1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
patriot [66]
3 years ago
12

Clean Tel, Inc. is considering investing in an 11-year project with annual cash inflows of $1,000,000. These cash inflows have a

n initial investment of $7,139,000. At what discount rate would this present value be the same as the initial investment?
a. 6%

b. 7%

c. 9%

d. 8%
Business
1 answer:
cupoosta [38]3 years ago
8 0

Answer:

d. 8%

Explanation:

The computation of the discount rate is shown below:

Initial investment = Present value of cash inflows

where,

Initial investment is $7,139,000

And, the present value of cash inflows

= Annual cash inflows × discount rate

We assume the discount rate be X

$7,139,000 = $1,000,000 × X

So,

X = 7139000 ÷ 1000000 = 7.139

= 8%

We simply applied the above formula in order to find out the discount rate

You might be interested in
Hutter Corporation declared a $0.50 per share cash dividend on its common shares. The company has 30,000 shares authorized, 15,0
Natasha_Volkova [10]

Answer:

Dr Retained Earnings $6,000

Cr Common Dividends Payable $6,000

Explanation:

Preparation of the journal entry to record the dividend declaration

Based on the information given we were told that the Corporation declared the amount of $0.50 per share cash dividend on common shares in which 12,000 shares of the common stock are outstanding, hence The journal entry to record the dividend declaration is:

Dr Retained Earnings $6,000

Cr Common Dividends Payable $6,000

(12,000*$0.50)

5 0
3 years ago
For most people, the purchase of a Ford automobile would employ which type of consumer decision making?
Nostrana [21]

Answer:

Extended decision making

Explanation:

Extended decision making is the decision making which involve the very high level of the purchase, an internal as well as extensive information search which is followed by the complex computation of the alternatives available and thorough evaluation is taken place when the purchase will take place.

So, for most of the people, when the decision of purchase is to be made like for the Ford automobile, the people will choose the extended decision making as it is expensive, infrequently purchased products.

5 0
2 years ago
Read and compare the following two scenarios. Explain why the court should or should not pierce the corporate veil in each scena
Sunny_sXe [5.5K]

Answer:

Piercing the Corporate Veil:

1. Smith Services, Inc. and Laker Express:  With the given facts, Smith Services is still in operation by the alter ego, since Smith - the sole owner, has continued to provide trucking services.  Smith should be able to pay for the debts it owed Laker Express.  The question is: why was Smith Services, Inc. dissolved in the first place when the sole owner could continue privately to do the same business?  Is there element of fraud involved, or was it trying to avoid its obligations?  It seems that the dissolution was an effort to avoid liabilities and not because of impaired ability to operate the business because its own debtors did not pay for services on several contracts.  Another question is: during the dissolution or liquidation of Smith Services, Inc. were other creditors not settled and where was Laker Express then?

However, it appears that the dissolution was just to avoid liability, especially the $35,000 debt owed to Laker Express for fuel purchases.

Therefore, in this situation where it seems that the corporate form is ignored, commingling of assets exists, and that Smith Services, Inc. is an instrumentality for Tony Smith, I will advise that the corporate veil be lifted.  Tony Smith should be held liable for the business debts of Smith Services, Inc. because he has continued to use the assets of Smith Services, Inc. to run a sole proprietorship in the same line of business.  However, recourse must be had to the State laws on piercing the corporate veil.

2. Country Contractors, Inc. & Westside Storage of Indianapolis:

Since Country Contractors, Inc and the Westside Storage are based in Indiana, the decision to pierce the corporate veil should be based on the eight factors that are applicable for piercing the veil:  They include: undercapitalization;  absence of corporate records;  fraudulent representation by corporation shareholders or directors;  use of the corporation to promote fraud, injustice or illegal activities;  payment by the corporation of individual obligations;  commingling of assets and affairs;  failure to observe required corporate formalities; or  other shareholder acts or conduct ignoring, controlling, or manipulating the corporate form.

But, the facts in this case do not support that any of the factors had been breached.

So, I do not support that Songers are personally liable for Country's failure to complete its contract.

