Answer:
Total PV= $2,736.39
Explanation:
Giving the following information:
Year Cash Flow
1 $ 870
2 950
3 0
4 1,540
<u>First, we need to calculate the real annual discount rate:</u>
Quarterly Discount rate= 0.08/4= 0.02
Real annual interest rate= [(1+i)^n] - 1
Real annual interest rate= [(1.02^4) - 1]
Real annual interest rate= 0.08243
<em><u>Now, we can calculate the present value of the cash flows:</u></em>
PV= Cf/(1+i)^n
Year 1= 870/1.08243= 803.75
Year 2= 950/1.08243^2= 810.82
Year 4= 1,540/1.08243^4= 1,121.82
Total PV= $2,736.39
Answer:
PV= $15,291.74
Explanation:
Giving the following information:
Annual cash flow= $1,5000
Number of years= 20
Interest rate= 7.5%
To calculate the present value, first, we need to determine the future value using the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual cash flow
FV= {1,500*[(1.075^20) - 1]} / 0.075
FV= $64,957.02
Now, we can calculate the present value:
PV= FV/(1+i)^n
PV= 64,957.02/(1.075^20)
PV= $15,291.74
Answer:
The correct answer is letter "A": stress.
Explanation:
Stress interviews are those where applicants are tested in critical skills such as problem-solving scenarios <em>role-playing</em> those situations to find out how the applicant reacts. These evaluations place a special focus on having prospective employees show what they are capable of before being hired. Stress interviews also let applicants know what a regular day at work could be with the position they are applying for so they can review if it is what the applicants are looking for.
Answer:
For now, it is better to keep producing in house. If demand increases, Pottery Ranch must outsource some of the production.
Explanation:
Giving the following information:
The variable manufacturing overhead is charged to production at a rate of 63% of direct labor cost. The direct materials and direct labor cost per unit to make a pair of finials are $3.51 and $4.73, respectively. Normal production is 28,300 curtain rods per year.
A supplier offers to make a pair of finials for $13.20 per unit.
Fixed costs are a sunk cost, therefore it is not taken into account.
Make in house:
Unitary cost= 3.51 + 4.73 + (4.73*0.63)= $11,22
Outsource:
Unitary cost= 13.20
For now, it is better to keep producing in house. If demand increases, Pottery Ranch must outsource some of the production.
Answer:
The correct answer is letter "C": one of several products produced from a common input.
Explanation:
Joint products are those manufactured by large companies which production process at the early stages is the same for all different products being produced but at a certain stage, called the<em> split-off</em>, products start taking their own characteristics. As the products come from the same input initially, costs are allocated in a bundle. After the split-off, production costs are allocated in each type of product.
