments in recruiting and training Digby has obtained a productivity index of 109.6%. This means that Digby's labor costs would be increased by 9.6% if it did not have these productivity improvements. This is a competitive advantage that Digby can sustain or even widen further if its competitors have no HR initiatives. Now, refer to the Income Statement in Digby's Annual Report. How much did Digby's productivity improvements save it in direct labor costs (in thousands) last year?

A. $766

B. $29818

C. $3137

D. $3211

Answer:

Option D. $3,137

Explanation:

The Productivity Index of 9.6% shows that if the improvement plan is implemented then the efficiency gains would result in saving of 9.6% of total direct cost. So if we total the direct cost for the year for all of the four products then we have an amount of $32,680 which is given at the second last column.

The amount saved last year would be:

Savings = $32,680 * 9.6% = $3,137

Hence the option C is correct here.

3 0

4 years ago

Assume for a perfectly competitive firm, the market price of one box of tissues is $2. What is the marginal revenue when sales i

trapecia [35]

Answer:

The marginal revenue = $2

Explanation:

Firstly we calculate the value in dollars for the number of boxes sold

For 100 boxes, we have 100 * 2 = $200

For 200 boxes, we have 200 * 2 = $400

Mathematically, the marginal revenue = (cost of 200 boxes- cost of 100 boxes)/difference in quantity

= (400-200)/(200-100) = 200/100 = $2

Thus affirms the fact that for a perfectly competitive firm, marginal revenue MR = P (price)

8 0

3 years ago

Protecting intellectual property rights can result in new inventions that help the economy to grow. True False

Nostrana [21]

True hope this answers this question

7 0

3 years ago

Read 2 more answers

A company incurred the following costs for a new delivery truck: Purchase price $ 150 comma 000 Sales tax 7 comma 900 Delivery

MrMuchimi

Answer:

$168,200

Explanation:

Given that,

Purchase price = $ 150,000

Sales tax = 7,900

Delivery charge from sellers location = 1,200

Special racks for storage = 3,000

Normal repairs to the truck before it was used for the first time = 1,100

Signs painted on the truck = 2,000

Insurance on truck before it was used for the first time = 3,000

All the above expenses are included in determining the cost of the delivery truck. Normal repairs to the truck and insurance on truck are also included in the cost of truck because it was incurred before the truck used for the first time.

Cost of the delivery truck:

= Purchase price + Sales tax + Delivery charge from sellers location + Special racks for storage + Normal repairs to the truck before it was used for the first time + Signs painted on the truck + Insurance on truck before it was used for the first time

= $150,000 + $7,900 + $1,200 + $3,000 + $1,100 + $2,000 + $3,000

= $168,200

5 0

3 years ago