Dana and Emile allocate 2/3 of their partnership's profits and losses to Dana and 1/3 to Emile. The net income of the firm is
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Answer:
Present value of Project X is $41990.6
Present value of Project Y is $34605.2
Explanation:
<u>PROJECT X </u>
PARTICULARS YEAR Cost/Value Present Value factor 15% Present Value
Initial Cost 0 45000 1 45000
Maintenance 1- 5 8000 3.352 26816
cost
Annual Depreciation 1-5 (8600) 3.352 (28827.2)
Salvage Value 5 (2000) 0.4971 <u> (994.2) </u>
Present value of cash outflows 41,990.6
<u>PROJECT Y</u>
<u>PARTICULARS </u> YEAR COST/VALUE Present value factor 15% PRESENT VALUE
Initial Cost 0 58000 1 58000
Maintenance 1- 5 4000 3.352 13409
cost
Annual Depreciation 1-5 (9200) 3.352 (30838.4)
Salvage Value 5 12000 0.4971 <u> (5965.2) </u>
Present Value of cash outflow 34605.2
Note: Figures in parenthesis denote cash inflow
Working Notes
Depreciation for project X = = $8600 p.a
Depreciation for project Y = = $9200 p.a
Decision: Since present value of cash outflows is lesser for Project Y, it should be taken up.
Answer:
Decrease, $350000.
Explanation:
Given: Corporation purchases 10000 shares for $35 per share.
Now, calculating cost of common stock.
Cost of common stock purchased =
∴ Cost of common stock purchased= $350000
∴ If there is increase in expense and dividend payout to common and preferred shareholder, it lead to decrease in stockholders´ equity.
Answer:
Explanation:
Given that:
A mail-order house uses 18,000 boxes a year.
Carrying costs are 60 cents per box a year =$0.60
and ordering costs are $96.
Determine:
A. The optimal order quantity.
The optimal order quantity can be calculated by using the formula:
B. The number of orders per year.
of boxes: 1,000-1,999 Price per box: $1.25
of boxes: 2,000- 4,999 Price per box: $1.20
of boxes: 5,000- 9,999 Price per box : $1.15
of boxes: 10,000 or more Price per box : $1.10
SInce 2400 boxes lies within ''of boxes: 2,000- 4,999 Price per box: $1.20 ''
Total cost = Carrying cost + ordering cost + Purchasing cost
Total cost = ( 1200) 0.60 + 7.5(96) + 1.20(18000)
Total cost = 720 + 720 + 21600
Total cost = $ 23040
If the order size is 5000, the price per box will be 1.15
Total cost = 2500 (0.60) + 3.6 (96) + 20700
Total cost = 1500 + 345.6 + 20700
Total cost = $22545.6
If the order size is 10000 , the price per box will be 1.10
Total cost = 5000 (0.60) + 1.8(96) + 19800
Total cost = 3000 + 172.8 + 19800
Total cost = $22972.8
From the three total cost, the least minimum cost of ordering is: 5000
So; the number of orders per year = total number of boxes per year/ boxes per order
the number of orders per year = 18000/5000
the number of orders per year = 3.6 orders per year