This answer requires that we fill in the blanks. The answers are contained in the bullet to fill the missing places
- shareholder wealth
- larger the NPV
- higher stock price.
- WACC
- accept the project.
- higher positive NPV.
<h3>What is the NPV?</h3>
This is the term that is used to refer to the net present value. This is the value that is calculated as the difference between the cash inflows and out flows for over a time period.
In order to get the NPV we have to make the following calculations for the projects A and B.
We have:
<u>For Project A</u>
-900 + 620/1.08 + 395/1.08² + 200/1.08³ + 250/1.08⁴
= $355. 237
<u> project B</u>
we would have
-900 + 620/1.08 + 395/1.08² + 200/1.08³ + 250/1.08⁴
= 378.98
The value for the project B happens to be greater than that of A hence this is the value that we have to accept
Read more on NPV here:
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Explanation:
The preparation of the year-end 2022 income statement for Crane Co.is shown below:
Crane Co.
Income statement
For the year 2022
Revenue
Service revenue $63,500
Total revenues $63,500 (A)
Less: Expenses
Advertising expense $1,800
Rent expense $10,000
Utilities expense $2,300
Salaries and wages expense $25,300
Total expenses $39,400 (B)
Net income $24,100 (A- B)
Hi there
shareholders' equity=
(fixed assets+current assets)-liabilities
shareholders' equity=(700+490)−460
=730...answer
(Note that the amount of retained earnings is not provided so you must use total assets minus total liabilities to derive the correct answer)
Answer:
(A) $625 per order
Explanation:
Processing a sales order shall be based on the number of orders processed.
As the total orders processed are:
JIT = 300
Non JIT = 20
Therefore, total orders = 320
Total cost to be allocated = $200,000 that is the order processing cost of previous quarter.
Cost per order shall be 
= $625 per order.
Note: The order size do not matter.
Therefore, correct option is:
(A) $625 per order
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