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cluponka [151]
3 years ago
9

Paradise, Inc., has identified an investment project with the following cash flows. Year Cash Flow 1 $625 2 875 3 1,150 4 1,250

Required: (a) If the discount rate is 11 percent, what is the future value of these cash flows in year 4? (b) What is the future value at a discount rate of 18 percent? (c) What is the future value at discount rate of 30 percent?
Business
1 answer:
MissTica3 years ago
5 0

Answer:

(a) If the discount rate is 11 percent, what is the future value of these cash flows in year 4?

To solve this problem, we must find the FV of each cash flow and add them.

To find the FV of a lump sum, we use:

FV = PV(1 + r)^t

[email protected]% = $625(1.11)^3 + $875(1.11)^2+ $1,150(1.11) + $1,250 = $4459

(b) What is the future value at a discount rate of 18 percent?

FV = PV(1 + r)^t

[email protected]% = $625(1.18)^3+ $875(1.18)^2+ $1,150(1.18) + $1,250 = $4852

(c) What is the future value at discount rate of 30 percent?

FV = PV(1 + r)^t

[email protected]% = $625(1.30)^3+ $875(1.30)^2+ $1,150(1.30) + $1,250 = $5597

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The predetermined overhead rate for manufacturing overhead for 2020 is $4.00 per direct labor hour. Employees are expected to ea
timofeeve [1]

Answer:

$60,000

Explanation:

The computation of the estimated manufacturing overhead is shown below:

Estimated manufacturing overhead = Direct labor hours × predetermined overhead rate

where,

Direct labor hours = Total Direct labor cost ÷ Cost per hour

                              = ($100,000 × 75%) ÷ ($5)

                              = 15,000 direct labor hours

Now the estimated manufacturing overhead equal to

= 15,000 direct labor hours × $4

= $60,000

3 0
3 years ago
Which incentives do interest groups engage in to overcome the free rider problem?
slava [35]

Answer:

The correct answer is letter "D": All of these are correct.

Explanation:

The Free Rider Problem refers to someone being able to gap for less or even for free what others pay more for. The problem arises when individuals are unwilling to pay their fair share for something that most others pay for. The problem is more often while talking about public goods. To avoid this issue, some sort of special must be given to consumers such as discounts, promotions for subscriptions or special information online.

6 0
2 years ago
Gale Corporation manufactures windsocks. The business recently decided to adopt an ABC system. The following activities have bee
solniwko [45]

Answer:

$270,000

Explanation:

The first step is to calculate the overhead cost of the material handling parts

Since each wind stock require 3 parts then the overhead cost can be calculated as follows

= 3 × 20,000

= 60,000

The overhead cost of machining hours can be calculated as follows

Since 5 minutes is spent in the machining department then overhead cost is

= 5× 20,000

= 100,000

The overhead cost of packaging number of finished units can be calculated as follows

= 2 × 20,000

= 40,000

Total overhead cost= 100,000 + 60,000 + 40,000

= 200,000

The total cost of direct materials and labor can be calculated as follows

= 3.5 × 20,000

= 70,000

Therefore the total cost of producing 20,000 windstocks is

= Total overhead cost + total cost of direct materials and labor

= 200,000 + 70,000

= $270,000

Hence the total cost of producing 20,000 windstocks is $270,000

5 0
3 years ago
EPA regulations permit the release of 150 micrograms of particulate matter per cubic meter of air every 24 hours from paint shop
lesya [120]

Answer:

Legal approach of green management  Utilimotors use

Explanation:

we use here Legal approach

because Legal approach is the type of green management approach and which is simply following that what is required by the law

and They try to comply with the current laws and regulations

but do not go anything further.

so here Utilimotor is using the legal approach by following the EPA regulation and ensuring to release emissions only within the permissible limit

so Legal approach of green management  Utilimotor use

3 0
3 years ago
The output of u. S. Citizens who work in canada would be included in the
mestny [16]

The output of u. S. Citizens who work in Canada would be included in the: D. Gross domestic product.

<h3>What is gross domestic product?</h3>

Gross domestic product  can be defined as the value of goods or products produce within a country at a particular period of time.

If a united State of American citizen work in Canada the output of the United State citizen will be added to the Gross domestic product of Canada.

Therefore the correct option is D.

Learn more about gross domestic product here:brainly.com/question/1383956

#SPJ12

6 0
1 year ago
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