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3 years ago

6

An earthquake destroys a major manufacturing plant that produces sneakers. the manufacturing plant for rubber, a complementary g

ood to sneakers, is unaffected by the earthquake. what is the result?

1 answer:

serg [7]3 years ago

8 0

Well people would be sad but you should be able to get shoes though from other companies. It would cost more money though.

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You are thinking about investing in a mine that will produce $10,000 worth of ore in the first year. As the ore closest to the s

Alla [95]

Answer:

$71,428.57

Explanation:

we can use the perpetuity formula to solve this question:

present value = future cash flow / (discount rate - g)

future cash flow = $10,000
discount rate = 6%
g = growth rate = -8%

present value = $10,000 / (6% - - 8%) = $10,000 / 14% = $71,428.57

5 0

3 years ago

A project that will last for 12 years is expected to have equal annual cash flows of $104,500. If the required return is 8.2 per

Hoochie [10]

Answer:

$779,424.31

Explanation:

To determine the maximum initial investment would make the project acceptable, we have to find the present value of the cash flows.

Present value is the sum of discounted cash flows.

Cash flow each year from year 1 to 12 = $104,500

I = 8.2%

Present value = $779,424.31

To find the PV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

6 0

3 years ago

Johnson Company uses the allowance method to account for uncollectible accounts receivable. Bad debt expense is established as a

MArishka [77]

Answer:

1. The Bad debt expense for 2013 is $67,500

2. The amount of accounts receivable written off during 2013 is $69,500

3. If the company uses the direct write-off method, the bad debt expense for 2013 would be $69,500

Explanation:

1. In order toCalculate the bad debt expense for 2013 we would have to make the following calculation:

Bad debt expense=1.5% of Net Credit Sales

=1.5%×$4,500,000

=$67,500

The Bad debt expense for 2013 is $67,500

2. In order to Determine the amount of accounts receivable written off during 2013 we would have to make the following calculation:

amount of accounts receivable written off=$42,000+$67,500-$40,000

amount of accounts receivable written off=$69,500

The amount of accounts receivable written off during 2013 is $69,500

3. Using direct write off method, the bad debt expense is recognized only when the actual bad debt is incurred. The actual bad expense would be the amount of accounts receivable written off during the year. Accounts receivable written off during the year would be same in both the methods.

Thus, the bad debt expense for the year 2013 would be $69,500.

4 0

4 years ago

A project has an initial cost of $40,000, expected net cash inflows of $9,000 per year for 9 years, and a cost of capital of 11%

Sati [7]

Answer:

It will take 7 years and 156 days to pay back.

Explanation:

Giving the following information:

A project has an initial cost of $40,000, expected net cash inflows of $9,000 per year for 9 years, and a cost of capital of 11%.

To calculate the discounted payback period, we need to discount each cash flow until the initial investment is cover.

PV= Cf/ (1+i)^n

Discounted cash flow Pay back

Year 1= 9,000/(1.11)= 8,108.11 31,819.89

Year 2= 9,000/(1.11^2)= 7,304.60 24,515.29

Year 3= 9,000/(1.11^3)= 6,580.72 17,934.57

Year 4= 9,000/(1.11^4)= 5,928.58 12,005.99

Year 5= 9,000/(1.11^5)= 5,341.06 6,664.93

Year 6= 9,000/(1.11^6)= 4,811.77 1,853.16

Year 7= 9,000/(1.11^7)= 4,334.93 0

To be more accurate:

(1,853.16/4334.93)*365= 156 days

It will take 7 years and 156 days to pay back.

7 0

3 years ago

What do you mean by office personal<br>

weqwewe [10]

Answer:

An office personal is a private office space. So having a private office you have more privacy, and this can result in higher productivity if your work requires full concentration.

5 0

3 years ago