Answer:
Projects D and E should be purchased.
Explanation:
since the firm's capital structure is 60% debt and 40% equity, it can pursue up to 2 projects. Only projects D, E and F have an internal rate of return higher than the company's WACC, so project G is discarded immediately.
Since projects D and E have a higher IRR, they should be selected.
- project D: $70,000, IRR = 18%, debt = $42,000, equity = $28,000
- project E: $85,000, IRR = 15%, debt = $51,000, equity = $34,000
- total equity invested = $62,000
Based on the fact that Forward Co. discarded a machine with cost $5,000, the entry to record this transaction in the books would include a credit to Machinery.
<h3>How do you dispose of fixed assets?</h3>
When fixed assets are to be disposed of, the accumulated depreciation upt to that point is looked at to calculate the net book value.
This would then show the company if they made a profit or a loss when they sold the fixed asset with a profit being made when the selling price is higher than the net book value.
Regardless of the price the fixed asset is sold at, the company would record a credit to the fixed asset (machinery) account to show that the fixed asset account is decreasing.
In conclusion, there will be a credit to machinery.
Find out more on disposing fixed assets at brainly.com/question/14542603
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Answer:
The Portfolio beta is 1.1045
Explanation:
The computation of the portfolio beta is given below:
<u>Stock Beta Investment (Weight) Weighted Beta
</u>
Stock Q 0.8 0.3 0.2400
Stock R 1.18 0.25 0.2950
Stock S 1.19 0.25 0.2975
Stock T 1.36 0.2 0.2720
Portfolio beta 1.1045
Answer: C) Continuously improve their products at home.
Explanation:
Protectionism policies like tariffs and import quotas have the effect of reducing free trade which erodes consumer welfare as well as hurting trade so should be avoided if better options exist.
One of those is for a company to increase its market base instead of relying on protection from the government. If they can expand into foreign market, they will have a larger market in which to trade their goods and increase profitability.
Another way is to improve their products at home. Better products would attract more customers to their products and increase profitability.
Unemployment is the art of being jobless. Unemployment rate is the number of people unemployed as a percentage of labor force where the labor force include those unemployed plus those in paid or self employment. There are several types of unemployment including, seasonal , cyclical, structural and frictional unemployment among others. In this case, cyclical employment involves layoffs during recessions.
