One of your favorite television shows is about law enforcement

Alpha Industries is considering a project with an initial cost of $9.7 million. The project will produce cash inflows of $1.67 m

vovikov84 [41]

Answer:

$660,000

Explanation:

WACC = [wD * kD * (1 - t)] + [wE * kE]

WACC = [(0.77 / 1.77)*6.12%* (1 - 0.40)] + [(1 / 1.77)*11.61%]

WACC = 1.60% + 6.56%

WACC = 8.16%

Present value of annuity = Annuity*[1-(1+interest rate)^-time period]/rate

Present value of annuity = $1.67*[1-(1.08156745763)^-9]/0.0816

Present value of annuity = $1.67*6.206374532

Present value of annuity = $10.36 million

NPV = Present value of inflows - Present value of outflows

NPV = $10.36 million - $9.7 million

NPV = $660,000

5 0

3 years ago

Red Hot Chili Peppers Co. had the following activity in its most recent year of operations.Classify the items as (1) operating—a

lora16 [44]

Answer:

a. Purchase of Equipment - (3) investing

b. Redemption of bonds payable - (4) financing

c. Sale of building - (3) investing

d. Depreciation - (1) operating—add to net income;

e. Exchange of equipment for furniture - (5) significant noncash investing and financing activities

f. Issuance of capital stock - (4) financing

g. Amortization of intangible assets - (1) operating—add to net income

h. Purchase of treasury stock - (4) financing

i. Issuance of bonds for land - (5) significant noncash investing and financing activities

Explanation:

The cash flow statement categories the company's transactions in a financial period into 3 groups; these are operating, investing and financing.

The net profit/loss, depreciation, changes in current assets (other than cash) and liabilities are considered as operating activities including income taxes.

The sale of assets, interest received, purchase of investments are examples of investing activities while the issuance of stocks, debt principal deduction (loan settlement), issuance of debt securities etc are examples of financing activities.

7 0

4 years ago

Increasing returns would be a situation where a firm increases its workforce and other inputs by:

Arte-miy333 [17]

The increasing returns would be a situation in which the firm increases their workforce and other inputs in a matter of having to increase the workforce by five percent and having to increase the output in a total of eight percent.

6 0

4 years ago

Whispering Winds Corp. has the following transactions during August of the current year. Aug. 1 Issues shares of common stock to

k0ka [10]

Answer:

Aug. 1 Issues shares of common stock to investors in exchange for $10,800.

Accounting equation:

Asset + 10,800

Equity +10,800

Journal entry:

cash 18,000 debit

common stock 18,000 credit

Aug. 4 Pays insurance in advance for 3 months, $1,200.

Accounting equation:

Asset + 1,200

Assets - 1,200

Net 0

Journal entry:

prepaid rent 1,200 debit

cash 1,200 credit

Aug. 16 Receives $730 from clients for services rendered.

Accounting equation:

Asset + 730

Equity +730

Journal entry:

cash 730 debit

revenues 730 credit

Aug. 27 Pays the secretary $580 salary

Accounting equation:

Asset - 580

Equity - 580

Journal entry:

salaries expense 580 debit

cash 580 credit

Explanation:

We need to disclose how the impact in the accounting equation and the journal entry should be done:

Aug 1st the common stock is an equity account that is increasing

we receive cash that is an asset

August 4th we are using our cash to pay in advance the rent.

this gives a right to use the rental space for 3-months thus, it is not an expense is a new asset. There is no change in the accounting equation only the composition of assets changed.

August 16th we recognize earnings through revenues account this increases the equity of the company as well as assets.

August 27th in this case we pay the salaries which are an incurred cost, therefore, expense. This decreases equity.

We also use cash making assets to decrease as well.

6 0

3 years ago

One of juran's ten steps to quality improvement states that:

daser333 [38]

Answer:

an organization should build awareness of the need and opportunity for improvement.

Explanation:

Juran’s 10 steps to quality improvement are:

Build awareness of opportunity to improve.

Set-goals for improvement.

Organize to reach goals.

Provide training

Carryout projects to solve problems.

Report progress.

Give recognition.

Communicate results.

Keep score.

Maintain momentum by making annual improvement part of the regular systems and processes of the company

6 0

3 years ago