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NemiM [27]
3 years ago
12

onghorn Fabricators Inc. plans to expand its metals-forming facility over the next 5 years. The company will add 20,000 square f

eet to its 100,000-square-foot plant as it adds robotic welding units, additional laser technology, and automated loading facilities. Construction at the plant is expected to start by the end of next year. The company expects to pay 5 equal payments of $250,000 every 12 months over the 5 year period. What is the future value of the total improvement cost, if the interest rate is 18% per year, compounded every 12 months?
Business
1 answer:
Ann [662]3 years ago
7 0

Answer:

Future value of total improvement cost = $1,788,552.44

Explanation:

As per the data given in the question,

Regular deposit amount = $250,000

No. of period = 5 years

Interest rate = 18%

Future value = Regular deposit amount × [((1+interest rate per period)^no. of period - 1) ÷ interest rate per period]

Face value = $250,000×[((1+0.18)^5-1) ÷ 0.18]

= $250,000×7.154

= $1,788,552.44

Future value of total improvement cost = $1,788,552.44

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Mountain Made started the month with 3 quilts in its beginning inventory that cost $200 each. During the month, Mountain Made pu
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Answer:

Cost of Goods Sold for the month is $1656

Explanation:

Weighted Average Cost System calculates a new average for goods after each purchase.

Mountain Made Inventory Balance runs as follows:

<u>At Beginning:</u>

(3 quilts × $200) = $600

<u>After Purchased of 7 additional quilts for $210 each:</u>

(3 quilts × $200) + (7 quilts × $210) = $2070

New Inventory Cost = $2070/10quilts =$207 each

<u>At end</u>

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Therefore cost of sold quilts is 8 × $207 = $1656

8 0
4 years ago
Marston Manufacturing Company has two divisions, L and H. Division L is the company’s low-risk division and would have a weighte
uysha [10]

Answer:

Should Marston Manufacturing Company accept or reject the project?

Marston C Company should reject the project because its expected return is lower than Division H's cost of capital.

Since the divisions' risk is so different, and probably their projects are also very different, the company should use different costs of capital to accept of reject the projects based on each division's cost of capital.

Imagine another situation where Division L is evaluating a project that yields 10%. If they used the company's WACC, then they should reject the project, but if they used the division's cost of capital, then they should accept the project (in this case I would recommend accepting it).

Explanation:

Division H's risk = 14%

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3 0
3 years ago
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Learn more about production  here brainly.com/question/24481793

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6 0
2 years ago
Should be subtracted from the sales price per unit to compute the unit contribution margin.
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All variable costs s<span>hould be subtracted from the sales price per unit to compute the unit contribution margin.</span>
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