Answer:
the total overhead cost is $1,560
Explanation:
The computation of the total overhead cost for product X is given below:
Setup cost = 40,000 ÷ 200 × 4 = 800
Ordering cost = 20,000 ÷ 1,000 × 8 = 160
Maintenance cost = 50,000 ÷ 5,000 × 50 = 500
Power = 10,000 ÷ 10,000 × 100 = 100
Hence, the total overhead cost is $1,560
Answer:
3 years
Explanation:
The formula to compute the payback period is shown below:
= Initial investment ÷ Net cash flow
where,
Initial investment is $450,000
And, the net cash flow = annual net operating income + depreciation expenses
= $105,000 + $45,000
= $150,000
Now put these values to the above formula
So, the value would equal to
= ($450,000) ÷ ($150,000)
= 3 years
Answer:
a.
2021 = $50,000
2022 = $45,000
b.
2021 = $275,000
2022 = $0
Explanation:
a. Sum-of-the-years'-digits.
Sum of digits for the 10 years will be :
Year 1 = 10
Year 2 = 9
Year 3 = 8
Year 4 = 7
Year 5 = 6
Year 6 = 5
Year 7 = 4
Year 8 = 3
Year 9 = 2
Year 10 = 1
Sum of Digits = 55
therefore,
2021 depreciation = 10/55 x ($295,000 - $20,000)
= $50,000
2022 depreciation = 9/55 x ($295,000 - $20,000)
= $45,000
b. One hundred fifty percent declining balance.
2021 depreciation = 150% x ($295,000 - $20,000)
= $412,500
<em>Can not be charged above book value of $275,000</em>
2022 depreciation = 150% x ($295,000 - $20,000- $412,500)
= $0
Answer: A valuation multiple is a ratio of some measure of a firm's scale to the value of the firm.
Explanation:
The Law of One Price does indeed allow for the determination of the value of the new firm using the value of the existing firm as they are identical. The value of a firm is also estimated based on the value of comparable ones.
It is also true that companies can be similar in many respects but still be different in size and scale.
Valuation multiples however, are not ratios of some measure of a firm's scale to the value of the firm but ratios of financial metrics in the company that can be used for analysis and comparison.
Answer:
D. Economic duress
Explanation:
Economic duress -
It refers to the condition in the contract, where the first party threatens to cancel the deal, as the other party does not agrees to the demand of the first party, is referred to as economic duress.
The condition arises in case of any major feud between the two parties, where one of the party is left with no choice, but to follow the other party.
It is a type of forceful situation.
Hence, from the given scenario of the question,
Economic duress is showcased in the question, as one party threatens to cancel the contract, unless and until the second party agrees to all the conditions.
