Answer: $380 million
Explanation:
To solve the question, first we have to calculate the depreciation that'll be reported for each year and this will be:
= $1140 million/3 years
= $380 million
Then, the deferred tax liability related to the excess depreciation will be:
= ($380 million × 30%) + ($380 million ×
35%) + ($380 million × 35%)
= $114m + $133m + $133m
= $380 million
Answer:
$1.5
Explanation:
Given:
Charges per order = $30
Charges per case = $50
1 case = 5 bags of fertilizers
Number of fertilizers bags needed per year = 2000 bags
Annual holding cost, C₀ = 30%
Now,
Annual demand for cases, D = 
= 
= 400 cases
thus,
Annual unit holding cost per case, 
= 30% of $50 i.e $15
Thus,
Economic Order quantity ( EOQ ) =
on substituting the respective values, we get
EOQ =
or
EOQ = 40
Now,
Annual ordering cost = Ordering cost × Number of orders
= C₀ × 
= $30 × 
= $300
Annual inventory holding cost
= Annual unit inventory holding cost × Average inventory
= × 
= $15 × 
= $300
Now,
Sum of annual ordering and holding cost per case of fertilizer
= $300 + $300
= $600
Therefore,
Annual ordering and holding cost per case of fertiliser
= 
= 
= $1.5
Answer: Factee
Explanation:
This is a factorage transaction in which Justin will pay Miguel to act as an intermediary who will sell the baseball glove and receive a commission. That commission is known as a Factorage.
In a Factorage transaction, the intermediary being paid to sell the product is considered to be the Factor and the person who will pay for the product to be sold is the Factee. Justin in this scenario is paying for the baseball glove to be sold and so is the Factee.
Answer:
The net present value of this project is $5,809.78.
Explanation:
Note: See the attached excel file for the calculation of net present value of this project.
In the attached excel file, the discounting factor is calculated as follows:
Discounting factor = 1 / (100% + required rate of return)^n
Where n is a particular year in focus.
From the attached excel file, we have:
Net present value = $5,809.78
Therefore, the net present value of this project is $5,809.78.
