Answer: $1,200,000
Explanation:
The firm should include $1,200,000 as the cost of the Manufacturing facility for a new project in it's analysis.
This is because $1,200,000 is the opportunity cost of not selling the facility. The old costs that were incurred for the land and the facility are to be considered sunk costs as they have already been incurred and the only relevant cost now is what the market will pay for the facility which is $1,200,000.
Answer:
Net income of the company accounted for $400,000
Explanation:
Net income is the income or the amount of residual income from the earnings after deducting all the expense or cost from the sales.
The net income or loss of the company accounted for is computed as:
Net Income or Loss = Net Income - Research and Development cost
where
Net Income amounts to $3,400,000
Research and Development cost amounts to $3,000,000
So, putting the values above:
Net Income or loss = $3,400,000 - $3,000,000
Net Income = $400,000
Answer: $688.17
Explanation:
He has to pay $60 every month on the first day or a lump sum.
The lump sum will be the present value of monthly payments.
This is a stable Cashflow and so is an Annuity and because it is done on the first day of the month it is an Annuity due.
Calculating present value of annuity due is;
= Annuity + Annuity (( 1 - ( 1 + r) ^ -(n - 1)) / r)
= 60 + 60 (( 1 - ( 1 + 0.833%)-¹¹) / 0.833%) )
=60 + 60* 10.4695
= $688.17
Note: interest rate must be divided into 12 to make it monthly rate.
=10%/12
= 0.833%
Answer:
The correct answer is letter "B": Companies are formed to create value for society.
Explanation:
The Committee of Sponsoring Organizations (<em>COSO</em>) is an international acknowledgment organism where basic risk regulating frameworks and accomplishment in organizational internal control matters are established. When it comes to Enterprise Risk Management (<em>ERM</em>) the committee proposes key principles and concepts for clear guidance.
Creating value for society is not included in one of the core objectives of the COSO ERM.
Answer and Explanation:
The computation is shown below:
a) Liabilities to equity ratio is
= $200 ÷ ($500 - $200)
= 0.667
Times interest earned ratio is
= EBIT ÷ Interest expense
= $120 ÷ $28
= 4.285
Times burden covered is
= EBIT ÷ (Interest +Principal repayment ÷ ( 1 -tax rate))
= 120 ÷ (28+24 ÷ (1-0.4))
= 1.764
b)
Interest paying requirements
= ($128 - $20) ÷ 120
= 76.7%
Principal and interest requirements
= [$120 - ($28 + $24 ÷ (1-0.4))] ÷ 120
= 0.433 or 43.3%
Principal, Interest and Common dividend payments -
= [$120 - ($28 + (($24 + 0.3 × 20) ÷ (1 - 0.4))] ÷ 120
= 0.35 or 35%
