Answer:
$96,000
Explanation:
Production 26,000 units
<u>Materials Purchase Budget</u>
Production Materials Required (5×26,000 units) 130,000
Add Budgeted Closing Materials (50,000×20%×5) 50,000
Total Materials 180,000
Less Budgeted Opening Inventory (4,000×5) (20,000)
Budgeted Materials 160,000
Material Cost per pound $0.60
Total Material Cost $96,000
Therefore, the materials purchases budget will be for the month ending April 30 will be $96,000.
Answer: Assets
Explanation:
Assets are something that a business owns that is able to bring in money or is a store of value.
All the above mentioned items are considered assets as they fit this description.
Accounts receivable is a current asset which means it has a duration of a period or less.
Equipment, building and land are all fixed assets as they have a duration of more than one period.
Something not to consider when trying to get a positive return on investment (ROI) for higher education is: c. the type of food that is offered on the meal plan.
<h3>What is rate of return?</h3>
Rate of return can be defined as a net gain (profit) or loss that is associated with an investment over a specified period of time, and it's usually expressed as a percentage of the investment's initial cost.
This ultimately implies that, the rate of return must be higher than the rate of inflation in order for any business firm or individual to earn money on their investments.
Also, a positive return on investment (ROI) entails a net gain (profit) from an investment over a specified period of time. This ultimately implies that, the type of food that is offered on the meal plan isn't something to consider when trying to get a positive return on investment (ROI) for higher education.
Read more on return on investment here: brainly.com/question/23603222
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Complete Question:
Which of these is not something to consider when trying to get a positive return on investment (ROI) for higher education?
a. The cost of attendance.
b. The financial aid package that is offered to you.
c. The type of food that is offered on the meal plan.
d. Your expected career income.
Answer:
6.11%
Explanation:
For computing the variance, first we have to determine the expected return which is shown below:
= (Expected return of the boom × weightage of boom) + (expected return of the normal economy × weightage of normal economy) + (expected return of the recession × weightage of recession)
= (12% × 5%) + (10% × 85%) + (2% × 10%)
= 0.6% + 8.5% + 0.2%
= 9.30%
Now the variance would equal to the
= Weightage × (Return - Expected Return) ^2
For boom:
= 5% × (12% - 9.3%) ^2
= 0.3645
For normal economy:
= 85% × (10% - 9.3%) ^2
= 0.4165
For recession:
= 10% × (2% - 9.3%) ^2
= 5.329
So, the total variance would be
= 0.3645 + 0.4165 + 5.329
= 6.11%
Answer:
Year Cash Flow (A) Cash Flow (B)
0 -37,500 -37,500
1 17,300 5,700
2 16,200 12,900
3 13,800 16,300
4 7,600 27,500
1) Using an excel spreadsheet and the IRR function:
IRR project A = 20%
IRR project B = 19%
2) Using the IRR decision rule, Bruin should choose project A.
3) In this case, since the length of the projects is only 4 years, then there should be no problem with the IRR decision rule, but for projects with longer time lengths, the discounts rates might vary and the best option is to use the modified internal rate of return (MIRR). But in this case the NPV of project B is higher, then Bruin should probably project B because it has a higher NPV. The NPV is always more important then the IRR.
4) Again using an excel spreadsheet and the NPV function:
NPV project A = $6,331
NPV project B = $8,139
5) first we must subtract cash flows from A by the cash flows from B:
1 $11,600
2 $3,300
3 -$2,500
4 -$19,900
then we calculate the IRR = 16%
Bruin should be indifferent between the two projects at a 16% discount rate. That means that at discount rates above 16%, you should choose project A, but at discount rates below 16%, you should choose project B