Explanation:

The corporate veil is an important instrument for protecting shareholders of corporations from being held liable for the liabilities of the corporation in their individual and personal capacities.  Corporate veil ensures that the entity is treated as a separate entity from its shareholders.  It is a protection offered by law to encourage private enterprise and ensure that the debts of corporate bodies are not tagged to the individual shareholders.  It is this veil that ensures the limited liability concept, whereby, the shareholders could only lose their capital contributions in case of business failure or dissolution.

Piercing the corporate veil is a court decision to lift the veil that separates the shareholders of corporation from their shareholders.  There are special factors that must be met for courts to pierce the corporate veil and they do it reluctantly.

5 0
2 years ago
Discuss and analyze a situation where you worked on a team/project team consisting of diverse or intercultural team members. Con
pav-90 [236]

Explanation:

a. It is common that there are challenges in multicultural companies, communication can be a problem in companies where there are language barriers for example, which can cause significant communication noises that can cause misunderstanding and difficulty integrating a member of a culture different when joining a work team.

b. There are several different cultural values ​​that can directly influence the work environment, the issue of formality for example is a factor that differs from country to country, and the lack of formality of an employee for example can be seen as rude, invasive behavior or unprofessional, when in fact it may just be a cultural feature of countries where the work environment is less informal and more flexible.

c.  To make communication more effective, it is necessary to prepare the organization, that is, the development of policies, organizational culture and programs aimed at inclusion and respect for the different cultural values ​​present in the organization.

It is essential that the company prepare its managers and employees to receive workers from other countries, developing a favorable environment for the exchange of positive experiences, aimed at integration, collaboration and ethical behaviors.

4 0
3 years ago
During 2020, Stellar Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs to Stellar for a
Ber [7]

Answer:

What is the amount of gross profit realized during 2020?

(460 x $33.30) + (230 x $29.60) + (276 x $18.50) = $27,232

What is the amount of inventory of unsold straight chairs on December 31, 2020?

[(920 - 460) x $56.70] + [(690 - 230) x $50.40] + [(1,610 - 276) x $31.50] = $26,082 + $23,184 + $42,021 = $91,287

Explanation:

lump sum cost of chairs = $137,655

Type                     Chairs       Selling Price Each       Total

Lounge chairs       920                     $90                 $82,800

Armchairs              690                     $80                   $55,20

<u>Straight chairs      1,610                     $50                $80,500</u>

total                      3,220                                          $218,500

if we allocate costs based on resale, then each chair should cost:

Lounge chairs $90 x ($137,655 / $218,500) = $56.70

Armchairs $80 x ($137,655 / $218,500) = $50.40

Straight chairs $50 x ($137,655 / $218,500) = $31.50

contribution margin per chair:

Lounge chairs $90 - $56.70 = $33.30

Armchairs $80 - $50.40 = $29.60

Straight chairs $50 - $31.50 = $18.50

7 0
3 years ago
Other questions:
  • You consider buying a share of stock at a price of $31. the stock is expected to pay a dividend of $2.58 next year, and your adv
    12·1 answer
  • The fallacy of _____ is arguing erroneously that what can be said of the whole can be said of the parts.
    5·1 answer
  • Jarrett company is considering a cash outlay of $300,000 for the purchase of land, wich it could lease our for $36,000 per year.
    15·1 answer
  • An investor has a $5,000 pretax return, The state tax rate is 4.5%, and the federal tax rate is 22.0%, what is the real investme
    5·1 answer
  • Which of the following journal entries is recorded correctly and in the standard format?
    15·1 answer
  • Rita, a salesperson in a textile manufacturing company, makes a sales pitch to a representative of a garment manufacturing compa
    7·1 answer
  • Which one of the following is an example of systematic risk?
    8·1 answer
  • A small company heats its building and spends ​$8 comma 000 per year on natural gas for this purpose. Cost increases of natural
    6·1 answer
  • A jeweler can potentially use two inputs in her handcrafted jewelry: copper or bronze. She finds that when she minimizes her cos
    8·1 answer
  • Provide 8 factors that impede business ability of Africans
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!