Answer:
a. 2.23
b. 3.21
Explanation:
a. Answer to Part A
Payback Period = Investment / Annual Cash Inflow
= 250000 / 112115
= 2.23
Answer to Part B
Payback Period = Investment / Annual Cash Inflow
= 200000 / 62375
= 3.21
Working Note
<em>Particulars Case A Case B
</em>
After Tax Income 72115 39000
Add: Depreciation 40000 23375
Cash Inflow 11,2115 62375
<em>Particulars Case A Case B
</em>
Cost of Machine 250000 200000
Less: salvage Value 10000 13000
Depreciable Value 240000 187000
Life of the Asset 6 8
Annual Depreciation 40000 23375
Answer:
Limited liability company
Explanation:
In simple words, A limited liability corporation (LLC) is a type of private company structure. It's among the most frequent legal structures for forming a company. In a comprehensive partnerships all members are accountable for the firm and have unlimited accountability for its obligations.
Thus the limited liability structure is most suitable for the two.
Answer:
$512,000
Explanation:
The computation of Number of Share included for computing diluted earning per share is shown below:-
For computing the Number of Share included for computing diluted earning per share we need to find out the issued shares and Stock option which is given below
Issued Shares = 200,000 × 6 ÷ 12 (From July to December)
= $100,000
Stock option = 60,000 - (60,000 × $28 ÷ $35)
= $12,000
So, Total stock outstanding = Shares at Beginning + Issued Shares + Stock option
= 400,000 + $100,000 + $12,000
= $512,000
Answer:
Volume objectives
Explanation:
Volume objectives are the bases pricing decisions on market share, the percentage of a market controlled by a certain company or product.
Volume Objectives refer to the objectives based on the part of a market controlled by a certain product. This helps to calculate the minimum sales of a product at a certain price level to cover all the production costs.
In the given question, the team should use volume objectives for its action plan.
Answer:
Over this 10-year period, the benefit to cost ratio is:
= 1.33.
Explanation:
a) Data and Calculations:
Cost of additional anti-pollution equipment = $2 million
Estimated useful life of the equipment = 10 years
Additional annual labor cost for equipment usage = $100,000
This gives a total labor cost of $1 million over the 10-year period.
Therefore, the total cost = $3 million
Savings (benefits) from lowering the air pollutants in the region = $4 million in medical expenses.
The benefit-to-cost ratio (BCR) = $4/$3 = 1.33
b) The Benefit-to-cost ratio (BCR) is a cost–benefit analysis that summarizes the value-for-money of a project by expressing the relationship between the project's benefits and costs in monetary terms. The BCR shows the future profitability of investment alternatives or options. It is normally expressed in terms of net present value.