Answer:
Equivalent annual cost method
Explanation:
Equivalent annual cost method is a method used to choose between two projects with an unequal life span
The decision rule is to choose the product with the higher Equivalent annual cost
Equivalent annual cost method is better for making this decision because if net present value is used, the project with the higher useful life would be chosen. this does not mean it is more profitable
Answer:
8.20%
Explanation:
Debt equity ratio = 0.95
or
Debt = 0.95 × equity
Cost of equity, ke = 11% or 0.11
Pretax cost of debt, kd = 7% or 0.07
Tax rate = 24% or 0.24
Therefore;
WACC = {Weight of equity × ke } + {Weight of debt × kd × (1-Tax rate)}
It is to be noted that ;
Weight of equity = Equity ÷ (Debt + Equity)
= Equity ÷ ( 0.95×Equity + Equity)
=1 ÷ 1.95
=0.513
Also,
Weight of debt = Debt ÷ ( Debt + Equity)
=0.95 × Equity ÷ ( 0.95 × Equity + Equity)
= 0.95 ÷ 1.95
=0.487
Hence,
WACC = {0.513 × 0.11} + {0.487 × 0.07 × (1-0.24)}
= {0.05643} + {0.03409 × 0.76}
= 0.0823384
or
0.0823384 × 100%
=8.23384
=8.20%
More than 3 but less than or equal to 4 days
is the average processing time per income tax form.
Option - a
<u>Explanation:
</u>
![\text{ WIP (Work in process) }= R \times T = 64 = 20(T)](https://tex.z-dn.net/?f=%5Ctext%7B%20WIP%20%28Work%20in%20process%29%20%7D%3D%20R%20%5Ctimes%20T%20%3D%2064%20%3D%2020%28T%29)
So, T = 3.2Days
The average processing time per income tax form is more than 3 but less than or equal to 4 days.
Work in process relates to a partially completed portion of the stock of a business. The valuation of a partially finished stock is also sometimes referred to as the balance sheet products in operation, particularly when the company produces tangible goods instead of services.