The freedom to make your own decisions can be limited if the business you choose is a

A property valued at $1 million is returning a net annual income of $85,000. what's its cap rate?

leva [86]

8.5% :))))))))))))))))))))

4 0

1 year ago

Fischer Company uses 12,000 units of a part in its production process. The costs to make a part are: direct material, $15; direc

Trava [24]

Answer:

Difference= $60,000 in favor of buying

Explanation:

Giving the following information:

Number of units= 12,000

Make in-house:

Direct material, $15

direct labor, $27

variable overhead, $15

applied fixed overhead, $32

Buy:

Buying price= $60

If Fischer buys the part, 75 percent of the applied fixed overhead would continue.

First, we will calculate the avoidable fixed overhead per unit:

Avoidable fixed overhead= 32*0.25= $8

Now, the total differential cost of making in-house:

Total cost of production= 12,000*(15 + 27 + 15 + 8)

Total cost of production= 12,000*65

Total cost of production= $780,000

Total cost of buying= 60*12,000= $720,000

Difference= $60,000 in favor of buying

4 0

2 years ago

Using the capital asset pricing model (CAPM), Sun State determined that the required rate of return for a capital budgeting proj

ANTONII [103]

Answer:

2.2

Explanation:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

18% = 7% + Beta × 5%

18% - 7% = Beta × 5%

11% = Beta × 5%

So, the beta would be

= 2.2

The (Market rate of return - Risk-free rate of return) is also known as market risk premium and the same has applied.

5 0

3 years ago

Cindy invests $3000 in a bond trust that pays 8% interest compounded semiannually. Her friend, Jimmy, invests $3000 in a certifi

Elanso [62]

Answer:

Cindy has more amount than Jimmy.

Explanation:

Amount invested by Cindy P = $3000

Annual rate of interest = 8%

As the amount is compounded semiannually

So rate of interest $=\frac{8}{2}=4%$ %

Time = 20 year

So time period n = 20×2 = 40

So amount own by Cindy $A=P(1+\frac{r}{100})^n$

$A=3000(1+\frac{4}{100})^{40}=14403.06$ $

Amount deposit by jimmy P = $3000

Annual rate of interest = 7.75 %

As the amount is compounded monthly

So rate of interest $r=\frac{7.75}{12}=0.322$ %

Time period = 20×12 = 240

So amount own by Jimmy $A=P(1+\frac{r}{100})^n$

$A=3000(1+\frac{0.322}{100})^{240}=6503.650$ $

From the calculation we can see that Cindy has more amount than Jimmy.

4 0

2 years ago

Assume for this question that herman has 55 employees. when herman asks sally about jake's ability to see, what would be conside

Serhud [2]

Herman would have to take action if he find's out from Sally that Jake has a visual impairment. He would have to consider whether or not he could reasonably make changes that would allow Jake to still do his job, or if the needed changes would cause an undue hardship on the business.

7 0

3 years ago