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aniked [119]
3 years ago
12

Why are some modular constructions exempt from the rule that buildings must be built from the ground up?

Business
1 answer:
boyakko [2]3 years ago
5 0
The best and most correct answer among the choices provided by the question is the second choice. Modular constructions exempt from the rule that buildings must be built from the ground up because they change regularly so they are not fixed to the ground like traditional structures.I hope my answer has come to your help. God bless and have a nice day ahead!
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6. You own a coal mining company and are considering opening a new mine. The mine will cost $120.0 million to open. If this mone
VladimirAG [237]

Answer:

What does the IRR rule say about whether you should accept this opportunity?

The IRR rule basically states that if the project's internal rate of return (IRR) is higher than the cost of capital (discount rate or WACC), then the project should be accepted. In this case, we are not given the company's WACC or any discount rate we can use, therefore there is nothing to compare the project's IRR against.

Based on prior experience, this project's IRR will not be very high and if we consider the cost of keeping the site clean forever, I really doubt that the project is profitable. If you calculate the project's IRR without including the perpetual cleaning cost, IRR = 11%.

If we assume any of the 3 WACCs I used as an example below, the project's IRR including cleaning costs:

  • if WACC = 12%, then IRR = 9.26% REJECTED
  • if WACC = 10%, then IRR = 8.98% REJECTED
  • if WACC = 9%, then IRR = 8.79% REJECTED
  • if WACC = 8%, then IRR = 8.54% ACCEPTED

In order for this project to be profitable, the WACC would need to be very low (around 8% or less).

Explanation:

cost of opening a new mine $120 million

annual cash flow $20 million

expected cleaning costs $2 per year in perpetuity

the cost of keeping the site clean forever = $2 million / discount rate or WACC:

  • if WACC = 12%, then perpetual cost = $16.67 million
  • if WACC = 10%, then perpetual cost = $20 million
  • if WACC = 9%, then perpetual cost = $22.22 million
  • if WACC = 8%, then perpetual cost = $25 million

6 0
3 years ago
Way Cool produces two different models of air conditioners. The company produces the mechanical systems in their components depa
Luba_88 [7]
By supplying the right amount of funds
7 0
3 years ago
Terapin Company engages in the following external transactions for November.
balandron [24]

Answer and Explanation:

The journal entries are shown below:

1. Equipment Dr $21,300

          To cash $21,300

(Being the equipment is purchased for cash)

For recording this we debited the equipment as it increased the assets and credited the cash as it reduced the assets

2. Cash Dr $6,100

       To Service revenue $6,100

(Being the cash received is recorded)

For recording this we debited the cash as it increased the assets and credited the service revenue as it increased the revenue

3. Rent expense $900

       To Cash $900

(Being the rent is paid)

For recording this we debited the rent expense as it increased the expenses and credited the cash as it reduced the assets

4. Office supplies Dr

        To Account payable

(Being the office supplies purchased on account)

For recording this we debited the office supplies as it increased the assets and credited the account payable as it increased the liabilities

5. Salaries expense

           To cash

(Being the salaries paid is recorded)

For recording this we debited the salaries expense as it increased the expenses and credited the cash as it reduced the assets

5 0
3 years ago
The following materials standards have been established for a particular product: Standard quantity per unit of output 4.2 pound
Maru [420]

Answer: $18,224 unfavourable

Explanation:

The materials quantity variance for the month will be calculated thus:

= Standard Cost per unit × ( Actual materials Used - Actual output)

= 13.4 × [( 4,300 - 700) × 4.2]

= $18,224 unfavourable

Therefore, the materials quantity variance for the month is $18,224 unfavourable

8 0
2 years ago
Which of the following is true of the Discount on Bonds Payable account? The bonds are due inten years.A) It is subtracted from
Aliun [14]

Answer:

A) It is subtracted from the Bonds Payable balance and shown with long-term liabilities on the balance sheet

Explanation:

The discount on Bonds payable, as their name implies, decrease the Bonds Payable carrying value. A bond with discounts, was issued at a lower price than his face value. The discount on bonds represent that difference.

It takes amortization while the time past, until at maturity, their balance is zero, to represent the reality, the obligation for the company is for the face value, so the carrying value of bonds payable should equal the face value.

Last, because the bonds are due in ten-year their place is the long-term liabilities. As their obligation are not within the 12 month period to qualify as short-term

8 0
3 years ago
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